Sony game division income up 135%

Sales of 6.3 million more cheaply produced PS3s help Networked Products & Services division post operating profit of $564 million.

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Today, Sony became the latest company to report its earnings for the October-December quarter of 2010. Overall, the company's profits were down slightly, slipping 8.6 percent to 72.3 billion yen ($893 million) on overall revenues of 2.206 trillion yen ($27.2 billion). The company said the biggest factor behind the decrease was slowing sales of LCD televisions, with Sony's movie division also losing income.

Sony's game division helped make it profitable during Q4 2010.

However, there was a bright spot on Sony's books--its Networked Products & Services division, the parent department of Sony Computer Entertainment. Though its revenue slipped 6.4 percent from 605.5 billion yen ($7.4 billion) to 566.6 billion yen ($7.0 billion), its operating profit was up 135 percent to 45.7 billion yen ($564 million).

There was one big factor behind the uptick: games. "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," the company said in a statement.

Indeed, the company sold 6.3 million PS3s during the quarter, down slightly from the 6.5 million it sold during the same quarter in 2009. Software sales, however, were up significantly, climbing from 47.6 million units to 57.6 million units. PSP sales sank from 4.2 million units to 3.6 million, with software climbing from 15.0 million units to 16.5 million units.

As for the PlayStation 2, the aging console sold the exact same number--2.1 million units--year-over-year in terms of hardware, but software fell from 11.2 million units to 5.3 million units.

Discussion

214 comments
advanracer
advanracer

564 million just in the "Game" department. Wow, even with all the "hacking" it still going up. 135% even. LMAo.

akiwak
akiwak

This will probably be the last full year of the PS2. SONY also lowers the cost of making the PS2 so it can continue making money. As a gamer I would like to see the PS2 go away but from a business point of view I see why Sony is waiting to retire it. All businesses are out to MAKE MONEY, when you have a product that keeps making you money you keep it around no matter how much it is.

spoonybard-hahs
spoonybard-hahs

@kavadias1981 I think you're looking at motion gaming in the wrong light. The reason why it failed on the Wii is because there was no real support for it. Games released today on the Wii make little to no use of motion control, essentially making the Wii remote a clunky, standard wireless controller. It's not that it lost its appeal, there was no appeal to be had to begin with. If I want to bowl, I know how to get to the local bowling alley. If developers support the Move and Kinect, it will be a much different story. However, the key for Sony and Microsoft is to get that support ASAP. Killzone 3 on PS3 is a good start.

spoonybard-hahs
spoonybard-hahs

@NeoJ4K3 Way to not pay attention. These sales figures are from BEFORE fail0verflow hacked the system.

franzito
franzito

Playstation is a strong console

TheBest88
TheBest88

@Warpainting the move is doing better at hardcore games then the kinect thats for sure

dark_princess29
dark_princess29

ps3 is better then 360 because u dnt have 2 pay online better games better graphics better avatars better tech better store !!

FabledVeteran
FabledVeteran

I thought this was the case, Sony seems to be picking up the pace and it definitely shows, i'm an xbox gamer and after years of exclusivity and great games i think this year is definitely looking weaker for microsoft with so much money, time and effort put into kinect, i think this is maybe the start of the PS3's new dominance among hardcore gaming fans... Suprisingly the PS2 seems to still be going strong, allthough i agree with other people here saying it was great, it is probably the best console ever made in my opinion... However has the PS3 passed the Xbox 360 yet in sales? if anybody knows, because i know they were damn close last time they were compared...

kavadias1981
kavadias1981

@Warpainting Nope, and I'm not planning to. It may support hardcore games but if there is one thing I learnt from owning a Wii it is that motion gaming loses its appeal after a short time and you just start to yearn for standard controls. Not worth spending a fortune on something you end up resenting lol

g0teki
g0teki

@ NeoJ4K3 Uh, did you even read the article? It's a quarterly report from Oct-Dec, the PS3 hacks weren't widely available until early January.

