PS3 Price Drop Leads To Sony Q2 Losses

[GameWinner]

Sony has posted financial results for the second quarter of the current fiscal year, noting a significant loss in profits for its Consumer Products & Services, which houses its PlayStation products.

The company explained that the loss was down to a number of factors, including the deterioration in the cost of sales ratio as a result of the price reduction on the PlayStation 3 earlier this year.

It also noted that a decline in sales of the video games business, as well as a decline in sales of LCD televisions and unfavorable foreign exchange rates, had led to the losses.

However, during the quarter a total of 3.7 million PlayStation 3 units were sold, compared to 3.5 million for the same quarter in the previous fiscal year.

The PSP also saw an increase in sales, up to 1.7 million units sold compared to 1.5 million year-on-year. PlayStation 2 sales unsurprisingly declined from 1.5 million to 1.2 million.

In terms of software, PS3 sales were up to 37.4 million for the quarter, from 35.3 year-over-year. The PSP dropped down to 8.1 million from 11.0 million, and the PS2 declined from 2.8 million software sales to 5.6 million.

For the quarter ended September 30, the Consumer Products & Services sector posted revenue of ¥779.7 billion ($10.1 billion), down 12.3 percent compared to ¥889.0 billion ($11.4 billion), and an operating loss of ¥34.6 billion ($449 million), compared to last year's ¥1.0 billion ($12.8 million) profit.

Overall, the company recorded a decline in revenue for the quarter of 9.1 percent, down to ¥1.56 trillion ($20.5 billion) from ¥1.73 trillion ($22.2 billion) year-over year. Net loss was ¥27.0 billion ($350 million), compared to profits of ¥31.1 billion ($398.3 million) year-over-year.

http://www.gamasutra...y_Q2_Losses.php

 

[DiscostewSM]

Everyone please remember, they still made a profit. It isn't a loss. It's just not as much as predicted. Basically the same scenario that Nintendo is in, so their futures in gaming are not over.

 

[Hyro-Sama]

Everyone please remember, they still made a profit. It isn't a loss. It's just not as much as predicted. Basically the same scenario that Nintendo is in, so their futures in gaming are not over.

So basically they made a profit but failed to meet their quota.

 

[prowler]

Title slightly misleading, they aren't just counting PS3s, they are counting all the Sony products and as said in the OP, LCDs and other things are to blame too.

 

[KingVamp]

Everyone please remember, they still made a profit. It isn't a loss. It's just not as much as predicted. Basically the same scenario that Nintendo is in, so their futures in gaming are not over.

So basically they made a profit but failed to meet their quota.

Yep. Well I'm such Nintendo is making a profit.
They are doom. Only thing that can save them now is a ps4 because the psv is not going to help them. If that fails, they are done as a game company and will go 3rd party.
/sarcasm

See? It is not just Nintendo. Darkcloud1983 was right.

 

[BORTZ]

So they ARE still making a profit? Cause i was pretty sure they were selling at a loss for a while... But i certainly dont want to see them go under by any means.

 

[qdog82]

So they ARE still making a profit? Cause i was pretty sure they were selling at a loss for a while... But i certainly dont want to see them go under by any means.

Nope, they reported a net loss of 27 billion yen.

 

[BORTZ]

on PS3s alone?

 

[qdog82]

on PS3s alone?

We don't know that, but most of there losses come from the strong yen and their TV sales.

 

[ZAFDeltaForce]

One thing's for sure, Sony always has a premium for their products, like their cameras and HD TVs. I actually bought a Samsung TV because the Bravia line was out of my budget -_-

 

[CCNaru]

I spent about 1k this month just on PS3 and games :3

edit: also bought a 55" Bravia 3DTV for $1.4k (LED-LCD) too... It's even better priced than the Samsung SmartTVs. I'm Korean so I should be buying Samsung products but fuck'em... they always break up on me, and I have Sony products that are still going strong after 10+ years.

 

[Joe88]

One thing's for sure, Sony always has a premium for their products, like their cameras and HD TVs. I actually bought a Samsung TV because the Bravia line was out of my budget -_-

both brands are really expensive (and about the same price wise) which is why I had to look else where to buy a HDTV
$350 later and I got a 40" toshiba 1080p lcd hdtv (on sale of course from $650) which is much better then paying almost 2.5x that amount for a samsung or sony

 

[Valwin]

in the local news they were talking about this this is actually pretty big as thsi is the 4th year in loses

 

[ojsinnerz.]

Disappointing, but I hope the upcoming 3D TV Monitor/TV does well. I know I'm getting mine!

 

[chartube12]

One thing's for sure, Sony always has a premium for their products, like their cameras and HD TVs. I actually bought a Samsung TV because the Bravia line was out of my budget -_-

both brands are really expensive (and about the same price wise) which is why I had to look else where to buy a HDTV
$350 later and I got a 40" toshiba 1080p lcd hdtv (on sale of course from $650) which is much better then paying almost 2.5x that amount for a samsung or sony

I got my 40' inch for $650 in july of 2010. Guess what it's a Sony Bravia and it wasn't a sale price. It was the cheapest TV at all the stores at the time I bought it too. Don't let a one time look at Sony TVs or Sony hate make excuses for you not wanting a sony.