Kaz Hirai: PS3 could be profitable next fiscal year
by Ross Miller 
{ Jan 8th 2008 at 2:30PM }
Sony bigwig Kaz Hirai is hoping that this next fiscal year, which begins in April, will mark a point where the PlayStation 3 loses its money sink status and becomes profitable. Said the president of SCE at the Consumer Electronics Show (via Reuters), "We want to get to the positive side of the equation as quickly as possible," later adding that the company is "going through the budgets right now. That (profitability) is not a definite commitment, but that is what I would like to try to shoot for."Hirai cites the dropping costs of components used to make the PS3, as well as the removal of chips related to backwards compatibility, as examples of how the console is becoming cheaper to produce (and therefore less of a detriment to the company's bottom line). Hirai noted that the declining cost is "in line with what the company had expected." Not explicitly stated but certainly important are the titles expected next fiscal year: LittleBigPlanet, Home, Final Fantasy XIII, and the still-exclusive Metal Gear Solid 4.
Previously, Sony stated that it had sold 1.2 million PS3s since Black Friday -- NPD figures for December should reveal how that measures up to competitors. Microsoft recently stated its belief that the Xbox 360 is "on track to register the biggest year in video game history," while the Consumer Entertainment Association predicted industry growth to continue, albeit at a slower pace than last year.
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Reader Comments (Page 1 of 2)
Fernando Rocker @ Jan 8th 2008 2:37PM
And we should trust in the Ridgeeeeee Raceeeeeer guy?
Ibere @ Jan 8th 2008 2:42PM
You did it wrong.. it's "Riiiiiiiiidge Raaacer"
Fernando Rocker @ Jan 8th 2008 2:43PM
My bad.
=)
Fernando Rocker @ Jan 8th 2008 2:53PM
It's always funny =)
http://www.youtube.com/watch?v=IH2w2l1JTs4
FidliousWong @ Jan 8th 2008 3:00PM
Ridge Racer > jOO!
XanthouS @ Jan 8th 2008 3:22PM
I guess it's cool to laugh at someone trying to communicate in a language foreign to them.
Surely Fernando wouldn't sink to that level.
I'm sure all of the Japanese social norms translate perfectly into English, and it's gotta be easy as hell to try to excite a crowd of thousands.
Crono (NDF - Knight of the Old School) @ Jan 8th 2008 3:42PM
XanthouS,
Nice job calling racist. Kaz speaks damn good english, and the quote has absolutely NOTHING to do with his accent or his grasp of the English language.
Go away please.
elmersglue @ Jan 8th 2008 4:04PM
"So here's this giant enemy crab..."
ROFL
samfish @ Jan 8th 2008 5:29PM
As it turns out, those Giant Enemy Crabs actually *crap* PS3s. To make the system profitable, it was simply a matter of providing sufficient funding to create a suitable habitat for the GEC's and then purchasing Ex-Lax for crabs in mass amounts.
Tiptup300 @ Jan 8th 2008 6:16PM
I hit giant enemy kaz in weak point for maximum damage cuz yah kno, its Japanese history!
sheppy2.0 @ Jan 8th 2008 10:30PM
You know, the ONLY time I laughed at a "hit the weak point for massive damage" joke was during Heavenly Sword. The rest of the times, hell, it was over before it started.
Burritoclock @ Jan 8th 2008 2:38PM
Yep it could, and jesus could come back to.
copa @ Jan 8th 2008 3:49PM
I expect them to achieve profitability before the Rapture, but certainly not next fiscal year.
Remember, there was a three-month period last year where PS3 accounted for one BILLION dollars in losses, and there has been a price cut since then.
sifer2400 @ Jan 8th 2008 2:39PM
LMAO Key Word "should be"
samfish @ Jan 8th 2008 2:41PM
This ought to be a fun thread to see a bunch of dick waving!
Raikage (Wii FC 5508 0487 4434 0992) @ Jan 8th 2008 4:29PM
You mean "Waggle"?
