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Sony games division records $889m loss

Cygnus
05-13-2010, 08:24 PM
gamesindustry.biz
Sony has said that sales in its Network Product and Services division, which includes the PlayStation business, were down 10.2 per cent for the full fiscal year ended March 2010, due to a decrease in PlayStation 2 and PSP sales.

However, sales of the PlayStation 3 hardware were up during the year from 10.3 million units to 13 million, due to the launch of the new slim model.

PSP sales were down from 14.1 million to 9.9 million, while 7.3 million PlayStation 2 units were sold in 2010, compared to 7.9 million the previous year.

The division recorded an operating loss of 83.1 billion ($889.1m / 597.3m), down 4.4 billion compared to last year. While PSP and PS3 hardware sales were down, this was offset by cost reductions on the PS3 hardware, increased software sales and improved profitability from Walkman digital music players.

Sales of PlayStation 3 software increased to 115.3 million units during the year, up from 103.7 million the previous year.

PSP titles were down to 44.4 million units, compared to 50.3 million last year, and PS2 game sales down to 35.7 million units, compared to 83.5 million.

Noticeably, Sony expects software sales across all formats to remain the same in the next financial year ended 2011, despite an expected increase in PlayStation 3 sales.

Sales for the division were 1,578.8 billion ($16.8bn / 11.3bn) during the full year, but despite the performance of the Network Product and Services division, results for the entire group were more positive.

Sony Corporation recorded an operating income of 31.8 billion ($339.7m / 228.1m) in 2010, compared to a loss of 227.8 billion the prior year, and a net loss of 40.8 billion ($438.4m / 296.7m), an improvement over last year's 98.9 billion, with the Financial Services division and sales of LCD TVs in Consumer Products & Services as highlights.

For the full year ended March 2011, Sony expects an operating income of 160 billion, with an improvement in operating loss of the Network Product and Services division due to better game sales and VAIO PC sales.

venomxr8
05-14-2010, 01:43 AM
:error:error:error:error:error:error

They have only lost 41 billion ($440 million) and its not "sony's game division" its Sony's Network Product and Services division which include other departments.

Though Sony won't issue its annual report until Thursday, the electronics giant today revised its earnings estimate for the 12 months ending March 31, 2010. Though the company still believes it will post a hefty 41 billion ($440 million) annual loss--only its second in 15 years--

http://au.gamespot.com/news/6261842.html?om_act=convert&om_clk=hot-stories&tag=hot-stories%3Btitle%3B4

EddieDZ
05-14-2010, 03:17 AM
and yet they still live on LoL despite all these loss's cyg keeps posting hahahah. the day sony goes down under will be the day the polar ice caps melt over night.

awol
05-14-2010, 08:02 AM
Cygnus, your thread title is lame and complete and utter FUD.

PS3 proved profitable in last Sony fiscal year (http://www.joystiq.com/2010/05/13/ps3-proved-profitable-in-last-sony-fiscal-year/)

The PS3 was a bright spot for Sony in its fiscal year 2009 (ending March 31, 2010). Thanks to a strong yen and a rise in PS3 hardware sales (you go Slim!), the console finally became profitable for Sony at the tail end of the fiscal year, according to Reuters (via adriasang); despite the Networked Products & Services division, which includes games, seeing a decline in overall product sales. The division operated at a loss of 83.1 billion ($895 million), a marginal improvement over the previous year's 87.4 billion ($941 million) deficit. Still, Sony forecasts 160 billion ($1.7 billion) in company-wide operating profits for the current fiscal year (April 2010 – March 2011).

PS3 revenue is expected to increase this fiscal year from reduced manufacturing costs and a concerted effort to increase unit sales, following a strong showing last holiday season and a new and effective ad campaign. According to Sony, the company managed to ship 13 million consoles in its 2009 fiscal year, up from 10.1 million in fiscal 2008. Mainichi reports (via adriasang) that Sony expects to increase PS3 hardware sales to 15 million units this fiscal year.

However, PSP and PS2 hardware sales have shown decline. PSP sales, which totaled 9.9 million hardware units and 44.4 million software units in fiscal 2009, fell from previous fiscal year totals of 14.4 million hardware units and 50.3 million software units. PS2 sales in fiscal 2009 saw less of a percentage decline, totaling 7.3 million units sold; compared to 7.9 million units sold the previous fiscal year. PS2 software, however, experienced a sharp decline in sales, managing only 35.7 million software units sold as compared to fiscal 2008's 83.5 million units total.

Mase
05-14-2010, 09:56 AM
They have only lost 41 billion ($440 million) and its not "sony's game division" its Sony's Network Product and Services division which include other departments.


Thats kind of the same thing with Microsoft as the 360 is not in its own division, its bundled in with the loser that is Zune...



