E3 2011

E3 2011: Vita to be profitable within 3 years - Sony

Brendan Sinclair
By Brendan Sinclair, Senior Editor

Kaz Hirai tells Reuters that upcoming PSP successor will take some time to pay dividends for electronics giant.

Sony has said it plans on a 10-year cycle for its gaming systems. That's a good thing for the upcoming Vita, as the electronics giant doesn't expect the upcoming handheld to even turn a profit for the first one-third of that span.

Sony hopes to make this profitable by 2015.

Sony hopes to make this profitable by 2015.

Sony consumer products head Kaz Hirai told Reuters this week that the company's goal with the Vita is to make the system profitable within three years. When it launches later this year, the portable will come in two models: A $250 Wi-Fi only model and a $300 3G-enabled model.

Sony's long-haul approach to console planning is nothing new. When the company launched the PlayStation 3 in 2006, it sold the system for as much as $600 and still lost money on every console. The electronics giant wound up posting an operating loss of $2 billion that year, and chalked it up primarily to the decision to set the consumer price at lower than the system's production cost.

For more on Vita, check out GameSpot's in-depth look at the system.

Brendan Sinclair
By Brendan Sinclair, Senior Editor

Brendan Sinclair has been a games journalist since 1999. His tastes are eclectic, though he has a definite affinity for games with arcade roots. He's Canadian, but has also been at home in Atlanta, Austin, Chicago, and San Francisco.

126 Comments

  • BasilVZero

    Posted Jun 24, 2011 4:06 pm GMT

    There's always gonna be losses in the beginning, unless your Nintendo, in which every single child would rage at their parents for not having the next new nintendo system xD.

  • saravananj07

    Posted Jun 16, 2011 10:14 am GMT

    SONY = EPIC Fail company. Still PSVita looks good. But loosing money to gain in the market is unacceptable for a company like SONY. The good news is they aimed to gain profit in 3 years, Unlike ps3 in 5 years. lol

  • pinicolaroxa

    Posted Jun 16, 2011 7:28 am GMT

    The only way to compete with Nintendo is loosing money, right sony?

  • SUPERSAMMOSSAUC

    Posted Jun 16, 2011 7:13 am GMT

    there's no way Im buying an upgraded ngp that they realese every 2 years the vita looks just perfect the way it is

  • SUPERSAMMOSSAUC

    Posted Jun 16, 2011 7:03 am GMT

    Im happy to support the japanese economy after the tsunami and earthquake.

  • syam32245340

    Posted Jun 13, 2011 10:25 am GMT

    Need more rpg games

  • Sigil-otaku

    Posted Jun 12, 2011 4:24 pm GMT

    @plaintomato I'll do a quick response to save too much blabber. I largely agree with you on the Vita, not to mention some will already own a PS3 so it would make sense to have a handheld that then gives that Wii U like possibility so I'm not going to deny that but I would like to retain the point against some of the more fanboyish people that it just wouldn't be quite as good as what the Wii U would do. Still that's not an insult on the Vita or PS3.

    As for gen 7.5 / 8.5, that depends on personal opinion. For me generation is time based, not performance based. It's about the next generations in a time line and not in a power performance scale. Advancements in graphics have largely been made, very good graphics can be done that will last for years regardless of more powerful systems. Can you honestly imagine battlefield 3 looking outdated as quick when we used to get PS1 / 2 / 3 leaps in technology? I'm more interested in gameplay than graphics so long as there is a good graphical output that can last it's gen and there is good core gameplay maintained (by controller layout). Wii U does that and I believe incorporating the old while looking to do new things is what gaming will really be about. What makes a good game is not FPS 20 with good graphics but games that bring something new to the table, like the first metal gear, shadow of the colossus etc. I don't want the same thing just prettier. I want something fresh, different, better etc. Any system can can improve graphics.

  • hatieshorrer

    Posted Jun 12, 2011 2:54 pm GMT

    @godmann

    Thats my point the PS3 made a profit last year but not this year and three years before that more losses. Sony also failed at getting third party exclusives they bought Lair and Heavenly Sword both didnt do very well and Kojima who felt loyal to Sony for publishing MGS 1, 2, and 3 made MGS 4 an exclusive for PS3 even though he had to publish it through Konami. What about Sony makes us think the third party games we want will be on this console.

    Also it isnt backward compatible with UMDs. The Memory stick is even different from the one on the PSP.

  • plaintomato

    Posted Jun 12, 2011 2:06 pm GMT

    @Sigil-otaku

    I hear you. And I wouldn't shell out for Vita & a PS3 for Wii U like functionality. Of course, unless the Wii U system turns out to be an 8th generation powerhouse instead of a 7th generation catch-up system, I won't buy a Wii U for Wii U functionality either.

    On the other hand, I may well shell out for a Vita for powerful dual-stick portable gaming. And IF they can pull off remote play/sychronization with games I want to play anyway, that would be a huge plus.

