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Sony: PlayStation 4 very likely to surpass PS2 in profitability

Written by Andre Yoskowitz (Google+) @ 23 May 2014 22:10 User comments (19)

Sony: PlayStation 4 very likely to surpass PS2 in profitability Sony CEO Kaz Hirai has said the PlayStation 4 will very likely be more profitable over time than the PlayStation 2, which is quite the feat given that the console is the best selling at all-time at 150 million units shipped.
The PS4 recently reached 7 million units sold since its launch just over 6 months ago.

"It is likely that PS4 will become the platform which exceeds the profits earned with PS2," says Hirai, thanks to strong hardware sales and growing popularity for high margin digital services.

Sales for Sony's gaming division have been growing significantly, and Sony expects to sell 17 million PS4 and PS3 consoles during the current financial year.

Sony takes a small loss per hardware unit sold, but quickly recoups if the customer purchase a couple of games or signs up for PlayStation Plus. There were no options for digital downloads for the PS2, which launched in 2000, but hardware sales were more than significant. The PS3 lost the company hundreds of dollars per console sold, and it took over four years for Sony to break even.

Source:
Eurogamer

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19 user comments

125.5.2014 11:22

Thats nice and all but I ain't touching it till it gets full BWC, ps2 at least......


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Lets renegotiate them.

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225.5.2014 21:48

There needs to be more focus on developing games and applications/functionality specifically for the PS4... Instead of trying to recoup more profits from the older PS3 system. SONY! ... You have now developed and launched the PS4, so start making it a priority for the FUTURE of sony... Instead of the past.

And, maybe hypocritical from my words above depending on how you look at them, but yes, Backwards compatibility should be a certainty. Come on Sony, this is the "PS4"!!!

326.5.2014 8:56

Backwards compatibility is not going to happen, at least not in the way it has in the past. Hence the Gakai stream service; that's about as far as you'll get with backwards compatibility, and it will be launched soon. Those whom can't let go of the past, at least hardware-wise, should then simply not buy a PS4.

427.5.2014 11:58

This is a ridiculous and obvious claim that has little to no merit regarding the need to disclose this.

OF COURSE it will surpass.......Given that Sony has claimed that this will be the last "console system" made. If Sony doesn't plan on making any more then CLEARLY it will eventually surpass the PS2............except that PS4 will be done over time.

Also, there are way more people in this forsaken world we live in now compared to back in the early 90s so DUH! to the profitability.

As for the nonsense claim of "a small loss per hardware unit sold", it's completely contrary to what Sony admitted about the loss for each unit sold being quite 'substantial'.

I'd bet anything Sony will NOT break even on the PS4 in under 4 years.

This message has been edited since its posting. Latest edit was made on 27 May 2014 @ 11:59

527.5.2014 16:07

Originally posted by Mysttic:
Backwards compatibility is not going to happen, at least not in the way it has in the past. Hence the Gakai stream service; that's about as far as you'll get with backwards compatibility, and it will be launched soon. Those whom can't let go of the past, at least hardware-wise, should then simply not buy a PS4.
Correct. And from my experience in the PSNow Beta for PS3 & PS4 I am REALLY impressed with it so far.


Originally posted by hearme0:
a) OF COURSE it will surpass.......Given that Sony has claimed that this will be the last "console system" made. If Sony doesn't plan on making any more then CLEARLY it will eventually surpass the PS2............except that PS4 will be done over time.

b) I'd bet anything Sony will NOT break even on the PS4 in under 4 years.
a) Source link please for proof on such a big statement like that (of which I have NOT heard at anytime).

b) I'd probably take that bet as the PS4 does not have the same manufacturing disadvantages/costs as the PS3 did (and still has).

627.5.2014 16:08

hello oner.

827.5.2014 16:43

Crush them wif facts!


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Lets renegotiate them.

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927.5.2014 21:29

@Oner - I glad to hear PSNow Beta is going smooth. I fear that once it launches to the public, it will crash as the demand will be insanely high for that service. It would be nice to have assurance that it's on a separate network than PSN, but likely it's not.

