Report: Sony to Sell the PlayStation 4 at a Loss

by Christopher Freeburn | September 23, 2013 10:35 am

sony playstation 4 630 300x200 Report: Sony to Sell the PlayStation 4 at a Loss[1]According Eurogamer, Sony (SNE[2]) is betting on sales of PlayStation 4 games and subscriptions push the console to a profit[3].

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[4].

Sony’s biggest console rival, Microsoft (MSFT[5]) is also set to release its next-generation console[6], the Xbox One, which is priced $100 more than the PlayStation 4.

Shares of Sony fell almost 1% in Monday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2013/02/sony-playstation-4-630.jpg
  2. SNE: http://studio-5.financialcontent.com/investplace/quote?Symbol=SNE
  3. betting on sales of PlayStation 4 games and subscriptions push the console to a profit: http://www.eurogamer.net/articles/2013-09-20-sony-expects-to-recoup-playstation-4-hardware-loss-at-launch
  4. sell 5 million of the new consoles by March: http://investorplace.com/2013/09/sony-sets-very-ambitious-playstation-4-sales-target/
  5. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  6. set to release its next-generation console: http://investorplace.com/2013/05/xbox-one-ultimate-entertainment-console-or-disaster/

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