GameSpot may receive revenue from affiliate and advertising partnerships for sharing this content and from purchases through links.

Sony expects to immediately recoup PS4 hardware loss

A typical customer purchasing a PlayStation Plus subscription and one launch title will make the PlayStation 4 hardware profitable for Sony.

197 Comments

Sony expects to be able to immediately make up the loss it will incur when selling PlayStation 4 hardware, the company has said to Eurogamer.

No Caption Provided

Sony Japan executive Masayasu Ito said the loss, as Sony will sell the PlayStation 4 to customers for less than it costs to manufacture, will be recovered with typical users buying a subscription to PlayStation Plus and at least one launch title.

Eurogamer adds that Sony expects to make a $60 loss on each PlayStation 4 sold for $399, but Ito would not confirm the exact figure.

Ito also added that the losses Sony will make from selling PlayStation 4's will be less than the company incurred selling the PlayStation 3 at launch.

In August, Sony executive Andrew House said the PlayStation 4 "will not generate anything like the losses we did for the PlayStation 3."

One of the reasons Sony expects to save money is in its decision to use off-the-shelf computer parts. The PlayStation 4 features an APU developed with AMD, featuring an 8-core 64-bit processor and a custom Radeon GPU.

The PlayStation 4 will launch on November 15 in North America for $399, and on November 29 in Europe for €399/£349.

Please use a html5 video capable browser to watch videos.
This video has an invalid file format.
00:00:00
Sorry, but you can't access this content!
Please enter your date of birth to view this video

By clicking 'enter', you agree to GameSpot's
Terms of Use and Privacy Policy

Got a news tip or want to contact us directly? Email news@gamespot.com

Join the conversation
There are 197 comments about this story
197 Comments  RefreshSorted By 
GameSpot has a zero tolerance policy when it comes to toxic conduct in comments. Any abusive, racist, sexist, threatening, bullying, vulgar, and otherwise objectionable behavior will result in moderation and/or account termination. Please keep your discussion civil.

Avatar image for NaNoSQDX
NaNoSQDX

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

I'm looking through all the comments and I'm seeing a lot of PC gamers talk about how graphics are so much better...well duh. We as console gamers already know this, but graphics don't make the game. They make them more pleasing to the eye, yes. It's all about GAMEPLAY and STORY. Nothing more nothing less. I'll be getting a ps4. Sony has improved everything and added on what the ps3 does not have. So I'll be benefiting more from ps4 than Xbox one or PC IMO. I will however get an Xbox One in the future when I see games that appeal to me.

Upvote • 
Avatar image for Flames03
Flames03

80

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

$60 every unit sold sony cant keep losing money like this.5 billion loss on the PS3 and 2 billion loss on the PS vita.Now $60 loss on every PS4 sold.Glad i stayed with Xbox and went with the X1 making money from day one.Good chance this could be sonys last console

Upvote • 
Avatar image for Erybdylvseggnog
Erybdylvseggnog

59

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Erybdylvseggnog

@Flames03 How does a company investing less in its console benefit you? The concept of making a loss at launch for them is only a viable risk if they believe in their product and want to provide the CUSTOMER (which I'm assuming is you unless you're a pro troller on Microsoft's payroll) with the best product possible at launch in order to future proof it as long as possible. Developers are already saying the XBONE is less powerful than the ps4 so again why does this make you happpy?

Upvote • 
Avatar image for Brine-
Brine-

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@Flames03 Did you even read?

Upvote • 
Avatar image for deactivated-5942c595a3329
deactivated-5942c595a3329

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@Flames03 You must be the only person that belives that....

Upvote • 
Avatar image for mortalkombat88
mortalkombat88

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

For the Winghers - I have a High end PC - Every COD I've ever bought was PS3
Thats where my friends were, thats where I play with them, PS3.

PC owners - I get it. - If thats where your friends are playing, but most of my social gaming is on PS3, (COD, BF, Mortal Kombat, Tekken, Street Fighter; Whatever.

Consoles are for the in-between to the casual pro Gamers. Most decent gamers.

Most of your friends will have a console, 90% of you will have the same console and play at similar times, screw the Console War - everyone has decided already, and guess what? you all have PCs and decent internet already, so just do what what ever you want. Specs means nothing if your playing by yourself, and all of your mates are having a better time playing the game on a different format.

Upvote • 
Avatar image for spikepigeo
spikepigeo

597

Forum Posts

0

Wiki Points

0

Followers

Reviews: 12

User Lists: 0

See, people? The hardware in the PS4 is just as expensive as a good PC. Instead of just dropping that extra cash and getting a superior machine, you pay a smaller price, get the box, then pay the difference over time with a *mandatory* subscription and per-game licensing fees anyway. It's essentially a mortgage on your gaming system. You might even end up paying more than it's worth over time.

