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Sony Sees Game Division Rise 135%

As usual, it takes a while for the PlayStation brand to turn a profit for Sony. But eventually, it does indeed happen.

While the third-quarter results for the electronic giant showed a slight decrease in overall profits (down 8.6% to $893 million), Sony attributed that downturn to the slowing sales of LCD TVs, and the fact that their movie division lost money. But these days, Sony Computer Entertainment is no longer posting massive losses; in fact, quite the opposite: revenue for Sony's Networked Products & Services Division fell 6.4% to $7.4 billion but operating profit was up 135% to $564 million. And why?

"The game business benefited from significant cost reductions of PlayStation 3 hardware and higher unit sales of PS3 software, which favorably impacted the change in segment operating results."

Sony sold 6.3 million PS3 units during the quarter, down just a bit from the 6.5 million it sold in the same quarter in 2009. On the other hand, software sales rose significantly, from 47.6 million to 57.6 million; for the PSP, hardware was down from 4.2 million to 3.6 million, but software climbed from 15.0 million to 16.5 million. Obviously, a year later, there's just more hardware around, which means more game sales.

And as time goes on, things should continue to improve for SCE.

Tags: playstation, sony, sony game division, sony statistics

2/3/2011 10:21:15 AM Ben Dutka

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Comments (36 posts)

0_o
Thursday, February 03, 2011 @ 10:38:51 AM
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It's all about the quality games ;)

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PorkChopGamer
Thursday, February 03, 2011 @ 10:40:49 AM
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I'll admit, I was worried for Sony a few years back. I remember watching a Simpsons episode and being upset that they only mentioned the Wii and 360. But I'm glad it's goping great for them. They deserve it. I can't help but wonder what Mr. Kutaragi thinks of this success after being scorned by everyone, though.

Last edited by PorkChopGamer on 2/3/2011 10:41:05 AM

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RadioHeader
Thursday, February 03, 2011 @ 12:14:21 PM

I haven't seen that episode of The Simpsons, but while we're on the subject, it seems there's barely an episode of Southpark goes by without a mention of the xbox. They MUST be getting paid!

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WorldEndsWithMe
Thursday, February 03, 2011 @ 1:04:21 PM

All forms of media use the xbox name as synonimous with gaming nowadays where they used to use the Playstation brand. It isn't that surprising considering the one that is in your face all day long no matter where you go and what you look at. Even here at PSXE it's like "BAM get Black Ops maps for Xbox360!"

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Underdog15
Thursday, February 03, 2011 @ 1:41:38 PM

In the show "Everybody Loves Raymond", the family has a PS2. :)

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WorldEndsWithMe
Thursday, February 03, 2011 @ 2:06:36 PM

yeah but that show has been off the air a while.

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RadioHeader
Thursday, February 03, 2011 @ 2:23:04 PM

You've actually eased my paranoia somewhat. Thanks World, I guess I'll forgive Matt & Trey for now.

I wonder why they didn't do the console war... seems like a Southpark-like subject to me.

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WorldEndsWithMe
Thursday, February 03, 2011 @ 2:35:37 PM

You're right, I mean for crissake they even did "Whale Wars" you'd think Console wars would be obvious. They could make Kenny support the Wii and come up with a creative thrown-wand death for him.

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godsman
Thursday, February 03, 2011 @ 2:42:43 PM

Well it IS an american cartoon. In the US Xbox does outsell the PS3 by ALOT.

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Gone
Thursday, February 03, 2011 @ 11:02:49 AM
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Almost every week there has been a deal on the PS3 Slim 160GB system (free LBP2 at Gamestop, $100 Best Buy GC, $50 Target GC, free controller and game at Fry's, $50 to $100 GC on Amazon) . I think Sony might be trying to phase out the 160GB or there is going to be a price drop of $50 in time for GDC.

GDC 2/28/11 - 3/4/11

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Temjin001
Thursday, February 03, 2011 @ 11:15:47 AM

I've been seeing big sales like that, too. I think it's safe to assume a price drop is coming down the pipeline or a hardware revision.

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FatherSun
Thursday, February 03, 2011 @ 11:42:41 AM

If they dropped the price to $199 anytime this year sales would multiply exponentially. If Sony in turn priced the NGP just right they would dominate. These types of moves will only strengthen the Playstation Brand.

Introducing the NGP @ $200 would swallow the 3DS. Do that first and then announce the PS3 price to $199. Then come straight out and state that Playstation know what games want! Consumers eyes will be opened.

