It is believed, through information from several sources, that Sony will make around a $60 (£40) loss on every PS4 console it sells at the $399/£349 cover price.
But the company is confident that it will immediately recoup those losses as it expects every early adopter to buy at least one launch title and a PlayStation Plus subscription.
Speaking to Eurogamer at Sony Computer Entertainment's headquarters in Tokyo, senior vice-president Masayasu Ito said the company expected to turn a profit on gamers' initial purchases on day one. It is said that the purchase of one launch title and a Plus subscription would make $60 profit or more for the company, thereby negating any loss on the hardware.
Ito also said that the PlayStation 4 will make profit quicker than the PS3 did on its debut. Chief financial officer Masaru Kato previously revealed that because of the PS4's PC-like architecture, manufacturing costs for the next-generation console are lower than those incurred by the original PS3.