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Sony Reveals That PS4 Is Already Profitable
Sony President and CEO Kaz Hirai revealed at a corporate strategy meeting this week that the “hugely successful” PS4 launch has already become profitable for the company, but also explained that it needs to continue growing the PS4’s fan base, which is currently around 7 million.
“From a profitability perspective, PS4 is also already contributing profit on a hardware unit basis, establishing a very different business framework from that of previous platform businesses,” Hirai said.
This bit of news is especially interesting considering the fact that console manufactures sell their hardware at a loss with a plan to make up that substantial cost with software sales. It’s not always the case that a company can claim it’s profiting off of selling the hardware alone, especially so early in the console’s life cycle.
Microsoft has acknowledged Sony’s success with its current-gen console by slashing the price of its own system by $100. The Xbox One will retail at $399, the same price as the PS4, starting on June 9. Currently, Sony has sold 7 million PS4 units while Microsoft has shipped 5 million Xbox Ones.