Last edited by FatherSun on 2/3/2011 11:48:12 AM

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Underdog15
Thursday, February 03, 2011 @ 1:45:18 PM

Only thing is, 3DS will do well simply due to brand name recognition for folks. DS owners will want a 3dS.

Plus, the types of games 3DS has aren't always available to the PS brand. I think the Wii has proven you don't need next gen quality to sell well.

Mind you, I think the Sony brand is ALWAYS number one. :) Not everyone cares though. lol

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Fane1024
Saturday, February 05, 2011 @ 2:42:01 PM

...weren't always available.

With the addition of the touch screen, etc., the NGP can now receive ports of pretty much any DS or iOS game (aside from Nintendo franchises, of course).

And they'll probably look better and have better controls to boot.

With the PSP regularly (but not always) beating the DS each month in Japan, the days of developers automatically choosing the DS are also gone.

If the NGP/PSP2 can capitalize on the bump in popularity of the PSP, it may have strong developer support...in Japan at least.

Last edited by Fane1024 on 2/5/2011 2:47:27 PM

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Kiryu
Thursday, February 03, 2011 @ 11:05:29 AM
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Sony is Back and Better than Ever!

I hope the pirating doesn't increase so that it won't affect them in software sales!

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FatherSun
Thursday, February 03, 2011 @ 11:36:37 AM

I mentioned before that this pirating issue may sell consoles but will definitely hurt software. I'm with you on this. Pirates in movies are ok. When it comes to real life and real property may they be sent to Davy Jones locker.

Speaking of sales. My perception is that MS sells the Kinect in great numbers but once the gimmick wears off those who are new to games will want to graduate to real games. And considering that MS does not have too many exceptional games they will look in the PS3s direction.

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FatherSun
Thursday, February 03, 2011 @ 11:28:47 AM
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All this with a full year delay, astronomical launch price, loss of key exclusives, negative press, Economic decline and passive advertising. They must be doing something right. Most of us here know exactly what that is. They give us the gaming experience that true gamers always look for. We are the true drivers of this industry.

Sony may stumble but still calm and humble.

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Highlander
Thursday, February 03, 2011 @ 11:33:54 AM
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Nice.

What was that someone was recently saying about Sony not making a profit on PS3?

Agree with this comment 8 up, 0 down Disagree with this comment

FatherSun
Thursday, February 03, 2011 @ 11:45:49 AM

"Sony is BLEEDING money!", PS3 Has no GAMES!" These statements are still circulating. The Internet can only lie but for so long. These are now myths.

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Jawknee
Thursday, February 03, 2011 @ 11:46:02 AM

Lol, pay no attention to that foolish man. He spouts nonsense day in and day out. He's delusional.

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Ben Dutka PSXE [Administrator]
Thursday, February 03, 2011 @ 12:26:22 PM

The same person who believes all gaming will die because the industry is continually hemorrhaging money? The one who says Move will be dead by the end of 2011?

I'm sorry...is he relevant?

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FatherSun
Thursday, February 03, 2011 @ 12:38:14 PM

GAME industry? What is this GAME stuff you speak of? Sounds alien to me.

Such nonsense in the world. Game playing is a part of our Humanity. Games are not going anywhere!

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Highlander
Thursday, February 03, 2011 @ 1:06:30 PM

Fathasun,

Did you mention the world of Gamindustri?

::blinks::

Hyperdimension Neptunia isn't just a game, it's real!

@Ben,

Which one of them? ;)

And no, not really.

Last edited by Highlander on 2/3/2011 1:07:21 PM

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kraygen
Thursday, February 03, 2011 @ 12:15:11 PM
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I'm actually in the market to purchase a slim to go along side my MGS4 edition.

I've been keeping an eye out for a good bundle, so if anyone see's anything really good, let me know. I've only seen the buy a 160GB and get a $50 gift card lately, was looking for something a little better.

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Ignitus
Thursday, February 03, 2011 @ 12:28:01 PM
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I'm happy they are making money now after the terrible PS3 launch.
Now keep the good games coming out and leave PSN free.

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FatherSun
Thursday, February 03, 2011 @ 12:35:16 PM

If the PS3s launch was handled differently at least 50% of the PS2 base would've jumped in. Looking forward, this graduation is on the horizon as well. More numbers coming our way.

