Where are the sources that Sony making tons of monies on PS4?

[mjk45]

Conina said:

MoHasanie said:

Lower manufacturing profits happen for everything but the games division had more than a 400% jump in profits. In order for your theory to make sense, Sony would have had to lower manufacturing costs of the ps3 by 400% and continue selling the same amount which is not true since the PS3s shipments were way  down. 

No. If you sell something for $200 with a profit of $5 and can lower the production costs from $195 to $175, the profit would rise from $5 to $25.

Mohasanie said  , they would have to lower costs by 400%  he should have said lowered cost enough to make 400% profit .

They can make some small profit adjustments by way of efficiencies , but because of the contracted nature of the business they would need a major hardware revision to make such a big difference and importantly in just one quarter, all things are possible but the fact that the increase came at a time where the  PS3 is losing ground and the Vita's treading water makes it a good bet that the catalyst is the PS4.