Analysts: PlayStation 3 profitable by August, smaller chips likely
by Christopher Grant 
{ Apr 21st 2008 at 5:13PM }
Reputed Japanese financial services firm Nikko Citigroup upgraded its rating on Sony this morning, pointing out that the PS3 may cross over the profitability hurdle as early as this August. While Nikko CG didn't attribute this to a specific cost reduction, it's a safe assumption that a 45nm Cell CPU and a sub-90nm RSX GPU would be the key ingredients to a deliciously profitable PlayStation 3. Next step: that rumored PS3 slim. Start holding your breath ... now!
[Via Engadget]
Reader Comments (Page 1 of 2)
Maverick Saturn @ Apr 21st 2008 5:17PM
Ahoy mehearties
I can see it in the distance, profit! Wait...its swimming away!
Jamma @ Apr 21st 2008 5:39PM
1. High definition, blu ray playing console
2. Two years of not many games
3.?????
4. Profit!
PojoMofo @ Apr 21st 2008 5:41PM
I would argue that PS3 has just as many good games as 360 did at this point in the life cycle
Korova @ Apr 21st 2008 5:59PM
Sorry Pojo, but No.
I have been flirting with getting a PS3 to keep my 360 company and took a trip to circuit city just to stare at the box and meditate. When I picked about the games, the PS3 games section was so pathetic (small and no choice) that I lost my wood.
PS3 does have BD and can cure cancer for pennies a day, but as a gaming machine its not upto snuff yet. 360 continues to capture all of my gaming time. And DVD is still ok. Now, if they could only make 360 fold@home.
PojoMofo @ Apr 21st 2008 6:04PM
2 things that really cant be argued at this point is that the 360 has a better, more diverse gaming library, and a more feature rich and vibrant online community. For people that already have a 360, your right, you can live without it. but if you dont have a next gen console yet, I think the PS3 is the more attractive option
4MyFriends @ Apr 21st 2008 6:06PM
@Vegeta
You know, you are no better than Fernando and all the rest of the resident trolls with your instigation. You remind me of those childish kids who circle around people fighting shouting "FIGHT!! FIGHT!!", whom might I add also got into trouble(and should happen here).
So please, if you aren't going to add anything useful, keep your mouth shut as well.
John McPoop @ Apr 21st 2008 8:03PM
@Korova
I actually like the PS3's game selection ... It is of course a matter of taste ... Not trying to start a list war here but I will name my favorite Sony exclusives ... Also, I don't think the 360 has that great of a selection either ... I think the Wii has a weaker lineup outside of the big time first part titles but again it's really individual preference and it does have the huge titles the PS3 lacks... Anyway ...
My favorite PS3 games (I have a lot of multi platform titles as well)
Ratchet And Clank Future (amazing platfomer)
Heavenly Sword (underrated game)
Uncharted Drakes Fortune (fantastic presentation)
Folklore (tons of DLC)
Warhawk (hours of fun)
Resistance Fall Of Man (great FPS and online play)
Unreal Tournament III (twitch shooting at its best)
Ninja Gaiden Sigma (if you missed it before pick this up)
Hot Shots Golf Out Of Bounds (very fun casual golf game)
MLB 08 The Show (hands down best baseball game ever)
Motorstorm (have to play it to appreciate it)
Gran Turismo Prologue (top notch game)
Honorable Mentions
Lair
Time Crisis 4
Dark Kingdom
Genji
You also have to consider the PSN games ... Some fantastic stuff ... Ones I like
Calling All Cars
Pixel Junk Monsters
PAIN
High Velocity Bowling
fLoW
Everyday Shooter
Mortal Kombat II w/multiplayer
Tekken 5 w/multiplayer
The PSEye also has a myriad of games that I have yet to try because I have yet to purchase the device after being let down with the 360 camera ... But there are some fun looking games for it ...
