Sony's game division loses $654 million

[hdinred]

When Sony axed the price of the PS3 by $100 in mid-August, everyone expected PS3 sales to skyrocket - and sky rocket they did, according to Sony. In their latest financial reports, Sony has announced that they've sold 3.2 million PS3s during Q2 at the new $299 price point, while the PS3 as a whole has sold 27 million units to date worldwide. Their data suggests they also outsold the 360 worldwide during Q2, and nearly matched the Wii at 2.1 and 3.5 million units respectively.

Overall though, Sony's game division lost $654 million, despite the increase in hardware sold. This is likely due to the fact that, with the introduction of the 120GB SKU, they are once again selling the console at a loss. Sony also pointed at dwindling PS2 sales, falling Viao sales, and the appreciation of the Japanese yen as reasons for the loss. Source

PlayStation division sales down, losses deepen

Sony PS division has lost $4.7 billion since launching PS3

FY 2007: -$1,970,923,859
FY 2008: -$1,079,994,103
FY 2009: -$577,207,240
FY 10Q1: -$413,541,667
FY 10Q2: -$653,333,333

[mstrbass2000]

wow 4.7 billion lost on ps3 so far and the christmas season coming is gonna ballon that loss big time probably add another 1.2 billion onto the tab

[rm082e]

It's sad. They've done such a good job of raising the value of the PS3 platform, they've learned to keep most of their arrogant PR people on some what of a short leash, and yet they continue to fall deeper and deeper into this hole.

I really hope they pull it together in 2010 and start working their way out of this mess. They just can't keep putting out high quality products and losing hundreds of millions of dollars like this. Somewhere someone at the top is going to draw a line. I just hope they don't cross it.

[mstrbass2000]

bad times,sony is getting killed in almost every division of their businesses too,so its not like their able to offset these losses with profits from some other division,on top of that their getting murdered in currency markets too

[michealo]

title it a bit misleading since the Vaio PC is included in that division, but still pretty horrible news.

[nmcmahan52]

well they finally have some decent ads so maybe their marketing people got their heads out of their asses

the "it only does" campaign is pretty good in my opinion so maybe it'll turn it around, probably not gonna make up the hole they are already in

[mstrbass2000]

i wonder how much of a loss sony is taking on their computers vs what their losing per unit on ps3

[Aodh]

Originally Posted by nmcmahan52

well they finally have some decent ads so maybe their marketing people got their heads out of their asses

the "it only does" campaign is pretty good in my opinion so maybe it'll turn it around, probably not gonna make up the hole they are already in

"It does everything", but turn a profit.

And michealo, if anything, the VAIO division would contribute to the profits while still being a drag on revenue. I would find it hard to believe that Sony is losing money on their overpriced laptops, but I don't think they'd sell that well either. And that being said, just my opinion.

[TheAnalogKid]

Originally Posted by mstrbass2000

i wonder how much of a loss sony is taking on their computers vs what their losing per unit on ps3

Probably nothing. They just aren't selling them. Article states falling Viao sales, not selling them at a loss.

Anyways - not a good time to be sony. I'm sure the massive stimulus will turn all this around soon, since everyone will be working and have plenty of money to spend.

Also - just further proof that the PS3 is still the best deal on home entertainment hardware around. Get it while you can!

[hdinred]

Originally Posted by Aodh

"It does everything", but turn a profit.

Zing! Good one

In truth, I think Sony still made the right decision. The alternative, like staying at $400 and possibly losing Activision, could have been far worse. Now, at least they will get continued support from developers and they have a chance to recoup some money later down the road.

[Dennis M.]

Originally Posted by mstrbass2000

wow 4.7 billion lost on ps3 so far and the christmas season coming is gonna ballon that loss big time probably add another 1.2 billion onto the tab

Pulling numbers out of our ass, are we? So far during this generation Sony and I think MS have only posted profits during holiday season quarters.

[bfellow]

Lol I almost forgot Activision's CEO telling them to drop their PS3 console prices and Sony saying "no comment." Good kick in their butts to jumpstart it.

[Onslaught X]

Sony shareholders happy and share price will continually rise for the rest of the yr,imo

SNE is a buy and will go over 35 bucks by yrs end,imo

[BStroms]

Microsoft definitely has a big advantage from currency prices right now. Here's a clip from a financial article I was reading.

A strong yen, which diminishes the overseas earnings of Japanese exporters, erased 77 billion yen ($846 million) from Sony's quarterly operating profit.

This is for all of Sony, so the game division wouldn't have been profitable even without the recent currency changes. But you can see that it does make a significant difference.

At the same time, the dollar is near historic lows, which makes it easier for MS to rake in the cash when exporting.

[Dennis M.]

Originally Posted by Onslaught X

Sony shareholders happy and share price will continually rise for the rest of the yr,imo

SNE is a buy and will go over 35 bucks by yrs end,imo

Lol, do Wulf now!