Sony game unit loses $8 million

Loss attributed to decrease in PlayStation hardware sales.

Sony today reported earnings for the quarter ended September 30, revealing its game unit posted a loss of $8 million, compared to a profit of $23 million this time last year.

The operating loss was primarily attributed to the impact of the PlayStation Vita price cut, as well as the "unfavorable" impact of foreign exchange rates, Sony said.

Overall, Sony's Game unit saw sales rise 5.1 percent year-over-year to ¥155.7 billion ($1.6 billion), but the company said this is actually a 14 percent decrease on a constant currency basis.

Sony said the decrease in sales, on a constant currency basis, was due to an overall decrease in unit sales of the PlayStation 2, PlayStation 3, and PSP. Sales were partially offset by increased PS3 software sales, compared to the same quarter last year, Sony said.

Sony sold 2 million PS3 units during the quarter, down from 3.5 million this time last year, though that figure also included PS2 sales. PSP and PS Vita sales combined for 800,000 units during the period, a 50 percent decline from the 1.6 million sold last year.

As for software, Sony sold 93 million games during the quarter, up from 60 million this time last year. Sales were not broken down by platform.

The PlayStation 4 launches next month in North America and Europe.

Sony overall posted revenue of ¥1.75 trillion ($18.1 billion) for the period, while operating income slid ¥15.5 billion ($157 million) to ¥14.8 billion ($151 million).

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Discussion

117 comments
Cronyk
Cronyk

Its sad reading the hate.... Im an Xbox fanboy, but I still get sad reading bad news about Sony. I love sony as a company. They have done amazing things for gaming and I respect them for that. I simply prefer Xbox.... Why would you ever hate either of these companies if you call yourself a gamer?   

moesuir
moesuir

but....but.....the PS3 is more powerfull than Xbox 360!!

Why is Sony such a giant FAILURE :)

pszone
pszone

Well Sony need sell a lot to get out the mess they into. Anyways PS4 will be out hope beat Xbox One

tightwad34
tightwad34

I don't expect many people to buy one with the PS4 coming in less than a month. I would buy another one if mine crapped out before Dark Souls II came out.

rasterror
rasterror

Compared to the billions they lost over the past few years this must be a good thing for Sony.  But this still sucks for them and they really need to figure out something and fast.

divinejester
divinejester

Operating income is basically what the company earns from its main lines of business. Net income, the bottom line that a lot of people tend to look at includes one time events, and gains and losses that are not really related the main business of the company, and are not necessarily an accurate depiction of the company. So all things considered if the company has an operating profit of 150 millions its not really that bad.

the_repo_man6754
the_repo_man6754

Oh no. Sony is doom and they need to go third party so they can make games for the Xbone. 

Diegoctba
Diegoctba

Hahaha, funny! Microsoft and Valve numbers are a joke as well, and they want to compete with Apple.

Let's have a look on Apple numbers now. ^^

ZombieGuyGeorge
ZombieGuyGeorge

Hey sony, how about you guys start developing games for the vita? maybe doing this will boost sales on an abandoned platform. sony: "there's your killzone, now wait for 2018 killzone sequel for the system" 

ZombieGuyGeorge
ZombieGuyGeorge

only 2 ps3s?!?!? good thing i brought one of them :D i saved the game industry bitches!!

Sl4cka
Sl4cka

Decreasing interest in aging products. That's a first.

Zicoroen
Zicoroen

Now Sony wants (and needs) to make profit fast and will try it from every source. Take a look at recent news. Ex.  we can´t use MP3 for PS4. Must pay for Sony´s music service.

komuchen
komuchen

That rock and shadows on them look god awful.

"Sony sold 2 PS3 units during the quarter" God damn, and you were complaining that Wii U sells bad.

But that's not surprising at all, there is next gen PS4 incoming after all

SilentAssassin
SilentAssassin

That's chump change when you're talking about the overall earnings.

hordaak
hordaak

I might be buying a ps4...but I definitely will not buy sony stock

Stevo_the_gamer
Stevo_the_gamer moderator moderator

Quarterly Net Loss of almost 200 million. Yikes. I thought Sony was on the upswing with their restructuring. Hopefully they can pull things around and get back up to speed so there's no downsizing, and cutbacks to any of their divisions.

danmanpro
danmanpro

no offence, but I hope sony gets hit hard, especially when their taking away features from the ps4.

The-Neon-Seal
The-Neon-Seal

Plus it's closing time for the current gen so people will either already have their console or put off for the Ps4. I was a late adopter of the Ps3 (oh what i've missed out on!), and I bought mine LAST YEAR.

immortality20
immortality20

I'm sure the PS4 launch will help the sales and profits rise next year. Never good to see any company losing money, no matter which system you choose to own.

raddys2001
raddys2001

The PS brand is the only thing that is making money for SONY right now especially since as a company SONY hasn't made much a profit.  The gaming industry has had it tough over the years especially since we have lost many companies and developers like Midway and THQ.  Nintendo and Capcom are just some of the companies that are having issues right now.  Even Microsoft as a company is having issues with competition from apple and they are trying to be ahead of the curve. 

randomkidlol
randomkidlol

"Sony sold 2 PS3 units during the quarter"

Of course they did eddie.