Anyways, if it's true, then good for them.
jsn @ Jan 8th 2008 4:32PM
I had my joint out as soon as I saw Kaz's picture.
xFenixKnightx @ Jan 8th 2008 2:42PM
Duh it has Bluray, as soon as this happens...
http://www.xbox360fanboy.com/2008/01/08/rumor-paramount-to-jump-the-hd-dvd-ship-too/
Its all over and PS3's will be flying...maybe not for gaming but they will be selling nonetheless.
mr nimblewick @ Jan 8th 2008 2:43PM
You're over estimating the hidef video market.
Fernando Rocker @ Jan 8th 2008 2:47PM
But also, expect in the next monts a standlone Bluray player at $150-$200 to sell a lot of players and definitely win the disc format.
So, people interested only in a Bluray player, will go for the cheaper option.
Superstar90 @ Jan 8th 2008 2:55PM
I know ALOT of people who bought 600-900$ blu-ray players without even considering the 400$ PS3. blu-ray players will also eventually drop to 300-400$.
XanthouS @ Jan 8th 2008 3:27PM
@Superstar
I know the claim you just made got pulled directly from your ass, but I'll play along.
Nobody in their right mind would pay for a standalone Bluray player that is a cent more than a PS3.
I'll give you one simple reason why: Firmware. The PS3 is updated regularly to add features for gaming, Blu-ray, and media presentation. As more and more Blu-ray features are developed, the PS3 can continue to implement these features while other standalone sets are stuck with their launch features.
Not to mention the ability to play high end games, surf the internet, stream media from a PC wirelessly, etc.
Crono (NDF - Knight of the Old School) @ Jan 8th 2008 3:44PM
So is every other recent blu ray player. Firmware updates are part of the Specification.
jynxycat @ Jan 8th 2008 3:54PM
"But also, expect in the next monts a standlone Bluray player at $150-$200"
huh... The best CES has shown so far is a sub-300 (read, probably $299) which still will likely to be inferior to the ps3's playing capability.
Even then, HDDVD had players in the $150-250 range for awhile, and people are still clueless about HD media.
The jump won't come at all in the near feature. Blu-ray may "win", but the general population doesn't have a clue what profile 1.1, or 2.0 mean, or what the difference in 1080p/i, or what 1080 even means.
Vidikron (FU) @ Jan 8th 2008 4:06PM
@Crono
Except the PS3 is the only BR player on the market that can be updated to profile 2.0 via a firmware update.
Vegeta (aka Ska Oreo) @ Jan 8th 2008 4:50PM
@xanthous
That's nice. But really the only people who care about that stuff probably already have a ps3.
How about the moms and dads who feel that it's time to upgrade to a blu-ray machine. Are they going to care about that shit? I mean wasn't there an article recently stating that an alarming amount of people don't even know about the media features their 360/ps3's have. What makes you think that will change? By the time the HD format becomes the dominating format, All HD players will be at an affordable price below that of a ps3. So the average consumer isn't going to give two shits about what the ps3 can do. They're just going to go for what's cheaper.
License to ill @ Jan 8th 2008 5:02PM
"I know ALOT of people who bought 600-900$ blu-ray players without even considering the 400$ PS3.
So you're bragging about knowing a bunch of morons, good for you stupid...
mr nimblewick @ Jan 8th 2008 2:44PM
What else can they remove? The case?
Actually, that might look kinda cool.
arrrgh @ Jan 8th 2008 5:01PM
well it'd look "better" anyway
chispito @ Jan 8th 2008 2:47PM
"That (profitability) is not a definite commitment, but that is what I would like to try to shoot for."
I don't think that there is a strong possibility that it is likely that he could use weaker language.
Crono (NDF - Knight of the Old School) @ Jan 8th 2008 2:50PM
I think what he's talking about is the playstation division, which includes software and licensing as well. They hardware will in all likelihood continue to sell at a loss for some time.
Ghaleon @ Jan 8th 2008 2:53PM
And monkeys might fly out of my butt
His statements don't sound encouraging to a stockholder, I'd imagine.
TheWarden @ Jan 8th 2008 2:55PM
They should have duct-taped a PS1 and a PS2 together to make PS3s instead. PROFIT!
