Sony’s PlayStation 4 Will Sell At $60 Loss During Launch

The PlayStation 4 will sell at a loss in the launch window, but it’s an easy gulf for Sony to overcome.

Eurogamer is reporting that Sony will take a $60 loss on every $399 PS4 sold. During an interview at Sony’s headquarters in Japan, Sony Senior Vice President Masayasu Ito denied the claim, but “only because the company expects a typical user to buy a console with,” a PlayStation Plus subscription, along with at least one PS4 game.

A $60 loss is incredibly easy to overcome, at least compared to previous consoles, so it stands to reason that a PS Plus subscription and a game or two will put Sony in the black on every PS4 sold. Other Sony executives have chimed in on the profitability issue in the past; last month, Sony Computer Entertainment CEO Andrew House said “[Sony] will not generate anything like the losses we did for the PlayStation 3,” while CFO Masaru Kato told Bloomberg that development costs would be “much, much smaller.”

Big-budget PlayStation 4 games will cost $60, per usual, and the cost of a 12 month PS Plus subscription is $50 (or $18 for three months). Based on those numbers, it’s easy to see why Sony isn’t sweating the rumored $60 hardware loss figure — everyone is going to buy at least one PS4 game, and a PS Plus sub is required for online play.

$60 is a far cry from the pit the PlayStation 3 was in during its 2006 launch window, when Sony was reportedly taking a $300 loss on every $600 console sold.

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3 Comments on Sony’s PlayStation 4 Will Sell At $60 Loss During Launch

Red Menace

On September 20, 2013 at 4:50 pm

Sony so well remembers the PS3 release debacle that they are will to take a $60 per unit haircut? Let this stand forever as a testament to consumer power.

I mean, I was a PlayStation fanboi until they thought I would drop more than half a grand on something that didn’t have any worthwhile games. Bought a 360 instead. But, now that Xbox One is dead to me and Sony seems to have learned their lessons, I may fall back into Sony’s warm embrace. That is, if I buy a next-gen console at all.

Chippy

On September 21, 2013 at 1:59 pm

Sony is going to make Microsoft look like Sega in terms of console irrelevance.

Huntsman06

On September 22, 2013 at 2:07 pm

@ Chippy

I tend to disagree. The Sega Dreamcast did sell poorly compared to the PS2 but honestly PS2 out sold everyone, it’s still the #1 selling console of all time in fact. Also, Sega was greatly behind in terms of technology (CD vs DVD for example). Sony was more ahead with the PS3 against the Xbox 360 than they are with the PS4 and XBox one.

As to why it’s sold at a loss, I’m not surprised. When PS3 came out it was really expensive and Sony’s trying to go as far from that as they reasonably can.