Estimate says Sony is close to breaking even on PS4!

http://www.businessweek.com/news/2013-11-19/sony-selling-playstation-4-near-break-even-point-ihs-says-1

ALREADY! Sony really did learn from the PS3, IF THE ESTIMATES are correct. This is a random analyst, however more honest and has more details than crap like the IDC so they may be right.

If true, Sony could spend even or risks on PS4 features and software without worrying about massive losses as long as nothing goes wrong. Pretty good.

Looks like the PS4 just saved Sony for the next decade.

Amazing.

All software sales from here on out are pretty much pure profit.

They have said many times they need more than just Playstation.

You're misreading the article.

They mean that every PS4 they sell is "at cost"

Not that Sony has recouped its investment in PS4 R&D (which is probably around $1.5 billion)

Sony is so Ca$h

Uh no I said what the article title says. they are NEARING breaking even.

I don't think R&D is anywhere near that much

they reused the ps3 motherboard and are using off the shelf but slightly modified pc parts

Even with all the Ps4 hardware failures?

I'll wait at least a year before getting one, there's work to be done with the build quality.

There is still a cost to licensing, royalties, software, retail selling, etc.

So it costs Sony $381 to make the console(manufacturing costs), but that doesn't include other costs like having retailers sell it(selling cost). So they only make an $18 profit on selling the console(that of course does not include other costs other than manufacturing), but they will be able to recoup those losses through sales of games, content, and psn subscriptions.

Quote from article:

Materials for each player cost $372, and manufacturing adds $9 more in expenses, researcher IHS Inc. said today in an e-mailed statement.

Additional costs would include software, licensing, royalties and other outlays, IHS said. Retailers also collect a percentage of the sale price.

http://www.businessweek.com/news/2013-11-19/sony-selling-playstation-4-near-break-even-point-ihs-says-1

Bottomline:

Manufacturing cost : $381

Selling Cost: ?

There is still a cost to marketing, retail selling, etc. - Selling cost

So it costs Sony $381 to make the console, but that doesn't include other costs like having retailers sell it.

Quote from article:

Materials for each player cost $372, and manufacturing adds $9 more in expenses, researcher IHS Inc. said today in an e-mailed statement.

Additional costs would include software, licensing, royalties and other outlays, IHS said. Retailers also collect a percentage of the sale price.

http://www.businessweek.com/news/2013-11-19/sony-selling-playstation-4-near-break-even-point-ihs-says-1

Bottom line:

Manufacturing Cost per console: $381

Selling Cost: ?

No surprise. Nothing fancy going on in there.

Indeed, it's a strong change from the PS3 strategy.