It all boils down to preference ... In addition to the games I mentioned I also have a lot of multiplatform titles on the PS3 ... I just don't buy the no games argument ... Like I said in the end it is about what you prefer to play but for me there is plenty ... I also enjoy a lot of 360 exclusives and some 360 multiplatform titles ... The Wii is pretty much only used to purchase 1st party releases, Capcom ports and releases and games made by Sega ... If the PS3 games are not your cup of tea thats legit and I understand what your saying there .... Beauty is in the eye of the beholder and I prefer the games released on the PS3 ... Its just a matter of preference but if the games don't excite you then there is no reason to get one ... I can't wait for MGS & MGO!!!! ... On paper Sony has some top notch releases in 2008 and we will see if they pan out to be as good as hyped ... this is they year of the PS3 heavy hitters though ...
As you said it is also a Blu-Ray player with upgradable firmware, runs Folding@Home, has a web browser that can access You tube, media capabilities, keyboard and mouse support, lots of options for reading media and card slots and Play TV is releasing soon in the EU which makes it a DVR. There is a lot going for it outside of games as well ... I think its a great all around system ...
I think all 3 consoles are fantastic but the PS3 is my favorite
dnlkk94 @ Apr 21st 2008 10:04PM
Poja - Agreed.
Also, the PS3 actually has more confirmed exclusives than the 360. And while the PS3 does not yet have as many "GREAT" games as the 360, it definitely has less games that just SUCK.
Rob Accomando @ Apr 21st 2008 5:21PM
Analysts: PS3 profitable by Christmas
Analysts: PS3 profitable by 2009
Analysts: PS3 profitable when PS4 is announced
PojoMofo @ Apr 21st 2008 5:43PM
360 wasnt profitable a year ago today, and since the PS3 is much more complicated technology, it might take a little longer.
el serpiente @ Apr 21st 2008 7:00PM
Are you really a commando?
Cesaria (SSBB: 3136-6466-5083) @ Apr 21st 2008 5:22PM
This could be good. Now just make the damn thing affordable.
PojoMofo @ Apr 21st 2008 5:35PM
PS3 is much more affordable than the 360, unless your talking 360 tard pack, which is worthless.
$50 more for ps3, that plays blu-ray, has free online, and built-in wifi.
ViagraFiend @ Apr 21st 2008 5:38PM
oh god dont get into this one again...
pkpk523 @ Apr 21st 2008 5:45PM
I would argue that the PS3 most certainly is affordable for the target audience that they are trying to attract. I have at one point owned all 3 "current gen systems" (have since sold my Wii) and if you are the type of consumer who can afford a high def tv and sound system and is willing to spend a good amount on a gaming system, $399 is perfectly reasonable for a gaming system that also features a great blu ray player. It is basically the same price as the 360 once you get what you need for it (I would never tell someone to get one without a cooling fan). Sony isn't really marketing to the 16 year olds that can't afford a PS3. They're marketing it towards the 20 and 30 somethings with big old home entertainment systems who don't see $399 as that big a stretch for a gaming and blu ray system. just my opinion.
Cesaria (SSBB: 3136-6466-5083) @ Apr 21st 2008 5:45PM
I'm happy with all of that...except the Bluray. I'm not quite ready to upgrade and repurchase yet. You do get a lot for your money, but that doesn't change the fact that it isn't exactly cheap.
Cesaria (SSBB: 3136-6466-5083) @ Apr 21st 2008 5:52PM
@pkpk
I don't really see that as a good business move. Wouldn't they have learned from the success of the PS2. Everyone of all ages has one. And it was affordable. Doeen't seem too bright to me.
Matt B @ Apr 21st 2008 7:08PM
pkpk523,
You just described me. I bought a nice HDTV and the PS3 is a great compliment to it.