Sony isn't going to make the same mistake they made with the PS3. It took them years and years to break even with that thing.

Upvote • 
Avatar image for mulatto79
mulatto79

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

at lunch i wil get one game ps+ and ps camera my system is already paid full at my gamestop plus im sitll have my ps3 to sell it to buy at least another 3 games...

Upvote • 
Avatar image for usedfanhalo117
usedfanhalo117

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

don't care.. as long as it's cheaper than other next gen console, I dunno bout PC cause ever PC I used for gaming is also used for my bro homeworks and my dad's program...

Upvote • 
Avatar image for NaturallyEvil
NaturallyEvil

559

Forum Posts

0

Wiki Points

0

Followers

Reviews: 2

User Lists: 0

Congratulations $ony and M$. I used to be an unbiased person who could judge the actual games on their own merits, but you have made a PC Elitist Fanboy prick out of me. Gaze into my wallet and hunger, and despair.

Upvote • 
Avatar image for Lawrencevanrijn
Lawrencevanrijn

312

Forum Posts

0

Wiki Points

0

Followers

Reviews: 97

User Lists: 0

I don't get it, so much BS on the console making profit or making loss. They might allow for loss if many immediately start playing the PS4. Many will. Yes, the Playstation plus is a good buy (much better then the 360 gold). there are issues, but so far none remain negative for Sony. Sony remained true to the gamers and more will come our (the gamers way). next step will be up to the game developpes to bring out something more appealing then an Assasins Creed 5 riddled with glitches we've had since Assasins creed 2 (we can dream, can't we?)

PS4 is in the position to open up new levels of gaming, but will the developer do that or rely on marketing to wordplay fake innovation? Time will tell!

2 • 
Avatar image for ArabrockermanX
ArabrockermanX

3209

Forum Posts

0

Wiki Points

0

Followers

Reviews: 5

User Lists: 0

Edited By ArabrockermanX

Lets see low-end CPU with a mid range GPU... Don't break the bank over there Sony.


These "next gen" consoles are a rip off if they didn't require online services they wouldn't be too bad but tack on $50-60 a year(if they don't raise the price at some point) and they start to get costly for low end specs.

The message this generation seems to be go PC...

Upvote • 
Avatar image for Raginfrijoles
Raginfrijoles

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Raginfrijoles

@ArabrockermanX At $50-60 a year it would take you at least 10 years to make it anywhere near a decent PC price range. You aren't paying for the hardware. You are paying for a standardized medium that gives developers healthy limitations so that they can make games that everyone "can" play. Who gives a flying shit about graphics anymore. It has always been and always will be about gameplay. So go ahead and drop 2k-5k on a computer. More power to you. But don't make these consoles out to be a "rip off". They give people like me the opportunity to play next-gen games without worrying about my PC specs every goddamn year.....

Upvote • 
Avatar image for ps4fanboy2013
ps4fanboy2013

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By ps4fanboy2013

@ArabrockermanX Go get a PC for under $400 at a store and try to run games at PS4 quality and you'll realize why sony is losing money
on the PS$ hardware.

Upvote • 
Avatar image for ArabrockermanX
ArabrockermanX

3209

Forum Posts

0

Wiki Points

0

Followers

Reviews: 5

User Lists: 0

Edited By ArabrockermanX

@ps4fanboy2013 @ArabrockermanX Of course the ps4 fanboy forgets to factor in PS+ which usually releases old games for free* on a subscription... Yep free games are great especially when I'm actually paying for them and already own them... Then there's the controllers that break frequently.

Upvote • 
Avatar image for leandrro
leandrro

1644

Forum Posts

0

Wiki Points

0

Followers

Reviews: -2

User Lists: 0

@ps4fanboy2013 no youre wrong, hackers are almost not seen in most games, and they are not enough to kill the fun, fps games on joystick is stupid and a 400 dollars PC is BF4 recommended setings that is above ps4 quality

Upvote • 
Avatar image for ps4fanboy2013
ps4fanboy2013

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@ArabrockermanX @ps4fanboy2013 Looks like dedicated servers are going to be a big part of next gen consoles so Lag switching will be a thing of the past.

Upvote • 
Avatar image for ArabrockermanX
ArabrockermanX

3209

Forum Posts

0

Wiki Points

0

Followers

Reviews: 5

User Lists: 0

@ps4fanboy2013 @ArabrockermanX And yet said PC gamers don't move to consoles... How about them lag switches? Worked rather effectively on ps3/360 online games and if you don't know what that is then don't mention another word about "hackers" because lagswitches are far more common and easier to use. So many ways to cause a network to lag that isn't even funny...


Who complains about freedom of choice? You must hate that we have more than one flavour of ice cream in this world...


