Playstation 3 still losing money on hardware

Jeff Morgan — Sun, 07 Feb 2010 01:30:24 +0000

The Playstation 3 just reported a hell of year. Sales are up almost 50% over last year, from 4.5 million units to 6.5 million. That’s a huge jump this late in the generation, though according to the Wall Street Journal, the important numbers are on the loss chart.

Sony’s baby is still losing six cents on every dollar of hardware it sells. That’s not as bad as it was at launch – not by a long shot – but it’s bad, again considering where we stand in the lifecycle. The company’s CFO, Nobuyuki Oneda, says he can deliver a 15 percent cost reduction, but not until March of 2011. At that point we could start to hear rumors of the next generation of consoles, not to mention the addition of expensive motion controlling hardware.

As much progress as Sony made this year, it’s a long way from being a profitable division of the corporation as a whole.

Source: Wall Street Journal

ps3 profitability – Fearless Gamer

Playstation 3 still losing money on hardware