CFO Masaru Kato Details how PS4 Business Model is Different from PS3

Sony won't be making the same mistake with PS4 as they did with PS3

Posted By | On 09th, May. 2013

Andy House, Sony president, introducing PS4

During Sony’s earnings call, this morning, Masaru Kato explained Company’s different approaches to developing and launching PS3 and Ps4.

“One thing I can say for the new platform, PS4, how it is different from past platforms, is that the amount of investment that goes into the basic architecture components [for the] hardware device is much lighter than the past platform,” he said.

“To be a little more specific, when we launched PS3, initially we had a negative margin on each unit that we sold which was quite big. It did come down over time as we reduced the cost of the console, however the initial investment was quite big due to the fact that we had to design the Cell chipset from scratch which cost a lot of money, hundreds of millions of dollars.

“In addition to that, we had to invest money developing the silicon conductor fabrication technology, as well as the capital expenditures for producing the chipset. All of these amounted to billions of dollars of investment for the platform which had to be recouped as we sold software and hardware.

“Compared to that business model, PS4 utilises a core chipset. Yes, we have designed it with our own technology, but the core of the CPU is something that’s available ready, so we’re not designing the chipset from the ground up.

“In addition to that, [for] semiconductor processor technology [and] fabrication process technology we are relying on outside sources. [For] production capacity, also we are relying on outside sources, which means that we don’t spend our own money to get the chipset ready. That, I think, is the fundamental difference in the business model this time and the reason for us not taking a big hit in the initial year of the introduction of the PS4.”

Via CVG.

PlayStation 4 so far is shaping up to be an amazing piece of hardware that developers love. Sony will be launching the PlayStation 4 later this year sometime during the Holiday season.

Let us know how you feel about this statement in the comments below. Check back on GamingBolt as we approach Sony’s E3 2013 Press Conference.


Tagged With: , , ,

Amazing Articles You Might Want To Check Out!

Share Your Thoughts Below  (Always follow our comments policy!)



Keep On Reading!

GTA 6 Publisher Explains the Importance of PC: “We Are Selective” About Platforms

GTA 6 Publisher Explains the Importance of PC: “We Are Selective” About Platforms

Take Two's Strauss Zelnick understands the importance of the PC platform, but the company still won't launch a...

Infinity Nikki – Ability Outfits, Curio Domain, and More Detailed in New Overview Trailer

Infinity Nikki – Ability Outfits, Curio Domain, and More Detailed in New Overview Trailer

The free-to-play "cozy" open-world title has reached 30 million pre-registrations before launching on PS5, PC,...

GTA 6 Xbox Series S Performance Concerns Are a Non-issue, Says Take Two CEO

GTA 6 Xbox Series S Performance Concerns Are a Non-issue, Says Take Two CEO

Take-Two chairman and CEO Strauss Zelnick is not worried about any concerns related to Grand Theft Auto 6's pe...

Marvel Rivals – Moon Knight Confirmed, First Trailer Revealed

Marvel Rivals – Moon Knight Confirmed, First Trailer Revealed

Marc Spector joins the battle, wielding the powers of Khonshu to disrupt the battlefield in NetEase's upcoming...

Metal Gear Solid Delta: Snake Eater’s Aim is to Ensure That the “Series Lives on for Future Generations”

Metal Gear Solid Delta: Snake Eater’s Aim is to Ensure That the “Series Lives on for Future Generations”

Metal Gear series producer Noriaki Okamura wants a newer generation of players to embrace the series whilst ma...

Metro Awakening Interview – Bringing the Horrors of Metro to VR

Metro Awakening Interview – Bringing the Horrors of Metro to VR

Game director Samar Louwe speaks with GamingBolt about the Metro franchise's virtual reality debut.