One of the major stories to come from the Playstation 3 generation for Sony was that they were actually losing money on each console they sold, approximately $18 per console according to a report by The Wall Street journal in 2010. The losses incurred from the PS3 were mainly due to the large amount of money the company put into the development of the Cell Processors that were used in the PS3.

“We made a lot of in-house investments to develop the [PlayStation 3 Cell processor], development of the chip saw the silicon processing and all the facilities invested by us ourselves.” said Sony CFO Masaru Kato in a phone call to investors.

Everything will be different with the PS4 though. Sony is not working on the hardware components for the system alone; they are working in conjunction with AMD to create the supercharged 8 core APU and the custom Radeon GPU that will be featured in the console.

“We have a team working on chip development, but we already have existing technology to incorporate, and also product investment and all facilities will now be invested by our partners.” says Kato. “We don’t have to make all the investment in-house.”

The Playstation 4 is set to release this coming holiday season. No price has been set for the console, but it is rumored that there will be a $400 model and a $500 model.

Source: Gamespot

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Nick C
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I’m Nick, a proud nerd and gamer. I rock my Star Wars tattoos like I’m a real Jedi, and I hope I will be making games first and playing them second in the future!