PS4 helps Sony's game division rise, but PS3 sales see "significant decrease"

Sony's new console helps Game unit rise more than 64 percent during latest quarter, but it could have been better if PS3 performed stronger.

PlayStation 4 sales during the latest quarter helped Sony's Game division revenue rise 64.6 percent to ¥441.8 billion ($4.2 billion), Sony announced today, but performance could have been better if the PlayStation 3 didn't suffer.

The dramatic rise in Sony's Game division was partially offset by a "significant decrease" in PS3 unit sales, Sony said today in a press release. The company did not shed any light on why the PS3 didn't perform so well in the quarter, but the PS4 launch might have had something to do with it.

Unfortunately, Sony's reporting style combines PS3 and PS4 sales together, so we don't know how well each platform specifically performed. For the quarter, Sony sold a combined 7.8 million consoles, 4.2 million of which we know are PS4 units, leaving around 3.6 million PS3s. Combined PlayStation Vita and PSP sales were down year-over-year, coming in at 2 million units, compared to 2.7 million last year.

Software sales across all platforms (physical and digital) totaled 126 million copies during the quarter, up significantly from 84 million during the same quarter last year. For the full fiscal year, Sony said it expects to sell 15 million PS3 and PS4s, while PS Vita and PSP sales are expected to combine for 5 million units.

Sony also added that it saw a "dramatic increase" in PlayStation Plus sign-ups, which is most likely due to the fact that the PS4 requires a subscription for online play.

Operating income for Sony's Game division rose by a massive 292.1 percent to ¥18 billion ($172 million), primarily driven by the PS4 and favorable exchange rates. Sony's Game division operating income for the quarter also includes a ¥6.2 billion ($59 million) write-off for some Sony Online Entertainment games, potentially the four massively multiplayer online games closed last month.

Overall, Sony posted revenue of ¥2.4 trillion ($22.9 billion) and a profit of ¥27 billion ($257 million) for the quarter. The company also announced today that it would sell its VAIO PC brand, spin off its TV business, and cut 5,000 jobs.

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Eddie Makuch

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.
236 comments
terrariafan247
terrariafan247

I'm not complaining PS3 games are now dirt cheap!

justerthought
justerthought

It goes without saying that PS3 sales will fall as the PS4 takes over. It is a non issue that is expected. What really matters is whether the games division is doing better or worse with PS4 in the mix. As we can see a 64.5 percent rise in revenue answers that question. It's an all out success by anybodies definition. It sounds like sour grapes saying you could have done better.

sunbeam4
sunbeam4

the ultra slim PS3 ain't dashing.

rawkstar007
rawkstar007

It's called economic cannibalism. When you go to McDonald's (I don't know why you would) and you buy a new burger that (for some reason) everyone likes, are you really surprised when they report a decrease in Big Mac sales?

Gallowhand
Gallowhand

New console releases with heavy demand, and the demand decreases for the old console.  Surely...this was expected?

PlatinumPaladin
PlatinumPaladin

"Overall, Sony posted revenue of ¥2.4 trillion ($22.9 billion) and a profit of ¥27 billion ($257 million) for the quarter. The company also announced today that it would sell its VAIO PC brand, spin off its TV business, and cut 5,000 jobs."

Holy crap! Not sure how I missed that one. They're some pretty big changes to be making in quick succession. 5,000 people made redundant just like that. That's a lot of people to wish good luck to. :-(

krystyla
krystyla

So that's why knuckles is bald 

tom2750
tom2750

what is profit? is that like the money they have left over after paying employee's and so on and if so then were does this 250 million profit go to if its not payed to the workers?

bubba_1988
bubba_1988

"The company did not shed any light on why the PS3 didn't perform so well in the quarter"   <---Really?! I wonder why. 

"....but the PS4 launch might have had something to do with it"   <-- Congradufuckinlations, thanks for coming out. No sh*t Sherlock.

nurnberg
nurnberg

Good to see Sony making a profit.

Hellhound30x
Hellhound30x

I buy for Playstation Plus because of "Instant game collection." 

