Sony CEO Kaz Hirai says PS4 is already profitable

The PlayStation 4 is already profitable for Sony on a hardware unit basis, president and CEO Kazuo Hirai announced during its corporate strategy meeting this week.

"It's been a hugely successful launch, but the key to the long term success of the platform lies in how solidly we can continue to grow the installed base," Hirai said. "In terms of game titles for PS4, as of April 13, 47 titles had been launched with a total of 20.5 million units being sold via retailers and over the network on the PlayStation Store. From a profitability perspective, PS4 is also already contributing profit on a hardware unit basis, establishing a very different business framework from that of previous platform businesses."

Since its launch in November, the PS4 sold more than 7 million units worldwide as of April 6 and, according to NPD data. was the top-selling platform in April for the fourth month in a row. While Sony ended its fiscal year a net loss of $1.26 billion, the consoles launch helped increase its sales and operating revenue by 14.3 percent. Its game sector recorded an operating loss of $78 million partially due to costs associated with the console's launch and a sales increase of 38.5 percent, also attributed to the system's release.

According to announcements made during the meeting, approximately half of PS4 users are registered to the PlayStation Plus subscription service. Active PlayStation Network and Sony Entertainment Network users number more than 52 million worldwide and downloads of its PlayStation App for smartphones and tablets exceed 4.5 million.

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Good for Sony. Hope the company comes out swinging for E3! Lots of their 1st party studios released games in 2011-2012, so it should be right around the time for their next games.

I knew the hardware had better margins than previous generations but wasn’t expecting this so soon. Good for them.

The Citizen Kane clapping gif (and its variants such as this one) always puzzles me, as I’m pretty sure in the context of the movie the character is very forcibly leading the crowds applause for his wife at an opera, as she’s not talented enough for the part she’s given and has produced a poor performance.

I’m never quite sure if the people who post it ‘get’ that the object of the applause is kinda crappy!

Well, the general operational loss isn’t exactly a great performance. So it still kinda fits.

Don’t know if that was the intend of Sriram.

On topic: The Playstation division performs great. It is kinda bad that they get lost in the big picture of Sony’s finances.

That’s what some people don’t seem to understand. The playstation brand is stronger than ever. I feel like Sony seriously needs help with it’s TVs and smartphones. Both are excellent but its phones don’t even attempt to gain popularity in the US and the TVs, where do I start. I’d love a Sony TV but they’re usually so expensive.

Their phones will never gain popularity if they keep selling them only on T-Mobile. Give them to Verizon and AT&T. They make good phones but no one wants T-Mobile.

Also their TVs are amazing, they are just expensive, and they only make expensive sets. Samsung figured it out, they make some of the best TV’s you can buy and they also make some garbage TVs you can buy at Walmart for like $300. This is why they are the biggest TV company. Sony needs to make a cheaper set, or have a new Playstation brand TV with a lower cost to sell to people with PS3/4s, it can have no features except for the BRAVIA Sync so the PS4/3 can communicate with the TVs remote.

T-Mobile is definitely a killer for any interest in a Sony phone, speaking from personal experience. I was looking at buying one recently to replace my iPhone 4S and when I saw it was exclusive to T-Mobile, I just went crawling back to Apple. I’m not dropping Verizon’s coverage and my current family plan for T-Mobile, of all things.

That’s what I meant by Sony not even attempting to gain popularity in the U.S. since it only puts its phones on one carrier. It should be on all carriers and it needs some marketing.

Yup, Kane financed the whole opera, and practically forced his wife to sing despite her lack of talent, and the public hated him for manipulating the press to positively review the production. It was part of his megalomania that I doubt Kaz has any inclination towards.

I do know about Orson Welles’ character in Citizen Kane and the original intention behind the clap. Isnt his original intention to cheer Susan up? That was my sole intention while I posted this gif-Kaz cheering PS4 even though Sony is in a pile of huge loss!

Simple.

Most people haven’t seen Citizen Kane.

I’m never quite sure if the people who post it ‘get’ that the object of the applause is kinda crappy!

Maybe not, but it’s all irrelevant. GIFs by their nature are meant to excite an immediate reaction, not evoke discussion about original context.

I always feel the same way when writers use the Shakespearean phrase “sound and fury” in order to make something seem exciting and cool, when the full quote is “life is a tale told by an idiot, full of sound and fury, signifying nothing” which is hardly a phrase you’d want to use to hype something.

In addition, like DOWNFALL subtitle videos it does not matter the source, it is all about the crutch for the joke.

I keep hearing about this "Citizen Kane." Is that the sequel to "Legacy of" — or just a spinoff?

cool humble brag there.

Such pure gaming! much encourage.

Not too surprising… the R&D costs must’ve been lower than previous generations due to the use of a more standard x86 architecture, and the use of “system on a chip” (SoC) packages rather than discrete CPU/GPU parts should also lower costs.

While I heard that both major consoles of this generation just about sold at a profit or break-even, I bet outselling it’s competitor almost 2:1 also gave Sony a big advantage in software sales, which are almost pure profit after the initial R&D (which the publisher foots the bill for anyway).

From what I read, software sales are higher for the XB1 than the PS4 but given the F2P and free PS+ games on the system, that isn’t too much of a surprise.

I’m not so sure I’d believe that, while XB1 might have more software sales per console, Sony having almost double the install base is easily enough to sell more actual software units overall. PS4 buyers also probably felt more justified in grabbing an extra game or two with the $100 they saved.

I do know PS4 definitely sees more BF4 players online at once according to bf4stats.com. Obviously this changes by time of day, but it always seems to be higher and right now its:

Xbox One: 6,745
PS4: 27,085

That’s simply because Xbox is larger in NA and most people are sleeping at 4:42am (EST the time you posted this). Plus many NA gamers agree BF4 sucks so it doesn’t have as big of a multiplayer player base.

Sigh, no it isn’t…
"Obviously this changes by time of day, but it always seems to be higher…"

Time here: 9:30pm (UTC±00:00)
Time in the US: 4:30pm (UTC-05:00 / EST)

Xbox One: 27,472
PS4: 58,016

Looks like about double the players still play even when the US isn’t sleeping (this is sunday, so no they’re not working either), so that excuse is null and void. As was my original point, real time stats say that way more players play this popular cross platform shooter on the PS4, which more or less disproves the idea that people buy more games on the Xbox One.

Actually globally both consoles have an attach rate of around 3 games, so software sales are the same (per console, obviously the PS4 has overall more game sales).

Seems about right. I’ve Killzone, BF4 and Wolfenstein and will likely trade Wolfenstein for Watch Dogs so will be hovering around the 3 games mark for a while.

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