Cesaria,
Do you remember when the PS2 launched at $299 and it played DVDs too which led to its high price and was far more expensive than its competition.
pkpk523 @ Apr 21st 2008 7:14PM
well, here's what i'd say about marketing the ps3 to a younger audience....
right now, based on what the technology is costing sony, and the games that are available, sony is marketing to those they can market to. again, that means those with enough disposable income to buy the hd tvs, the nice sounds systems, etc. as the technology goes down in cost and as more child-friendly games become available, sony would do well to cater to more people with less disposable income by lowering their prices. but for now, only those who can afford $399 for a game system are the ones with the expensive entertainment systems. so yes, your point is valid, just not at this moment based on who would be willing to pay for such technology. if they could charge $200 for a PS3 and end up having one in every household, they would. but they can't based on the massive losses they would take. also, if they could charge $799 and have one in every 5th household, they would. but they can't do that either because no one would buy. $399 is what they can charge and still turn a foreseeable profit while making it just affordable enough to cater to those who want such technology.
Cesaria (SSBB: 3136-6466-5083) @ Apr 21st 2008 8:03PM
I'm not sure what Xbox launched at ($300?) but the GCN launched at $250, a mere $50 difference. Yes, I know there was a year difference, but it was also the weakest of the three, proving that,including the Wii, power isn't a huge factor.
Foetoid @ Apr 21st 2008 8:22PM
Hey Cesaria, i hope you werent referring to the actual power of the console when referring to the Gamecube. Thanks to its extremely effienct PowerPC architecture, coppercore cpu and very very fast 1TSRAM, the GC was equivalent on power to the Xbox1. Zelda:TP looked better than Fable, and both Prime games looked much better than both Halo games. The real killer was the 1.8gig mini-dvds which meant multi-format games had to be heavily compressed and looked bad compared to thier ps2/xbox counterparts. The GC would have won last gen with a DVD drive. DVDs were the next big thing back then and a lot of people bought a Ps2 for it. It would have solved Nintendos space issues on the disk and GC games would have looked at least as good as Xbox games. Nintendo have learned thier lesson.
John McPoop @ Apr 21st 2008 9:59PM
@Foetoid
Just like Blu-Ray is the next big thing going forward ...Also, the GC was the only system that was capable of rendering out Nurbs and curves ... It was capable of the most high resolution graphics but the restraint of the storage medium's size capacity killed the system ... The difference in RE 4 on the GC & PS3 was huge but mainly because it was optimized for the GC ... Thats the same problems a lot of systems have this generation ... The majority of bad PS3 ports were optimized to run on the 360 and given the different architecture its a software issue and not hardware limitations ... Both the 360 & PS3 have more than enough under the hood ... I believe with the release of the Phrye engine which allows PS3 development in a more PC like atmosphere will make both 360 & PS3 games better going forward ... We already see the size limitations of the 360's use of DVD-9 having a negative effect in terms of storage capacity ... Games like Blue Dragon & Lost Odyssey use 4 & 5 DVD-9 disc's where as it would only take one Blu-Ray ... As far as I know thats the only current benefit of the Blu-Ray standard is just sheer size ... Its possible in the future other graphical advantages could also come to fruition but as far as I know it hasn't happened yet ...
Curtis the Claw:XBL - supapaypamawio @ Apr 21st 2008 5:22PM
Keep dreaming, as nice as a slim PS3 at that price would be I doubt we will get that for another 3-5 years. I should be an analyst.
The Sound @ Apr 21st 2008 5:26PM
I don't think we'll be seeing a PS3 slim anytime soon. With the fiasco that has been the RRoD, I don't think they want to mess with a design that has proven to work extremely well. After all, if they are just becoming profitable now with it, they won't want to loose any more money than they would have to. They also don't need the PR mess that would ensue.
This means that Sony will probably be able to bite the bullet this coming fall and have a price cut right before the holiday season, especially if they are able to get manufacturing costs down below $350.
Carl Abrams @ Apr 21st 2008 5:27PM
Of course, you realize that since the Xbox 360 already IS profitable, all that means is that Sony is still playing catch-up to Microsoft. (Before the SDF gets all aflutter, it's the whole E/D division of Microsoft that has problems due to minor things like the Zune. The actual console has been profitable for quite some time.)
