Sony has posted financial results for the second quarter of the current fiscal year, noting a significant loss in profits for its Consumer Products & Services, which houses its PlayStation products.
The company explained that the loss was down to a number of factors, including the deterioration in the cost of sales ratio as a result of the price reduction on the PlayStation 3 earlier this year.
It also noted that a decline in sales of the video games business, as well as a decline in sales of LCD televisions and unfavorable foreign exchange rates, had led to the losses.
However, during the quarter a total of 3.7 million PlayStation 3 units were sold, compared to 3.5 million for the same quarter in the previous fiscal year.
The PSP also saw an increase in sales, up to 1.7 million units sold compared to 1.5 million year-on-year. PlayStation 2 sales unsurprisingly declined from 1.5 million to 1.2 million.
In terms of software, PS3 sales were up to 37.4 million for the quarter, from 35.3 year-over-year. The PSP dropped down to 8.1 million from 11.0 million, and the PS2 declined from 2.8 million software sales to 5.6 million.
For the quarter ended September 30, the Consumer Products & Services sector posted revenue of ¥779.7 billion ($10.1 billion), down 12.3 percent compared to ¥889.0 billion ($11.4 billion), and an operating loss of ¥34.6 billion ($449 million), compared to last year's ¥1.0 billion ($12.8 million) profit.
Overall, the company recorded a decline in revenue for the quarter of 9.1 percent, down to ¥1.56 trillion ($20.5 billion) from ¥1.73 trillion ($22.2 billion) year-over year. Net loss was ¥27.0 billion ($350 million), compared to profits of ¥31.1 billion ($398.3 million) year-over-year.
Sony also lowered guidance for annual losses to ¥90 billion ($1.6 billion) for the current fiscal year, compared to its original forecast of ¥60 billion ($768.5 million) profit from earlier this year.
Maybe people will finally stop declaring "winners and losers" of generations based on sales vs what really matters, profits. MSFT or Nintendo could pump up their sales numbers too with a price drop but step 1 underpants then step 2 then MAKE PROFITS...
Profit and loss for a corporation is not an issue for a gamer. MS makes money from XBL where as PSN is free to play. But the gap between PS3 and 360 is now 1.3 million even though it was released a year later and launched at 599
Profit and loss for a corporation is an issue for a gamer, because, no corporation is willing to invest in a product category that's constantly generates losses.
The gap between the 360 and the PS3 may be 1.3 million, but that doesn't matter, what really matters, is the difference between the Wii and the PS3, this is now 37 million despite both consoles were released in the same month. Comparing the two corporations that haven't made a profit from their consoles in this generation doesn't make sense, if you don't put the one corporation that has into the equation.
"Inserting Nintendo into a discussion where they weren't even mentioned isn't common sense. It's your need to spew your Nintendo love. "
Another fruitless attempt from you to decide which topics are allowed to discuss and which don't. It may skipped your attention, but even if this article is about Sony's financial results for Q2, the first commentor already drew a compasion to Nintendo, while the second inserted Mincrosoft into the discussion. Not my fault, if you simply aren't able to follow the discussion properly.
By the way, what was your contribution to this discussion again?
"The PS3 and the 360 are going after the same demographics and the Wii was (they aren't anymore) going after an entirely different one."
So I guess the millions MS is currently investing in a Kinect partnership with Sesame Street and Pixar are targeted to a demographic of 16-24 year olds?
And I guess, if Sony is saying their new budget priced PSP model in europe is aimed at kids and young teens, they are idiots, who don't know which demographic they are chasing?
And I guess again, you aren't aware of the wii user population? Let me google it for you: http://www.nintendo.co.jp/ir/en/library/events/111028qa/03.html
And last but not least, I guess, Nintendo isn't interested in winning Sony's customers for their current and future platforms, because they are "after an entirely different" demographics, this means, trying to get RE4 for the GC, Dragon Quest IX and X for DS and Wii and Monster Hunter for the Wii and the 3DS must have been accidents.
"I was talking about the consoles, from launch, not what they became when MS needed to get a piece of that Nintendo Casual Pie."
Funny, you should better try to write what you mean, other people usually don't have the ability to read your mind and most people wouldn't interpret your statement "The PS3 and the 360 are going after the same demographics" as something, that applied 6 years ago, but as something, that is a current business strategy.
"And the PSP? The same as the Wii's audience? Stretching."
If you think it is stretching, then you should think about reading some business 101.
Targeting an audience of kids and young teens means targeting an audience, that isn't buying their console themself, but is getting it as a gift from their parents - and in certain periods of the year (read the holiday season) different products are in competition to each other, because usually kids don't get everything they want and so, yes, because they are in a similar price range, the Wii and the PSP and the DS are standing in direct competition to each other.
"I would submit that the Wii's audience of "new" gamers is different than the PSP's."
So, you are trying to say, if Sony says, they are targeting kids with their new PSP, they are targeting a different group of kids then Nintendo? That's something I would call stretching.
I assume most moms and grandparents weren't among those who made "Just Dance 2" the most successfull title in the US for 2011 so far. If you say "mons, grandparents and first time gamers who were adults" are the main target group for the Nintendo Wii, it would mean, this people are a much much much more important user base, then anybody else, because in europe, the Wii titles make up 7 of the Top 20, do you want to say "moms, grandparents and first time gamers" have such an influence?
I would say the dozens of games based on CGI movie licenses that fill up the space of Wii games at the retailers are aimed at kids and the same games for the PSP (in fact, the only PSP games, that are still released) are aimed at kids too.
