Money Matters - Simplified

All-new PS4 coming soon, confirms Sony

The decision to cut the investment in the development of PS4 seems a sound business decision given the fact that Sony has been losing money over its PS3 consoles.

Global electronics giant Sony Corp. has announced that it is working on the next generation version of its game console PlayStation.

However, Sony has also made it clear that it would not be able to put in the same amount of money, effort and investment into the development of the PlayStation 4 (PS4) as it did for the PS3.

Sony cited internal problems and the global economic recession as being the causes for this decision.

No plans for a heavy investment
Masaru Kato, chief financial officer of Sony, said at a meeting with investors that only a part of the fiscal year 2012’s R&D budget will be allocated for the development of the PS4.

Sony has made it clear that it has no plans to invest as much into the PS4 as it did for the PS3. The consumer electronics giant candidly revealed that there is no need to build another multi-core microprocessor from scratch as the business of semi-conductors has been rapidly changing over the years.

He declined to comment on any release date or about the new features that users can expect to see in the next generation PlayStation.

He also hinted that the PS3 still has many years to go before its product life comes to a halt.

PS3 sales tumbling
The decision to cut the investment in the development of PS4 seems a sound business decision given the fact that Sony has been losing money over its PS3 consoles.

Ever since the introduction of the PS3 in 2006, sales of device have been steadily plummeting over the years.

No wonder the PS3 is currently the worst-selling game console in the market today, far behind Nintendo’s Wii and Microsoft’s Xbox 360.

The development of the PS3 had seen a massive investment by Sony. It collaborated with IBM and Toshiba to build the multi-core processor found in the PS3 and invested heavily in the development of chip manufacturing facilities.

Apart from this, Sony has been busy with many other technologies such as the Blu-ray disc standard and BD replication plants.

Sony has made it clear that it has no plans to invest as much into the PS4 as it did for the PS3. The consumer electronics giant candidly revealed that there is no need to build another multi-core microprocessor from scratch as the business of semi-conductors has been rapidly changing over the years.

"This is something that will not happen in the future. The semiconductor business is changing. It is no longer thinkable to have a huge initial financial investment like that of the PS3," Mr. Kato was reported as saying to a gaming website.

Rumors of a PS4 had been doing the rounds on several blogs and tech websites for over a year. This is the first time that Sony has publicly announced that it is working on the PS4.