What this means, of course, is that if Sony would decide to do a price-drop, then Microsoft is already in position to match or beat it.
Fernando Rocker @ Apr 21st 2008 5:35PM
And just imagine a Wii Lite at $200 in different colors... it would kick the PS3 even harder than now.
Vegeta (aka Ska Oreo) @ Apr 21st 2008 5:35PM
And why would they do that? Their current prices is working very well for Sony. So there's no reason to drop the price yet. I expect a price cut in spring or fall of 09. Holiday 08 is way to soon for one.
PojoMofo @ Apr 21st 2008 5:35PM
^also twice the HDD space
Vegeta (aka Ska Oreo) @ Apr 21st 2008 5:37PM
@fernando.
Sigh, and it begins.
Lone Starr @ Apr 21st 2008 5:37PM
I'm disappointed "Wedbush Morgan's Michael Pachter" was nowhere in the article. :(
horngreen @ Apr 21st 2008 5:49PM
"Next step PS3 slim"? Really? That's the next step? How about a game or two worth owning. Now for the idiot who said "a $299 PS3 slim would stomp the Xbox". So the size of the PS3 is holding back sales lol? I thought it was cost and limited game selection. Sure a PS3 slim would sell to idiots (you)who buy any color/size of a console released and in the end have 5 playstations but that would hardly stomp the competition. You know, people who's happiness is based on getting the gunmetal gray console to "go with" their black console. They also are looking forward to buying a white wersion if it's released in the states, if not they will import it because it would be "sic in my entertainment center". In reality they are just losers trying to impress people who don't drop by anyway and that's the real issue.
Tranando @ Apr 21st 2008 6:25PM
"How about a game or two worth owning."
Call of Duty 4: Modern Warfare
Gran Turismo 5 Prologue
Elder Scrolls IV: Oblivion
Rock Band
The Orange Box
Ratchet & Clank Future: Tools of Destruction
Uncharted: Drake's Fortune
Ninja Gaiden Sigma
Burnout Paradise
Unreal Tournament 3
Resistance: Fall of Man
MLB 08: The Show
MotorStorm
Devil May Cry 4
Warhawk
I believe there are some great games coming this year too, many of them PS3 exclusives...
Kujel @ Apr 21st 2008 5:53PM
Sony will make profit on that shit when hell freezes over, it needs games worth buy to make it profitable. BS3 = overpriced video player + no decent games
360 = decent price + dozens of great games
Wii = cheap hardware + a few good games
BS3 will ultimately loose.
Vohaul79 @ Apr 21st 2008 6:22PM
You my friend, need hit in the face with a shovel.
ob1979 @ Apr 21st 2008 6:37PM
Haha, I see what you did there exchanging the P for a B. Are you this witty in all your posts? I bet you are.
That's the sort of joke that'll never get tiresome, nope.
el serpiente @ Apr 21st 2008 7:02PM
Kujel broke both his wrists and he cannot masturbate. He is cranky. He is dictating to his mother, who is typing for him
Kujel @ Apr 21st 2008 8:47PM
Can't hurt myself play 360, having the best designed controller means I can play all the best games and never fuck my wrists, unlike BS(insert number here).
4MyFriends @ Apr 21st 2008 6:07PM
@Vegeta
You know, you are no better than Fernando and all the rest of the resident trolls with your instigation. You remind me of those childish kids who circle around people fighting shouting "FIGHT!! FIGHT!!", whom might I add also got into trouble(and should happen here).
So please, if you aren't going to add anything useful, keep your mouth shut as well.
PojoMofo @ Apr 21st 2008 6:10PM
I dont really see why everyone says that the PS3 has no games, have you been hiding under a rock the last year and a half?? R:FOM, Motorstorm, COD4, Ass. creed (see what I did thar)heavenly sword, uncharted, Warhawk, orange box, GT5P, burnout paradise, MLB '08, Hot shots golf, DMC4, how many more games do I need to list??
