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shakarak said:
Andrespetmonkey said:

Why do people think this?

Of course they can sell it at a loss, just not a spastically high loss the PS3 was sold at. $50-100 loss? That's absolutely fine. Think about it like this: jonjon buys his PS4, Sony loses $75 from that. jonjon then buys 10 games, a couple themes, some DLC, maybe subscribes to PS+ or Netflix... etc etc. in the first year of ownership. Basically, SCE easily makes that money back soon because most of their money comes from software, not hardware. The more hardware sells, the more software sells, so it makes sense to take a loss on the hardware so it's cheaper and more people will buy it.


But consider (if they are first party)  that those games they are counting on selling to make a profit also had their own Budgets and they have to sell x amount to break even for them to se successful, let alone contribute to Sony's bottom line. They're already investing into these games, PS4 titles are in development. And to get those games to sell to their fullest potential they need the hardware to be as cheap as possible for consumers (bigger install base).  

 Also include the R  & D of the PS4 itself.  Which will be comparatively nothing to the PS3 since they'll be using off the shelf parts. I just don't think it's feasable for Sony to sell the ps4 at even a $100.00 loss. They would make more money selling the hardware at a loss ($50-100 really isn't that much to lose on hardware) unless the hardware isn't very powerful.