Sony: PS3 is breaking even

Written by Joe Martin

June 30, 2010 | 11:04

Tags: #financial #industry #playstation-3 #profit #ps3

Companies: #sony

Sony's worldwide studio boss, Shuhei Yoshida has revealed that the company is finally starting to break even on the PlayStation 3 and that changes in hardware costs mean that individual consoles are no longer being sold at a loss.

Sony has long since been speculated to be losing as much as $300 on each PlayStation 3 sold, with industry analysts suggesting that the console had only edged towards profitability in the last few months.

Speaking frankly to IGN, Yoshida confirmed as much and said that, while the PS3 hardware wasn't wildly profitable, it was now a bit more viable.

"This year is the first time that we are able to cover the cost of the PlayStation 3," said Yoshida. "We aren't making huge money from hardware, but we aren't bleeding like we used to."

The fact that the PS3 hardware was sold at a loss wasn't necessarily a huge problem; console makers traditionally make minimal return on consoles and see the largest profits from games and licensing fees. Still, Sony has had a tougher time of it than it may have been used to, financially.

Yoshida also said that Sony would not be issuing PS3 price cuts this year.

"When we bring the cost of hardware down, we are looking at opportunities to adjust prices if we believe that will increase demand At the moment, we are trying to catch up our production."

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