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Forums - Sony Discussion - Does PSP Hardware and Software Make Money?

Are there any best guesses or consensus estimates as to PSP Hardware and Software?

Does Sony make money on them?

Here are the numbers from Sony:

Apr 2007 to Mar 2008 - 12 months:

PSP Hardware - 13.89 Million Units

PSP Software - 55.5 Million Units

For those who are familiar with PSP - do you think that Sony made money on their PSP division??(taking into account all costs associated with PSP including overhead, labor, R&D, marketing, etc.)



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I saw in PSP fanboy that they mentioned that PSP hardware will not be sold at a loss.

Is this correct?

Is it reasonable to say that PSP software makes some money for Sony? Maybe $3 to $8 per unit on average on all software (1st party to 3rd party)?



No PSP info from anyone?



At first it was sold at a loss, as was the norm before Nintendo decided to rake in 2 billion a year. It is widely believed to be selling at a profit now and even though software sales aren't great, the development budgets are small so it is easy to make a profit. With the games only selling at $40 upon release and sometimes less with games like Patapon, licensing would probably be $5 tops.



They make money on them



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Do you know when they started making money on PSP Hardware then, if initially it was sold at a loss?

When was the PSP introduced? Sometime in 2006? or 2005?

BTW, is it true that Pitcairn has less than 100 people? What is the population of the Pitcairn Islands?



They started selling them whitout a loss ~ E3 06 . At least in an interview at that years E3 they stated that they are not selling PSPs anymore at a loss . At launch they where loosing more then 20$/PSP if I remember correctly . They actually didnt cut the price untill last Sept. to make money on hardware . Software wise ... well thats self-explanatory ... Its not that much , but it is profit ...


Oh , and PSP was introduced in Dec. 04 in Japan , March 05 in the US and Sept. 05 in EU ;)



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I see. That seems reasonable.

Sony does target on average a 5% operating margin for their company.
If we go by that, then

PSP Hardware = approx. $5 to $8
PSP Software = approx. $3 to $5

I can use these numbers to analyze the upcoming 1Q FY 2008 for Sony.

Any idea on PS2? General consensus?