Sony Explains How PS4 Required Less Investment than PS3; Hints to Future Investment for Cloud Gaming

on November 1, 2013 7:26 PM

Yesterday Sony held its quarterly financial conference call, and quite obviously many of the questions from analysts and investors were related to the upcoming PS4. While answering to one of these questions during the session in Japanese, Vice President of Investor Relations Yoshinori Hashitani explained how the PS4 required less investment than the PS3. He also hinted to the possibility of future investment for servers dedicated to cloud gaming.

The PS4 platform itself, as we explained, is a lighter platform than PS3 in terms of investment. To be more specific, we did not design a specific semiconductor for it, and we don’t run a production facility for the PS4 semiconductor. Due to that the capital expenditure burden is smaller.

Going forward we may require ingvestment to expand our network business further. Last year we acquired a company named Gaikai and created the foundations of a cloud-based business for the future. When we’ll introduce that element in the business and we’ll expand our network business we might need to invest in more servers. In the past, when we started the semiconductor production and expanded it, we had capital expenditures in the order of magnitude of several hundreds of billions of yen.

Compared to that, the investment required for the servers would be much smaller, in the order of magnitude of several tens of billions of yen.

Looks like Sony learned from the past in keeping the investment light, instead of going for an unique, exotic architecture that requires much larger investment that inevitably reflected on the final price of the console.

One thing is for sure. I’m quite curious to see what they’ll manage to do with Gaikai, even if I’m still skeptical about the timeframe of implementation, especially considering that I’m in Europe and on this side of the pond we’re still in the dark on when we’ll get to reap the benefits of Sony’s new cloud.

 /  Executive News Editor
Hailing from sunny (not as much as people think) Italy and long standing gamer since the age of Mattel Intellivision and Sinclair ZX Spectrum. Definitely a multi-platform gamer, he still holds the old dear PC nearest to his heart, while not disregarding any console on the market. RPGs (of any nationality) and MMORPGs are his daily bread, but he enjoys almost every other genre, prominently racing simulators, action and sandbox games. He is also one of the few surviving fans of the flight simulator genre on Earth.