Speaking to the UK's Times Online during last week's GamesCom event, Sony boss Kaz Hirai provided some insight into the ramifications following the introduction of the smaller, cheaper PS3 Slim. Hirai noted that while the system itself would be sold at a loss, it would be buoyed by other elements of the PlayStation platform.
"If you look at the growth of the installed base, it is slower than the PS2 was but it's pretty much on track with the growth that we had with the original PlayStation," Hirai said. Responding to the issue of selling the redesigned PS3 at a loss, Hirai explained, "I don't actually know that that's the true nature of the business that we're all in, whether it's PlayStation, Xbox or the Wii. I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year."
If Sony's price-cutting measures have their intended effect and lift the whole PlayStation platform, Hirai might just be in a position next year to boast about profits so plentiful ... it's gross.
[Via Edge]
Reader Comments (136)
Posted: Aug 25th 2009 10:37AM Bacon Deity said
I hope Sony gets back on track with sales and stuff. I still like them and i even bought a Slim to help the cause! =P
good show, old chap.
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good show, old chap.
Posted: Aug 25th 2009 11:13AM Troy Powers said
Hey, they're selling a quality product. They started out selling it at the lowest reasonable price, taking a loss on every system sold. And now that production costs have dropped, they've cut the price again to appease consumers and developers, once again eating the loss on every console sold. And, once again, it's a great product! Hell, I'd like to say that they even have great customer service, but I've never had to call them. Launch 60 gigger still kicking. I like these guys too.
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Posted: Aug 25th 2009 11:17AM Bacon Deity said
Well jack... I dunno where they will be... But if I'm in a time of need, I'll rage quit my ps3 and turn on the 360. Afterall, I bought a new tv stand with a shelf to hold the PS360 setup I have going on, and the two consoles are sitting side by side!
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Posted: Aug 25th 2009 11:28AM Troy Powers said
Where will Sony be in my time of need? The same place, Microsoft, Nintendo, and everybody else in the world will be. Minding their own business. That's fine with me. You sell me a quality, reliable, feature-packed piece of machinery, and I will be happy to give you my patronage as long as you keep up that standard.
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Posted: Aug 25th 2009 2:20PM Troy Powers said
Bring it on, sir. But, I warn you, your friendship will only be rewarded by a sound shotgun lashing in the desert wastelands of Helghan.
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Posted: Aug 25th 2009 10:38AM (Unverified) said
Didn't they say it took about $1000 to make a ps3 at launch? If so, and as reported earlier the costs of making a ps3 were reduced by 70%...then how is selling it at $300 a loss?
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Posted: Aug 25th 2009 11:21AM Chris DPSN AggieCEO XBLThe Aggi said
I dont see that as a Price drop....they just removed the 60GB and put in the 120GB...its not even the SAME "elite" bundle as last holiday or 4 months ago for that matter....if anything it just opens the Window for MS to push out a 250GB Model of their own with the 250GB HDD standalone costing around $180
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Posted: Aug 25th 2009 2:35PM (Unverified) said
In my mind that was funny, you have to imagine me saying insignific8nt you c8nt just repeat it to yourself a few times, it sounds better every time.. Just want to stick my head out of the window and call everyone an insignific8nt c8nt, , I guess its just my engrish humour ..
What is elementary school btw ? does that make me more l33t ?
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What is elementary school btw ? does that make me more l33t ?
Posted: Aug 25th 2009 10:38AM (Unverified) said
The PS3 will outsell the XBOX360 handily for the rest of the year... the price cut will help Sony turn a profit.
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Posted: Aug 25th 2009 11:01AM (Unverified) said
But what about the Xbox360 price drop? I have a PS3 but with the new Xbox Elite at $300, I think I'll be picking one up later this year. I know a lot more people will do it the other way around, buying a PS3 for cheap while they already have a 360, but I think it could be pretty even, especially this holiday season.
