Sony Computer Entertainment's (SCE) chief executive, Kaz Hirai, says that the company hopes to be making profit from the PlayStation 3 by the end of the next fiscal year. He has pointed to falling component costs as a possible enabling factor.
Now, remember the key word there is "hopes".
"We want to get to the positive side of the equation as quickly as possible", said Hirai. Makes sense, if you think really hard about it.
Kaz isn't promising anything, however. "The next fiscal year starts in April and if we can try to achieve that in the next fiscal year that would be a great thing", he said. "We are going through the budgets right now. That (profitability) is not a definite commitment, but that is what I would like to try to shoot for."
He nodded towards falling component costs as a source of savings that he hopes will drive profit, saying that costs are falling in line with Sony's expectations. "Component costs are coming down, and the number of components ... we are seeing a reduction", he said. "The 40 gigabyte PlayStation 3 obviously has fewer components (than more powerful models), and uses less power, which means that components required to dissipate heat, for example, can be smaller, so there is some cost reduction there."
"...the number of components" presumably refers to the Emotion Chip, which enabled backwards compatibility with PS2 games in Japan and the US and isn't included in the 80GB and 40GB models. Unless, of course, those extra USB ports were costing Sony a lot more than we realise and the 20GB of missing hard disk space isn't "euro cents" as David Reeves told us.
Hirai's comments mirror those he made back in December, when he stated that he would return Sony's gaming division to the black in fiscal 2008.
Hirai's comments follow Sony's announcement that it sold 1.2 million PS3s over the holiday period.
Source: Reuters
Now, remember the key word there is "hopes".
"We want to get to the positive side of the equation as quickly as possible", said Hirai. Makes sense, if you think really hard about it.
Kaz isn't promising anything, however. "The next fiscal year starts in April and if we can try to achieve that in the next fiscal year that would be a great thing", he said. "We are going through the budgets right now. That (profitability) is not a definite commitment, but that is what I would like to try to shoot for."
He nodded towards falling component costs as a source of savings that he hopes will drive profit, saying that costs are falling in line with Sony's expectations. "Component costs are coming down, and the number of components ... we are seeing a reduction", he said. "The 40 gigabyte PlayStation 3 obviously has fewer components (than more powerful models), and uses less power, which means that components required to dissipate heat, for example, can be smaller, so there is some cost reduction there."
"...the number of components" presumably refers to the Emotion Chip, which enabled backwards compatibility with PS2 games in Japan and the US and isn't included in the 80GB and 40GB models. Unless, of course, those extra USB ports were costing Sony a lot more than we realise and the 20GB of missing hard disk space isn't "euro cents" as David Reeves told us.
Hirai's comments mirror those he made back in December, when he stated that he would return Sony's gaming division to the black in fiscal 2008.
Hirai's comments follow Sony's announcement that it sold 1.2 million PS3s over the holiday period.
Source: Reuters
Companies:
Sony
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Comments
deleted 7 Jan 2008 12:41
1/9
yeah and i hope to win the lottery in 2008! guess me and sony will both have to wait and see!
SuperSaiyan4 7 Jan 2008 13:17
2/9
All these reps at Sony embarrass themselves more than anyone, dont they even look at what the other guy has said before making a statement??
Sure those 'euro cents' can add up especially when you are selling in the millions or building in the millions.
But I know for sure that Sony WILL be releasing a revised PS3 with more storage and ports you can count on that.
Sure those 'euro cents' can add up especially when you are selling in the millions or building in the millions.
But I know for sure that Sony WILL be releasing a revised PS3 with more storage and ports you can count on that.
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Bentley 7 Jan 2008 13:33
3/9
I hate to ask "Super"Saiyan but what makes you know anything "for sure"? Previously all your comments have been utter bile, now you would have us believe you have access to the Fountain of Knowledge? I suspect that, once again, you are talking out of your arse.
deleted 7 Jan 2008 14:19
4/9
Bentley wrote:
I hate to ask "Super"Saiyan but what makes you know anything "for sure"? Previously all your comments have been utter bile, now you would have us believe you have access to the Fountain of Knowledge? I suspect that, once again, you are talking out of your "Super" arse.
