SWORDF1SH on 25 May 2016
| mutantsushi said: I don't think they have much R&D to recoup on the hardware side. I think this is more to do with the software side of things, and that early 1st party games/ paid exclusives probably had a hard time recouping their development costs with early PS4 install base... Similiar issue with PSN, pointed out by the comment on PSN profitability improving. |
I agree,
To get a big product like this off the ground it takes mre than just R & D costs. They need to market the PS4, which on a global scale will cost hundreds of millions of dollars. Then they have to pay their 1st party studios to create games and market them (no income from those games until they release. Uncharted just released, GoW and Gran Turismo to come which both will have huge budgets. Third party deals to give the edge in sales which aren't always to benefit short term.
