At the Consumer Electrics Show in Los Vegas, Chief Executive of Sony Computer Entertainment Kaz Hirai has spoken of turning the flailing PlayStation 3 into a profitable venture, reports Reuters.
Sony currently sells all PlayStation 3 consoles below cost price - the amount of money it takes to source parts and assemble the entertainment device - and in the first half of this fiscal year Sony Computer Entertainment made a net loss of over a billion US dollars, including all money made back on PS2, PSP and game sales. However, now that PS3 components are falling in price, Sony may finally be able to turn a profit. "We want to get to the positive side of the equation as quickly as possible," Hirai stated from the sidelines of a CES media conference.
"Component costs are coming down, and the number of components...we are seeing a reduction. The 40 gigabyte PlayStation 3 obviously has fewer components (than more powerful models), and uses less power, which means that components required to dissipate heat, for example, can be smaller, so there is some cost reduction there...So costs are coming down significantly," he explained.
Hirai is hopeful that Sony Computer Entertainment will experience a financial resurgence in 2008. "The next fiscal year starts in April and if we can try to achieve [a profit] in the next fiscal year that would be a great thing. We are going through the budgets right now. That is not a definite commitment, but that is what I would like to try to shoot for," he added.