WllDan7
WllDan7

It is weird after all the nintendo downfall articles you don't post the 1.1 billion Sony excepts to lose by March.

KimCheeWarriorX
KimCheeWarriorX

as awesome as the ps4 is, the ps3 still sucks. i chose the 360 in the previous gen for specific reasons that i choose not to elaborate on at this time but sony really dropped the ball in the previous gen. ive been an on again, off again playstation fan. i chose the saturn over the psx, i then chose the ps2 in the next gen after that, and the 360 after that. im not in excess of cash so i can only afford to maintain my hobby on one console at a time, per gen. although i havent bought one yet due to three reasons (price, availability, and not enough games), i do plan on getting one eventually but truth be told its strictly because of price. i tried to be optimistic about the x1 but they really dropped the ball this time around by insisting to keep the kinect in the box. the main thing that will suck is that i will have to start anew on psn since i was an xbl fan in previous gen. ill have to give up my nearly 92000 gamerscore and start from scratch. i wish sony had a promotion similar to ms's "trade in a ps3 and get $100 off a x1" promotion where you could trade in a 360 for credit towards the purchase of a ps4.

Jinzo_111887
Jinzo_111887

The whole reason I'm not interested in the PS4 is that PS+ is required for online multiplayer. Most people enjoy it for the games, which is fine. However, I don't approve of requiring it for online multiplayer.

Megavideogamer
Megavideogamer

PS3 sales are down. This is expected as 4.2 million PS4's have been sold since launch. leaving 3.6 PS3's This is the start of a new generation. So PS3 will not be selling many new units. 81 million have been sold since 2006. The PS4 will hopefully sell faster than the PS3 did.


Sony's gaming division will be fine. Sony just has to keep the PS3 going until November 17th 2016. To keep their original 10 year lifespan promise for the PS3. 


The PS4 install base will grow faster than the PS3's did. Sony will be right as rain. Eventually.

Thanatos2k
Thanatos2k

Is it unsurprising that PS3 sales fell?  Why does this article seem confused about whether this happened or not?


*Eddie Makuch*  Oh, that explains it.

BradBurns
BradBurns

@sunbeam4  It's downright hideous! I own one and I try to place it somewhere that's not so visible so it will not scare guests.

jhcho2
jhcho2

@Gallowhand  

Not necessarily. The demographic of consumers could be quite different. Like any product, upon the release of a new version, there will always be consumer laggards capitalizing on a price drop. Any company will hope that their new product will naturally attract consumers who already bought the previous version of their product while still able to attract those inclined for a cheaper alternative

justerthought
justerthought

@PlatinumPaladin

That's the ugly face of global capitalism. Instead of patriotically providing work for the Japanese people and suffering the financial burden, Sony have found that the Chinese are willing to make their products for a cheaper price. The end result is Sony closes its mainland manufacturing plants and outsources the work to Foxcomm in China. We've seen similar stuff happening in the UK. The company boss's and share holders are not loyal to their country and do not feel a patriotic duty to supply work to their fellow citizens. They worship the mighty dollar and when there's a war, they expect those fellow citizens to fight and protect their financial interest as patriotic cannon fodder …lol

pupp3t_mast3r
pupp3t_mast3r

@PlatinumPaladin  I know this isn't much of a silver lining but at least they're doing it after the Christmas holidays. Plenty of companies out there ruthless enough to do it a few weeks before Christmas.

pupp3t_mast3r
pupp3t_mast3r

@tom2750  Worth noting that there are scenarios where employees get first crack at company shares or are sometimes given opportunities to get shares at discounted rates. However that comes down to company remuneration practices.

PlatinumPaladin
PlatinumPaladin

@tom2750  Reinvested into the business. Shareholders. Executive bonus'. But definitely not to the workers.

rasterror
rasterror

Then why did MS sell a ton of 360's even when the One was launched?

rasterror
rasterror

I guess a $1.1 billion loss is now considered a profit.