    And IF they sell enough units, I could see dev's potentially using it for Wii U like functionality since they will be developing similar interfacing for the Wii U anyway. Which would be another plus.

    The difference for me is that I could see buying a Vita for what it is, and then taking advantage of any "plus" features. So far, I can't really see buying the Wii U for what it is. If Wii U is truly 8th gen, then maybe. But if it's just gen 7.5, like the Wii was gen 6.5 IMO, then...no.

    What I'd really like to see would be next gen systems with complete portability integrated through remote play either on a portable or a laptop, or both. Somebody should offer this service - think Onlive with your own library instead of being limited to Onlive's selection. It would change the face of portable gaming. It may be awhile, but the "take-it-with-you" functionality has to be in the future.

  • Sigil-otaku

    Posted Jun 12, 2011 12:07 pm GMT

    @plaintomato Wii U like functionality? possibly, but would it really be quite as good? Just look at the screen size difference. http://kotaku.com/5810272/fun-facts-about-the-wii-u-controllers-size
    The Vita's is dwarfed by it. Meaning the size of what's on display on vita would be smaller and so less accurate to the touch (easier to hit close by objects or the wrong enemy in crowds etc.). The same feature could be copied but it would be on smaller screen, with less games supporting the feature and it would require purchasing a Vita and a PS3 to do what the Wii U does itself. Personally I don't see to big a problem with Sony trying to imitate Nintendo but it would only prove Nintendo was doing something right if Sony had to go through the effort of copying there ideas which would annoy a few sony fanboys who want to deny anything about the Wii U is good. I don't even get why as if you look at it the Wii U controller is pretty normal, it looks just like the vita's layout almost (big screen middle and controls on either side).

  • godmann

    Posted Jun 12, 2011 8:42 am GMT

    @hatieshorrer

    Well that fact that if they dont handle those problems in the first three years like better protection from hack etc.. they may not see a profit even after 3 years?

  • dinslacck

    Posted Jun 11, 2011 8:26 pm GMT

    i think the vita will not be hacked once come out, because hacking will result in banned by sony online. since the vita support trophies and heavily on social features, most gamers will be happy with their non-hacked vita..

  • dinslacck

    Posted Jun 11, 2011 8:19 pm GMT

    first launch games (uncharted, little deviants etc) will roughly used 4+gb cards.. imagine that the cards today can hold up to 32gb.. i wonder what will next games for Vita will be.. i'm so excited! i'm going to broke this year..

  • Finale_Wanderer

    Posted Jun 11, 2011 11:33 am GMT

    It looks amazing graphics-wise but I'm not impressed by the games. They just don't appeal to me, what's with everyone's love of First and Third person shooters?

  • ryzrocks

    Posted Jun 10, 2011 1:20 pm GMT

    @gobbo00
    hey jerk....it was the earthquake that made things bad for Sony..sorry I forgot to mention that...and u a lifeless loser who can't make ur own comment instead teasing others..GET A LIFE LOSER!!!!!!

  • gobbo00

    Posted Jun 10, 2011 9:36 am GMT

    @PodXCOM
    HA HA HA HA, (PS3) cost $800 just to make, yea so they had to wait for one owner to buy 21 games before they would see a $10 profit BS.
    @ryzrocks
    NO idiot it's has something to do with tectonic plates (earthquake to you).

  • ryzrocks

    Posted Jun 10, 2011 9:15 am GMT

    I hope those hackers are happy now..cause because of them ps vita will release late

  • hatieshorrer

    Posted Jun 10, 2011 2:34 am GMT

    @BILLNYE6983

    Im saying their are about one-hundred games being developed for the 3DS and about ten being developed for the PSVita. On top of that this isnt the same Sony as it was when the PSP was launched. I think that gamers have lost confidence in Sony due to too many promises being broken and their failure to keep credit card info and prevent hacking from succeeding.

    Sony is again promising a console with hardware worth say four hundred maybe five hundred and charging two hundred fifty or three hundred dose that mean Sony will cut corners by not providing adequate hacking protection. Will Sony provide a way to transfer PSP games to the Vita. Will Vita receive the third party support the 3DS is receiving now. These may not matter to you but I think it will to gamers and taking a loss on the thing implies to gamers that Sony will likely cut corners. After all Sony isnt concerned about profits until after the first three years whats to motivate them to handle these problems until after the first three years.

  • DennisWZH

    Posted Jun 10, 2011 2:04 am GMT

    @dooms33ker: oh that is a very good point. if sony is indeed selling this at a loss and are relying on softwares to make a profit.. then they are so doomed once the vita get hacked.

  • BILLNYE6983

    Posted Jun 10, 2011 1:36 am GMT

    @hatieshorrer

    A released console has more games than a non released console? How is that shocking. PS2 and PS3 both have more games that the 3DS but it really isn't a fair comparison...

    3DS isn't even outselling the DS right now. Blame it on whatever factors but the fact remains is that 3DS is not as successful as Nintendo planned. And it is over priced.