Either way the PS3 is doing better than ever from a financial stand point, all this shows is the PS2 sales are actually starting to decline and people are buying less PSPs.. Thats not surprising as the Go is expensive and imo not as good as the original UMD versions.

Pinoy
05-14-2010, 10:07 AM
The ps2 gravy train is running out. Luckily for Sony the PS3 is starting to spread it's wings, it's even hit it's 13 million in sales for the fiscal year projection (35.7 million units sold total)

And FTR Cyg's title is in fact correct, that particular division did in fact lose money. Of course he's pointed out the negative spin rather than saying "ps3 helps offset Sony game division losses" but hey fair is fair I suppose. Sony overall though swung last year loss to a current year plus, looks like they're getting their legs under them.

Cygnus
05-14-2010, 10:29 AM
Like fox news, I simply report, you decide. :angel Gamesindustry.biz is a reputable site as industry pros, devs, etc use it :what:

awol
05-14-2010, 10:30 AM
The ps2 gravy train is running out. Luckily for Sony the PS3 is starting to spread it's wings, it's even hit it's 13 million in sales for the fiscal year projection (35.7 million units sold total)

And FTR Cyg's title is in fact correct, that particular division did in fact lose money. Of course he's pointed out the negative spin rather than saying "ps3 helps offset Sony game division losses" but hey fair is fair I suppose. Sony overall though swung last year loss to a current year plus, looks like they're getting their legs under them.

No, it's not. The division that posted a loss was the Networked Products & Services division. As a whole. Of which, the Playstation business is a part of. But is NOT wholly responsible for the losses as his title claims.

EDIT: I'll give him a bone because it's not his thread title. But common sense would have said that there was obviously something fishy about the title of the article given its contents.

railven
05-14-2010, 10:35 AM
No, it's not. The division that posted a loss was the Networked Products & Services division. As a whole. Of which, the Playstation business is a part of. But is NOT wholly responsible for the losses as his title claims.

EDIT: I'll give him a bone because it's not his thread title. But common sense would have said that there was obviously something fishy about the title of the article given its contents.

Just read your quote of the Joystiq article.

That title is very misleading. Cyg is officially the Lee of the gaming forum. Haha. Did he use a green arrow? If so, the transformation is complete :D

I'm just joshing.

Still title is misleading haha.

mshulman
05-14-2010, 11:51 AM
Since I don't own stock in Sony, I could really care less. Too many people put too much into these numbers when in the end they likely don't have any effect on gaming.

Razor05
05-14-2010, 12:30 PM
Oh come on you guys, how many threads or posts use common sense or aren't sometimes misleading? :roflmao:

;)

railven
05-14-2010, 12:47 PM
Oh come on you guys, how many threads or posts use common sense or aren't sometimes misleading? :roflmao:

;)

Wait, are you implying that common sense is misleading?

We're so boned if that's true.

Cyg isn't responsible for the title, but that title is without a doubt misleading to the point that it isn't even true. It's a lie, and can probably be considered slanderous.

Pinoy
05-14-2010, 01:24 PM
No, it's not. The division that posted a loss was the Networked Products & Services division. As a whole. Of which, the Playstation business is a part of. But is NOT wholly responsible for the losses as his title claims.

EDIT: I'll give him a bone because it's not his thread title. But common sense would have said that there was obviously something fishy about the title of the article given its contents.

If I remember correctly Sony recently restructured, the games division in the Networked products blah blah blah division so in that regard I'd say the title is accurate. Cyg also didn't make the title, it was the title of the article he's quoting (and all the words are even in this one :banana: )

A divsion ... within a division ... but not really a division... Arrrggh. This stuff gives me headaches.

All in all though really not too bad for Sony. It's older systems are slagging off but no real surprise there, they barely undersold their projections for those systems. And best of all the PS3 actually offset the losses a good bit, and they hit their hardware sales projection despite a shortage. That's a positive IMO.

Razor05
05-14-2010, 03:30 PM
Wait, are you implying that common sense is misleading?

We're so boned if that's true.

Cyg isn't responsible for the title, but that title is without a doubt misleading to the point that it isn't even true. It's a lie, and can probably be considered slanderous.

Heh, that depends on how a person interprets things, common sense can mislead alot of people to a point that it isn't used, lol. ;)

MikeRox
05-15-2010, 05:16 AM
Cyg's title is fine, Sony games division IS the Networking yadda yadda division. However it is certainly also extremely implicit that the PlayStation business is the part responsible for the losses when, like MS's 360 operation, it's just part of the division and other sectors (Zune/Vaio etc.) can have more of an impact on the bottom line of the division.

So Sony hope to break 50m units sold this next year. Very nice.