PS3 News: Sony Posts Big Loss, But PlayStation Division Excels - PS3 News

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Sony Posts Big Loss, But PlayStation Division Excels

Well, they warned of big losses. But the good news is the reversal of the PlayStation division.

Sony has reported their financial numbers for the fiscal year ending March 31, 2011, and they are close to the results the company recently projected.

Sony suffered a loss of ¥259.6 billion ($3.17 billion) on revenue of ¥7.18 trillion ($87.78 billion). In comparison, the company lost ¥40.8 billion ($498.59 million) on revenue of ¥7.21 trillion ($88.11 billion) last year. As the biggest factor in this year's outcome, Sony cited deferred tax assets in Japan, which cost the electronics giant ¥360 billion ($4.4 billion). Plus, the terrible earthquake was an issue, and sales were down in every department except for two- the Consumer, Professional & Devices segment (HDTVs and other electronics), and the Networked Products & Services Division, which includes Sony Computer Entertainment and PlayStation.

The results were so positive in the latter that Sony credits that division with helping bring the company's overall operating income from ¥31.8 billion ($387.94 million) to ¥199.8 billion ($2.44 billion). This division's operating income enjoyed a spike, jumping from a loss of ¥83.3 billion ($1.01 billion) last year to a gain of ¥35.6 billion ($434.23 million) this year. ...that's quite the turnaround. One of the reasons for this reversal is the lowered production costs of the PlayStation 3, of which Sony sold 14.3 million units during the year. This is just shy of their goal of 15 million and up from 13 million units in 2010.

On the downside, PSP sales fell from 9.9 million to 8 million, and PS2 sales fell from 7.3 million to 6.4 million. But the mere fact that the latter machine is still selling at all - even after nearly 11 years in the market - is pretty amazing. Lastly, increased software sales helped out, as there were 147.9 million PS3 games sold, which is a significant increase over the 115.6 million sold the year before. Even PSP game sales rose from 44.4 million to 46.6 million.

Tags: sony, playstation, playstation network, psn

5/26/2011 9:47:25 AM Ben Dutka

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Comments (46 posts)

Highlander
Thursday, May 26, 2011 @ 10:09:36 AM
Reply

So, without the 360 billion yen accounting charge for tax credits, they actually made a operating profit of 100 billion yen?

Not too bad considering.

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LimitedVertigo
Thursday, May 26, 2011 @ 11:02:22 AM

Thanks for doing the math, it's early (for me) and it would have taken me a while. :)

Agree with this comment 4 up, 1 down Disagree with this comment

Highlander
Thursday, May 26, 2011 @ 11:03:18 AM

LOL! Well, I like pointing out that which is in front of your very eyes...

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Claire C
Thursday, May 26, 2011 @ 12:03:30 PM

Hee-hee =D

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jimmyhandsome
Thursday, May 26, 2011 @ 10:12:56 AM
Reply

I can't believe the PS2 is still selling in the millions.

Agree with this comment 7 up, 0 down Disagree with this comment

Stabs88
Thursday, May 26, 2011 @ 10:15:46 AM

I still own the first one i ever got..which was the year it came out soo..what like 1999/2000?

Last edited by Stabs88 on 5/26/2011 10:16:17 AM

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Ben Dutka PSXE [Administrator]
Thursday, May 26, 2011 @ 10:20:07 AM

The PlayStation launched in 1995. The PS2 launched in 2000.

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LegendaryWolfeh
Thursday, May 26, 2011 @ 10:28:56 AM

Was wondering where you got 16 from, haha

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Kiryu
Thursday, May 26, 2011 @ 11:38:54 AM

Playstation 1 was introduced in 1994.

Last edited by Kiryu on 5/26/2011 11:39:07 AM

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Ben Dutka PSXE [Administrator]
Thursday, May 26, 2011 @ 12:11:38 PM

Not in this country it wasn't.

Agree with this comment 4 up, 0 down Disagree with this comment

Nas Is Like
Thursday, May 26, 2011 @ 10:46:04 PM

What country do you reside in, Ben?

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LegendaryWolfeh
Thursday, May 26, 2011 @ 10:13:14 AM
Reply

ps2..."even after nearly 16 years in the market"

Hmm, something doesn't seem right about that :p Pretty sure it's only been 11 years?

