Sony sets PS4 sales target of 5 million units by March, 2014

Sony's Andrew House has revealed the corporation's expectations for PS4 sales, telling an audience at the Tokyo Games Show that five million units will be in customers hands by the end March 2014.

That estimate puts considerable pressure on the PS4, meaning it would have to outsell its predecessor by 1.5 million in its opening year. The PS3 had a similar global window to hit that 3.5 million target, although it focused on different launch territories. Last time round, Sony opted to leave Europe waiting, dropping the PS3 in the US and Japan in November 2006 but waiting until March 2007 for a European launch. This time, the US remains the first market to be served, launching on November 15, with Europe following a fortnight later. Sony's home territory, where it will be virtually unopposed by Microsoft, has to wait a further three months until February 22, 2014.

Numbers are already looking good, however, with pre-orders already in excess of those for the PS3, likely aided by the new machine's lower price point. Because of its PC-based hardware, meaning lower R&D costs, the PS4 likely costs less to produce than the PS3. Some of that saving is clearly being passed on to consumers, but many analysts feel that Sony's precarious financial situation demands that the machine still be sold at a profit, something that the PS3 didn't achieve until quite late in its lifecycle.

"I think they are almost certainly making a profit there," industry analyst Michael Pachter explained. "A $399 retail price tag is about $370-375 at wholesale... our add up on the costs of materials is about $325, so I think they make a little bit of money, $25-55. And I think Sony has to make a profit, the corporation is not doing well financially, I don't think there'd be any tolerance internally to sell anything at a loss."