PlayStation 4 development eats into Sony's financials

Sony's sales come in flat year-on-year as declining sales and PS4 development costs eat into budget, though company expects a significant increase in sales in the coming months.

by

The costs of developing the PlayStation 4 have taken a bite out of Sony's revenue, with the PlayStation division posting a $149 million (£98.4m) loss in the company's latest financials.

As Sony prepares itself for the PlayStation 4's global launch later this year, the company confirmed that fewer PlayStation 3s, PlayStation 2s, and PSPs were sold between April and June 2013 than this time last year. Sony did not specifically mention the Vita.

In a slide to investors, Sony also stated that the PlayStation 4 received "accolades" from the company's showing at E3.

PS2 and PS3 hardware sold 1.1 million units combined, down from last year's 2.8 million. Vita and PSP sales stood at 0.6 million, down from 1.4 million this time last year.

Sony's sales of games saw an increase, however, rising from 43 million last year to 64 million this year. The company's launch of The Last of Us at the start of June likely contributed to the sales bump.

Overall, Sony's game division was flat year-on-year, with $1.2 billion (£792 million) in sales.

Looking to the future, Sony expects its games division to see sales that "increase significantly."

Discussion

386 comments
beardface21
beardface21

In other news, an obese man eats into a cheeseburger.

91210user
91210user

You want me to pre-order the PS4 without knowing what spec the hardware as? It's a bit of a joke to be honested!

edgarp
edgarp

loss my ass....just a crafty way of saying we're not making enough money we want more of your money

Hurvl
Hurvl

It's ridiculous that they won't say how much the PS3 alone has sold. Feeling depressed because the PS2 has sold twice as much as the PS3? Methinks that might be a reason, but there's probably some other contrived/random/arbitrary reason that overshadows that. To say that sales will increase in the coming months is quite an understatement. Gee, I wonder if Rockstar will see increases in sales after releasing GTA V?

voljin1987
voljin1987

What?? A sony is doomed article.. no gamespot.. give us more of nintendo is doomed plz..

Mista4oewun4oe
Mista4oewun4oe

mistadecoy007 Mista4oewun4oe sleepnsurf  Wow nice job down playing all those titles I just mentioned in the post. Just because you think the games are trash dose not make them so. Have you played any of them to make that assessment don't worry I will wait ........................................................................... What do I mean if this proves to be true. Well if you had read the article it clearly says that the X1 version of titanfall will be better than the pc straight from respawn you know the developer of the game? Here I will post it again for ya.       http://gimmegimmegames.com/2013/06/respawn-titanfall-couldnt-be-made-without-xbox-cloud-xbox-one-version-better-than-pc-version/  Oh almost forgot as far as Halo series being played out this will help ease some of those insecurities you have http://www.reuters.com/article/2012/11/12/us-microsoft-halo-idUSBRE8AB19120121112 I'm not a fanboy far from it in fact I plan on getting both, X1 first PS4 later. But in response to your plants vs zombies rant. Octodad is totally worth getting a PS4 for. You see how silly that sounds. For you see unlike you I don't have to use profanity or insult you to get my point across. I tend to back up my points with facts.

xxYetterxx
xxYetterxx

And yet MS's xbox division was still able to turn a profit last quarter.  I'm pretty sure they've been working on a new console too.  

tightwad34
tightwad34

I just want to know how development of a brand new console wouldn't eat into a company's money source.

Ayebang
Ayebang

Incomplete article

No information in loss in Sony game division which is more than 100 milion in latest quater.

Research and development cause loss ? It is not.

Last year in same quarter Sony game division still make loss.Why?

Gamespot is propaganda from Sony really.

hadlee73
hadlee73

I hope things work out well for them, and also hope Nintendo can get it together with the Wii U. Otherwise we'll be left with Microsoft unopposed, and if that happens we're all fooked.

blue_shift_91
blue_shift_91

of course it did. Sony has been overflowing with stupid business practices and investments for years. electronics division has failed to the point where investors and analysts have been recommending that Sony split up or sell it. game division still operating at a loss.

i'm looking forward to the PS4, but lets be real here. PS4 sales are not going to save them. no matter how successful the console is.

WolfGrey
WolfGrey

Uh next gen is on the way, why would sales increase?

Of course they are down lmao. Ya this was news...totally.

Razor10000
Razor10000

sony did some bad decisions with ps3, i still love my ps3, but they learn and they are doing everything right with ps4. it will pay off in the end.

Diegoctba
Diegoctba

The Last of Us has already sold 4 million units. To put that into perspective, it has outsold PS Vita by approximately 4 million units.

Lowri001
Lowri001

This is expected considering this gen is nearly over... They're going to make absolutely loads off the PS4.

Sun-Tzu-GE
Sun-Tzu-GE

What do you expect ? Only a moron would buy a ps3 or xbox 360 now,only a few months before the release of the ps 4. 

ARI832
ARI832

Sony as a whole posted a profit.