Upvote • 
Avatar image for ps4fanboy2013
ps4fanboy2013

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By ps4fanboy2013

@ArabrockermanX @ps4fanboy2013 Yea but the PC fanboy forgot that all pc multiplayer games are full of hackers and cheaters. I'm sure any PC player would gladly pay $50 a year to get rid of hackers and cheaters while they're playing online MP's. Also, on Pc players can pick whatever controller/mouse/keyboard they want so it's never fair. Controllers on consoles are all standardized so everyone is competiting with the same thing. BTW PS3's controllers were cheap, but the new ones aren't like that (they're built way better i've already tried one).

Upvote • 
Avatar image for shnelle
shnelle

103

Forum Posts

0

Wiki Points

0

Followers

Reviews: 12

User Lists: 0

It has no Kinect. What else in there can make it more expensive then XBOX One.

Upvote • 
Avatar image for ps4fanboy2013
ps4fanboy2013

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@shnelle DDR5 ram compared to DDR3, Better Graphics card,more cores (more power) just to name a few...

Upvote • 
Avatar image for lifegee13
lifegee13

62

Forum Posts

0

Wiki Points

0

Followers

Reviews: 10

User Lists: 0

Sony is pissed about the money there about to loss, hope you buy the stand too lol. I wouldn't put two cent on that system until Naughty Dog releases a game. And it is based on old pc specs, go buy a gtx780 and then tell me what u think

Upvote • 
Avatar image for Zloth2
Zloth2

1780

Forum Posts

0

Wiki Points

0

Followers

Reviews: 3

User Lists: 0

Cost to manufacture? What about the cost to ship, the cost to market, and the cost to support?

Upvote • 
Avatar image for rarson
rarson

936

Forum Posts

0

Wiki Points

0

Followers

Reviews: 18

User Lists: 0

They're not off-the-shelf parts, they're parts based on upcoming PC parts.

Upvote • 
Avatar image for ArabrockermanX
ArabrockermanX

3209

Forum Posts

0

Wiki Points

0

Followers

Reviews: 5

User Lists: 0

Edited By ArabrockermanX

@rarson No they are less than off the shelf parts... An intel/IBM processor would have been much better but they went with the cheap brand AMD... Match that with a mid range GPU and pay to play online and you have an over priced PC...

Upvote • 
Avatar image for traitor_651
traitor_651

64

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@ArabrockermanX @rarson you realise that if they chose intel and mid range GPU then the PS4 would cost closer to 1000 Dollars

Upvote • 
Avatar image for Meta-Gnostic
Meta-Gnostic

977

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Meta-Gnostic

WiiU profits with 1 game sale, which probably is a lie, see no reason for it to cost that much to make even with the Gamepad. PS4 is much better value, even if Nintendo is telling the truth.

Launch PS3 20GB cost $805.85 to make, loss of $306.85 per sale.
Launch PS3 60GB cost $840.35 to make, loss of $241.35 per sale.

Launch 360 Premium cost $323.30 to make, profit of $76.70 per sale. Consumers ripped off.

Upvote • 
Avatar image for speedycerv1
speedycerv1

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@Meta-Gnostic Interesting statistics, do you have a source to back it up?

Upvote • 
Avatar image for Meta-Gnostic
Meta-Gnostic

977

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@speedycerv1 @Meta-Gnostic It's easy to find on google, just type "PS3 cost to make" and "360 cost to make".

Upvote • 
Avatar image for rarson
rarson

936

Forum Posts

0

Wiki Points

0

Followers

Reviews: 18

User Lists: 0

@Meta-Gnostic

1. No way that Sony saved $35 by using a 20GB hard drive instead of a 60GB hard drive. The difference in cost would have been a few dollars, max.

2. Microsoft lost money on those consoles at launch. No idea where you're getting your BOMs from.

Upvote • 
Avatar image for Meta-Gnostic
Meta-Gnostic

977

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@rarson @Meta-Gnostic 1. There were more differences than just hard drive size. Off the top of my head: memory card ports and wifi.

2. Maybe, I didn't look at all the estimates when I googled it.

Upvote • 
Avatar image for Shad0wg00n
Shad0wg00n

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

@rarson @Meta-Gnostic Only because of the crazy deals Sony can get as a bulk purchaser. 60 GB 2.5" was quite pricey in 2006.Also, these teardowns didn't factor in marketing, packaging or shipping IIRC!

Upvote • 
Avatar image for Lawrencevanrijn
Lawrencevanrijn

312

Forum Posts

0

Wiki Points

0

Followers

Reviews: 97

User Lists: 0

@Shad0wg00n @rarson @Meta-Gnostic not sure I agree. I upgraded the harddrive in the first month to 1Gb for $109. Never regretted that, still works like a charm today, never broke down (hope I am not jinxing that now).

Upvote • 
Avatar image for ArabrockermanX
ArabrockermanX

3209

Forum Posts

0

Wiki Points

0

Followers

Reviews: 5

User Lists: 0

@Shad0wg00n @rarson @Meta-Gnostic Those tear downs used retail prices for the GPU that was a lesser version than the retail one...