This message has been edited since its posting. Latest edit was made on 27 May 2014 @ 21:30

1028.5.2014 1:02

Originally posted by Oner:
Originally posted by Mysttic:
Backwards compatibility is not going to happen, at least not in the way it has in the past. Hence the Gakai stream service; that's about as far as you'll get with backwards compatibility, and it will be launched soon. Those whom can't let go of the past, at least hardware-wise, should then simply not buy a PS4.
Correct. And from my experience in the PSNow Beta for PS3 & PS4 I am REALLY impressed with it so far.


Originally posted by hearme0:
a) OF COURSE it will surpass.......Given that Sony has claimed that this will be the last "console system" made. If Sony doesn't plan on making any more then CLEARLY it will eventually surpass the PS2............except that PS4 will be done over time.

b) I'd bet anything Sony will NOT break even on the PS4 in under 4 years.
a) Source link please for proof on such a big statement like that (of which I have NOT heard at anytime).

b) I'd probably take that bet as the PS4 does not have the same manufacturing disadvantages/costs as the PS3 did (and still has).
As per Kaz Hirai, the PS4 is already profitable on every unit sold and PS Plus has over 70 percent margins.

1129.5.2014 16:09

Originally posted by DVDBack23:
Originally posted by Oner:
Originally posted by Mysttic:
Backwards compatibility is not going to happen, at least not in the way it has in the past. Hence the Gakai stream service; that's about as far as you'll get with backwards compatibility, and it will be launched soon. Those whom can't let go of the past, at least hardware-wise, should then simply not buy a PS4.
Correct. And from my experience in the PSNow Beta for PS3 & PS4 I am REALLY impressed with it so far.


Originally posted by hearme0:
a) OF COURSE it will surpass.......Given that Sony has claimed that this will be the last "console system" made. If Sony doesn't plan on making any more then CLEARLY it will eventually surpass the PS2............except that PS4 will be done over time.

b) I'd bet anything Sony will NOT break even on the PS4 in under 4 years.
a) Source link please for proof on such a big statement like that (of which I have NOT heard at anytime).

b) I'd probably take that bet as the PS4 does not have the same manufacturing disadvantages/costs as the PS3 did (and still has).
As per Kaz Hirai, the PS4 is already profitable on every unit sold and PS Plus has over 70 percent margins.

Exactly. I'm just waiting on clarification of this specific comment by hearme0
of which I have NEVER heard before ~

Quote:
Given that Sony has claimed that this will be the last "console system" made.

This message has been edited since its posting. Latest edit was made on 29 May 2014 @ 16:12

1229.5.2014 17:08

Originally posted by Oner:
Exactly. I'm just waiting on clarification of this specific comment by hearme0

It's conjecture and quickly Googling puts that to bed, but I'm sure you know that already.

Not a loaded question, just curious: is your interest in/knowledge of Sony a personal interest or does it cross into the professional?

Anyway, there appear to be a few videos floating around of PSNow Beta on PS4 (presumably unawares they are breaking whatever the NDA is?). It looked nice.


1330.5.2014 17:30

Originally posted by Ripper:
Originally posted by Oner:
Exactly. I'm just waiting on clarification of this specific comment by hearme0

It's conjecture and quickly Googling puts that to bed, but I'm sure you know that already.

Not a loaded question, just curious: is your interest in/knowledge of Sony a personal interest or does it cross into the professional?

Anyway, there appear to be a few videos floating around of PSNow Beta on PS4 (presumably unawares they are breaking whatever the NDA is?). It looked nice.
I don't take it as a loaded question at all. I have absolutely no qualms or problem answering any question(s) as to my involvement in the scene/gaming. Never had. Never will. It is a completely personal interest, with no cross over of really anything substantially professional tbh.

As for the PSNow beta it has absolutely surpassed my expectations/requirements...and surprisingly so.
This message has been edited since its posting. Latest edit was made on 30 May 2014 @ 17:32

1430.5.2014 18:48

Just my 2 cents but there is alot of rumor and assumption over if this is Sonys last console. I knew I heard the statement before but not from anything official. Tho I must admit I have heard Sony saying some wired shit before but MS has them beat by miles.


