PS4 losses 'recovered' after two additional purchases

PS Plus subscription and launch game would make system profitable, says executive

One launch game and a PlayStation Plus subscription will be enough for Sony to make a profit from each PS4 sale, an executive at the corporation has claimed.

The next- generation games console will, like most systems at launch, lose money on each sale. Typically, games hardware manufacturers will look to recoup those losses by selling its software and services, whilst the company looks at gradually bringing down the costs of system assembly.


Masayasu Ito, the senior vice president of the PlayStation business, claimed that a PS Plus subscription and launch game (roughly equating to £80, or $80) would be enough to pull each sale back to profitability.

His comments were paraphrased by Eurogamer but not quoted.

Ito said Sony expects to make a profit, overall, from an average user's initial purchase.

In August, group PlayStation chief executive Andrew House said PS4 "will not generate anything like the losses we did for the PlayStation 3". Masaru Kato, the firm's chief financial officer, has also said "the amount of investment [in PS4] is much, much smaller" than PS3.

Cost estimates suggested that PS3 models made a loss of anywhere between $240 and $300, depending on model. Ken Kutaragi, the visionary who built the first three PlayStations, left the company soon after the PS3's release.

Speaking to assorted press this week at the Tokyo Game Show, Sony executives have also outlined cloud gaming plans, stating that a large number of PS3 games will be available to play on PS4 via the cloud gaming network Gaikai in the future.

Sony also confirmed it has opted to drop High-bandwidth Digital Content Protection restrictions on the PS4. Players will now be allowed to capture gameplay directly through HDMI.

The company also claimed that the PlayStation Eye camera can be updated to allow for Kinect-like system navigation on PS4.