Sony gets a cut of every single game on their platform (licensing fees if it was 3rd party, and direct income if they published it), and the controllers are very profitable. The answer to the OP question is "Yes, easily".

They will make a profit simply on the console and one controller, and maybe one game.
A dualshock is like 40$ profit.
Each game makes sony about 15$

Licensing fees?

Of course Sony makes money on everygame published for the PS3...

If Sony makes Profit on 250gb PS3s and no loss on 120gb PS3s then the loss is 35-40 Dollar/Euro per Console.

A Controller costs about 50-60 and to produce it maybe 5-10 so ONE Controller makes up the losses Sony made on the PS3. One Controller or 3 games.

Its nothing new that a manufacturer sells hardware for a loss. They did it all the time to increase userbase and get the money back through games.

Sony makes a loss per PS3 BUT Sony earns money on every PS3 because the attach ratio is bigger then 3:1. The PS3 makes profit for sure. Earlier they lost 100 Dollars or even more per Console but those times are over. The PS3 is beginning to be profitable. Normally it takes 1-2 years. the PS3 went profitable after 3 years so they lost one-two years vs the Competition. But they probably regain the money through the revenue in Bluray. Even if it takes 5 years. And eventually they even have Contracts with the other Bluray partners that allow sony to gain a little more on bluray because they pushed Bluray through with the PS3.


The PS3 will be profitable in the future for Sony. Sony is a Japanese Company. European/US Companys are planning for quick success. But the japanese Companys have a different philosophy they make long term plans.

you forgot that even if it costs $10 to make, the stores need to make a healthy profit off of it too, so Sony doesn't get all $50. Also, if they were so close to profitibility or 1 controller made all the money back, how come they still post losses or even fail to post moddest earnings?

Also, it is relatively new that a hardware manufacturer sells for a loss. Sony was the first company to do it, as Sega, Nintendo, Atari and others all produced consoles and sold them for a profit.

Hmm i am sure that the Snes and N64 was sold for a minor loss too. I have to search for it.

The PS3 made huge losses on the beginning. And a Healthy Profit for a Shops is about 5-10 Dollar. A Controller costs 55-60. And I bet its almost worth nothing.

Even if they just earn 25-30 Dollar per Controller then it would be most of the losses.

They said that they make no loss on the PS3 250gb.
A PS3 120 gb costs 300 and a 250gb 339 lets assume now that the 250gb HDD would Sony cost the same as the 120gb HDD they so the loss per 120gb PS3 would be 40 Dollar/Euro.

They never showed data from a quarter with the Slim PS3. And you can never know how much RD Costs for PS Mote and PSp2 and PS4 are in the losses included. So simply you cant know if the PS3 made really this giant losses the last 4 quarter.

And dont forget just recently the Revenue from PSN grew from 120 Million to half a Billion.

If you read my comment carefully you will recognize that I said that the PS3 made losses for 3 years but the future will be different.

I should have written: Sony earns money NOW on every PS3 because that was what I meant.

hmm you are right to sell Consoles with a loss is something new. But I remember that as a kid someone explained me that the SNES or was it the N64 ? is sold by a loss because Nintendo makes the money from the games or was that later ?

I am pretty sure that there was a time were the N64 was sold with a loss, was it the time they lowered the Price to 299 Dollar ?

According to the Informations I found on google it was MS which started this model with the original XBOX.

But I think it was common before that. The Gamecube costed pretty soon almost nothing yet it was more powerful then the PS2 they had to lower the price wasnt it sold by loss too for some time ?

I think I was just not able to find the informations but they sure are somewhere.

Nintendo typically sells their systems for little profit, but not a loss. I believe one console sold for a minor loss due to currency variances, but they weren't adopting the razor/blade model. The PS2 launched first, and also sold for a loss, but not as big of one. The XBox, X360, and PS3 took it too far, hence the massive losses in their divisions.

Also, Sony recently stated they would be profitable on the PS3 in fall 2010 (they made the same comment about reaching the point in fall 2009, but they then cut the price). I'm sure they don't lose as much as they used to, but they still haven't claimed profitability on their main line of console which I'm sure they will for investor confidence.

10 60$ games??? Definitely. No doubt they make a pretty decent amount on accessories like controllers.