According to Sony CEO, Kaz Hirai, the PlayStation 4 is already earning the tech giant profit compared to their previous consoles. This comes as a somewhat surprising revelation considering the company reported a net loss of $1.29 billion for the fiscal year, attributing some of the loss to the PS4’s expensive launch campaign. However, Hirai has said that the launch was the “key to the long term success of the platform.” With over 7 million units sold since being launched last November, the PlayStation 4 is already doing better than its competing console, the Xbox One.
As of April 2014, nearly 50 software titles have been launched for the console and have generated around 20.5 million units sold via game retailers and online through the PlayStation Store. This falls in line with Sony’s previous marketing philosophy of expecting losses on hardware while establishing a user base. The company traditionally would make up profits through software sales while refining hardware to make it more reliable and cheaper for the market.
It seems this strategy has been altered by creating a console that brings profit from the get-go. Hirai added that, “The PS4 has already recorded a profit with hardware alone, and in that it’s different from the business model of previous platforms.” As well as profit announcements, the head of Sony also revealed plans for the future to introduce a cloud-based television service later this year. Gamer Headlines will keep an ear out for more details about what Sony will be bringing us. In the meantime, leave a comment below or follow us on Twitter.