I agree completely, but this is Anthony. You hit him with facts and just well...yeah he throws back alot info. Where it leads I till have no idea
@Anthony
Anthony here is some help, PS3 has a tendency to want gamers with a high disposable income (as they should). Their marketing toward young adults and having their kids be the force as to why they should be buying these products. If anyone is a parent you understand exactly what I mean. “I want this!" becomes the only reason why you spend your hard earned cash for something you don't buy normally; I personally think this is how the Wii got so popular at first. What holds back Sony is the company personality and their persona of being for a certain kind of people. They created a white PSP which does great because it makes the game feel more approachable with a lighter color that attracts attention. The gap that Sony is closing in on is very good for them because no matter how much they lose on hardware they can remake on software which cuts profits from it's other competitors when a consumer choose their platform first. They really need to revamp their online pull in the consumer to buy multiplayer games on their platform. If they do that the platform will be the best out there.
Hard to say, considering that Sony only owns a portion of the licensing. DVD sales are also in decline due to streaming movies. I have never heard how much of a cash cow blu-ray has turned out for Sony.
Is Sony getting licence fees for empty Blu-ray discs, where you can burn your data on? I don't think so, but I am not sure.
For me, even, when Blu-Ray discs become much more cheap (e.g. €5/10 discs) I wouldn't go back to optical media, I am happy with backing up my stuff on HDDs. Currently an external 2 TB drive costs 90€, I can't imagine, I would be willing to burn 80 BluRay discs to back up 2 TB.
XBL is better and returning a profit to Microsoft.
Sony has some work to do
The gap between the 360 and the PS3 may be 1.3 million, but that doesn't matter, what really matters, is the difference between the Wii and the PS3, this is now 37 million despite both consoles were released in the same month. Comparing the two corporations that haven't made a profit from their consoles in this generation doesn't make sense, if you don't put the one corporation that has into the equation.
Another fruitless attempt from you to decide which topics are allowed to discuss and which don't. It may skipped your attention, but even if this article is about Sony's financial results for Q2, the first commentor already drew a compasion to Nintendo, while the second inserted Mincrosoft into the discussion. Not my fault, if you simply aren't able to follow the discussion properly.
By the way, what was your contribution to this discussion again?
So I guess the millions MS is currently investing in a Kinect partnership with Sesame Street and Pixar are targeted to a demographic of 16-24 year olds?
http://gamasutra.com/view/news/37958/Kinect_Gets_KidFriendly_With_Int eractive_TV
_From_Pixar_Double_Fine_Others.php
And I guess, if Sony is saying their new budget priced PSP model in europe is aimed at kids and young teens, they are idiots, who don't know which demographic they are chasing?
http://www.eurogamer.net/articles/2011-09-06-sony-budget-psp-aimed-at -teens-kids
And I guess again, you aren't aware of the wii user population? Let me google it for you: http://www.nintendo.co.jp/ir/en/library/events/111028qa/03.html
And last but not least, I guess, Nintendo isn't interested in winning Sony's customers for their current and future platforms, because they are "after an entirely different" demographics, this means, trying to get RE4 for the GC, Dragon Quest IX and X for DS and Wii and Monster Hunter for the Wii and the 3DS must have been accidents.
Funny, you should better try to write what you mean, other people usually don't have the ability to read your mind and most people wouldn't interpret your statement "The PS3 and the 360 are going after the same demographics" as something, that applied 6 years ago, but as something, that is a current business strategy.
"And the PSP? The same as the Wii's audience? Stretching."
If you think it is stretching, then you should think about reading some business 101.
Targeting an audience of kids and young teens means targeting an audience, that isn't buying their console themself, but is getting it as a gift from their parents - and in certain periods of the year (read the holiday season) different products are in competition to each other, because usually kids don't get everything they want and so, yes, because they are in a similar price range, the Wii and the PSP and the DS are standing in direct competition to each other.
So, you are trying to say, if Sony says, they are targeting kids with their new PSP, they are targeting a different group of kids then Nintendo? That's something I would call stretching.
Popular argument, but nonetheless wrong:
http://www.nintendo.co.jp/ir/en/library/events/111028qa/03.html
I assume most moms and grandparents weren't among those who made "Just Dance 2" the most successfull title in the US for 2011 so far. If you say "mons, grandparents and first time gamers who were adults" are the main target group for the Nintendo Wii, it would mean, this people are a much much much more important user base, then anybody else, because in europe, the Wii titles make up 7 of the Top 20, do you want to say "moms, grandparents and first time gamers" have such an influence?
I would say the dozens of games based on CGI movie licenses that fill up the space of Wii games at the retailers are aimed at kids and the same games for the PSP (in fact, the only PSP games, that are still released) are aimed at kids too.
I agree completely, but this is Anthony. You hit him with facts and just well...yeah he throws back alot info. Where it leads I till have no idea
@Anthony
Anthony here is some help, PS3 has a tendency to want gamers with a high disposable income (as they should). Their marketing toward young adults and having their kids be the force as to why they should be buying these products. If anyone is a parent you understand exactly what I mean. “I want this!" becomes the only reason why you spend your hard earned cash for something you don't buy normally; I personally think this is how the Wii got so popular at first. What holds back Sony is the company personality and their persona of being for a certain kind of people. They created a white PSP which does great because it makes the game feel more approachable with a lighter color that attracts attention. The gap that Sony is closing in on is very good for them because no matter how much they lose on hardware they can remake on software which cuts profits from it's other competitors when a consumer choose their platform first. They really need to revamp their online pull in the consumer to buy multiplayer games on their platform. If they do that the platform will be the best out there.
Is Sony getting licence fees for empty Blu-ray discs, where you can burn your data on? I don't think so, but I am not sure.
For me, even, when Blu-Ray discs become much more cheap (e.g. €5/10 discs) I wouldn't go back to optical media, I am happy with backing up my stuff on HDDs. Currently an external 2 TB drive costs 90€, I can't imagine, I would be willing to burn 80 BluRay discs to back up 2 TB.