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Posted: Aug 25th 2009 11:01AM Captain Planet Planeteer Power said
I laugh at your punditry. Contrary to popular belief, people like games more than they like slimmer consoles.
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Posted: Aug 25th 2009 11:21AM Dr Perry Ulysses Cox said
What if I paid Dave $.01/prediction? Would you all start taking his rampant prophesying more seriously?
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Posted: Aug 25th 2009 11:36AM Cap Morgan said
I predict Obama and Chuck Norris will personally hunt down Bin Laden and will feast on his entrails.
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Posted: Aug 25th 2009 2:00PM moshin said
@toadstool I doubt it, only because every1 in america ( I KNOW NOT EVERYONE ) has a 360 of sorts, or 2. The PS3 is that sexy lady in the corner you've been itching to nail, but havent told any one. You keep banging you 360 because you love her, and she's been there for you... but something mysteriously erotic about that asian box over there...
lol... sorry getting carried away
anyways, I see more ps3's moving in america, because less people have them
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lol... sorry getting carried away
anyways, I see more ps3's moving in america, because less people have them
Posted: Aug 25th 2009 2:24PM Troy Powers said
Alas, Paul was found dead in his room today. Initial reports state that the cause of death was a swift round-house kick to the neck. No motive has been established. Police do not believe it was a robbery, though it was noted that his sense of humor seemed to be missing.
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Posted: Aug 25th 2009 10:39AM IREWolfman said
More households with more than 1 PS3.
Me included ;)
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Me included ;)
Posted: Aug 25th 2009 10:50AM Chris DPSN AggieCEO XBLThe Aggi said
So I take it the Economy going into the shitter fucked the plans of the PS3 to be profitable back in April....most disturbing....
at least they will not take too much longer to make money off of now as units sold will pick up
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at least they will not take too much longer to make money off of now as units sold will pick up
Posted: Aug 25th 2009 11:03AM ShadowXOR said
I own a PS3 BTW, I've had it since it hit $400 (got it solely for Little Big Planet), and I couldn't give less of a shit about Blu-rays, and yes I have a 1080p TV. They're too expensive and the quality increase isn't that great except in very dark movies. Dark scenes are much better, but bright scenes aren't much different unless you sit too close to your TV. Blu-ray is not a big deal.
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Posted: Aug 25th 2009 11:10AM Chris DPSN AggieCEO XBLThe Aggi said
so ummmm yea....I bout a PS3 first...THEN a Wii....THEN a 360....the ONLY games worth the purchase of a 360 to me were Gears 2 and Fable 2.....yet I spent $400 on an Elite....the way I see it if you are a true gamer you will buy a system for only a handful of good games.....and thats what I did
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Posted: Aug 25th 2009 11:10AM (Unverified) said
Can your Xbox play Blu Ray? A new blu ray player can run from $150+ easily, so having the PS3 be both my gaming console and my blu ray player for my entertainment system is a fantastic deal to me. It comes with wifi and bluetooth built in, while you have to pay $40+ to get wifi on the 360 (unless you buy the new bundle coming out). The online is free as well (even though I would happily pay for a more robust and overall better online experience like Live, I'm happy it's free right now). Plus, your Xbox won't be doing it at much of a lower price when the PS3 drops to $300. I know I'm coming off as a Sony fanboy right now, but the PS3 really is a good value deal.
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Posted: Aug 25th 2009 11:11AM Pure Black World Tendency said
Then I'd say you need glasses. There's a huge difference.
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Posted: Aug 25th 2009 11:14AM (Unverified) said
Ehhh... Everything the 360 does the PS3 does as well (and then some). Like streaming Netflix? Install a media server on your computer. Like playing online? Play online for free on the PSN (which is getting better and better almost every day). Like watching blurays? Why not just pop one into the PS3 and watch that shit. This proce drop makes the decision even more clear (in my opinion), and that is, regardless of the games for each system, the PS3 is the better choice.