Ignitits... er... Ignitus, meant to tell you when I first saw it. Cool Avatar!

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WorldEndsWithMe
Thursday, February 03, 2011 @ 1:07:48 PM

One of my sources tells me that facebook xbots are saying that PS3 owners are poor because we don't pay for our online service. Does that make any sense to you? lol.

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Underdog15
Thursday, February 03, 2011 @ 1:48:32 PM

Pfft. In the descriptive musings of Matthew Good, they are merely middle-class gangstas.

Agree with this comment 2 up, 0 down Disagree with this comment

Ignitus
Thursday, February 03, 2011 @ 2:11:40 PM

@World,

I own both PS3 and 360 and I didn't renew my xbox live gold account, I think it's silly to pay to play online multipayer. In 5 years you could buy a new game console with that money.

Because of this, single player games go to the 360 (Better frame rates and no mandatory installs) and online multiplayer games go to the PS3 (free and great online network). I only wish Sony could bundle a headset with every PS so that people could comunicate over PSN and they could see how diferrent and fun online gaming is when you comunicate with your friends. It annoys me that very few people use headsets over PSN, with no comunication everybody is just off doing their own thing, it's not that fun.
Dough I really miss playing Gear of War 2 online multiplayer, that's the most fun I have ever had online.
Now that bulletstorm is coming out, I think I read somewhere that Cliffy B said that they probably will make a Gears of War style game multiplatform. Now that's something I will be very happy about and of course I'll be getting the PS3 version.

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WorldEndsWithMe
Thursday, February 03, 2011 @ 2:33:55 PM

It might have to do with the PS3 players being generally older, I have no need to gloat over killing someone I don't know and have nothing to say when I got pwned but "oooooh man" I have a headset but I don't like to use it. I just get into the game too much. I would if I was playing online with the friends I know in person but when I'm gaming I don't like to talk too much aside from laughing at particular deaths and situations.

I hope Epic's multiplat Gears clone fairs better than Quantum Theory did :)

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Ignitus
Thursday, February 03, 2011 @ 3:00:21 PM

Yeah, me too. Quantum got me really excited... until I played the demo. :(

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Fane1024
Saturday, February 05, 2011 @ 2:52:11 PM

Sadly, only Canadians will understand Underdog's reference.

He's not talking about the actor who was in Watchmen.

I miss my La-Z-Boy;
I miss my T.V.;
I miss myself.

@ Ignitus

Every time I try to use my head set, no one else is using one and I shut it off to save the battery. I would guess that happens way too often and there are actually more people with head sets, but they just aren't using them.

It doesn't help that (aside from SOCOM), the VOIP is often horrid, at least in my experience.

Last edited by Fane1024 on 2/5/2011 2:55:54 PM

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WorldEndsWithMe
Thursday, February 03, 2011 @ 1:11:02 PM
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Good news. Slow and steady wins the race. I also expect Move to start to sell more now that Sony is planning to back a plan to make it compatible with homebrew PC game devs. As opposed to pretending they made it so it could be hacked all along :P

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Wissam
Thursday, February 03, 2011 @ 3:40:48 PM
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Its Good to hear that.

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Scarecrow
Thursday, February 03, 2011 @ 5:44:49 PM
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360 has nowhere to go. When another Forza and Gears is all they have you can tell that thing is maxed out/done. Now they're just trying to steal Wii's costumers with "exercise" games.

So many great games this year for ps3, all showing more amazing quality.

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___________
Friday, February 04, 2011 @ 1:45:05 AM
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YoY profits are still down, which is a serious worry considering there biggest game just released!
if GT5 cant bring them out of the red, what the hell can!?
poor sony are in a dammed if you do, dammed if you dont situation.
they really shot themselves in the foot releasing a year late, and at such a high price!
there just starting to catch up now, and there going to be left behind again while M$ and ninty bring in there new systems.
thats why a consoles release is so important, not only are you hurting yourself now if it fails, but your hurting yourself for years to come!
ps3 only reached a affordable price in late 09, and really did not have any must have games till early 09.
thats 3 years after release, 3 years your giving your competitors time to increase the gap, and 3 years over the 1 year you already gave them!
sony seriously f*cked up with the ps3s launch, they should just cut there losses and start again with the ps4.
do it right, get it nice and cheap, have heaps of launch titles, and more importantly get in a year or at least a few months ahead of the competition!
than they will be back where they should be, back where they were with the ps2!

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