Sony will not see a repeat of the losses it made on PS3 with the launch of the PS4, CEO Andrew House has said.
The PS3 was heavily subsidised by the platform holder, leading to losses of more than $3.5 billion in 2007 and 2008. The console didn't actually begin to turn a profit until 2011.
But things will be very different with the PS4.
"The amount of investment is much, much smaller," CFO Masaru Kato told investors in an call earlier this month. "I cannot give you the absolute amount."
This is largely down to the off-the-shelf approach to the PS4's architecture and components, versus the costly custom Cell Processor design for the PS3.
SCE CEO Andrew House said: "We will not generate anything like the losses we did for the PlayStation 3."
PS4 will go on sale priced £349.99 later this year.