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PS4 won't generate 'anything like the losses' of PS3, says Sony exec

PS4 won't be as expensive to launch despite recent currency exchange issues

The launch of the new PlayStation 4 will not result in losses on anywhere near the same scale as PS3, according to SCE boss Andrew House.

PS3's turbulent launch was well documented for having cost Sony immense sums of money, with losses in 2007 and 2008 topping $3.5 billion.

But Sony will avoid taking such losses this time around, according to House. "We will not generate anything like the losses we did for the PlayStation 3," he said during a recent investors call, reports Bloomberg.

CFO Masaru Kato noted earlier in the call that "the amount of investment [in PS4] is much, much smaller."

Sony invested heavily in R&D for the PS3, having created its own proprietary microchip, the Cell processor, which sat at the heart of the console. Sony went on to take a loss on every console sold, despite its controversially high launch price of $599/£429, which in turn hurt sales when pitched next to the comparatively capable but significantly cheaper Xbox 360.

On the other hand the PS4 utilises standard x86 architecture with processors from AMD, saving Sony on R&D costs and allowing for a more attractive launch price point of $400/£349.

Sony has, however, warned investors that recent shifts in currency exchange rates will hurt the firm leading up to the PS4's launch. Sony chose to deal in USD for the console's manufacturing processes, but a weakening Japanese Yen looks set to inflate manufacturing expenses significantly.

The firm noted that these losses will be partially recouped by the increased value of PS4 sales in US territories.

The PS4 release date is set for this Christmas in Europe and North America.