LOL, You beat me to it!, but i ajusted your post ever so slightly :)
Stefen 7 Jan 2008 14:30
5/9
I wonder if he means Sony will make a profit FOR the 2008 fiscal year, or if they will actually make up the money lost on the PS3 by the end of the 2008 fiscal year.
I would assume the former, as most companies like to forget about a red year as soon as it is over.
I would assume the former, as most companies like to forget about a red year as soon as it is over.
OptimusP 7 Jan 2008 17:05
6/9
In case of Microsoft that means two red generations if they keep this up. I can see 2009 now "we made profit on the Xbox-brand!" "you mean you made good on those 15 billion dollars you trew at it" "not...really...no"
Joji 7 Jan 2008 17:32
7/9
I am beyond caring to be honest. PS3 is picking up steam with its games too slow, almost as slow, if not moreso than Wii.
I still think 360, DS and Wii are too strong for it to make this grand amount of money. The market has changed.
I know one thing that's gonna shoot that Sony vision down.
Ironically its Wii Fit and the female pound/euro, that will down PS3. Stick a PS3 and a Wii plus Wii Fit in front of females and can you guess which they'd pick?
Not even the famous Solid Snake (and MGS4) can save you now, Sony.
I still think 360, DS and Wii are too strong for it to make this grand amount of money. The market has changed.
I know one thing that's gonna shoot that Sony vision down.
Ironically its Wii Fit and the female pound/euro, that will down PS3. Stick a PS3 and a Wii plus Wii Fit in front of females and can you guess which they'd pick?
Not even the famous Solid Snake (and MGS4) can save you now, Sony.
tyrion 7 Jan 2008 18:52
8/9
Joji wrote:
Ironically its Wii Fit and the female pound/euro, that will down PS3. Stick a PS3 and a Wii plus Wii Fit in front of females and can you guess which they'd pick?
You mean Wii fit and the female pound/euro that would never in a million years have bought a PS3? Wii fit is 100% going to be bought by the expanded market that Nintendo have created with the Wii and DS, it's not going to take one pound/euro from either Sony or Microsoft.
deleted 7 Jan 2008 22:53
9/9
tyrion wrote:
Joji wrote:
Ironically its Wii Fit and the female pound/euro, that will down PS3. Stick a PS3 and a Wii plus Wii Fit in front of females and can you guess which they'd pick?
You mean Wii fit and the female pound/euro that would never in a million years have bought a PS3? Wii fit is 100% going to be bought by the expanded market that Nintendo have created with the Wii and DS, it's not going to take one pound/euro from either Sony or Microsoft.
well you cant say it wont take one Pound/Euro or Dollar or Yen while we are on about it.
I for one will be purchasing it for me and my family, and as a gamer for the exisiting market i willl be forfeiting some game choice of my own at that time,
I imagine alot of the existing market will buy this, as well as the new expanding market, also i think you overlook the exiiting market where parents stand, parents ave always gone out and bought their kids the best consoles avalible, and sure the PS3 will still be bought, but a parent shopping for their child seeing the Wii (and its hype) along with something that can actually get their kids in shape will also dent the existing market.
The 360 is also on its campign to take over the family room, and the DS, well nothing more need be said, i think Sony are missing out on something big, and their Vision is askew, this is not to say success wont come their way im sure they will be making masses of profit from late 2009 and on for its 10 year life period, but the Wii, DS and 360 will sorely dent this - this time round, Nintendo recognised the markets changing and Microsoft are slowing doing the same, Sony i feel have missed the mark this time round. lets not forget the PS2 success was partly down to the piracy of the PS1 making Sony and gaming household name, the fact the Dreamcast crashed and burned, the Xbox1 being a few years too late to really make an impact and the Gamecube suffering with its support, the PS2 had a helping hand and thats something it doesnt have this time. (save for fanboy support :)) )
Ask any Girl Gamer from the existing market, whats she more excited about, The Wiis Future Lineup or Sonys? after all she is female and a gamer, perhaps she might like to comment herself?