Sony Corporation chief financial officer Nobuyuki Oneda expects the PlayStation 3 to be a profitable console in 2010. He explained to Impress AV Watch:
At present, the difference between sales and materials cost has been reduced to between 10 and 20%. Within the year, it could be in the single digits. We’ll be able to reach profitability at some point in the next term.
Out of the three major gaming consoles, Sony’s PS3 was, by far, the most expensive to create and build. Achieving profitability is a significant milestone for Sony.
Source via Andriasang
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this just sort of goes along with the article about Insomniac saying it will be two or three years until the PS3 is maxed out. It was a slow starter, but it just builds steam as time progresses. As time goes on it becomes more profitable and its potential is revealed. It's not a bad business plan as long as you can afford to back it (which Sony obviously can) and is severely different than Microsoft's 360…interesting…
@bsukenyan
In contrast, MS is making a fortune on their live service right from the beginning. Both models will produce money, but you can't fault MS for making an immediate ROI.
@Smartguy I wasn't meaning to imply that MS isn't making money. I actually do agree that they are making tons of money, i'm just a little curious how MS and Sony's extremely different strategies will play out for them in the long run; mostly thinking about predictions that the PS3 is not even to its potential yet.
@bsukenyan
We have a gotta have it now culture. If MS came out with a new console next year, the PS3 would be doomed. There are some people who will just cling to the PS3 for the sake of it though. I think Sony's 10 year plan was good for its last machine, but not for this one. Bluray isn't the ace in the hole that DVD was. Quite honestly, MS has more money to blow and could wait considerably longer before they make a profit on the 360 as compared to Sony and the PS3…yet they chose not too. Maybe it's a cultural thing.