Gallowhand
Gallowhand

@Hellhound30x  That was my main reason as well, along with getting discounts on the Playstation Store.  The instant game collection was worth a lot more than the PS+ subscription - I don't know why I didn't subscribe sooner, tbh.  Missed out on some great 'free' games over the past year. :/

Gallowhand
Gallowhand

@Jinzo_111887  You can still play 'free to play' online multiplayer games without getting PS+.  In fact, I would even say that is where multiplayer seems to be heading, these days, because there are so many flooding the market now.

VI_timmy
VI_timmy

You know x bone is the same for online right but worse for charging to use Netflix and such. If your an mmo fan you at least don't need plus to play those Xbox you do.

justerthought
justerthought

@jhcho2 @Gallowhand

Of course the decreased demand is expected. You have just described how it can be expected. The few that bought the PS3 are those 'consumer laggards capitalising on a price drop' you mentioned, who did not have a PS3 and could not afford a PS4 or don't feel convinced the games are tempting enough. Those that bought the PS4 are either previous PS3 owners or xboxers jumping ship. The whole picture is a success in the form of 64.5 percent rise in revenue for the game division.

BradBurns
BradBurns

@justerthought @PlatinumPaladin  Yeah. People who are fond of the abstract call that "trade". It's actually just companies(usually based in 1st world countries) taking advantage of crappy workers' rights in poor countries. 

Imperialism with a sloppy fake mustache disguise.

justerthought
justerthought

@pupp3t_mast3r @tom2750


There isn't much hope of the workers getting any company shares if they have been awarded an OBE (Out By Easter = start of new financial year) and their jobs outsourced to Foxcomm in China. Let's hope they got a good redundancy payment as compensation.

justerthought
justerthought

@rasterror

Because those consumers did not want what XB1 was offering. MS even arrogantly stated at one point, if you don't like what XB1 is offering, stay on 360. This gave new users a really blurred message due to an ill thought out vision, hence all the u-turns.

roman4545
roman4545

@rasterror stop asking why this and why that... instead focus on your own question... ask yourself why not.. depends the retailer maybe did not replenish their PS3 stock just like PS4 stock.

Jinzo_111887
Jinzo_111887

@Gallowhand @Jinzo_111887Yeah, but it doesn't apply to the retail games I enjoy. I already paid for the game, system, my ISP bill, etc. If Sony thinks I should pay them more money to act as a road block, they should do the world a favor and go the way of Sega (or maybe even THQ.) MS can also do the same.

Jinzo_111887
Jinzo_111887

@VI_timmy Yeah, it's like a certain two high school idiots from the 1990s with their own TV show. Truth is, I might go with a Steam machine, Wii U, and 3DS for gen 8. I didn't make an exception on this issue before, Sony's not special enough to deserve one now.

Jinzo_111887
Jinzo_111887

@coaltango @Jinzo_111887 It's the principle, not the price. As for the goodies, I don't care about them. Either I don't want what they are offering or I already have them and am not interested in renting them from Sony for $50/year.

justerthought
justerthought

@rasterror

You use of truth is based on a static moment in time. The loss of 1.1 billion forecast was a prediction if they did nothing to avert it. It had not happened at that point. It was a prediction. They made the changes and have ended with an overall profit $257 million. You really do need to stay current and stop fixating on historic moments in time that suite what you want to say.

PosiTVEMinD355
PosiTVEMinD355

@Jinzo_111887@Gallowhand Yea that really pissed me off about Little Big Planet as well.  Paid $60 a game, then they want you to spend over $180 worth of little costumes and small playkits.

Jinzo_111887
Jinzo_111887

@VI_timmy If the game was free to play and on par with LBP1 and LBP2 in terms of story length with all old content able to be transfered over, more people might consider buying the addon content for LBP3.

VI_timmy
VI_timmy

Yea the dlc is a little much I only get the free ones mostly

Jinzo_111887
Jinzo_111887

@VI_timmy LBP should be one of the free to play games if you ask me. There's so much DLC in the game as it is.

VI_timmy
VI_timmy

I feel the same I want a ps4 but with having a family and running a business I cant justify paying when I'm lucky to play once a week. I'll get a ps4 once more family games come out like little big planet maybe the division depending on there subscription