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prinz_valium said:


yes, they get 15$ in royalties.

but thats not profit. thats revenue

 

as i said:

sony made a -18.8 billion los in fy 2013

they forecast 20billion for fy 2014 (this announcent is about raising the operating income. no comment on how much)

 

 

ur $450m "guranteed profits" would be 50 billion yen

I think you are mixing somethings up. As far as the playstation goes, you have PS3, PSV, PStv and PS4. As far as playsttaion goes, revenue spent consists of  whatever is spent on making hardware, first party games, maintaing PSN servers and general staff associated with the playstation business. There is a certain amount of that money that is focused on the PS4 side of all that business. Revenue gained basically is all from first party software sales, third party royalties and PS+ subscriptions.

Profit in this case will be (especially since they were specifically talking about PS4 profits in relation to PS2 profits) is simply whatever was made from the PS4 or in association to the PS4 minus whatever was spent in associaton to the PS4. Now using the example I originally gave, even ignoring all the money that is made from subscriptions and peripherals and assuming that only one third party game is bought every year per PS4 owner and that there are 30M of them. Its actually safe to call whatever is made from just that "PS4 profits".

So does this mean that the "playstaion division" makes all that profit? No. Does this mean that sony as a whole will still not register a loss? No. But it does mean that from the PS4, they will be making  considerable profit in relation to what is spent on the PS4s side of the business.

The rest of sony can suffer losses so heavy that it would negate whatever profits the PS4 brings in, but it doesn't change that if looked at independently, the PS4 still made that profit in question.

edit: Mind you, another reason i say these are guaranteed profits is cause of the absolute worst case scenario way I did my math. I ignored money made from selling hardware, money made from selling PS+, money made from selling first party games and even went as far as say that they would only sell one third party game per year per console in consumers homes. Which is practically impossible. Case inpoint just look at how mcuh software has been sold on the PS4 in the past 1 year from an install base of under 12M.