Paul2004
Paul2004

Developing a next gen console is expensive so its not surprising, its a powerful console but they have had to choice between hundreds (or thousands) of different parts, test them all and find what works best for them. When its released tho i think its gonna be well worth the investment, just look at the pre orders and thats just those wanting the newest tech now instead of waiting like i am :P

clynch0527
clynch0527

Didn't Sony announce that they were going to split the Playstation division from the actual Sony company?  I thought I read something like that.  Doing so, will definitely help with profits.

CaptainBerserk
CaptainBerserk

Sony is not affraid of investing heavy in the business, just look at the size of Sony is conventions and conferences and compare to its competitors. Also Sony has a lot of 1st party studios to admin. which is also extremely  costly, now add eight years of research to build the PS4 plus all the advertisement and production of the actual console, it's a massive investiment in all fronts. They know its going to pay off in the end if they deliver a quality product.

untouchables111
untouchables111

Wow I didn't know companies could lose money developing new stuff before selling it. It's almost like their just like every single other things being developed. Guess they will have an increase when the system sells is that how that works??? Mmmm DUH

proceeder
proceeder

Go 2 heck, gamespotUK!

U guys R such Xbox fanboys!

nurnberg
nurnberg

I seriously wonder if Sony will go bankrupt.

grbolivar
grbolivar

Release a couple killer games on Vita and problem solved, like that Bioshock Infinite Levine is fighting for. And where's my God Of War Vita BTW? 

lucivar1
lucivar1

They should dump the PhonyStation Vita, or make a deal with the Wii U and package them both together.

Warful
Warful

@Ayebang It's funny, since most Gamespot ever does, is throw Xbox "propaganda" out, and making this article, which is really taking a piss at Sony being a crappy company, then how would this be propaganda? really? how?

If I talked about Dr.Phil and his ugly ass haircut, but forgot to mention what a retarded hairdresser he had, then it's a positive propaganda campaign for him?

hadlee73
hadlee73

@Sun-Tzu-GE Actually I want to buy an Xbox 360 to play the Gears trilogy and some of the indie titles that didn't make it to PS3. Unfortunately Microsoft NZ won't lower the damn price of the console, so its currently not worth the purchase for just a few games.

ZachBobBob
ZachBobBob

@Sun-Tzu-GE Lol I bought a ps3 to play the Last of Us xD I did get a blu-ray player out of the thing though and it was super cheap

blue_shift_91
blue_shift_91

@ARI832 

lol. you mean the recent $35 million dollar profit that was attributed to smartphone sales and a weaker yen?

cheese232323
cheese232323

@clynch0527 no, one of their board members called for them to split the company apart but they didnt say they were going to do it. he was just being a greedy shareholder who wants his stocks to go up.

StickyJr1
StickyJr1

@nurnberg It's not likely any time soon. Sony has a value of approximately $151 billion in total assets (https://en.wikipedia.org/wiki/Sony). That means that losing $149 million is less than one-tenth of one percent of their value.

I'd call that a rather small investment to get going in the next generation of consoles, especially considering the position they took (and Microsoft inadvertently helped build up) has resulted in great anticipation for their product.  Their marketing budget is probably larger than $149 million.

daviz88
daviz88

first of all i don't think Sony will ever work with Nintendo or rather should i say Nintendo will never work with Sony especially after the PLAYSTATION  fiasco that happened so many years ago then again no one would have ever believed that SONIC would appear on a Nintendo system.

and as for the PS VITA i wouldn't be so quick to write it off. PS VITA is a remarkable piece of hard ware the only thing it needs is much more attention.

innocent69
innocent69

@hadlee73 @Sun-Tzu-GE you can get the 4 gig xbox model for $199. This is rather cheap and is perfect for people who don't plan to do a lot of dlc downloading

Sun-Tzu-GE
Sun-Tzu-GE

@ZachBobBob @Sun-Tzu-GE Yeah,sorry.That's an acceptable reason to buy one.I thought of it myself but I decided it isn't worth it since I'll be buying a PS 4 in November and I'll be probably able to play it on gaikai later.

ZachBobBob
ZachBobBob

@Sun-Tzu-GE I considered the fact that all these games will probably be downloadable too on the ps4 at some point and whether it was still worth getting one.

Too many spoilers on the internet though and most of all, severe impatience :P

Sun-Tzu-GE
Sun-Tzu-GE

@gilldominic @Sun-Tzu-GE @ZachBobBob If you live in a country where you don't even have official PSN,I wouldn't get my hopes up.Though there's a chance that it will work if you create an UK account for example. 

gilldominic
gilldominic

@Sun-Tzu-GE @ZachBobBob Sorry to get off topic, but have you seen any more info regarding the cloud based backwards compatibility?

I'm not North America based (I understand it launches there at the beginning of next year) but they haven't announced  details for anywhere else, just wondering if anyone had caught any rumours/info about how and when elsewhere will be getting the service...?

yavix
yavix

@Sun-Tzu-GE @ZachBobBob Sorry but not everyone going to wait three months just to spend double the money just to have the latest tech, especially since said Tech isn't backward compatible.