Sony Reveals Q2 Financial Results
According to a variety of sources (AP, CNN, Wall Street Journal, etc.), Sony has released their financial report for the second quarter ending September 30, 2007. It appears that, despite more game division losses, net profit and revenue are up.
Sony reported an operating profit of ₯90.5 billion ($790 million; 556 million), overall revenue is up 12.3% to ₯2.08 trillion ($18.2 billion; 12.8 billion), and net profit surged to ₯73.7 billion ($643 million; 453 million), which is way up from the ₯1.7 billion ($15 million; 10 million) they posted a year earlier. However, there was a significant loss in the game division, which the company attributed to "strategic pricing of PS3 at points lower than its production cost." Even so, Sony is likely to be rewarded in the long run, as hardware sales have greatly increased: the division saw an overall increase of 42.9% in sales, thanks mostly to the PS3 and PSP (the PS2 remained mostly steady).
Interestingly enough, it seems Sony is now only counting sold units rather than shipped units in their report, so the following numbers are more indicative of consumer success for each platform:
Worldwide hardware unit sales
- PS2: 3.28 million units (down 0.13 million units from 2007)
- PSP: 2.58 million units (up 0.56 million units from 2007)
- PS3: 1.31 million units
Software unit sales
- PS2: 38.0 million units (down 9.2 million units from 2007)
- PSP: 12.6 million units (down 0.6 million units)
- PS3: 10.3 million units
As you can see, the changing of the guard - PS2 to PS3 - is officially taking place: Sony sold 1.3 million units in the second quarter, well up from the 710,000 it sold in the first quarter, and the PS2 - for the first time in a while - stayed mostly level. And with the new 40GB model and cheaper 60GB PS3, the holidays could yield even greater results.
10/25/2007 Ben Dutka