(adsbygoogle = window.adsbygoogle || []).push({}); Sony Computer Entertainment boss Kazuo "Kaz" Hirai has revealed that his company loses money on every PS3 Slim sold.

Sony has always admitted that each sale of the original PlayStation 3 loses the firm money, but when questioned by The Times Online as to whether that'll still be the case with the revised PS3 hardware. Hirai stated:

"If you're just talking about the hardware alone, the quick answer is yes.

"That makes good headlines, 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.

"I think the better indicator is to look at the business as a whole platform, to ask: are you profitable in terms of the hardware, software and peripherals. And the answer to that question is yes on a gross profit level since the last fiscal year."

Sony is clearly making a decent profit on the sales of those DualShock 3s, then.

Losing money on each console is a commonplace business model within the industry, with each company looking to achieve success by driving down consumer prices and becoming a loss leader.

It was reported that Microsoft lost $4 billion with the original Xbox due to the high manufacturing costs of the console's internal hard drive.

PS3 Slim launches worldwide next week and is slimmer, quieter and cooler than the current PS3 'Fat'. It'll set you back £249.99.

they sell them to retailers for $250 and make 50 every sale, why would they make something that causes them to lose money, this article is not even nreal probably

Last I checked, production costs on the 80GB hit $250 this august, Odds are the slim is cheaper to make. And its not that he knows more than a sony executive, he knows more than someone claiming to quote an executive with no links. I'm gonna go look this up.

---------- Post added at 12:12 PM ---------- Previous post was at 11:45 AM ----------

January '08- You must login or register to view this content. around $400-$450 production costs.

Jult '09- You must login or register to view this content. supposedly $240 if you didn't fail math. 70% cheaper than originals

1st of all lets get this clear - FACT: Sony loses money on every PS3 console they sell.
If they sell the consoles to retailers for $250 and the retailers then sell them for $300, that is a $50 profit the goes to the RETAILER, who wouldn't sell them unless they were making a profit. Sony itself loses money, the retailer, or the middle man, makes a profit. Sony makes their money off of overpriced accessories and games which we all, including myself, are forced or sucked into buying.
It is the same thing with cell phone providers - they lose money giving you a great deal on the phone when you sign up, but then they suck you dry with the monthly plan.
I rest my case.

no, i think there losing PS3 profit, by selling slims. So its more like them needing less buys i think