Overall when it comes to Sony's profits and all, generally SCE has been higher than the other areas, but overall, I think the only real negative aspect was the who psn fiasco, can only hope Sony doesn't actually LOSE any of the lawsuits it's getting.

Last edited by LegendaryWolfeh on 5/26/2011 10:13:55 AM

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LimitedVertigo
Thursday, May 26, 2011 @ 11:02:59 AM

I look forward to when the PS4 launches. I think Sony has learned a lot from the PS3.

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LegendaryWolfeh
Thursday, May 26, 2011 @ 2:47:23 PM

I certainly again. I don't see em changing the architecture type at all, and it would be nice with more RAM and a superior graphics chip. Core wise, hell they could leave it alone, but adding some cores would be pretty swell too.

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Fane1024
Thursday, May 26, 2011 @ 7:40:22 PM

PS4 absolutely needs more cores.

People (wrongly) call the 360 "Xbox 1.5". If the PS4 used one (current-model) Cell processor, it wouldn't even deserve the name "PS3.5", regardless of the RAM or GPU.

I totally agree (as I'm sure most do) that Sony should (and will) leverage current technology, rather than creating ALL new tech like they did for PS3.

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Highlander
Thursday, May 26, 2011 @ 11:07:26 PM

Power 7 with a Spurs engine to provide the SPUs needed for backwards compatibility, plus the latest GPU core from Nvidia to assist with emulating RSX. 4GB of RAM would be nice, as would 1GB of video memory. They'll have to use commodity DDR3 memory to make that work though, otherwise it will cost too much.

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FxTales
Thursday, May 26, 2011 @ 10:37:16 AM
Reply

Sony has put up with some crap lately. Should buy them a beer.

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shadowscorpio
Thursday, May 26, 2011 @ 1:12:29 PM

Ya know. They get pounded and kicked when they're down and then criticized. If Sony isn't dead yet all these attackers of Sony better understand what type of fortified beast they are creating...

Makes me want to support Sony even more. Loosing tons of respect for alot of other areas of the gaming industry.

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Ignitus
Thursday, May 26, 2011 @ 10:43:47 AM
Reply

At that rate I'm wondering if SONY will live long enough for us to see a PS4.
A major restructuring is needed ASAP.

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Highlander
Thursday, May 26, 2011 @ 10:50:49 AM

Did you actually read the report? They made a 100 billion yen operating profit that was wiped out by a 360 million yen, one time tax credit accounting charge. If Sony merely has the same kind of year this year as they did last year, they will make a pretty decent operating profit.

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LimitedVertigo
Thursday, May 26, 2011 @ 11:01:53 AM

tsk tsk

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Ignitus
Thursday, May 26, 2011 @ 11:02:05 AM

I did and it reports SONY lost sales in every department except two, and that's bad. SONY needs to get its act together. It can't live on the PS division forever, specially when it is in the red at the begining of a new console launch.

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Highlander
Thursday, May 26, 2011 @ 1:41:12 PM

Sony's sales were down 0.5% across the board (except gaming) in a bad economic climate in their home market, as well as in the wake of the March 11 Earthquake. I could cite a bunch of different indicators in the western economies that also factor in such as more severe than normal winter weather. Either way, I think you're either indulging in chicken little thinking, or have an axe to grind.

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Underdog15
Thursday, May 26, 2011 @ 11:38:59 AM
Reply

This is OT: sorry.

We have a thread going in the forums under "off topic discussion" for Kraygen and his wife. For those of you that don't know, Kraygen is a valued member of PSXE who lives in Joplin where tornados have touched down. I'm sure you've all heard about it on the news. Long story short, he and his wife are fine, but they lost their home and are currently living with parents.

If you have time, please go to the forums and post your well-wishes. Thanks.

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Looking Glass
Thursday, May 26, 2011 @ 11:46:21 AM
Reply

The Playstation Brand is without a doubt one of Sony's greatest assets and will likely become even greater over the course of the next several months and further into next year when The Last Guardian is released to the public.

Last edited by Looking Glass on 5/26/2011 11:47:30 AM

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Excelsior1
Thursday, May 26, 2011 @ 12:01:27 PM
Reply

if sony could figure out the reasons for their lack of success in the na market with the ps3, and address it they could easily meet their targets.

i also share some of the concerns of ingnitus that only 2 divisions are showing a profit. next gen is coming up fast, and the playstation division will no doubt have increased operating costs soon.

