Wednesday, June 30, 2010

Sony PlayStation 3 finally profitable

The PlayStation 3 hardware is finally profitable for Sony.

When the console was first released, back in 2006, Sony was losing over $300 per console sold, according to a report at At the end of last year it was still selling at a loss.

However, in a recent interview with IGN, Sony Worldwide Studio president, Shuhei Yoshida, said "This year is the first time that we are able to cover the cost of the PlayStation 3.

"We aren't making huge money from hardware, but we aren't bleeding like we used to."

Videogame console manufacturers have long held to a loss-leading strategy when it comes to hardware – sell the hardware at a loss to make additional revenue from the licenses of software produced on the platform.

It makes logical sense – very few people will buy a console in isolation, and the PlayStation 3 has a reasonable average of games sold per console – 8.1 per console, according to PS3Vault.

Still, it’s cream on top if Sony can make money on the hardware as well – something Nintendo has done remarkably well with with the Wii.

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