Sony says PS3 Slim won't turn a profit

by Stevie Smith - Aug 25 2009, 16:00

Although the PlayStation 3 is benefiting from vastly reduced manufacturing costs, which recently translated into long-awaited hardware price cuts at retail, Japanese consumer electronics giant Sony has revealed that it is still not making a profit on sales of its powerhouse console.

Specifically, in an interview with Times Online, Sony Computer Entertainment boss Kaz Hirai conceded that the company’s newly streamlined PlayStation 3 will still be sold at a loss when it hits retail next month.

“If you’re talking about the hardware alone, the quick answer is yes,” commented Hirai when quizzed as to the chance of the PlayStation 3 still failing to turn a profit.

“That makes good headlines,” he added, “but I don’t actually know that that’s the true nature of the business that we’re all in, whether it’s PlayStation, Xbox or the Wii.”

Hirai was keen to point out that profit assessment was best evaluated when viewing Sony’s business as a whole, and asking if the company is profitable in terms of hardware, software and peripherals combined.

“And the answer to that question is yes on a gross profit level since the last fiscal year,” trumpeted the Sony boss.

In an effort to bolster the market positioning of its lagging PlayStation 3, Sony and Hirai used the GamesCom trade fair in Germany to unveil a smaller Slim version of the console. Hirai also announced a sizable $100 USD and €100 Euro price cut.

The revised console design and accompanying price adjustment, both the subject of much rumour in recent months, will come into effect during the first week of September.

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