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Looking Glass
Thursday, May 26, 2011 @ 12:16:21 PM

By "lack of success" I assume that you simply mean not as successful as Nintendo and Microsoft, not that the PS3 hasn't been successful in general, which it obviously has.

And I respectfully disagree about the next gen "coming up fast". I believe that we on psxextreme have already established that publishers and developers are in no hurry to reach the next gen. From what I gather the next gen is still at least 2 years away. Now Nintendo may try to jump into it prematurely but that's only because they have to. The novelty of the Wii is wearing off and the launch of the 3DS has not gone well. Sony and Microsoft on the other hand will likely just shrug and go on with business as usual.

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Casual Friday
Thursday, May 26, 2011 @ 1:54:51 PM

What defines the successfulness of the PS3?

If it is defined by great hardware & software than yes, the PS3 has been pretty successful.

However if success is determined by profitability (which is subject of this article) than the PS3 has failed miserably to date. Since it's release, the Sony division that it belongs to has lost over 4.27 billion dollars. This is the first year in the PS3's lifetime that it's division has not posted a loss.

Lost 1.97 billion in the year ending 3/07
Lost 1.24 billion in the year ending 3/08
Lost .60 billion in the year ending 3/09
Lost .89 billion in the year ending 3/10
Made .43 billion this past year

I have read articles quoting multiple market analysts stating that they don't see any way that even with another five an a half years to go in it's 10 year lifespan that it will ever recoup all of it's losses.

For gamers who like to play great games on solid hardware the PS3 has fulfilled over the past couple of years, but none of us know how it's successfulness is viewed within the company boardrooms.

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Looking Glass
Thursday, May 26, 2011 @ 2:22:52 PM

@Casual Friday

Oh yes. I guess it might depend on how exactly you define success and how you choose to look at it.

But all things considered, including the above article, I think the PS3 does have a plausible and legitimate claim to the term "successful".

And as for the analysts, we will see. If I remember correctly many of them were wondering not too long ago if the PS3 was in a "death spiral" or something along those lines, and they did change that tune rather quickly before long. As for their current thoughts, as I said we will see.

Last edited by Looking Glass on 5/26/2011 2:29:36 PM

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Highlander
Thursday, May 26, 2011 @ 3:21:07 PM

Casual Friday,

PS3 sales were the cornerstone of Bluray, BluRay is a pretty major success, and the PS3 drove that. PS3 also drove a lot of HDTV purchase decisions and 3D TV decisions are based on it also. All in all, the PS3 project has been responsible for far more revenue than that in the gaming division, it simply doesn't show in these public figures. From Sony's business point of view, the PS3 project encompasses more than just games, and so it's success may already be assured based on Sony's revenue in other spheres.

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kevinater321
Thursday, May 26, 2011 @ 4:30:28 PM

Your not including game sales. I'm not sure how much of each game sale sony makes, but i'm pretty sure its a big chunk.

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Excelsior1
Thursday, May 26, 2011 @ 7:50:32 PM

@lookingglass
it is a well known fact the ps3 has struggled in na. a region they have had tremendous success in the past with the ps1, and ps2. there is no reason the ps3 should not be doing better here in na with the library of games it has now, and now that the ps3 is at reasonable price point.

way too many gamers still have a bias against the ps3 here that can be traced back to the ps3's luanch. that is something sony needs to address and somehow overcome. it's a great system with a great library now. it really should be doing better here. the ps3 has an image problem in na.


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Looking Glass
Thursday, May 26, 2011 @ 8:30:21 PM

@Excelsior1

I see where you're coming from.

On the other hand if this is something that Sony needs to address and overcome then I think that there is a good chance that this process will begin this year on June 7th. First off, that is the release date of inFAMOUS 2, a game that is virtually guaranteed to be a hit with critics and consumers alike.

And the seventh is also the date of Sony's E3 conference. As we know, the conference will be unusually long and according to an inside source there will be horde of new PS3 exclusives revealed on that day. As you say the PS3 has a great library now, but on the other hand the very best is by all accounts still yet to come. I think it's safe to say that inFAMOUS 2 is going to be the tip of that iceberg and a prelude to many more great things to come.

Or in other words I think that there's a good chance that the main reason the PS3 isn't doing as well as it should be doing is because it hasn't yet reached it's full potential.

