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.

Normally I like to rip on Turkish for his threads, but this one is awesome.

They make less than $12 per third party game, I am sure. Each PS4 gamer will EVENTUALLY buy 10 games, but not for some time. The average attach ratio is only now about 10. What is important for Sony is that they keep making money off the PS3 while the PS4 doesn't produce much profit (given the costs assosiated with starting it).

I don't think they can kill of the Xbox One, in fact, wounding it might trigger that to cut its price, hurting Sony.

They are making it cheap to beat the Xbox One, but they still want people buying a PS3. I don't think the consoles appeal to the same market

Yes, but a 10 game attach rate is how many games people own for console sold. Meaning people can buy up to 100 and sell 90, and still have 10 (just means 90 people buy used games). I think early adopters are people with more $$$, who tend to buy games new and sell them. Sony wants to attract people like this because they are the people who buy new games, A LOT.

Sony can't kill Microsoft, it's too big of a company, but if they're lucky they can trigger a landslide switch and get a significant lead this gen. MS will only cut price to keep up, not to surpass PS4 in sales. MS wan't money in the end, they won't sell One's at a loss for any reason.

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Still we do agree that the PS3 and PS4 market is different, both profitable, so obviously Sony wants a good hand in both markets. I'm really interested in Novemeber/December, and seeing how well everything sells. Not even just for PS4 and One, but Wii U will finally start building a great library starting in August, Pokemon X/Y has a world debut, and Vita has Killzone, I wonder if it's enough. Plus I want to see how well PS3/360 still do, they are both getting some really great games, I think this is one of the best years for PS3.

Thank youuuuuu I know its awesome!

No, $299 was the one with no hard drive.