PlayStation 4 to be sold at a loss

Sony has confirmed that the PlayStation 4 will be sold at a loss at launch, however the company will make money back on services and games.

The platform holder revealed that once players purchase a PlayStation Plus subscription and one game on top of the console then Sony would make money.

The PS4 is still expected to make a profit sooner than the PlayStation 3.

This seems to be a common strategy these days, as Nintendo released the Wii U at a loss last year but made money as soon as players bought a game.

The cost of producing the PS4 console is also said to be much lower than the cost of producing a PS3.