Superstar90 @ Jan 8th 2008 2:56PM
i heard that's what nintendo has been doing...
XanthouS @ Jan 8th 2008 3:11PM
XBots are really hurting for material lately.
Also: http://www.techvat.com/ps3-begins-to-overtake-xbox360-in-sales-since-launch.html
Crono (NDF - Knight of the Old School) @ Jan 8th 2008 3:46PM
That graph is misleading for 1 simple reason: When the Xbox hit that point in its lifetime, they were all out of stock. A shortage hit the market that didn't end until 3 or 4 months later. The PS3 will level off, just like the 360 did. Well see if they ever get a big boost again.
copa @ Jan 8th 2008 3:55PM
No, Crono, Xanthous is right. From looking at the graph, it may seem like he's full of crap, but you have to use complicated mathematical projection techniques to see what the graph looke like a year from now:
http://www.sonydefenseforce.com/wp-content/uploads/2007/12/prediction.jpg
XanthouS @ Jan 8th 2008 4:21PM
The fact is, the vocal minority out there tries to make it seem like the 3fixme is blowing Sony's console out of the water. Make all the excuses you'd like, but the numbers don't lie, and the high-def video format will continue to move more units, as will strong exclusives this spring/summer.
Vegeta (aka Ska Oreo) @ Jan 8th 2008 4:23PM
@copa
That was beautiful.
Vegeta (aka Ska Oreo) @ Jan 8th 2008 4:40PM
But it means absolutely nothing if the software doesn't match console sales. I mean sure you can boast about the latest hardware sales, but who cares when ps3 games have been underperforming against their 360 and Wii counterparts. I mean ps3 exclusives are just doing meh, while the 360 and Wii are belting out million sellers like there is no tomorrow. Which makes me wonder what the fuck are ps3 users buying. Because apparantly, it isn't games. If the ps3 was beginning to make a comeback we would be seeing it on all fronts, not just hardware.
Sure while I agree that the ps3 is doing much better, it's got a long way to do if it ever hopes to takeover the 360.
Markusdragon @ Jan 8th 2008 7:19PM
Lies, damned lies and statistics.
rc @ Jan 8th 2008 3:12PM
Or they could have rushed out a complete piece of garbage that fails at least a third of the time. That would have probably been cheaper.
WiNG @ Jan 8th 2008 3:23PM
And sold better.
el serpiente @ Jan 8th 2008 3:48PM
Well, when you have to keep buying a new failbox 360 every other week, it pads the numbers a bit...
darkside @ Jan 8th 2008 4:40PM
You know what's hilarious, is even though the 360 has high failure rates, consumers are still buying them. Maybe not at the rate that the wii is selling, but at least the 360 actually has a good (American) selection of software.
My 2 cents anyways.
Ironhide @ Jan 8th 2008 3:51PM
I've been accused of being the biggest Xbox fanboy my friend has ever known but even I'm getting a ps3 for BluRay technology. The odd game will be played of course but for being essentially one of the best BluRay players out there for the money, not to mention fully upgradable compared to the existing versions out there, is a sure fire purchase for me.
jynxycat @ Jan 8th 2008 3:56PM
Best feature so far.
I have no desire to get a standalone player for either side, but I do have the hd-dvd addon for my 360. As it stands, I just download my hd moves from newgroups anyhow :P
If I had to get a blu-ray player, it'll be whenever I get a ps3.
Poisoned Al @ Jan 8th 2008 4:08PM
I'll probably get the PS3 for a Blu-ray player in a few years time when the price comes down and I've got an HD-TV. Then I'll have the full set of 360/Wii/PC and PS3 :D
Squirrel3D @ Jan 8th 2008 4:21PM
"And we're not interested in gimmicks..."
Next thing you know, you see your PSP has a rearview mirror for GT5.
Vegeta (aka Ska Oreo) @ Jan 8th 2008 4:52PM
hmmm.
Didn't Sony just announce a GPS system for the psp. How's that not a gimmick?
And if you think about it, the psp itself was a gimmick as well. I mean for the first year it's platform was, NOW YOU CAN PLAY PS2 GAMES ON THE GO!!! and not much else.