Sony says PlayStation 4 is already turning a profit and likely to top PS2 numbers

[Justin Kahn]

Sony's PlayStation 4 is already profitable for the company, according to a statement made by president Kaz Hirai at a corporate strategy meeting. In a statement translated for GameSpot, Hirai said PS4 is "already contributing a profit on a hardware unit basis," unlike typical previous console generations which took up to a few years to become profitable. Hirai is more than likely referring to the rocky start Sony's PlayStation 3 had, which was especially punctuated by the record breaking numbers PS2 racked up.

The quick turn around doesn't come to that much of a surprise after Sony reported a 38.5% year-over-year increase in sales for its gaming division across fiscal year 2013 recently. It's not just hardware sales, Sony's subscription based PlayStation Plus service has garnered quite a large attach rate. According to recent comments from Hirai, around half of the PlayStation 4 owners out there have dropped the $49.99 asking price for a one year membership. Back in April, Sony announced that there were 7 million PlayStation 4 owners out there, but we will likely hear updated numbers during E3 2014 in just few short weeks.

The PlayStation 2 was Sony's biggest gaming success to date, but the company feels that will soon change. Taking into consideration strong PS4 hardware sales, impressive PS Plus numbers, and the company's upcoming network services, Kaz Hirai said the "PS4 is likely to generate more revenue than PS2."

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https://www.techspot.com/news/56865-sony-says-playstation-4-is-already-turning-a-profit-and-likely-to-top-ps2-numbers.html

 

[John Pombrio]

Not that rosy. Here are the results Mr. Hirai published last week in his latest SONY financial report about the Games Division that sells the PS4:

SONY Games Division lost -$102 million US dollars in the past three months and had 68% more in sales over the previous year's 4th quarter. The Games Division was profitable the quarter before, making +$175 million in profits. 2013 Q2 loss -$8 million. 2013 first quarter loss -$149 million.

For the year, the Games Division had a -$78 million US dollar loss. Because the Japanese currency, the Yen, was so weak this year, SONY wrote that it made 22% more profit on the sales of PS4 and PS3 which helped to keep the overall loss down ( otherwise the loss would have been -$125 million for Games Division for the last 3 months).

Conclusion, SONY's Game Division had sales of $9.5 billion dollars with $3.5 billion dollars in game sales. That is 12.6% of the total SONY revenue for last 12 months with sales up 16% over last year. It is tied for 3rd place for losing the most money per division after phone, TV, and PC divisions.

 

[GeforcerFX]

Highly unlikely (or there talking like pennies of profit) and John pointed out the numbers clearly. I got one for $75 less then retail thanks to where I work, but the second I removed it from the package I was blown away, but not with excitment, by the shock of how poor the quality was. The whole thing feels like a $30 PC case, then I turn it on and realize that almost every feature of the PS3 I liked except 2 have been removed, so basically mine has become a dust magnet for the last 3 months. Finally dusted it off last week when I sold my main laptop and wanted to keep playing warframe.

 

[GhostRyder]

Highly unlikely (or there talking like pennies of profit) and John pointed out the numbers clearly. I got one for $75 less then retail thanks to where I work, but the second I removed it from the package I was blown away, but not with excitment, by the shock of how poor the quality was. The whole thing feels like a $30 PC case, then I turn it on and realize that almost every feature of the PS3 I liked except 2 have been removed, so basically mine has become a dust magnet for the last 3 months. Finally dusted it off last week when I sold my main laptop and wanted to keep playing warframe.

Welcome to the club, ive had the exact same issue with mine. Lack of features, no games (Almost none at least), and just an overall cheap felling amongst it. It works so I can't complain on that field, but I was able to do so much more with my 80GB backwards compatible PS3.

Ill believe they are turning a profit when they are actually turning a profit, right now all ive seen are huge losses for them which does not bode well for the future and since Sony has been caught in numerous lies lately ill be more believing once the profits actually start showing up.

 

[GeforcerFX]

Welcome to the club, ive had the exact same issue with mine. Lack of features, no games (Almost none at least), and just an overall cheap felling amongst it. It works so I can't complain on that field, but I was able to do so much more with my 80GB backwards compatible PS3.

Ill believe they are turning a profit when they are actually turning a profit, right now all ive seen are huge losses for them which does not bode well for the future and since Sony has been caught in numerous lies lately ill be more believing once the profits actually start showing up.

I just ordered a fast Pentium to replace my slow Pentium for my tower so when I get that in maybe I can sell off the PS4, all I have for games are whatever was free with my PS Plus account. Seems they go for $375 used on ebay no prob, got mine for $325 so I still make a profit.

 

[GhostRyder]

I just ordered a fast Pentium to replace my slow Pentium for my tower so when I get that in maybe I can sell off the PS4, all I have for games are whatever was free with my PS Plus account. Seems they go for $375 used on ebay no prob, got mine for $325 so I still make a profit.

You should take a look at the devils canyone Pentium its awesome.

I won't sell my PS4 mostly because of Final Fantasy, but yea.

 

[GeforcerFX]

You should take a look at the devils canyone Pentium its awesome.

I won't sell my PS4 mostly because of Final Fantasy, but yea.

Yeah I just commented on that chip on the other article lol, my tower can only do sandy bridge, got a G870 though to replace my 620t 620ts are selling for $60 I paid $65 for G870, so $5 for 900mhz seems fair to me.

 

[GhostRyder]

Yeah I just commented on that chip on the other article lol, my tower can only do sandy bridge, got a G870 though to replace my 620t 620ts are selling for $60 I paid $65 for G870, so $5 for 900mhz seems fair to me.

Indeed, I just plan on grabbing one to have some fun with and a cheap Z97 board later on. Probably will make it into a budget portable gaming rig for LAN parties when I do not feel like taking my desktop with me or using a laptop (Or I may bring it for backup incase someone needs a machine at the LAN parties).

 

[GeforcerFX]

Indeed, I just plan on grabbing one to have some fun with and a cheap Z97 board later on. Probably will make it into a budget portable gaming rig for LAN parties when I do not feel like taking my desktop with me or using a laptop (Or I may bring it for backup incase someone needs a machine at the LAN parties).

It looks like a good chip, just ran into some harder financial times, so I sold the i5 in my alienware, but I wanted to keep it up and running. I have had a Pentium G620t I got in a dead tower in the alienware but its too weak for some games like BF4. But the games it can run simply amazes me, I have always been a see what the low end can do kinda guy, but the G870 will add a good boost.

 

[GhostRyder]

It looks like a good chip, just ran into some harder financial times, so I sold the i5 in my alienware, but I wanted to keep it up and running. I have had a Pentium G620t I got in a dead tower in the alienware but its too weak for some games like BF4. But the games it can run simply amazes me, I have always been a see what the low end can do kinda guy, but the G870 will add a good boost.

Indeed, im sorry to hear that but I can understand as while in college years back I ran into some hard times and had to sell off some of my rig and build a cheaper one. It is nice to see that the lower spectrum can finally get a little bit of love from Intel because normally the only people giving that love is AMD. Im really wanting to pick one up soon so I can see how far it can be pushed!