14 DAY TRIAL // Hardware maker Sony says that it believes the PlayStation 4 home console will quickly become profitable for the company and will avoid the problems that have plagued the PS3 during the first years of its own life cycle.
Fergal Gara, the managing director of the United Kingdom division of the company, is quoted by Gamespot as saying that, “The economics of PS4 are far closer to the economics of PS2 than they are to PS3. So if you consider with PS3, it was a highly bespoke architecture; it was expensive to make. And we weren’t making money on many of those devices, even at a high price point.”
A recent breakdown of the PlayStation 4 reveals that the manufacturing costs associated with the device are slightly smaller than the price tag that the new console has in stores.
The breakdown does not take into account Research & Development costs and the resources that Sony has to use to bring the console to gamers.
Gara adds, “With PS4 we come at it at a very lean price point and our economics will be far, far favorable to the PS3. So that is a job to be commended really for the internal team and of course it’s done with the gamer in mind.”
The PlayStation 4 has managed to deliver 1 million devices to gamers in a 24-hour time frame in the United States and is expected to perform even better than when it launched in Europe tomorrow.
The associated launch titles that Sony publishes, like Killzone: Shadow Fall, add to the profit margin of the company.
The statements coming from executives suggest that the 399 dollars or Euro price will remain stable in the long term.
This will allow the company to start making a profit as the costs of components and of the manufacturing process start to come down.