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Sony to lose money on every PS Vita sold, but looking to turn profit within 3 years

Handheld to surpass PSP's sales of 70 million

Sony to lose money on every PS Vita sold, but looking to turn profit within 3 years
Given the specs involved, one of the biggest surprises during Sony's PS Vita unveiling at its E3 press briefing was the handheld's price.

With the wi-fi only edition coming in at $249, Sony's PSP successor will compete directly on the shop shelves with both 3DS and iPod touch, but said price point also means the company will sell each device at a loss.

Three year target

The revelation was made by SCE CEO Kaz Hirai in an interview with Reuters, with turning a profit on the device within its first three years a prime target for the company.

To do that, Hirai believes PS Vita will need to surpass the 70 million units PSP has sold to date – a target MF Global analyst Jay Defibaugh believes is in the handheld's reach, despite increasing competition from smartphones.

"I think it's definitely possible, although I don't model that right now, given the bigger emphasis on connectivity," said Defibaugh.

"All things considered, the handheld market has more exposure to the increasing popularity of smartphone-based gaming."

In a separate interview, SCEA head Jack Tretton also told Reuters that Vita will hit Japan first before the end of 2011, while other regions will have to wait until 2012.

[source: Reuters]

With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.

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The world is a funny place. People getting manipulated by apple products while genuine, top quality like Sony loses. The best that came out of apple is the Ipod, no more. It's much better compared to other Mp3 players.