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Posted: Aug 25th 2009 11:15AM Giggman said
Shadow you are saying that the best overall entertainment value (notice the word entertainment) is the 360?
Well I have to disagree, you may have had an argument a few weeks ago but now you're just being silly. Even if (when) the Elite drops to $299 you still get more for your money with the PS3.
Better yet just enjoy both, but don't lie to yourself and everyone else.
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Well I have to disagree, you may have had an argument a few weeks ago but now you're just being silly. Even if (when) the Elite drops to $299 you still get more for your money with the PS3.
Better yet just enjoy both, but don't lie to yourself and everyone else.
Posted: Aug 25th 2009 11:17AM Chris DPSN AggieCEO XBLThe Aggi said
@oolz you 360 Plays blu-ray fine?? Ummm I thinx you are shitfull is that how they say it? yes?
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Posted: Aug 25th 2009 11:18AM Troy Powers said
I'm sorry, but anyone who says the difference between Hi-Def and Standard Def movies isn't that great is blind or stupid.
Wait. I take that back. I'm not sorry.
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Wait. I take that back. I'm not sorry.
Posted: Aug 25th 2009 11:21AM Troy Powers said
lol...the word "shitfull" has now been added to my personal vocabulary. I encourage you all to follow suit.
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Posted: Aug 25th 2009 11:22AM oolz said
Gigg, I think you're fooling yourself. You're looking at it from gamer/enthusiest perspective, but to the average consumer, the 360 will still win out because when they add things to the console, they're adding things that people know and want. Netflix, check. Twitter, check, last.fm, check. Those are buzzword items today that the average consumer can find value in having. Blu-ray still doesn't carry weight with the average consumer because most of them simply can't see the difference or justify paying for it when they can and that's the only REAL value-add that the PS3 has right now.
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Posted: Aug 25th 2009 11:26AM Chris DPSN AggieCEO XBLThe Aggi said
yea HD=SD is true...if YOU ARE LEGALLY BLIND!!!!
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Posted: Aug 25th 2009 11:30AM Chris DPSN AggieCEO XBLThe Aggi said
I can comprehend Pirating just fine....what I CANT Comprehend is how you can say you 360 can play Blu-ray Disc Movies when the 360 doesnt have a Blu-ray player.....if indeed you are talking about Streaming Blu-ray Rips thats NOT the same thing...Clearly that would be like saying "I can play VHS Movies on my Wii" when in fact its a STREAM of a RIPPED VHS....
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Posted: Aug 25th 2009 11:35AM Troy Powers said
I'm sorry, oolz, but Blu-Ray (tm) by definition is a physical disk format. Therefore, in order to watch Blu-Ray (tm) movies, you would need some device with a physical Blu-Ray (tm) disk drive. Even if your next door neighbor has a Blu-Ray (tm) drive in his computer, and is ripping the movies to an external hard drive for you, when you watch them on your computer, you're no longer watching a Blu-Ray (tm) movie and more than watching a movie you downloaded would be considered watching a DVD.
But, if I'm wrong, and there is indeed some way that you're watching your collection of 30 Blu-Ray movies on your 360, please enlighten us all. Inquiring minds want to know.
Damnit, I forgot a (tm).
Reply
But, if I'm wrong, and there is indeed some way that you're watching your collection of 30 Blu-Ray movies on your 360, please enlighten us all. Inquiring minds want to know.
Damnit, I forgot a (tm).
Posted: Aug 25th 2009 11:36AM Punk said
its annoying when people compare blu-ray playback with netflix... if you don't live in the states, this feature for the 360 is non-existant and not everyone has unlimited downloads to stream/download HD content freely. Personally for me, the ps3 having blu-ray puts that ahead of the 360 because I want to watch HD movies. Had HD-DVD won and the 360 continued it then I know which way I would have turned.
