Sony Corp has announced its latest milestone. Its PlayStation 4 sold 2.1 million units worldwide just two weeks after its release. The new gaming console was unveiled in February and got a US launch on November 15. Just 24 hours after it first hit the market, it immediately generated record sales of over 1 million units.
In a blog post, Sony Computer Entertainment president and Group CEO Andrew House expressed his gratitude to the loyal customers who waited and bought the new product upon its release. He described the company’s accomplishment as an ‘impressive and record-setting’ milestone not just for the company but also for the entire industry.
Beginning of PS4 journey
He reminded loyal gamers that the PS4 journey is just beginning. Sony promises to continue developing and introducing new services and features that would make PS4 more useful and more enjoyable for users. Mr. House revealed that there is an interesting lineup of additional PS4 games that would be rolled out on the console from the best game developers across the globe.
With this rate in the sales of PS4, Sony could easily achieve its sales target for the console in no time. The consumer electronics firm aims to sell 5 million PS4 consoles by March next year. Analysts expect sales figures to further pick up in the coming weeks as Christmas holiday shopping season approaches.
Production loss per unit
The more PS4 consoles are sold, the closer Sony gets to breaking even on the production of the new gaming machines. According to market research firm IHS iSuppli, Sony spends up to $381 to assemble each unit of the console.
That means that the company’s profit is just $18 per unit, considering the retail price tag of $399 for PS4 across the US. But if shipment and distribution expenses would be considered, Sony incurs financial loss on every console sold. However, as sales pick up, the company would soon breakeven and eventually gain greater profits per console sold.
This business scheme is not unique to Sony’s PS4. Even Microsoft Corp’s Xbox One is also sold at a loss per console. According to IHS iSuppli, production cost of each Xbox One unit is just $28 less compared to its current $499 retail cost. For its part, Microsoft’s new gaming console was also able to sell over 1 million units within 24 hours after its release across 13 markets globally. Xbox One was released a week after PS4 first hit the market.
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