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naruball said:
TheLastStarFighter said:

Thanks, though it's acutally a misquote or mistranslation.  It's from the same meeting of May 22nd where every other media account of the meeting quotes him as saying 

Reported by Japanese site AV Watch (via NeoGaf), a Sony representative provided GameSpot a translation for one of Hirai's most interesting statements from the meeting. "From a profitability perspective," Hirai said, "PS4 is also already contributing profit on a hardware unit basis, establishing a very different business framework from that of previous platform businesses." It's a slightly roundabout quote, but that statement essentially says that the PS4 is already profitable, unlike previous console generations that are typically sold at a loss for their first few years.

So he didn't really say what Dual Shockers said.  What he said is that each PS4 sold contributes a profit to Sony already, whereas systems like the PS3 took years of game purchases before they made money off a game consumer.  They've never really given a breakdown, but they have implied the improved business model of PS4 is a combination of more off-the-shelf parts, no expesive new tech (like Bluray) and the addition of network subscriptions.  It's a great business model, I just hate that we as consumers are so blind to costs when they are spread out.

Interesting! Thanks for clarifying this. I had no idea. I saw people mentioning it so many times that I thought it was a well known fact by now. Guess I was wrong.

No problem.  I think Sony really nailed it with this one and the PS4.  Great business model.  Makes me sad though.  It was such a success that surely free online will end with Wii U, and in the next gen we'll all be milked like we are with cell phones and other products no matter which system we choose.  Features like free games and so on lessen the blow, but personally I don't have enough time to game that I would prefer to just be able to enjoy the key titles I like online without paying a fee rather than get titles at no charge that I don't have enough time or interest to play.