If you are arguing that the 360 has more good games, well not shit sherlock, it has a year head start.
4MyFriends @ Apr 21st 2008 6:15PM
Too be perfectly honest, I don't see Sony lowering the prices this year after doing so twice last year, UNLESS Microsoft gets their act together and stop Sony from cutting into their lead. Software sales are still too low to continue to subsidize the system even further, they will keep it at this price as long as they can help it to help recoup initial losses.
It's still far too early to talk about who is going to come in second(because, who honestly expects the PS3 to come back and actually beat the Wii?).
John McPoop @ Apr 21st 2008 10:17PM
Sony will continue to gain ground on Microsoft everywhere except North America ... I think once more shooters come out and maybe an in game XMB & Home then more North Americans will pick it up ... Seems like the majority of NA want good exclusive shooters with chatting, achievements, in game XMb and digital downloads ... Sony has promised all those things are coming ...
4MyFriends @ Apr 22nd 2008 8:43AM
"Sony will continue to gain ground on Microsoft everywhere except North America ..."
You have no proof to this, so please stop passing off your wishful thinking as fact.
Tranando @ Apr 21st 2008 6:19PM
@Carl Abrams
360 is not profitable, there is a $1.15Billion hole to fill in yet.
Of course, Microsoft play tricks to fool the stupid, like hiding that $1.15Billion financial loss into a single quarter, and then shout from the rooftops when the make $600,000 the following quarter..
However you would have to be a total moron to see that as profit..
NATO_Duke @ Apr 21st 2008 6:21PM
Oh remember this one 123?
"@Vegeta
Ban me? This isn't Kotaku. This is the most troll-friendly site I've ever seen. No wonder 360 fans like it, it's just like Live."
Thats after you posted that psycho rant about us all being put in concentration camps or something. Sadly Joystiq deleted the comment, but I thought people should remember who you are each time you post and that you are truly a sick individual.
Nixontech2071 @ Apr 21st 2008 6:27PM
@ Fernando Rocker
You are the most vile and hated on engadget! And on a site like this, thats pretty sad, I feel sorry for you!
*cough* Gay Name *cough
Nixontech2071 @ Apr 21st 2008 6:32PM
@ Fernando Rocker
You are the most vile and hated on engadget! And on a site like this, thats pretty sad, I feel sorry for you!
*cough* Gay Name *cough
Esat Dedezade @ Apr 21st 2008 6:44PM
Hang on a minute, is it just me, or out of all the companies in the world, is Microsoft the one that is most able to lose as much money as possible without it really mattering that much?
/comment in jest, although some truth?
John McPoop @ Apr 21st 2008 10:14PM
I don't think they wanted to lose a billion dollars but they are paying the price for rushing the 360 out and gaining the 1 year advantage ... I am not sure it was worth it but it seems to have given them an advantage in the USA over the PS3 ... The Wii on the other hand has completely murdered the 360 in sales in little over a full year ... As to your question ... They are not the only company but they are certainly one of a slim few that can afford to pay for a billion dollar mistake ... When you think microsoft you obviously think Windows first and maybe 360 second ... Off the top of my head maybe a company like Intel could lose 1 billion without breaking a sweat ... I don't know but when I think processors I certainly think of Intel ... You need chips to run Windows on a computer
John McPoop @ Apr 21st 2008 10:15PM
Probably Google too ... Yeah def Google
Michael @ Apr 21st 2008 6:48PM
The PS3 is definitely marketed towards older more mature people. People may debate this point, and if you complain about the price of the PS3, then I don't think you're at the point to truly enjoy its offerings. I am 25, married, have a Samsung 46" 71 series, plus other gadgets, and the PS3 gives me the best experience with the most potential. To see the PS3 profitable will be nice, and it will only get better from here.