Also on the site...
Advertisement

Sony Corp. makes billion-dollar loss News

PlayStation 3 PlayStation 2 PSP News by Robert Purchese

14 May, 2009

Sony expects PS3 and PSP to perform better this year and sell 13m and 15m units respectively by April 2010.

The company was speaking in its annual financial report for the year ending 31st March 2009. During those 12 months, the PS3 sold 10.1m units and PSP 14.1m units.

Sony Corporation overall, however, lost over 1bn dollars. And the biggest sales decrease came from the Computer Entertainment sector, which subsequently blamed diminishing sales of PS2 and currency fluctuation.

It's not all doom and gloom, though, as operating profit for the Computer Entertainment division was halved, thanks to trimmed manufacturing costs and a 45 per cent rise in PS3 game sales.

Sony expects that software momentum to carry over into this financial year, forecasting a slight increase across all PlayStation platforms. The company also poured plenty of faith into digital distribution, claiming PlayStation Network sales will triple over the 12 months.

It's just a shame Sony no longer has the insight of David Reeves, who knew months ago that "the most important thing for [Sony] as a company in the very short term is for us to start making money".

Got a tip? Email news@eurogamer.net.

Advertisement
Comments

Want to comment on this article? Log in, or register!

Comments: 1-35 of 35

Poster
Comment Low-scoring comments hidden. Log in to see them!
Sunyavadin
14/05/09 @ 11:17
#1
0
You buried this comment
Comment below viewing threshold
Show
Could be worse. They could be EA.
Widge
14/05/09 @ 11:22
#2
0
You buried this comment
Comment below viewing threshold
Show
I just read this on Kotaku, but they're saying an 80% increase.
liverpoolfc
14/05/09 @ 11:23
#3
0
You buried this comment
Comment below viewing threshold
Show
Ending the production of the ps2 will make more people consider the ps3
Eraysor
14/05/09 @ 11:25
#4
0
You buried this comment
Comment below viewing threshold
Show
Well if MGS4 happens to come to 360 I don't see myself ever bothering with a PS3, at least until they're less than £100 new. As for the PSP, they might be able to resurrect it with the new version, but it's unlikely.
chrisjm
14/05/09 @ 11:25
#5
0
You buried this comment
Comment below viewing threshold
Show
if someone is thinking of buying a ps2, they are a pov so wont buy a near £300 ps3.
kinky_mong
14/05/09 @ 11:27
#6
0
You buried this comment
Comment below viewing threshold
Show
if someone is thinking of buying a ps2, they are a pov so wont buy a near £300 ps3.

Ha ha! I love the term "pov" or "pov-o"!
DrDamn
14/05/09 @ 11:27
#7
0
You buried this comment
Comment below viewing threshold
Show
@Widge
There is something wrong with the wording in that paragraph ... "operating profit for the Computer Entertainment division was halved, thanks to trimmed manufacturing costs and a 45 per cent rise in PS3 game sales" - eh?
Doctor_What
14/05/09 @ 11:39
#8
0
You buried this comment
Comment below viewing threshold
Show
A price drop would probably increase those numbers a lot more. To me that article said that they wouldn't be dropping the price.
penhalion
14/05/09 @ 11:41
#9
0
You buried this comment
Comment below viewing threshold
Show
I think Sony have finally realised that floggin the dead PS2 horse as a source of reliable income is now a non starter (I'm trying to use as many racing puns as I can but, can't seem to remember any...).

If they wish to be first past the post in the long haul that is the console race, then they need to start cutting prices and getting consumers motivated again. I'm looking forward to stuff like Uncharted 2 and infamous, so I think they are finally on the right track. Of course Microsoft aren't just going to be standing still and lett them bolt out of the styles unchallenged.

Edit: Awe just thought of a scentence to use stable door after the horse has bolted, then my boss asked me something and now it's gone!
Edited 1 times, most recently on 14/05/09 @ 11:43
Widge
14/05/09 @ 11:42
#10
0
You buried this comment
Comment below viewing threshold
Show
I will take up the offer of moar coffee.
Bigglesworth
14/05/09 @ 11:46
#11
0
You buried this comment
Comment below viewing threshold
Show
@DrDamn
It must mean "operating losses".

