Sony Finally Making a Profit on PS3 Hardware

Sony Computer Entertainment Worldwide studio head Shuhei Yoshida says that the PlayStation 3 is finally making a profit after 4 years. Speaking to IGN, Yoshida says that the company has finally turned the corner when it comes to hardware. The success or failure of a system often depends on this milestone, which took a bit longer for Sony because of the highly expensive components in the PS3 like the Cell processor.

Obviously as components become cheaper – and some elements of the system like backwards compatibility are eliminated or replaced by software solutions – the cost of doing business becomes less of a strain. Yoshida did not disclose how much it costs to make a PS3 system.

"This year is the first time that we are able to cover the cost of the PlayStation 3," he told IGN. "We aren’t making huge money from hardware, but we aren’t bleeding like we used to."

While Yoshida is keen on making money off each system, he is not so keen on disucssing price cuts for the PS3. He said that a price cut this year is unlikely, and that the company is focusing on 3DTV, games, Move, hardware bundles (no doubt Move related) and getting stock back on retail shelves.

"We have lots of great games coming out and innovations with Move and 3DTV, so we don’t believe this is the time for us to think about a price drop," he said.

Source: IGN UK

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