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Games and Sports

Is The PS3 A Loss-Leader For Sony Bravia HDTVs?

Gamesindustry.biz reports that despite losses associated with the Playstation 3 launch, Sony profits not only beat estimates, but Sony was also able to raise its annual forecast. This all comes on the unexpected strength of sales of Sony Bravia HDTVs and Cybershot digital cameras. Did all of the media attention associated with the PS3 launch create a spike in sales of HDTVs? And did Sony rival, Microsoft, which recently did a head to head comparison of their Xbox 360 to the Playstation 3 using a 46″ Bravia HDTV, also help spark sales of the high definition flatscreens? Both the Playstation 3 and Xbox 360 tout enhanced graphics capabilities that are only realized when the consoles are connected to high definition televisions. The Sony brand still carries a lot of weight in the home electronics market, so anything that increases the likelihood of HDTV sales will likely benefit Sony ahead of many others.

It is estimated that Sony loses about $200 USD on every PS3 they sell, but if the Playstation 3 really is helping sell Bravia’s which may sell for as much as $4000 and are certainly being sold at a profit, then there may be some method to the madness after all. Normally, a console maker may take losses on the console to be made up in royalties paid to them on each game sold for that console. So far that hasn’t really kicked in for Sony which is seeing slow PS3 sales. But if PS3s can help HDTV sales in the short term while the game pipeline fills up, then Sony may not take as bad a hit on the high priced PS3 as some have feared. If any of this is true, then look for Sony to create some PS3-Bravia bundles in the near future, perhaps just in time for the Super Bowl.