PS4 hardware only slightly profitable for Sony

Sony’s PlayStation 4 has been a huge success at launch. The console sold a million units on the opening day, a major achievement by any measure. Though new research from IHS suggests that Sony is just barely squeezing a profit out of the new console in a detailed breakdown of its components.

According to the research firm, Sony is profiting around $20 on each PlayStation 4 sold. At an estimiated $381 to manufacture, and with a selling price of $399, the lion’s share of profits will be coming in the form of software sales and subscriptions to PlayStation Plus.

This isn’t exactly bad news for Sony. It’s actually a nice sign that future game consoles could be profitable ventures. For years and years, companies have sold hardware at steep losses for the chance to capture profits through software sales.

For comparison’s sake, the PlayStation 3 was reportedly costing Sony $805, and they sold the units for launch at $599.