DFC: PS3 won’t break even

Market research firm DFC Intelligence has painted a pretty bleak picture for the future of the Sony PlayStation 3 console. Speaking at the GameON: Finance (GOF) event, DFC president Wanda Meloni said that they don’t expect the PS3 to break even. More in the full article.

Gamasutra reports that market research firm DFC Intelligence has painted a pretty bleak picture for the future of the Sony PlayStation 3 console. Speaking at the GameON: Finance (GOF) event, DFC president Wanda Meloni said that they don’t expect the PS3 to break even.

“Sony has the most to lose this current generation,” said Meloni. She pointed to Sony’s production costs for the PS3 as the main reason why they don’t expect the console to break even across its lifetime.

Sony has been working on lowering production costs for the PS3, though, so this may change in the future. The Gamasutra report didn’t mention if DFC took cost cutting measures into account for their analysis or just used the current production cost of a PS3 console and projected it over the next 8 or so years.

Meloni also said that DFC expects Sony to capture only 40 to 50 percent of the market by the end of this console generation compared to its 67 percent market share at the height of the PS2‘s popularity. It’s a step down, sure, but 50 percent in a market with three direct competitors sounds pretty good to me.

• Sony: 2008 is PS3’s year; hardware, cost, and pricing levelling out
• Shaky ground: Sony lost US$ 3.32 billion due to PS3 cost, pricing imbalance

Via Gamasutra