NeoJ4K3
NeoJ4K3

The only reason PS3 hardware sale are up is because it was hacked and you can now rip games and such....fact

BunSnatcher0001
BunSnatcher0001

@Warpainting its really not that hard to understand-the move can play hardcore games, kinect cant

S_Pac_316
S_Pac_316

It's nice to see the PS3 hitting it's stride now. I'm glad I got mine last Christmas.

mario-nin-freak
mario-nin-freak

@Toysoldier34 YES! Someone agrees with me. Too many shooters that are all the same. first person I've heard say that.

spoonybard-hahs
spoonybard-hahs

@ Quadster All fanboys are gamers but not all gamers are fanboys. To be honest, the comments on this article have been somewhat tame compared to other fanboy flame-fests that have disgraced these boards. But fanboyism is not about competition: it's about one-upmanship and elitism. The reason why this information is more prevalent today is because - as I suggested earlier - gamers are older now. You'll also notice that there are articles about game designers, how gaming has affected or been affected by society, and any other myriad content that can be thought of. Look back to the earliest game magazines. What did they contain: reviews, previews, hints and cheats, some acid-induced advertising, and posters. When I was a kid, I didn't know jack about any designer or publisher. I certainly couldn't tell you the difference between Capcom and Konami beyond Mega Man and Castlevania. Today, I know why Sakaguchi chose Final Fantasy as the title for the RPG.

Warpainting
Warpainting

@icekids haha I am dying to know how the PS3 move is playing with these hardcore games..hard to get a straight answer these days!

icekids
icekids

@Warpainting.....yes,,,for exempla : l buy move to play RE5 and Killzone3 :P PM have long legs,,, Kinect=WII PM=PS3

AntiH3ro97
AntiH3ro97

People still buy the PS2? Very suprising imo

Warpainting
Warpainting

Has anyone purchased the Move yet? Just curious....

technole
technole

Yes, from a financial standpoint PS2 backwards compadibility is overrated. It is not a hard decision for an executive to make back when the PS3 was bleeding cash, whereas the PS2 had always been pure profit.

Giga_Surfer
Giga_Surfer

PS2 Still kicking some arse, well in my opinion even tho i love my ps3, the PS2 is the best console Sony ever built.

sj_nehama
sj_nehama

all the hating aside, i gotta congratulate SONY for being able to sell even one unit of the PS2. More than that, youd think everyone was able to mod the console and download the games, but people still buy originals on the platform... i wanna be like that when i grow up ;)

fightmusician
fightmusician

hmmm... ps2 still selling 2.1 million units! wow. The executive that had them exclude backwards capability with the newer ps3's is getting a pat on the back for sure.

Trogeton
Trogeton

Thats the biggest income up I have seen out of ALL 3 developers in i think forever.. at least sony takes their time more than just rush crap out and have so many fails, and still to this day my phat ps2 works like new along with my 2nd gen psp, NEVER had issues with ANY sony products.. not even dvd players or cd players

icekids
icekids

I think Sony will exceed 120 billion dollars in year fiscal 2011.. OMG,,,I need work for Sony :P

liam82517
liam82517

I would say the number of console sales will always even out eventually, considering most gamers and gizmo freaks like me will always buy every console that comes to market. Saying sony is catching up with ms is pretty daft its not a distance they are covering, its a market and there are only so many people interested in making the purchase. I would say its only a very small number that have loyalty to either system, but even then the numbers would be pretty much like for like. I would hate to see just one of the current big 3 to gain a monopoly as unlike piracy and 2nd hand sales that really would kill the games industry. A good healthy rivalry breeds innovation. Just look at all the technological advancements the US made during cold war to know that to be true.

Jhnny77Prz
Jhnny77Prz

It's been 5 years... I need to get a PS3.

eal-zubieri
eal-zubieri

the ps3 sold 47.9 million worldwide against 50 million xbox360 sold worldwide in which there is 2 million gap between both(which is small compared to 13 million 360's sold ahead of sony at launch), If Sony offers 50$ price drop on all ps3 sku's, they can easly beat that in less then a year.

SicklySunStorm
SicklySunStorm

I'm very much a fan of Sony this-gen and much prefer my PS3 to my 360, so don't judge me for saying it - but surely, the percentage increase of 135% seems to be a sure thing, if last year Sony made a loss (which I'm fairly sure they did).... in other words, if you go from loss to profit, making a 135% increase over what you last made seems to me to be a very easy target. I'm sure the 135% has been thrown around as an initially impressive figure, but I'm not impressed one bit by the figure. If someone can correct me and confirm that Sony did make a profit last year in the games biz, I'll happily retract my statement, but I really don't think they did, I'm sure they were still making an overall loss last year in this division. On a positive note - yay! Sony made a profit with the PS3, finally. It's certainly the most deserved machine out there to be taking the money this gen... will be interesting to see where the figures go next year.... PS2 to outsell Wii soon? *guffaw*

