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Kaz Hirai: PS4's Success Will Be Determined by Continued Install Base Growth

Posted by Sammy Barker

Platform already profitable

There’s no doubt that the PlayStation 4 has raced out of the blocks in fifth gear, but Sony overlord Kaz Hirai reckons that the company is not resting on its laurels yet. While the firm is extremely satisfied with the success of its next-gen device to date, the intelligent executive noted that the system will be measured by its long term growth, and not just its exceptional start.

“It's been a hugely successful launch, but the key to the long term success of the platform lies in how solidly we can continue to grow the installed base,” he iterated during a recent corporate strategy meeting, as reported by Polygon. “In terms of game titles for the PS4, as of 13th April, 47 titles had been launched with a total of 20.5 million units being sold via retailers and over the network on the PlayStation Store.”

The straight talking suit didn’t provide an update on hardware sales figures – we suspect that it’s waiting until E3 to reveal that – but he did point out that the platform is profitable. “PS4 is already contributing profit on a hardware unit basis, establishing a very different business framework from that of previous platform businesses,” he explained. Ordinarily, the Japanese giant takes a hit on hardware during these early stages of the generation.

Of course, the firm’s work isn’t over, so it’s reassuring to hear Hirai focus on the continued growth of the platform’s install base. With the recent moves from Microsoft, the next-gen competition is about to heat up all over again, and Sony will need to ensure that it works hard to maintain its current momentum through to the system’s second holiday period. Fortunately, it has a big press conference right around the corner to demonstrate just how it intends to do that.

[via polygon.com]

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User Comments (12)

kensredemption

#1

kensredemption said:

There's more than enough of an install base at this point in time, but I've seen a lot of PS4s and XBOs traded in or sold either because of hardware failure or lack of games. I generally don't like to get too hyped up only to be set up for disappointment. Case in point, Thief.

SecondServing

#3

SecondServing said:

I won't get a PS4 until there are enough awesome exclusives. I'm looking forward to The Order 1886 and Project Beast though!

EyeDeeNO76

#4

EyeDeeNO76 said:

I still get a bitter taste in my mouth when I think about the fact that I will need to pay to use PlayStation network when I move to PS4. I have not as of yet and don't want to pay more just to play any given game to it fullest with the use of an network subscription when it was not something I needed to factor in on the PS3. I am not concerned about PlayStation plus instant games collection of free games if I know about a good game and want it I look into purchasing it and the discounts are nice if was for a game that was a bite size digitally only. I have interest in Battlefield 4 so far and maybe Watchdogs I want to play on the new console outside of that... I don't know.

Untitled

The picture of Kaz Hirai makes me think of George Takei Star Trek's Hikaru Sulu (the older one of course) doing a backward Vulcan salute.

Demi_God

#5

Demi_God said:

I don't have any regrets at all, but there aren't really any games until watchdogs releases. The games that I actually want are lacking but they are lacking all over the place, it's not just the PS4 that is lacking, it's the PS4, Xbox one, and PC.

BertoFlyingFox

#6

BertoFlyingFox said:

I've been enjoying my PS4, mostly because of indies though. If we're talking physical releases, then infamous and MGS are the best experiences, but personally they could feel lukewarm after a few hours.

That install base will grow as long as new AAA games keep coming at a steady clip. This E3 will really show everyone's hand and Sony will need to play their cards right if they want to come out as the budding new powerful console with new games. They have to know this and are planning on showing games that push the scope of console power.

baconcow

#8

baconcow said:

So, are they saying PS4 is currently overpriced compared to consoles which made no profit? Or, are they saying that some/all components are such aged technology that they are now much cheaper? Or, something else? What has made their system all-of-a-sudden profitable on a per-unit sales basis?

Sanquine

#9

Sanquine said:

@baconcow They used off the shelf parts what would u expect? Ps3 and Xbox at their time were equivelent of a high end pc

baconcow

#10

baconcow said:

@Sanquine Yeah, it's too bad. I would have had no problem spending another $100 or $200 on a much higher-end console. There is no way this console lasts 8 years like last gen (PS3/Xbox 360) consoles as it is already equivalent to 3 year-old technology (I say 3 year-old as a guess, because my 2 year old desktop hardware far exceeds it).

DevilMayDante

#11

DevilMayDante said:

I will be playing PS3 and 360 until I graduate college, but PS4 will receive my business in another year. Especially since SONY makes my favorite game, MLB the Show.

Mahe

#12

Mahe said:

Sony needs to diversify the PS4's game selection if they hope to reach a wider install base. Their "offbeat" offerings need to be better quality than PS3's lousy attempts like The Puppeteer, or sales will eventually slump.

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