Sony: "Unlike PS3, we are not planning a major loss with the launch of PS4"

[Machiavellian]

pezus said:

osed125 said:

pezus said:
This could still mean that they'll be selling PS4 at a loss btw. Just that they don't expect to lose $400 on every PS4 like they did with PS3 . A $100 loss per PS4 and software that makes up for the initial loss is the way to go.

$100 loss? That's insane, you will need to sell 14 third party games or 4 first party games per console to recover that money (based on this, for first party it will be $27 per game and $7 for third party games (platform royalties)). Although I don't know who gets the $7 from "Returns", most likely the publisher, which in that case it will be 3 first party games.

Of course. They do seem to be planning a minor loss. The software will help make the loss less than $50 per system. Actually, based on this Sony would get $34 per first party game (Publisher+platform royalty) if we assume the other prices are constant. Two first party games per console would go a long way to minimise the loss down to basically nothing and then you add a few 3rd party games to get even closer to zero.

Edit: And if that returns goes to Sony then they'd only really need 2 first party games per console and they'd lose less than $20.

For first party I do not think it works like that.  The cost of developing the title has to factor in or that game sell as well.0