Zicoroen
Zicoroen

The day joke is: "Sony is a Titan. Bankruptcy. That´s the only way for PS users to get a Titanfall...".

Zicoroen
Zicoroen

It´s not bankruptcy. Sony is a titan. But it must be fast and wise, as it can affect game´s branch, sooner or later. I hope they can fix it.

Zicoroen
Zicoroen

Every PS4 is sold at $60 loss. One million units sold, means $60 million Sony must make to stabilize. And it must be fast, as initial loss increases everyday.

blobby-blobby
blobby-blobby

Well lets face it sales are going to be down on the build up to next gen

helldragonzer
helldragonzer

The new console was announced in march so clearly that had an impact in sales, and the Vita has never been able to do as good as the PSP did in it's first year alone.

phbz
phbz

No wonder the have to resort to slavery. 

lilflipp
lilflipp

Nintendo had it right.

It's like they knew, eventually anyone who is into gaming will end up with a PC(or Steam Machine), so let's aim at another demographic. Instead of competing in areas where a console clearly is at a disadvantage(hardware, power, graphics, gameplay in general), why not focus on a consoles strong sides(living room/family friendly, quick to use and set up, affordable)

blackace
blackace

I'm not surprised. They lost over $11 billion with the PS3. $8 million is nothing though compared to all their other losses with the hardware. I'll probably be profting by this time next year.

daabulls23
daabulls23

Considering they operate in the billions and are losing single-digit millions, it's not a whole lot. 

Sundberg_man
Sundberg_man

@rasterror Well this is only the game division. We don't know what they've pulled in as a whole. Maybe the others parts pulled in enough cash to compensate for the game divisions loss?

JachAnen
JachAnen

@the_repo_man6754 lol if so, Nintendo would have been bankrupt by now. They can survive having 8 million less this year, especially since the PS4 is coming out soon.

nyzma23
nyzma23

@Diegoctba lol wut microsoft nett profit in this quarter is $5.24 billion it's higher than last quarter 

bubba_1988
bubba_1988

@Stevo_the_gamer Yeah I remember Sony posted profits during their previous quarterlies, I guess that was mostly from selling and restructuring.

megakick
megakick

@The-Neon-Seal If it is closing time why is XBOX 360 and PS3 stilling offering Christmas bundles? PS2 was going strong for years.

gilldominic
gilldominic

@Zicoroen $60 loss per unit is low compared to previous generations. Sony turns that into profit once you buy one game and sign up for PS+ (which pretty much every purchaser will be doing, buying at least one game and getting a 12 month sub to PS+).

Losing a very slight amount of money (for Sony's scale) at the very end of the generation is nothing, almost expected really.

I wouldn't read into it, the PS4 is designed to be profitable practically from day one, unlike virtually any console in history.

It's why the machine is relatively under-powered and uses somewhat dated technology (the Xbox One is doing the exact same thing, I'm not making some sort of partisan attack on Sony in saying that).

helldragonzer
helldragonzer

@lilflipp Nintendo just said the Wii U hasn't turned a profit in two years, how did they had it right?

rasterror
rasterror

@bubba_1988 @Stevo_the_gamer Sony has been losing billions since 05 or 06.  The only reason they made a $600 million profit last quarter was because they sold their headquarters for $1.1 billion which doesn't speak well for itself.

The-Neon-Seal
The-Neon-Seal

@megakick @The-Neon-Seal Because some people will buy it, probably taking advantage of the extensive back catalogue now available (why do old Snes and Megadrives still sell well at exchange shops?), and also, even though support will continue, from this month on it will start to slow and eventually it will stop. Sure the Ps2 was only stopped just recently, but it has only been of passive (almost unheard of) focus for the last seven or so years. Devs will be moving on to more capable technology now that it is available, making current tech more of a dead weight, so yeah... closing time.

Zicoroen
Zicoroen

@gilldominic @Zicoroen Problem is that PS+ will be used to balance losses and not to make Sony´s online structure better, as MS does to Live. I hope they can change it...

The-Neon-Seal
The-Neon-Seal

@gilldominic @Zicoroen Good point. If you look at it that way, they are actually turning a slight profit on every unit rather than a $60 dollar loss.

Spid3r6
Spid3r6

Actually it you might have been correct last generation, but the truth is MS designed the Xbox One as to sell at cost or make a small profit..so they be making $20 per unit. Also The ps+ will only cover the cost for operating their network infrastructure...Sony cannot afford to continue to catch up with MS..they will go bankrupt at this pace!

Zicoroen
Zicoroen

@gilldominic @Zicoroen I don´t think so. MS said it will make profit for every XOne sold. That´s a reason for Xbox One price. It´s not only a Kinect.

But every PS4 sell makes it a continue loss to be covered. They must sell a lot of games to make profits. I can´t be so naive to think that a $60 game makes more than $20 in profits.

We must think that Sony has problems every fiscal year without profits. If it can´t be fixed fast, things can be worse...

gilldominic
gilldominic

@Zicoroen @gilldominic Microsoft will be losing money on each console they sell also will they not?

Which means games sales and the income from Live would have to go to "balance losses" just as much as it would have to happen for Sony.

These are enormous corporations, they don't have to break even month by month or go under. The console industry model is to make an initial loss in the investment, to make a profit down the line in software and services. It is their plan....

It is how the industry works, you seem to not understand that.