The PlayStation 4 console will be sold at a loss, Sony has confirmed.
However, the platform holder expects has told Eurogamer that it expects to recoup this with every unit sold providing the buyer also purchases at least one launch game and subscribes to the PlayStation Network.
SCEJ exec Masayasu Ito added that he also expects PS4 to hit profit far quicker than PS3 did as production of the new machine, thanks to its PC-based architecture, is a lot cheaper than it was with PS3.
The site adds that Sony will make a $60 (£37) loss per console.
Microsoft has previously confirmed that it will be selling the £425 Xbox One at a profit. Nintendo stated in August that it was still losing money on each Wii U sold – and has since gone on to cut the price of the machine.