by Christopher Freeburn | September 23, 2013 10:35 am
According Eurogamer, Sony (SNE) is betting on sales of PlayStation 4 games and subscriptions push the console to a profit.
The PlayStation 4 console will hit store shelves in the U.S. and Europe in November, just in time for the holiday shopping season. The console is priced at $399. However, sources tell Eurogamer that the Japanese electronics giant expects to lose $60 on each console sale.
Responding to the report, an executive at Sony Japan said that sales of equipment relating to the PlayStation 4 console would ultimately generate a profit on sales of the consoles. In order to recoup a $60 loss per console, purchasers would also have to buy an online Plus subscription and at least on gaming title.
The executive indicated that Sony expects the PlayStation 4 to produce a profit quicker than its previous model, the PlayStation 3. The company hopes to sell 5 million of the new consoles by March.
Sony’s biggest console rival, Microsoft (MSFT) is also set to release its next-generation console, the Xbox One, which is priced $100 more than the PlayStation 4.
Shares of Sony fell almost 1% in Monday morning trading.
Source URL: http://investorplace.com/2013/09/report-sony-to-sell-the-playstation-4-at-a-loss/
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