But I think those times are starting to come to a close. In any case we shall see. I for one am very much looking forward to E3.

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Highlander
Thursday, May 26, 2011 @ 11:11:18 PM

Excelsior,

The thing about that grudge based on the launch is this. Sony sold the original PS3 66% or less of actual cost to build. In other words every buyer of the PS3 received a greater than 33% discount.And yet people are mad at Sony for not selling the thing for even less than they did. OK fine, people want a better deal, but when someone is already selling a product for a price that is 33% below cost, I can't for a single moment understand how you can get angry enough with that company to hold a grudge for years or with the passion people apparently hold it. It makes no sense. I suspect that other factors are at work.

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Excelsior1
Thursday, May 26, 2011 @ 12:27:57 PM
Reply

there is an article up on cvg stating that developement on the ps4 is already underway. this was confirmed by sony's chief financial officer.

i'm very excited about next gen, and can not wait until we here more info concerning the ps4's specs. sony has a lot of great first party developers now. i can't wait to see what they can pull off with the next round of hardware.

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Highlander
Thursday, May 26, 2011 @ 12:44:45 PM

Sony confirmed that they'd started work on PS4, but that for now the project was effectively coasting because there was no need to start the next generation early.

Agree with this comment 6 up, 1 down Disagree with this comment

telly
Thursday, May 26, 2011 @ 2:14:16 PM
Reply

Who just went out last and bought a PS2? How could 6.4 million people JUST be getting around to an 11-year-old machine? Blows my mind!

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Looking Glass
Thursday, May 26, 2011 @ 2:30:56 PM

I think that might be a lasting effect of the PS2's massive third party support.

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BikerSaint
Friday, May 27, 2011 @ 12:26:14 AM

telly,
I'll tell you why I think the PS2 is still relevant.

The PS2 is only $99.99 brand new now & there's over 2000 games for it now. Plus most of them very good games that are now super, super cheap.

And it's the very best gaming value for the millions of new entry-level gamers across the world.

As for myself, and although I already have a black Phat & a white "Sing-Song bundle" slim, but I still want to add at least 2 more PS2's into my collection, a black slim & a silver slim too.

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Highlander
Friday, May 27, 2011 @ 12:55:15 AM

Indeed, I'll have a slim PS2 of my own if ever I have a terminally dead PS3 phat on my hands.

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gray_eagle
Thursday, May 26, 2011 @ 3:25:23 PM
Reply

i don't understand all this finacial mumble jumble, i'm going to off topic and thank underdog for bringing up that post in the forum, Titled, Messages For kraygen

Last edited by gray_eagle on 5/26/2011 3:27:15 PM

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Lairfan
Thursday, May 26, 2011 @ 10:25:54 PM
Reply

It shouldn't surprise anyone that Sony lost money with all the crap they've had to put up with this year. Between that tax, the earthquake, and the PSN going down, there wasn't much chance of making a profit. Frankly, I'm surprised they did as well as they did, which just goes to show that Sony can weather a lot of adversity.

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BikerSaint
Friday, May 27, 2011 @ 12:27:39 AM
Reply

I've just got 3 simple words to say.......

"LONG LIVE SONY"

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___________
Friday, May 27, 2011 @ 4:00:20 AM
Reply

not surprising after the quality drop we have seen in those departments.
sony are the new Mercedes Benz.
once a name for fastidious quality, now a name for made cheaply!
i mean come on when freaking samsung are making better TVs then you, thats when you know your REALLY in trouble!
would be like ferrari being beaten by aston martain!

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kevinater321
Friday, May 27, 2011 @ 2:22:31 PM

The Samsung TV's are some of the very best. I don't think that its such a big deal being beaten by Samsung as they are known for there quality TV's.

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___________
Saturday, May 28, 2011 @ 10:43:42 AM

not exactly.............
toshiba, sharp, panasonic all make better TVs then samsung.
bravias are far too expensive for what they are!
the samsung i wanted to get was 800 bucks cheaper then my bravia HX800 AND it had a better picture quality, and faster refresh rate!
O, and more features like inbuilt WIFI.
only reason why i got the bravia was the samsungs were sold out, and since it was crissy if it meant i would not get it for a few months and the TV i use with my ps3 kicked the bucket.
wanted to get a plasma panasonic NEO by far the best TV money can buy!
sadly they dont make them smaller then 50 inch so i was stuck with a LED.

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