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

Hope so; Sony really needs it.

Although even $1bn/annual in profits for a division that only represents 10-12% of the corporation isn't going to offset the types of losses they keep posting in their mobile, computer and TV divisions.

I think the only way they can do that is by scuttling/selling off divisions that have been consistently posting massive losses. Even then, the PS division revenue will merely represent a larger percentage of less overall revenue. 

As well as the PS4 is doing, the PS division can only sell so much and generate so much revenue.

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. 

PS+ will be a big revenue source. Half of PS4 install base is subscribed.

wut? so ps4 game royalties count, but ps4 game marketing costs doenst count?

and we dont know any breakdown on ps3, ps4 or vita/tv. sony just put them all together. so thats the best figure we can get and should use

1 billion profits on ps4 alone would be even harder to achieve, than 1billion for the  whole game divison (including ps4 as its strongest part)

there is only one way this would be possible. ps4 is highly profitable, but ps vita, vita tv and ps3 generating a loss.

thats for sure not the fact. or why made sony profits in 2012, but a loss in 2013?

LOL you serious ? so ps3 vita is a loss now you are claiming ?

Loss in 2013 hmm lets see maybe launching new hardware, gee that usually costs a bit dont it.

read my post

i said the only way ps4 would make 1billion profit, without the whole game divison itself make 1billion profit, is if ps vita, vita tv and ps3 would generate a loss...

thats the reason why its pointless to talk about only p4 profits. it would not make any difference

1. Well yes. Again look at the math. PS4 game marketing doesn't count cause in my calculations I completely ignored first party game sales. Typically, a game should at least break even. So development costs plus + marketing costs for that game should = total sales. Unless the game is a flop. Hence its safe to say that they cancel out. That is why I am only looking at royalties from 3rd parties as their profit.
   
   
2. Yes we don't know about all that. But the article isn't about PS division circa PS4 vs PS division circa PS2. Its about PS4 vs PS2. So ther is no need to look at all those other things. For the "PS4" to be as profitable as the "PS2" we only need to consider what goes into the "PS4" business and what comes out of it. This is why I said that when all else is considered the Playstation business may eat off some of the PS4s profits, but that doesn't change the fact that the PS4 still made those profits. And again, this article is about the PS4 vs PS2.
   
   
3. Not true at all. It wouldn't be hard to achieve $1B in profits for the PS4 alone, it would be hard to keep it cause certain parts of the game divison may make them bleed money. Eg. Vita, funding for 1st party projects, PSN management.... basically everything else that goes into the "playstation business" which again is not what this article is about.
   
   
4. Exactly... or even if not a loss, just the general cost of running the Playstation division in its entirety.

and the destiny and watch_dogs co marketing deals?

on the second point: we turn into a circle. i just can say, what i already said. u can cut out the ps vita or whatever cots, but u cant cut out the server infrastructure, development and all other cotst, that are ps4 related. and its all about 1 billion in profits for the ps4 (alone or not doenst make that much of a difference)

if ps4 reach that goal, the whole divison would do it, too

only way it would not: read me privious post.

3. and how would the ps4 sell millions of units and make 1b in profit without the games, or ps network? it would not sell

thats the reason, why u cant cut that suff out. u only can cut that stuff out, if u talk about hardware profitability by itself. and thats not what Andrew House was talking about. he talked about ps4 profits = all ps4 related renevue - all ps4 related costs