Sony targets a break-even goal for year's end

A few days ago we posed the question how much Sony was actually losing on each console, or, how much each PS3 cost Sony to manufacture. Apparently, it's approximately US $200. That's a pretty harsh blow, considering, right? Not so! Sony executive VP Nobuyuki Oneda commented on such things, saying that Sony aims to break even by the end of this fiscal year (end of March '08). Is this so unbelievable? We don't think so -- there are so many heavy-hitting titles coming out before then, our fingers can't count that high.

But wait, you say, selling games won't help Sony break even! Lowering manufacturing costs would. Yes, you are right and Oneda said the negative margin will be removed when steps have been taken to lower the cost of the Cell, RSX chip, and Blu-ray optical components. All of the chips are working on getting moved from 90nm to 65nm, starting with the Cell then moving on to the RSX chip. Combine these cost reductions with our aforementioned game sales and what do you get? The possibility to break even. Best of luck in this endeavor, Sony!