PS3 to turn a profit soon

[Noobie]

elnino334 said:

http://www.computerandvideogames.com/article.php?id=178794

Sony Computer Entertainment chief exec Kaz Hirai is "shooting for" turning over a profit from the PS3 in its next fiscal year, which start from April.

At the moment, Sony loses money on every PS3 that it sells. However, speaking at the CES show currently underway in Las Vegas, Hirai noted falling production costs and a strong software line-up as key factors to help SCE turn over a profit on the high-end console.

"The next fiscal year starts in April and if we can try to achieve that in the next fiscal year that would be a great thing. We are 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," said a confident Hirai.

Ongoing revisions made to the hardware, including the latest 40GB SKU, will help Sony achieve Hirai's aim. "Component costs are coming down, and the number of components ... we are seeing a reduction," said Hirai.

"The 40 gigabyte PlayStation 3 obviously has fewer components (than more powerful models), and uses less power, which means that components required to dissipate heat, for example, can be smaller, so there is some cost reduction there," he explained, according to Reuters.

Hopefully that means we'll be seeing more price drops later this year, too.

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Things sound good for SONY.

I think the only reason they say that they can't make a definite committment is cuz of the nature of this console war.. they r not sure how many times they need to have a price reduction and how soon MS will go with a price reduction...

If their sales remain good between 200k to 250k till June without requiring a price drop and MS doesn't call for a price drop till then, then i m sure they will go into black... and if they have to call for a price drop around March then may be their plan for going into black will recieve a setback...

 So i don't see it as any threat, rather i find it pretty honest statement... This is a pretty volatile market right now and PS3 has a real big manufacturing cost so even a little movement in the market can have a serious impact on the profitability of the PS3 and winning the console market share is more important than going into the black..

 Just my 2 cents