PS4 designed to keep costs down

Sony CFO says lessons have been learnt from the PlayStation 3 and the Cell chip

 

The Sony PS4's internal architecture was designed to keep costs down, Sony has told investors during its earnings call.

Sony's chief financial officer Masaru Kato told investors and industry analysts that the company had learnt its lessons from the Sony PlayStation 3.

"Unlike the PS3, we are not planning a major less to be incurred with the launch of the PS4," he said.

Kato's comments suggest that the PS4 may be sold at or near cost price.

He went on to explain that many of the costs the company associated with the PS3 was due to the development of the Cell architecture.

"At the time we developed PS3, we made a lot of in-house investments to develop the chip, the Cell chip," he said. "Development of the chip saw the silicon processing and all the facilities invested by us ourselves.

"But this time, yes, we have a team working on chip development, but we already have existing technology to incorporate and also product investment and all the facilities will now be invested by our partners, other foundries, so we don't have to make all the investment in-house," he added.

Kato's comments come after Sony announced its first profit in five years.

The first two PlayStation consoles were a major contributor to the company's bottom line. During the 90s, the original PlayStation accounted for more than 65 per cent of the company's profits.

The cost of developing a new architecture for the PlayStation 3 took its toll on its profits.

At the same time, Sony battling a rise in competition within the TV business from companies like Samsung.

It was also investing significant amounts of money into its Blu-ray platform at a time when it was still unclear if it, or HD-DVD would become the prevalent high definition format.

Via:Eurogamer

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