Also:
"It's just a shame Sony no longer has the insight of David Reeves,

Yeah... he was surely the only one in the company with the keen wit to recognise the need to make money... =)
AphoticCosmos
14/05/09 @ 11:47
#12
0
You buried this comment
Comment below viewing threshold
Show
Pro-tip: Invest in Europe you douchebags.
designerheadache
14/05/09 @ 11:51
#13
0
You buried this comment
Comment below viewing threshold
Show
seems to me Sony just got unlucky that their "transitionary" period of people moving from Ps2 to Ps3 has fallen during the credit crunch, causing them to re-asses what their next console will be, and loosing sales to a cheaper 360 and wii.

Only one way to remedy that problem Sony!
CallousB
14/05/09 @ 11:54
#14
0
You buried this comment
Comment below viewing threshold
Show
"It's not all doom and gloom, though, as operating profit for the Computer Entertainment division was halved, thanks to trimmed manufacturing costs and a 45 per cent rise in PS3 game sales."

Wuh...operating profit being halved wouldn't be a good thing..

...I'm pretty sure you meant to write that operating losses were halved.

aine
14/05/09 @ 11:55
#15
0
You buried this comment
Comment below viewing threshold
Show
floggin the dead PS2 horse as a source of reliable income is now a non starter

that's not exactly their fault; I recall the PS1 getting decent exclusives and interesting cheapo curiosities long after the PS2 was introduced, but with the PS2 third-parties seem to have abandoned it somewhat more quickly for whatever reason - it has still been getting new releases but they've mostly been dodgy movie licenses or quick ports, with one or two exceptions mostly in the form of japanese RPGs. even budget titles seem to have dried up for the most part.
DrDamn
14/05/09 @ 12:03
#16
0
You buried this comment
Comment below viewing threshold
Show
@Mr.Me
Doesn't your post back up what Widge said? The only percentage in the EG article is the one on games and there they say a 45% rise. Widge said it was 80% and you say it was 80%. Why does Widge need to go back to school?
Widge
14/05/09 @ 12:08
#17
0
You buried this comment
Comment below viewing threshold
Show
I have no idea anymore, no breakfast today. Fading. Fast.
Negotiator
14/05/09 @ 12:19
#18
0
You buried this comment
Comment below viewing threshold
Show
Bye Bye Sony bye bye etc...
penhalion
14/05/09 @ 12:29
#19
0
You buried this comment
Comment below viewing threshold
Show
@aine

I agree that it's not their fault (at least not entirely) as I recently purchased Persona 4 for my still backward compatible PS3. The reality is that I wouldn't have bought the game if I'd had to dust off my actual PS2 to play it. I certainly wouldn't have bought a new PS2 jsut for that game either.

With the PS1, Sony actively supported the platform for quite a while after the PS2 came out. With the PS2 however, all Sony seem to be doing is selling the machine still, while all of their marketting and promotional muscle is solely focused on PS3 and PSP. Heck I wouldn't even know they were still making PS2 if not for those monthly hardware sales charts.
dingo75
14/05/09 @ 13:16
#20
0
You buried this comment
Comment below viewing threshold
Show
Thing is the PS2 is often used soley as "party machine" with Sing Star and Guitar Hero.
No need to buy a PS3 for that since people usually are too drunk anyways to care about graphics.

My PS2 serves this purpose well and "Guitar Hero - Metallica" comes out end of May for it! :)
Edited 1 times, most recently on 14/05/09 @ 13:16
bad09
14/05/09 @ 13:38
#21
0
You buried this comment
Comment below viewing threshold
Show
"Ending the production of the ps2 will make more people consider the ps3 "

Eh? I got my PS3 last May. Last month I got a new (2nd hand new) PS2 which has seen more gaming action in a month than my PS3 has had since I finished my import SH:HC months ago! Put PS2 BACK in PS3 and THAT will make more consider PS3.

I like the "claiming PlayStation Network sales will triple over the 12 months" part in that article. Have Sony SEEN the prices they ask on there? No Retail will rule the roost. If they go DD only I suspect piracy will go through the roof at current pricing.....
Teamallstar
14/05/09 @ 13:48
#22
0
You buried this comment
Comment below viewing threshold
Show
I don't think it is a question now of whether or not Sony will lose the console war, but whether or not the company can continue to sustain such huge losses from its once dominent console division. it is very sad for gaming generally, but let's just hope that microsoft and nintendo will treat the gauntlet that they now hold with the respect that it deserves.

I hate how badly they screwed this "next" generation of consoles up.

