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PSN Expansion Will Help SCE “Break-Even”

Tom Ivan's picture

By Tom Ivan

May 31, 2009

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Sony Computer Entertainment president Kaz Hirai has spoken of the company’s plans “to quickly bring our PlayStation business on a break-even level and later to profitability.”

Echoing comments made recently by Sony CEO Howard Stringer, Hirai said that the firm would look to expand the PlayStation Network beyond PS3 and PSP to products like televisions and digital cameras.

“We need a strategy where buying a hardware is not the endpoint but instead a starting point that can offer new experiences to our customers,” the executive told Japan Today.

Hirai expects PlayStation Network revenues to more than double to around 50 billion yen ($525.6m/£325.6m) this fiscal year, helping to address an 18 percent sales decline suffered by the PlayStation division during the business year ended in March.

While the PlayStation unit's operating losses were more than halved during the last financial year, due in part to PS3 hardware cost reductions, Hirai said that further cost-cutting measures would be required to ensure the division doesn’t suffer a loss for a fourth year running.

In addition, he opted not to comment on rumors that a PS3 price cut will occur this autumn, saying only that the company’s pricing strategy will be determined by “market developments.”

AkIRA_22's picture
On June 1st AkIRA_22 said:

I think as much as Sony wants to be number one in the home console business, I think keeping their jobs by ensuring the company is profitable is the number one priority. That kind of is the reason companies exist. I believe IF there is a price cut it will be minor, and only to clear out the stock of the PS3 "fat".

When Sony introduces the new slim PS3 it will cost very little comparitively to manufacture which will allow them to cut the price. A $US299 PS3 would sell well, who knows they might make money on hardware. From there it's a stone throw from $249, then a skip and a jump to $199 the holy grail.

Indrema's picture
On May 31st Indrema said:

Does this mean I'll be able to make my own metrosexual on future Sony set-top boxes & run around in VCR World? Awesome!

Although, this kind've sounds like the "Dreamcast-on-a-Chip" idea. Come on, Sony! Don't give up!

ArronC07's picture
On May 31st ArronC07 said:

In addition, he opted not to comment on rumors that a PS3 price cut will occur this autumn, saying only that the company’s pricing strategy will be determined by “market developments.”

So errrr that's a yes then.