PS4 is cheaper than PS1 and PS2 (inflation adjusted)

[Michael-5]

Munkeh111 said:

Michael-5 said:

Yeah, I am not convinced about the 12GB one, it seems like it will be a pain to manage.

Well the point is they don't make as much money on new sales, but they make money of the console directly. There is no reason to stop supporting it

Well they make $12 (20%) royalties on every game sold, plus whatever profits high volume games like GT and The Last of Us generate. I don't know how much they make per PS4 sold, but lets say 0 for arguement sakes. I assume PS3 costs them about $130 to make, so selling that at $250 is a $120 profit.

So to match the profit they make with PS3's sold, they need to sell 10 games, maybe less if some are Sony IP's. Most PS3 games are available cheap now, or used, so with every PS3 sold there's only going to be a few games they make money on. Early PS4 owners will likely eventually buy 10 new games.

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So both are profitable, but there is no reason to ignore one group of customers. Once PS4 production costs drop, Sony is going to want to push people onto the PS4. Not only because of software sales, but because if everyone owns a PS4, no one will one a One, and if they kill off the competition early (or gain considerable lead like in PS1/PS2 days) then they will make that money back in new customers. There is a cost, but you have to make sacrifices for console lead.