According to Sony Computer Entertainment president and CEO Kaz Hirai, overall Playstation 3 operations will finally turn profitable by March 2009.
In an interview with Japanese press site, Jiji Press, the president and chief executive officer of Sony Computer Entertainment said that it seems difficult to achieve profitability from the game console alone, but overall PS3 operations, including related equipment and game software, are expected to "swing to the black".
A recent Business Week analysis estimated that Sony has already managed to cut Playstation 3 production cost down to $400, compared to its initial production cost of around $800. The Business week suggested that the cost reduction was due to design optimizations and the reduction of the number of parts used. Mr. Hirai supported the aforementioned analysis and noted that parts procurement costs have also been falling.
