Launching a console is an expensive endeavor.
Not only is there worldwide marketing to be done, but often years of expensive research
and development leading up to the launch.
But during an earnings call today, Sony CFO Masaru Kato stated, "Unlike PS3, we are not
planning a major loss to be incurred with the launch of PS4."
This is apparently because of the PS4 using a chip that has required much less R&D and
investment by the company.
He explains: "At the time we developed PS3, we made a lot of in-house investments to develop
the chip -- the Cell chip.
Development...saw the silicon processing and all the facilities invested by us ourselves.
"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."
While Sony as a whole is currently enjoying its first profits since 2008, in the games
segment sales are down 12.2%.
Combined sales of PS3 and PS2 consoles have fallen to 16.5 million from 18 million last
year.
This isn't surprising though, considering generation fatigue and the recent announcement
of the PlayStation 4.
Sony's portables -- PSP and Vita -- sold 7 million units in the past three months, which
is a slight improvement on the 6.8 million sold during the same time last year.
While up, it's worth noting that the Vita's price-cut in Japan this year undermines the
fact that more units were sold, earning Sony less money overall.
Sony is optimistic about the future of its game business.
A financial report reads: "Sales are expected to increase significantly primarily due to
the planned introduction of the PlayStation 4 in the fiscal year ending March 31, 2014.
Operating income is expected to be essentially flat year-on-year primarily due to an increase
in research and development expenses and marketing expenses related to the introduction of the
PS4."
Note that since Sony's fiscal year goes through next March, a PS4 release this year isn't
assured -- at least not worldwide.
Overall, this appears to be a much leaner, streamlined, and ultimately more profitable
Sony than the company of a year ago.
For more on the game industry, stay tuned to IGN.