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Sony Japan executive Masayasu Ito. has stated that the release date for the PS4 in NA and EU will give Sony a loss in their money, but the PS Plus subscriptions will turn that around.

The loss will however be minimal and not as much as what it cost the company when shipping the PS3, which made them lose approx. $300 per console sold.

On the PS4 though, they'll be losing around $60 per console which will be regained through the PS Plus subscriptions as reported by Eurogamer.

Do you think they should've put a $450 price tag or stick with what they're doing now?

they aren't greedy so they had the price low, stick to the current price.

Damn I thought Sony was making a $25 profit for every console.

I think they are making the right marketing move.

That's crazy, Luckily they're breaking even but that brings up a whole other question. If Sony is breaking even with ps+ what about the financial needs to upgrade existing PSN servers and such??? It kind of worries me, sounds like they wont have enough capital to invest in real servers.

Sony has enough money to do whatever they want. They've already invested in a cloud network so there shouldn't be a problem with the servers.

Investors will chip in for this

I think this is after all the money they have spent on better PSN, the designing of PS4 and the production cost all together.

You have to realise that it will only take Sony a year to break even, once people start buying their second year of PS+ they start racking in the profits.

better than paying $500