News: PS3 finally turns a profit

After nearly four years in the market, numerous price drops and even a crash diet the Sony PlayStation 3 has finally become profitable for its parent company.

“This year is the first time that we are able to cover the cost of the PlayStation 3”, Sony Computer Entertainment Worldwide Studios boss, Shuhei Yoshida told IGN in a recent interview. “We aren’t making huge money from hardware, but we aren’t bleeding like we used to.”

In May, Sony began shipping new PlayStation 3 consoles equipped with smaller and more cost effective graphics chips. Due to this, Yoshida said Sony is looking at replenishing its retail stock first instead of concentrating on future price cuts. So don’t expect a PS3 price drop anytime soon.

But how has the PS3 not been making a profit this entire time? Well it may sound crazy but Sony has been selling PS3’s for less than it costs to make one. Sony and Microsoft (with the Xbox 360) in fact have been doing this for years, selling expensive hardware at a loss while hoping to reclaim their investments through software sales.

PS3 finally turns a profit

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