Everyone knows the console hardware business is not the place to make money. Not at first, anyway. After the cost of the internals start to come down you might see some profit, but even then, it’s small. That model holds true for Sony’s new PS3 Slim, a leaner version of the PS3. Sony exec Kaz Hirai told the Times Online that the PS3 Slim will lose money, just like the earlier model.

That really doesn’t come as a surprise. Sure, the technology is a few years old, but the size is not. I think anyone reading this blog knows that shrinking an existing technology is the most surefire way to increase the cost.

Hirai’s response when questioned about profitability is certainly strange, though.

If you’re just talking about the hardware alone, the quick answer is yes. That makes good headlines, but I don’t actually know that that’s the true nature of the business that we’re all in, whether it’s PlayStation, Xbox or the Wii. I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year.

I’m not sure when this kind of news made for a great headline, but I am writing about it, so I suppose what he says is true. I just think it’s odd that he words things like this is a new concept to anyone who would be inclined to read the article. We know that, and sometimes we read about stuff we already know.