I suppose that the better console won (the hard core) console war!
geeza2020
14/05/09 @ 14:01
#23
0
You buried this comment
Comment below viewing threshold
Show
I would have loved to have been a fly on the wall in that board meeting! Somebody walking in and saying "uuuuh i dont suppose any of you have seen a BILLION DOLLARS lying around have you?????....aawww shit....."
penhalion
14/05/09 @ 14:02
#24
0
You buried this comment
Comment below viewing threshold
Show
@Bad09

I agree with you about the PS2 back into PS3 thing. It would have made 100 times more sense if Sony had launced a fully backward compatible PS3 (complete with hardware) and immediately said a year from now stand alone PS2 will be no more. The 2 consoles in one thing would have given added value and some games like the persona series may even have finally made the jump to next gen. Existing PS2 stuff could have simply been re-branded and sole cheap to new PS3 owners as well as the existing huge PS2 ownership.

Instead they continued both consoles and now, with the rapidly dying PS2 market, they have effectively lost a huge revenue stream with nothing tangible to replace it!
teabagger
14/05/09 @ 14:09
#25
0
You buried this comment
Comment below viewing threshold
Show
PS2 isn't a dead horse to be flogged. Its main relevance is in emerging markets like India, Iran etc. etc. rather than in the western markets.
Widge
14/05/09 @ 14:37
#26
0
You buried this comment
Comment below viewing threshold
Show
Give me back my stimulants!
des
14/05/09 @ 16:10
#27
0
You buried this comment
Comment below viewing threshold
Show
4 billion dollars loss in 3 years then...uh oh
El-Dev
14/05/09 @ 17:28
#28
0
You buried this comment
Comment below viewing threshold
Show
These figures come from a financial report I'm guessin, that means they are bullshit.
Diomedes
14/05/09 @ 17:30
#29
0
You buried this comment
Comment below viewing threshold
Show
Well ,the crisis is the crisis ,but both MS and Sony have posted losses in their gaming divisions.

As for Sony treating gaming badly ...they have put out a marvellous console out with lots of good games ,features ,put out a great free online service etc etc ....of course if they made each PSN member pay 60 euros yearly they would be in black but I consider good for gaming the free online approach.

Lets put aside the childish Sony hating and look at things straight ....this is bad for Sony ,not so for gaming .As long as Sony can keep the losses (and the last quarters it was in black its just the global year that is in red ) this isnt bad for gaming in any sense.It would only be bad for gaming if Sony dissappeared from the console scene.
bad09
14/05/09 @ 18:16
#30
0
You buried this comment
Comment below viewing threshold
Show
@ penhalion

Yeah that's why I'll never believe the "we did it to save money" line. I seriously think they cut themselves off from a lot of people with that move. Hell if it wasn't for MGS4 I probably still wouldn't own one because of that very reason.
Col_Ryan
14/05/09 @ 19:31
#31
0
You buried this comment
Comment below viewing threshold
Show
@ lord "Sales don't go up without a stimulus"

I agree, but I've heard that a recession can stimulate. 'Instead of going out, people invest in home entertainment,' I think that was it. Game sales go up due to this and reduction in prices.

knightmt
14/05/09 @ 22:10
#32
0
You buried this comment
Comment below viewing threshold
Show
Blu Ray Discs will probably exceed the 100million mark in North America this year, that should offset some loss.
Ryze
15/05/09 @ 00:52
#33
0
You buried this comment
Comment below viewing threshold
Show
PS3lol iz t3h doom3d!!!!111!!one!1

edit:

@aine

"...for whatever reason..."

The Wii. The DS. The 360. XBLA.

Collectively and metaphorically, it's the Dreamcast's influential ghost coming back to haunt, spook and sting Sony. Hard.
Edited 1 times, most recently on 15/05/09 @ 00:59
Theorendil
15/05/09 @ 08:10
#34
0
You buried this comment
Comment below viewing threshold
Show
The onlt thing that will boost PS3 sales is a price drop... It's just too danm expensive for a lot of people...
EvilBob_leeds
15/05/09 @ 13:45
#35
0
You buried this comment
Comment below viewing threshold
Show
I think it largely is Sonys fault ;-)

But they have suffered a strong Yen whereas MS have been able to profit from a piss weak dollar - to keep the PS3 at the price point its currently at in the US and Europe will have meant cutting their profit margins considerably. Which puts them in a tricky position - do they risk selling PS3s at more of a loss in order to hopefully make enough revenue to make up for it off Blu Rays and games?
Edited 1 times, most recently on 15/05/09 @ 13:48

Comments: 1-35 of 35

Want to comment on this article? Log in, or register!

Statistics
Zavvi
GetGames

X View gallery