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Sony Still Loses Money on Every PS3 They Sell

Illustration for article titled Sony iStill/i Loses Money on Every PS3 They Sell

A tiny but significant factoid in Sony's earnings report from the WSJ: "Sony loses about six cents for every dollar of PS3 hardware sales."

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Educated guesser of component prices iSuppli had deduced that Sony was finally eking out a little bit of profit on every PS3 Slim they sold, thanks to lower costs, but apparently, not the case! They're hoping to cut production costs by 15 percent by March 2011. Hey, at least PS3 sales were up 44 percent. On the other hand, no one's buying the PSP Go. Sony cut their sales estimates by third for the year.

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Sony did actually make money this quarter—the first time in a year—but it was by essentially ravaging the company to cut over $3 billion in costs: A fifth of its plants are gone, along with 20,000 jobs. [WSJ]

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DISCUSSION

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As others pointed out, it's always been the prerogative for video game companies to sell as many consoles as possible, even at a minimal lost, cause the real income comes from the games that will be purchased for it.

I'm pretty sure that this was the model that MS and Sony followed for the 360, Xbox 1, and PS2 also.