PlayStation 3 System Sales No Longer a Money Pit

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PlayStation 3 System Sales No Longer a Money Pit

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It's official gang, the PlayStation 3 is now being sold at a profit.

Traditionally, videogame console creators like the current big three - Sony, Microsoft, and Nintendo - have lost money on sales of hardware to keep consumer cost down and to get their machines in as many homes as possible. This loss is then ideally made back mostly through software sales. Sony recently announced that after 3.5 years of PlayStation 3 sales, it has finally gotten the system's costs down to a point where the hardware is profitable too.

While Nintendo changed the game and made a profit on every Wii sold since its release, the PlayStation 3 is a much different story with billions estimated to have been flushed down the tubes by Sony selling it at a one-time hefty loss. Back in February, the loss on each PlayStation 3 sold was down to $18. Now, there is no loss taken at all.

As translated by Andriasang, a Japanese Reuters report stated that Sony started turning a profit on the PS3 at the end of March. Sony CFO Nobuyuki Oneda indicated that the profit is in the single digits, an he expects that the system could "reach double digit profitability in the near future."

Unfortunately for Sony, PSP and PS2 hardware and software sales were down last year. Sony expects to sell 15 million more PlayStation 3 systems this year, and at a profit to boot, while it's being rumored that Sony may also unveil the PSP2, whatever it may be, at E3 2010. Will Sony's massive PS3 investment pay off, or will something come along that turns gamer attention away from the console before the end of its supposed 10-year life cycle?

Source: Andriasang

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I'm an X360 fan and I say, "good for them". :)

No, really.

*Thumbs up*
It's about time, congrats Sony.

I'm a PS3 fan and I say, "I don't care" :/
No, not even a little.

Well, it only took years but finally makng money lol

congratulations!

Yay, finally. Now we can add this nail to the coffin of the Console Wars.
Won't it be a great world when it's finally all gone?

On the PS2 sales being down: Maybe now Sony will consider having not only a PS1 classics area in the PSN store, but a PS2 classics as well.
A guy can dream.

Congrats on this, Sony!
Now release the PS2 emulation feature you have had since day one and I'll be happy too :)

So it took Sony nearly 3 years to actually start making a profit?

Celebrations are in order! Huzzah!

Calumon: I'll go hire the Electro Gypsy to perform for us.

Wonderful

Shame about that massive loss of the sold models they have to recover from

I don't suppose you could do a similar story on the Xbox side, I am interested in the sales figures and money involved on both sides

It's like the kid who spent the last three years in the same grade finally graduating to the next one. Congrats, Sony but the rest of the class is still ahead of you.

Well that's good news.

The real question is, how many have they got to sell and over what period of time to make the PS3 break even overall?

I wonder about that with the 360 as well, not to mention how much of a deficit this puts them at against Nintendo and it's sold at a profit the whole time Wii. Never mind what it will make Sony's higher ups think about signing off a development budget for the eventual PS4, if they do it at all.

Frank_Sinatra_:
Yay, finally. Now we can add this nail to the coffin of the Console Wars.
Won't it be a great world when it's finally all gone?

On the PS2 sales being down: Maybe now Sony will consider having not only a PS1 classics area in the PSN store, but a PS2 classics as well.
A guy can dream.

Don't worry, they're on the way; that's the reason sony got rid of the BC feature.

I'm glad sony's making a profit on ps3s; now maybe they can afford to give it some half decent support.

I'm so proud of you, Sony...but it took you this long?

really? You know what it's like to live in a world were 360s are sold like wildfire and microsoft grows larger and more evil?!?

its not a nice world............freakin' 360......breaking down every half a year.......stealing all my hard earned cash for Live......

Yeah, you screwed people over by removing the Other OS feature. Including the United States Airforce, idiots.

But good news, they are making a profit.

Finally. Better late than never. However they should drop the PS2 production line and release a PS2 emulation update. I am beginning to think that the PS2 line kind of holds back the PS3 one.

Considering how stripped down they are now, I'm surprised it took this long.

Good move for the Playstation part of Sony. Way to go!

So that makes two profitable consoles--anyone know the profit values of the 360?

http://www.digitaltrends.com/gaming/playstation-3-finally-turning-a-profit-on-each-console-sold/

The interesting bit is a little buried toward the end:

By comparison, the Xbox 360, which sold at a loss of around $100 per unit when it debuted, quickly began to see a profit of $75per console within a year and a half of the its release.

Kenjitsuka:
Congrats on this, Sony!
Now release the PS2 emulation feature you have had since day one and I'll be happy too :)

Lol, don't you mean 're-release'?

Good, I'm happy that the PS3 is making profit, I'm happy when any gaming company or manufacturer is making profit. That means they can make good new games with that profit and they have less chance in closing down.

