PS3 making no profit?

Word on the street is that Sony will be losing money with every PlayStation 3 that is sold. This inside information became known when London’s The Times interviewed the head of Sony, Kaz Hirai. This intriguing interview took place at GamesCon 2009.

After Kaz Hirai was asked the question on whether or not Sony will lose cash on every PlayStation 3 Slim that is sold, Kaz responded by saying, “If you’re just talking about the hardware alone, the quick answer is yes.”

Sony does not seem to be worrying to much about this problem though. Kaz said, “[Losses per console sold] makes good headlines, but I don’t actually know that that’s the true nature of the business that we’re all in, whether it’s PlayStation, Xbox or the Wii. I think the better indicator is to look at the business as a whole platform, to ask: Are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year.”

 All in all, Sony is going to be taking a small money loss on each console that is sold. However, they are overall going to be making a profit. Confusing? Yes. It was never made clear just how much Sony would be losing on each console sold.

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