Quadster
Quadster

Just seems like a lot of "Gamers" these days are only interested in being able to throw ammo at those who support the rivaling product/company. I completely understand that competition is perfectly normal, but it's just gotten a little stagnant constantly hearing about sales this, sales that, faults...etc (The list is endless). Like Sony/Nintendo/MS are actually disappearing anytime ever (all 3 appear healthy enough as far as revenue goes) I've been gaming for 22 years, and didn't start til i was 6, and it was only really within the last 7 years that sales really started to get mentioned more and more...

coaltango
coaltango

2011 is the year for the PS3 with super exclusives like Killzone 3 , Resistance 3 & uncharted 3 damn thats alot of 3s. not to mention big time 3D support for growing library

puffadell
puffadell

sony will have some heavy profits this year

jhans
jhans

Read: Sony will soon stop making hardware in favor of making much larger profits on just producing games. The biggest loss for all of these companies has always been making the hardware. They should just produce one piece of hardware and then have everybody make games for it. That way we all win and don't have to try and decide which system to buy.

Reltec
Reltec

Ya know, I have a PS3 but prefer my XBox. With that said, just because a the title said "cheaply", all they are saying is that it is cheaper to produce the PS3 then it was last year. The older the technology gets, the cheaper it is to produce. Anyone remember the original $600 price tag and they were still loosing money on the system? I have to agree with Warhawk-geeby by saying that my original PS3 from 3 years ago is still kicking. Cheap is not always a bad thing. @Quadster - knowing what a gaming company is doing can help you out if you ever think of buying stock or if you like a company and all the sudden find out that they are gone due to funds. I think it is interesting to see how much some companies bring in and what they are worth. If you dont care, just go read another article.

icekids
icekids

[This message was deleted at the request of the original poster]

spoonybard-hahs
spoonybard-hahs

@ Quadster If you're twelve years old and/or have no idea what the implications of the data are, then no. Fact is, 22 years ago, no one was old enough to understand this stuff, never mind the fact it was never published. As a Web site dedicated to all things gaming, it would be irresponsible of Gamespot not to publish this. The average age of gamers (in the United States at least) is 35. Most have taken an interest in gaming beyond playing them. If that's not you, then fine. But don't be "one of those" and open up articles you have no interest in, and subsequently complain about in a comment. It's unbecoming and says volumes about you as a person.

Quadster
Quadster

Couldn't....care....less.....about....sales...of....game platforms. Is the requirement of being a gamer these days to also be a stock holder or an entrepreneur too? 22 years of gaming later, Answer should be no (or atleast the last time i checked) On a brighter note, Looking forward to a lot of the games this year has to offer

warhawk-geeby
warhawk-geeby

Right. Before this fanboy war kicks off over this 'cheaply produced' thing - which to be honest I didn't even notice.. I'd just like to say that my fat ps3 that I bought on weekend one of launch has never ever. EVER. failed me. It was made to perfection. If I had bought a weekend one xbox however it would have most likely over-heated with the amount I play. I'm not being a fanboy here, but the cheaply produced argument for the modern ps3's stands for nothing. As technology improves and mass production kicks in things get cheaper. There's no real argument here, Sony are kicking ass. End of.

drytal
drytal

sonys starting off great this year. but i like to end with a bang than to have everything at once and nothing in the end.

Jean_rainier
Jean_rainier

wtf? ps2 die already=P! $10 says it will still sell when ps4 comes out.

kweeni
kweeni

Lol ps2. It's more than a decade old and doesn't get any new games anymore and yet manages to sell in the millions. That just shows how awesome that thing was/is. I still use mine btw. Currently trying to beat all the mortal kombat games for it. Can't wait for the new MK! :D Anyway good to hear the game division is making profit. Keep it up Sony, PlayStation is awesome. So many great games comming out this year. To many for my wallet to handle. xD

koominseo
koominseo

Sony is always pioneer in electronic part. From walkman to LCD and Blueray. They know how to surprise and Sony fans rejoice hearing they are doing good. In Xbox360 u first buy wifi separately and internet n etc. Ps3, you just buy the ps3 and it does everything ( you have to buy games separately tho of course lol.) As always, all these loves to great company Sony from people with open mind

anotherone10
anotherone10

In terms of consoles, Playstation is where its at now. Oh how the tables have turned since 2006 :P Im sure Sony will have the same success in 2011 given all the games that have been announced! *wallet cries*

DanteDelacoix
DanteDelacoix

Lol, trust GS to put in the term "cheaply produced" to induce a fan boy war. We all know which side of the fence GS sits on, so don't let them sucker you into it ......

Stesilaus
Stesilaus

"Cheaply produced" == "Inferior quality" That's 6.3 million customers who were suckered with hardware that will probably be broken before long.