PS4 Synergies

As we mentioned, synergies are an important concept in capital budgeting. Take the PS4. Based on a tear down price evaluation, Sony makes about $18 per unit, not including logistical costs, marketing, and other expenses. So how does Sony plan to make a profit on the PS4? Through licensing fees to outside game makers and their own software sales. And while the $18 profit may seem small, Sony actually lost about $300 on each PS3 system it sold.