Sony Expects Initial Loss on PSP Handheld Device

Dom · May 13, 2004, 11:52 AM

LOS ANGELES (Reuters) - Sony Corp. does not expect to make money on its new PlayStation Portable handheld games console at launch, due to the price of components and initial development costs, the head of Sony's U.S. games unit said on Wednesday.

In an interview on the sidelines of the games industry trade show E3 in Los Angeles, Sony Computer Entertainment of America Chief Executive Kaz Hirai also said the company would need to have a minimum of six to 10 games available at the PSP's launch, both from its own studios and from third-party publishers.

But at the same time, Hirai said, it would not need that many games at launch if it could identify one or two breakout hits, "killer apps" that would drive consumers to buy the hardware just to play those games.

"It could be as little as six titles, maybe with one or two great killer (applications)," Hirai said.

Sony plans to launch the PSP, its most significant new game hardware in four years, later this year in Japan and in early 2005 in North America and Europe. It has not set a price for the unit, which will also play music and movies, though most in the industry expect a price in the range of $199 to $299.

"So if you're saying 'Day one, are you going to be profitable on the hardware?' then probably not," Hirai said. "Hopefully, this will have a 10-year lifecycle, at which point I'll look back and say 'Yes, definitely profitable."'

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Source: Reuters

May 13, 2004, 11:52 AM	#1
Dom DriverHeaven Extreme Member Join Date: Jun 2002 Posts: 12,940 Rep Power: 0	Sony Expects Initial Loss on PSP Handheld Device LOS ANGELES (Reuters) - Sony Corp. does not expect to make money on its new PlayStation Portable handheld games console at launch, due to the price of components and initial development costs, the head of Sony's U.S. games unit said on Wednesday. In an interview on the sidelines of the games industry trade show E3 in Los Angeles, Sony Computer Entertainment of America Chief Executive Kaz Hirai also said the company would need to have a minimum of six to 10 games available at the PSP's launch, both from its own studios and from third-party publishers. But at the same time, Hirai said, it would not need that many games at launch if it could identify one or two breakout hits, "killer apps" that would drive consumers to buy the hardware just to play those games. "It could be as little as six titles, maybe with one or two great killer (applications)," Hirai said. Sony plans to launch the PSP, its most significant new game hardware in four years, later this year in Japan and in early 2005 in North America and Europe. It has not set a price for the unit, which will also play music and movies, though most in the industry expect a price in the range of $199 to $299. "So if you're saying 'Day one, are you going to be profitable on the hardware?' then probably not," Hirai said. "Hopefully, this will have a 10-year lifecycle, at which point I'll look back and say 'Yes, definitely profitable."' Read More... _____________________ Source: Reuters