Sony aiming for profitability for PS3 next fiscal year

Kaz HiraiKaz Hirai, head of Sony Computer Entertainment, believes that the PS3 will be profitable by the next fiscal year. He pins his hopes for some blank ink in the business ledgers because of the falling prices for components for assembling the PS3 and the rising popularity of the PlayStation 3.

He made these comments at the Consumers Electronics Show (CES) in Las Vegas.

"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. 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."

Since the PS3 launched in November of 2006, Sony has had to fight off waves of criticism regarding its original price point for the console–$599. But last year, the console’s price has dropped dramatically, and interest in the machine is going up as the prices have gone down.

Hirai added, "Component costs are coming down, and the number of components … we are seeing a reduction. The 40 gigabyte PlayStation 3 obviously has fewer components (than the full featured 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. So costs are coming down significantly."

In addition, Hirai says that the PS3 will have great games that will also boaster sales of the PS3 and will help Sony’s game division into the profit column.

[via Reuters]


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Author: GamerNode Staff View all posts by

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