Sony’s PlayStation 4, as many of our readers may or may not be aware, is essentially – as our own Mitch Walters puts it – ‘On Track To Become Best Selling Game Console Of All Time’ well outpacing its direct competitors, Microsoft’s Xbox One and the Nintendo Wii U. While these sales are epic and impressive and likely signal a large amount of forthcoming support from game publishing studios of all shapes and sizes, perhaps even more surprising is the fact that Sony is already profiting on each console sold.
The razor strategy was used for Sony PS3 and MS Xbox 360 which each costed more to manufacture than they earned in sale. Similar to how a shaving razor would be sold in the old times at a loss, just to profit off of the blades users would purchase down the line, high-end video game consoles from Sony and Microsoft have always taken this approach. With PS3 and 360, Sony and MS were able to take a loss per hardware unit and make up for it in sales due to the large amount of games an average Xbox or PlayStation gamer purchases.
PlayStation 4 has instead set a new trend for the profitability of this home video game console generation by making money out of the gate from both the rapid hardware sales as well as the license fees from all games published on the platform (not to mention 1st party ventures such as exclusive games published by Sony Computer Entertainment).
The announcement that Sony PS4 consoles are profitable at customer endpoint for all hardware sales was initially made by Kaz Hirai. The information trickled its way down through international games press eventually catching the attention of major news publication Game Informer whose post notes the indie publication responsible for bringing this post out of obscurity.
Many note that Sony was known to be taking this approach with PS4 already, and yet Hirai’s latest comment is still in fact our resulting confirmation that these plans of Sony’s were actually articulated and manifested.
And then the inevitable happened…
An epic debate raged on at the DualShockers publication’s comment section of their post on this announcement which saw feuds erupt between fans who believed the PS4 was not profitable versus those who did. To put it fairly, it seemed as if at least one side was completely trolling (not really having faith in an argument online, but just inserting it somewhere to cause OTHERS to argue).
Here’s an excerpt from one comment which was pasted multiple times by a user who engaged in this flame war:
“Sony Game, Financial Services, Devices, Music, Mobile Products & Communications, and Pictures are all profitable divisions. They aren’t going anywhere, sorry.
Sony’s market cap is 18.65 billion as of today (2014). Market cap in 2013 was 17.6 billion it has gone up since then.”
In conclusion, let it rain – let it rain baby! Sony is in the money with the Sony PS4, and while the RGN crew recommends gaming on as many platforms as personally feasible, they have certainly solidified the PS4 as a must-have device this generation. Financials are looking solid too, so it’s not just quality gaming this time it’s also quality business for developers who market to PS4’s growing hardcore gaming install-base.
The Last of Us on PlayStation 3 achieved huge sales and awards and now The Last of Us will receive a Remastered Edition on PlayStation 4 with 60 frames per second being targeted as a final product goal by world renown development studio Naughty Dog. PlayStation 4’s latest sales numbers at the time of this article’s writing put the console well ahead of the Wii U and Xbox One with a considerable lead at *OVER 7 MILLION PS4s sold!
Many first party and third party games are coming to the PlayStation 4 and we invite you to join us as we embark on the path of greatness alongside all of our iPhone, 3DS, Gaming PC, and other gaming platform coverage!
(Source: SONY Official Public NPD Announcement; Age of Data: *As of April 2013).
Some Info Sourced: [AVW via DS + GI]
Editor’s Note: RealGamerNewZ has moved web servers, some older posts can no longer be commented on and have been preserved without their images. Thank you for your understanding in this matter. This article was written by Mitch Walters on 20140524 and was last modified on 20140524 .