I kinda giggled abit at the "Expected to reach double digit profit in the near future" bit, but that's more me looking at it from a marketing perspective.
Also looking at it from a marketing perspective, good on them.
I think it might owe alot to the Kevin Butler ads. Those are gold.

Joe Matsuda:
I'm so proud of you, Sony...but it took you this long?

really? You know what it's like to live in a world were 360s are sold like wildfire and microsoft grows larger and more evil?!?

its not a nice world............freakin' 360......breaking down every half a year.......stealing all my hard earned cash for Live......

Odd, I've had my Xbox 360 Elite for the past two years now (back when they were still sold WITH HDMI cables), and I've accidently kicked it, spilled soup on it, accidently knocked it over (with and without games running at the time) and it has never left the house. Why? Because it has never broken down on me. The PS3 Slim that I am currently borrowing from my cousin, on the other hand, had graphical issues when I tried to use an HDMI connection with it, and while using HDMI on a home theater system, the sound often goes out, causing me to require turning the home theater system and television off to restore sound for another 30 minutes before it happens again. My cousin takes great care of his stuff, and I love some of the games on the console, but I'm speaking on a matter of experience, and with my experiences thus far with the two consoles, the Xbox 360 is more reliable. Overall reliability? I'm not gonna argue that point because I haven't owned multiple versions of the same console to speak on that.

and this took how long?

I tried to make that sound the least prickish i could

OmegaZeroX:

Kenjitsuka:
Congrats on this, Sony!
Now release the PS2 emulation feature you have had since day one and I'll be happy too :)

Lol, don't you mean 're-release'?

That would be a great announcement for them to make at E3. Or that PS2 games are coming to the store. Either way, the feature would be nice to have (again).

I respect them for being able to turn a profit now though, that's a big win for them. Always have loved Sony.

They had better hope people don't lose interest in their product. Taking away features like the "Other OS" option is a good way to do that.

There's champaigane corks popping at the PlayStation division under the banner "We're actually making money now!"

Tom Goldman:
Will Sony's massive PS3 investment pay off

Handle-and-blades industry. If game (or blu-ray) sales were ever able to offset the loss on the console, and I'm fairly certain that's not a very contentious supposition, it already paid off. Now that the handle isn't the loss leader, the investment most certainly is already paying off.

It's really only a mystery if you artificially limit the question to costs of the console itself and ask if revenues on the box alone will ever offset the initial loss-lead outlay. Most investors looking at the surrounding market will see the break-even as trivia.

Now if they can spend that money on exclusives people give 2 shits about rather than exclusive characters in Toy Story 3: the video game. ohhhh toy story.

/sarcasm

OmegaZeroX:

Joe Matsuda:
I'm so proud of you, Sony...but it took you this long?

really? You know what it's like to live in a world were 360s are sold like wildfire and microsoft grows larger and more evil?!?

its not a nice world............freakin' 360......breaking down every half a year.......stealing all my hard earned cash for Live......

Odd, I've had my Xbox 360 Elite for the past two years now (back when they were still sold WITH HDMI cables), and I've accidently kicked it, spilled soup on it, accidently knocked it over (with and without games running at the time) and it has never left the house. Why? Because it has never broken down on me. The PS3 Slim that I am currently borrowing from my cousin, on the other hand, had graphical issues when I tried to use an HDMI connection with it, and while using HDMI on a home theater system, the sound often goes out, causing me to require turning the home theater system and television off to restore sound for another 30 minutes before it happens again. My cousin takes great care of his stuff, and I love some of the games on the console, but I'm speaking on a matter of experience, and with my experiences thus far with the two consoles, the Xbox 360 is more reliable. Overall reliability? I'm not gonna argue that point because I haven't owned multiple versions of the same console to speak on that.

I've had a 360 for some time now...I've never spilled anything or kicked it or stuff like that...just had one

well, two...since I got so tired of sending the other one in for repairs...the new one broke down three months later by the way...

Nothing against you or the 360...I just don't have good luck I guess...

Well, congratulations to Sony....I'm still not buying a PS3 though.

The only thing I wonder about is, sure it's selling at a profit NOW... but when will that 'profit' equal and overtake the total amount LOST over the past few years?

Also, millions of PS3's have already sold, and given that they don't seem to be breaking down as fast as say an Xbox 360, is there a risk that there are already enough Ps3's purchased to make any gains minimal? I mean if everybody already bought a PS3 at a loss, how many people are left to buy it at a profit?

Nice job, Sony. Only took you about four years to understand economics, but still, good for you.

I would like to know about the 360 with Microsoft having a billion dollar RROD budget. Maybe next generation Sony will have its shit together

Straying Bullet:
Yeah, you screwed people over by removing the Other OS feature. Including the United States Airforce, idiots.

But good news, they are making a profit.

So now that they are making a profit. They should do "Buisness"

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