Sony is expected to make a $60 loss on each PS4 sold at $399, well-placed sources have told Eurogamer.
Sony Japan executive Masayasu Ito denied this will be the case, explaining profit would be made once a typical user buys a PS Plus subscription and at least one game.
Ito wasn't clear how many games would need to be purchased by an early adopter in order for Sony to turn a profit.
Last month, Sony said the PS4's off-the-shelf design meant that the console wouldn't incur the level of losses of PS3.
Earlier this month, Microsoft said Xbox One would break even or make a small profit on sales.
PS4 goes on sale in the UK on November 29, one week after the Xbox One.