Upvote • 
Avatar image for rarson
rarson

936

Forum Posts

0

Wiki Points

0

Followers

Reviews: 18

User Lists: 0

@Shad0wg00n

That's my point though, Sony wasn't paying retail prices. I bought a 250GB hard drive in 2006 for $50 (then again, it was a 3.5" drive, not a 2.5"). I don't doubt the PS3 cost around $800 at launch, but I doubt that the hard drive difference added $35 to the cost.

Upvote • 
Avatar image for HyperionTitan
HyperionTitan

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

They should give us the PS4 for free, because after they will make millions selling the games!!!

Upvote • 
Avatar image for XxAK47xX
XxAK47xX

5003

Forum Posts

0

Wiki Points

0

Followers

Reviews: 1

User Lists: 0

no one sub subscription @ 50 bucks and a game @ 60 bucks your right up there with the xbox one. So the question is Microsoft making a profit or are they losing aswell?


Upvote • 
Avatar image for Meta-Gnostic
Meta-Gnostic

977

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@XxAK47xX Given their history, MS is making a profit or at worse losing very little. They profited on 360 hardware. They are using cheaper GPU and RAM than PS4. The only thing pushing them higher than PS4 is Kinect and a few inputs that don't add much $.

Upvote • 
Avatar image for ArabrockermanX
ArabrockermanX

3209

Forum Posts

0

Wiki Points

0

Followers

Reviews: 5

User Lists: 0

@Meta-Gnostic @XxAK47xX I think they have the same GPU/CPU just lower clock rates? Need to look into the XB1 again but the cheaper ram is a big deal. I would bet that the ps4's ram is one of the more expensive parts...

Upvote • 
Avatar image for Meta-Gnostic
Meta-Gnostic

977

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Meta-Gnostic

@ArabrockermanX @Meta-Gnostic @XxAK47xX CPU is the same just differeent clocks, MS basically overclocked their's (& GPU clock rate) at the last minute to try to make up on the inferior GPU and RAM.

But anyone who knows basic PC hardware knows 150 mhz and 50 mhz are tiny upgrades to the CPU and GPU.

I was pretty sure GPU's are different, don't feel like looking it up, so if someone cares they can google it.

Upvote • 
Avatar image for rarson
rarson

936

Forum Posts

0

Wiki Points

0

Followers

Reviews: 18

User Lists: 0

Edited By rarson

@Meta-Gnostic

"They profited on 360 hardware."

No they didn't.

Microsoft is definitely losing money, again, especially since they're packing in Kinect. I would bet they're probably losing as much or more than Sony. They may be using a cheaper GPU, but they're using a custom SoC that includes a bunch of hardware that they designed themselves and doesn't exist in Sony's box.

Upvote • 
Avatar image for Meta-Gnostic
Meta-Gnostic

977

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By Meta-Gnostic

@rarson Losing as much or more than Sony? When X1 has less expensive GPU and RAM and $100 more? Kinect does not cost $100 to manufacture. GPU and RAM are some of the most costly parts in a console.

Upvote • 
Avatar image for WantYouBad
WantYouBad

31

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

BF4 or Watch Dogs? Don't care much for the first party titles.

Upvote • 
Avatar image for speedycerv1
speedycerv1

25

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

Edited By speedycerv1

@WantYouBad Agree with this, getting watch dogs for sure, though the pc version will prob look better still, but I like the achievements better on ps, silly but oh well. Also, it comes out on ps4 before it comes out on ps3 or any other platorm if the dates are right, lol.

Upvote • 
Avatar image for Hurvl
Hurvl

2224

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

I hope it'll be okay if I buy two launch titles, instead of getting a PS + subscription :P.

Upvote • 
Avatar image for canuckbiker
canuckbiker

161

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

I really hope this ps plus requirement means they'll boost their server performances.

Upvote • 
Avatar image for ArabrockermanX
ArabrockermanX

3209

Forum Posts

0

Wiki Points

0

Followers

Reviews: 5

User Lists: 0

@canuckbiker lol no. MS charged for P2P gaming I don't see Sony not doing so...


The improvement will come from the ps4s hardware being able to mask lag better.

Upvote • 
Avatar image for WantYouBad
WantYouBad

31

Forum Posts

0

Wiki Points

0

Followers

Reviews: 0

User Lists: 0

@canuckbiker Jopefully, but it would make sense to save money on that and not increase it, but you still get some free games.

Upvote • 
Avatar image for leandrro
leandrro

1644

Forum Posts

0

Wiki Points

0

Followers

Reviews: -2

User Lists: 0

Edited By leandrro

@canuckbiker psn is very good today, its better than live, i had both for a while

Upvote •