Blu-ray movies are coming down in price now and the argument against it gets less and less(about time!)
PS3 could have a feature such as streaming hd content at some point, whether it is as robust as netflix, im not sure but what i do know is that the ps3 does not need an add-on to play HD quality movies...
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Blu-ray movies are coming down in price now and the argument against it gets less and less(about time!)
PS3 could have a feature such as streaming hd content at some point, whether it is as robust as netflix, im not sure but what i do know is that the ps3 does not need an add-on to play HD quality movies...
Posted: Aug 25th 2009 11:48AM (Unverified) said
oolz.. I am going to rush out and buy a games console so I can use twitter, even better screw my laptop let me sit in front of the tv with a 360 (does it even support keyboards like the ps3 ? ) and use a controller to try and write a message on twitter or on facebook.. Do you see the flaw in that plan ?
Also you forget the PS3 has a browser, it supports you tube, it supports facebook, you can connect usb/wireless/bluetooth keyboards and mice into it and use the built in web browser what else was there ? Oh yes blu ray is a big deal a lot of people have bought a ps3 solely because it plays blu ray films..
Didnt Sony announce that more features such as facebook integration are also being built into the ps3 (probably under the rumoured ps cloud) ?
What else ?.. well in Europe & in Australia we have something called playtv - watch and record live tv, we have vidzone which is a live music channel which smacks the crap out of last.fm and thats being released world wide.. Sony will be releasing its movie store world wide also..
Also lets not forget acess to PSN is free, hey I might not have cross game voice chat but I can turn on my ps3 play any online games and not have to worry about my subscription running out.. This is a massive deal does netflix work for silver members ?
Also built in Wifi, Gigabit ethernet connection, blue tooth connection the Picture gallery program, life with playstation, anything else I am forgetting here ?
completely unrelated:
copying iso images (large files generally) from a vmware instance of linux with 2 x file backed disks will cause the physical machine to drastically slow down just fyi, its been a painful experience, also synergy/quicksynergy is an awesome awesome tool (share your mouse and keyboard between computer/laptop over tcp/ip its just kick ass)
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Also you forget the PS3 has a browser, it supports you tube, it supports facebook, you can connect usb/wireless/bluetooth keyboards and mice into it and use the built in web browser what else was there ? Oh yes blu ray is a big deal a lot of people have bought a ps3 solely because it plays blu ray films..
Didnt Sony announce that more features such as facebook integration are also being built into the ps3 (probably under the rumoured ps cloud) ?
What else ?.. well in Europe & in Australia we have something called playtv - watch and record live tv, we have vidzone which is a live music channel which smacks the crap out of last.fm and thats being released world wide.. Sony will be releasing its movie store world wide also..
Also lets not forget acess to PSN is free, hey I might not have cross game voice chat but I can turn on my ps3 play any online games and not have to worry about my subscription running out.. This is a massive deal does netflix work for silver members ?
Also built in Wifi, Gigabit ethernet connection, blue tooth connection the Picture gallery program, life with playstation, anything else I am forgetting here ?
completely unrelated:
copying iso images (large files generally) from a vmware instance of linux with 2 x file backed disks will cause the physical machine to drastically slow down just fyi, its been a painful experience, also synergy/quicksynergy is an awesome awesome tool (share your mouse and keyboard between computer/laptop over tcp/ip its just kick ass)
Posted: Aug 25th 2009 12:04PM Giggman said
@ Oolz: "They're adding things that people know and want. Netflix, check. Twitter, check, last.fm, check. Those are buzzword items today that the average consumer can find value in having."
Buzzwords..... You ever heard of the Internet? I'm sure most people have. All of those things you mentioned can be accomplished with any old run of the mill internet browser..... Which the PS3 also includes!
Reply
Buzzwords..... You ever heard of the Internet? I'm sure most people have. All of those things you mentioned can be accomplished with any old run of the mill internet browser..... Which the PS3 also includes!
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