Nikko Citigroup analysts have upgraded their rating for Sony Corporation citing their anticipation that the company will break even or even turn a profit on the PlayStation 3 beginning in August.
If their prediction is accurate, then Sony will break even at least three months earlier than analysts had previously speculated. Sony itself was not sure when it would hit profitability on the console and Sony's Kaz Hirai said that the company would was shooting for the fiscal year beginning April 2008.
Sony has always said that PS3 production costs will only ever hit break even point when the "65nm Cell processor and the 90nm are shrunk to smaller, cheaper-to-manufacture sizes, and that comes with the side effect of drawing less power and creating less heat."
It should be interesting to see when profitability occurs because may lead to more price cuts for the consumer.
Sony has always said that PS3 production costs will only ever hit break even point when the "65nm Cell processor and the 90nm are shrunk to smaller, cheaper-to-manufacture sizes, and that comes with the side effect of drawing less power and creating less heat."
It should be interesting to see when profitability occurs because may lead to more price cuts for the consumer.
