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

[osed125]

Max King of the Wild 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.

Two words: Digital Distribution. (+ you aren't considering subscriptions or accessories.)

Couldn't find anything about the anatomy of a digital game, but with the current graph the only thing that is not present in digital games is the "Cost of goods" which is $4. Digital games are still $60 so I don't know where the extra money goes. Let's say that instead of $7 for third parties and $27 for first parties it will be $17 and $37.

So it will be 6 third party games or 3 games first party games, not that big of a difference. 

Accessories do play a big part of profit for gaming companies, but I don't know what is average the attach rate for new consoles and accessories.