done, but often years of expensive research and development leading up to the launch.

But during an earnings call today, Sony CFO Masaru Kato stated, "Unlike PS3, we are not

planning a major loss to be incurred with the launch of PS4."

This is apparently because of the PS4 using a chip that has required much less R&D and

investment by the company.

He explains: "At the time we developed PS3, we made a lot of in-house investments to develop

the chip -- the Cell chip. Development...saw the silicon processing and all the facilities

invested by us ourselves.

"Yes we have a team working on chip development -- but we already have existing technology

to incorporate and also product investment and all the facilities will now be invested

by our partners, other foundries, so we don't have to make all the investment in-house."

While Sony as a whole is currently enjoying its first profits since 2008, in the games

segment sales are down 12.2%.

Combined sales of PS3 and PS2 consoles have fallen to 16.5 million from 18 million last

year. This isn't surprising though, considering generation fatigue and the recent announcement

of the PlayStation 4.

Sony's portables -- PSP and Vita -- sold 7 million units in the past three months, which

is a slight improvement on the 6.8 million sold during the same time last year. While

up, it's worth noting that the Vita's price-cut in Japan this year undermines the fact that

more units were sold, earning Sony less money overall.

Sony is optimistic about the future of its game business. A financial report reads: "Sales

are expected to increase significantly primarily due to the planned introduction of the PlayStation

4 in the fiscal year ending March 31, 2014. Operating income is expected to be essentially

flat year-on-year primarily due to an increase in research and development expenses and marketing

expenses related to the introduction of the PS4."

Note that since Sony's fiscal year goes through next March, a PS4 release this year isn't

assured -- at least not worldwide.

Overall, this appears to be a much leaner, streamlined, and ultimately more profitable

Sony than the company of a year ago.

For more on the game industry, stay tuned to IGN.