Sony’s Hirai: optimistic with PS3 profits as component costs decline

President of Sony Computer Entertainment, Inc. Kazuo Hirai - Image 1Thanks to the declining costs of the components needed to make the PlayStation 3 console, Kaz Hirai is hopeful that this will translate into good profits for Sony‘s gaming platform. In an article on Reuters, he also discusses the profitability this windfall may have with the console’s sales in the coming fiscal year and the success the company’s gaming division will garner as a result.

Read more about what Kaz had to say in the full article after the jump!

Kazuo 'Kaz' Hirai, CEO and president of Sony Computer Entertainment - Image 1With the costs for the parts of the PlayStation 3 significantly dropping, Sony‘s Kazuo “Kaz” Hirai is looking to turn this into an advantage for the company by concentrating on raising profits as soon as the new fiscal year starts.

This was announced after determining the holiday sales for the PS3. Sony tallied the sales of the console with 1.2 million units sold in North America, two-thirds of what it sold in 2007.

While its overall sales still dwarf the other consoles, Kaz says that profitability will hopefully occur once new games come out for the console and component prices decline. He explained his optimism by saying:

Component costs are coming down, and (regarding) the number of components… we are seeing a reduction. The 40 gigabyte PlayStation 3 obviously has fewer components (than more powerful models), and uses less power, which means that components required to dissipate heat, for example, can be smaller, so there is some cost reduction there.

We’ll just have to wait and see if this indeed spells an improvement for Sony’s gaming platform and gaming division in the coming year.

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