Copyright infringement is nothing more than civil disobedience to a bad set of laws. Lets renegotiate them.

---
Check out my crappy creations
http://zippydsmlee.deviantart.com/

153.6.2014 0:31

Originally posted by hearme0:
This is a ridiculous and obvious claim that has little to no merit regarding the need to disclose this.

OF COURSE it will surpass.......Given that Sony has claimed that this will be the last "console system" made. If Sony doesn't plan on making any more then CLEARLY it will eventually surpass the PS2............except that PS4 will be done over time.

Also, there are way more people in this forsaken world we live in now compared to back in the early 90s so DUH! to the profitability.

As for the nonsense claim of "a small loss per hardware unit sold", it's completely contrary to what Sony admitted about the loss for each unit sold being quite 'substantial'.

I'd bet anything Sony will NOT break even on the PS4 in under 4 years.

Ok?


This is superman

163.6.2014 3:06

I don't care about full BWC i still have my ps2 in my bedroom and all the games.

What i do want is free online play without the need for a paid subscription service which is 1 of the reasons i got ps3 over xbox 360.I feel i shouldn't have to buy a console then pay the isp then pay for each game and pay extra per year on top to be able to play the games online seems like they are trying to milk the customers for every dollar.

People always claim the new system is the last they're bringing out but i bet Sony are already doing R&D for PS5.

Also should point out people in developed countries have more money now and are willing to spend more than they did in ps2 days on gaming.


custom built gaming pc from early 2010,ps2 with 15 games all original,ps3 500gbs with 5 games all original,yamaha amp and 5.1channel surround sound speakers,46inch sony lcd smart tv.

173.6.2014 4:44

Originally posted by Oner:
I don't take it as a loaded question at all. I have absolutely no qualms or problem answering any question(s) as to my involvement in the scene/gaming. Never had. Never will. It is a completely personal interest, with no cross over of really anything substantially professional tbh.

As for the PSNow beta it has absolutely surpassed my expectations/requirements...and surprisingly so.
My bad for missing this the other day. Thanks.


183.6.2014 11:30

Originally posted by xboxdvl2:
What i do want is free online play without the need for a paid subscription service which is 1 of the reasons i got ps3 over xbox 360.I feel i shouldn't have to buy a console then pay the isp then pay for each game and pay extra per year on top to be able to play the games online seems like they are trying to milk the customers for every dollar.
I agree as this was one of the biggest differences last gen when comparing services (to me at least). But even with that said I personally picked up the old PS Qore magazine service which was like $20 for the year on special or something like that back then, so I bought a couple years because it was cheap. But then it changed/morphed into PS+ and since I was an original member from Qore it carried over and I was able to add a few more years at a HUGELY discounted price, and I've had PS+ ever since (which covered me for my PS4 anyway).

Though tbh I probably would have bought PS+ on it's own for all the games/discounts/freebies it offered, and actually my next subscription re-up would be my first time ever paying for it at it's normal price (though I am sure I can find a deal out there). So while I completely agree on paying for multiplayer is BS/aggravating when you actually break down what you get, it truly is a damned good service as you get sooooo much for the price.
This message has been edited since its posting. Latest edit was made on 03 Jun 2014 @ 11:31

1910.6.2014 2:46

Originally posted by hearme0:
.......Given that Sony has claimed that this will be the last "console system" made.
That I doubt very much... since 4K 3D will be the standard sometime in the future. Also, Sony are gonna want to keep making $$$ from streaming services so they are not gonna just put out redos of the PS4 in the decades ahead... they'll want to freshen it up occationally.


Originally posted by Oner:
As for the PSNow beta it has absolutely surpassed my expectations/requirements...and surprisingly so.
There's a similar streaming service on the OUYA... its had good reports too. I can't tell you personally because naturally it's not available in Oz. :/



Its a lot easier being righteous than right.


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