Sony posts $3.17 billion loss, PlayStation division sees $434 million profit

Electronics giant takes in $87.78 billion in annual revenue; 14.3 million PlayStation 3s, 8 million PSPs, 6.4 million PS2s sold during the year.

Today, Sony announced its earnings for the fiscal year ending March 31, 2011. The results were close to those that had been forecast Monday, with the company suffering a loss for the year of ¥259.6 billion ($3.17 billion) on revenue of ¥7.18 trillion ($87.78 billion). The previous fiscal year, the company lost ¥40.8 billion ($498.59 million) on revenue of ¥7.21 trillion ($88.11 billion).

The PlayStation division swung from big losses to a solid profit last fiscal year.

In its report, Sony said that the biggest factor in the shortfall was the result of a ¥360 billion ($4.4 billion) charge related to deferred tax assets in Japan. The Great East Japan Earthquake was also a factor, as was the fact that sales were down in every division of the corporation save two: the Consumer, Professional & Devices segment, which handles HDTVs and other electronics, and the Networked Products & Services division, which encapsulates Sony Computer Entertainment.

In fact, results were so good at the Networked Products & Services division that Sony credited it with helping bring the company's overall operating income from ¥31.8 billion ($387.94 million) to ¥199.8 billion ($2.44 billion). As for the division itself, it reported ¥35.6 billion ($434.23 million) in operating income, way up from the ¥83.3 billion ($1.01 billion) operating loss it suffered during the previous fiscal year. Overall Networked Products & Services revenue was nearly flat at ¥1.57 trillion ($19.15 billion).

Lowered production costs of the PlayStation 3 were cited as part of the reason for the uptick in Networked Products & Services' operating income. During the year, Sony sold 14.3 million PlayStation 3s, just short of its goal of 15 million, but up from 13 million the year prior. Only 8 million PSPs were sold, down from 9.9 million the year before. Some 6.4 million PlayStation 2s were sold, down from 7.3 million.

Sony also said increased software sales helped its bottom line, and the year saw 147.9 million PS3 games sold, way up from 115.6 million the year before. PSP game sales also climbed from 44.4 million to 46.6 million. However, PS2 games sales nearly halved from 35.7 million to just 16.4 million.

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Discussion

163 comments
Fritzzland
Fritzzland

NICEST profits,now why don't you do some charity,the world needs!

franzito
franzito

Sorry, SONY, but you're still Filthy Rich!

Guiltyspartan11
Guiltyspartan11

They are selling them mostly in developing nations like South America, Central America, Africa, Middle east, and so on and so forth.

sizzlingdviper
sizzlingdviper

Where exactly in the world are Sony still selling all those PS2s?-Certainly isn't here in the UK-You'd have more luck buying rocking horse manure!-Think they stopped selling them here about 2 years ago?

cornerback3
cornerback3

If the PS2 is still selling that well, it should not be neglected on sites like this. Where is the PS2 tab at the top? I'm pretty sure more people would click it over the Android tab.

steven141
steven141

People....are still buying PS2s? Surprising, at least the division is actually making a profit now for a change.

weehaw298
weehaw298

well im just glad the network is back up and i have a bacward compatible ps3 so i was not that affected by the outage but it still SUCKED

Sigil-otaku
Sigil-otaku

If I know Sony this means PS4 won't have backwards compatibility so they can keep up sales of PS3. Might make sense sales wise but consumer wise (have a PS3 myself so it doesn't bother me) makes a bit less sense. Still it could go either way and I'm just hoping we get proper backwards compatibility because can you imagine the sales if anyone who missed getting a PS3 saw they could play the entire PS3 library and PS4 games?

eddieham13
eddieham13

My grandad plays on the ps2, no joke. lol He wont be able to work out how to use a ps3 lol, thats why he has one. So I know that people still buy old consoles.

gobbo00
gobbo00

Even more reason to belive that the PS4 like the NGP will be scaled back in terms of hardaware.

RPGFan4tic1985
RPGFan4tic1985

Say what you will about the current generation, the PS2 ran away with the last one by 10 miles. Such an awesome library of games, and so exciting to see how the games evolved from its creation through today. Bravo Sony!

twistedmalice
twistedmalice

As a parent who had a PS2 when I was a Teen and Young adult. You remember how great it was and when you have children that aren't responsible enough to handle a PS3. If they mess up there PS2 you can handle the loss of $100 bucks compared to $299.

beardrewz
beardrewz

its not gamers buying the ps2..its mothers and fathers buying it for there 4yr olds cause its so dam cheap. Its beyond me why people buy it..its old..graphics are awful now.

BlackDragonGuyr
BlackDragonGuyr

Just wondering, did anyone else click on this article because it said "...14.3 Playstation 3s..."? I was thinking "Wtf" That aside, I still have my fat PS2 for all those years ago. Me and friends plug it in from time to time to play the old games still saved on my memory cards (Even though I managed to get one of backwards compat PS3s, nothing beats playing on the original PS2...plus it saves me a ton of money on buying all new paddles)

warhawk-geeby
warhawk-geeby

Nice to see that the Playstation Division wasn't hit too hard by the earthquake, obviously Sony as a company suffered, but it's good to see them making a decent profit on the gaming :) Cannot wait for E3 to start, I'm expecting a hell of a lot from Sony this year.

ash162
ash162

its great that the ps2 is still going strong. people r quick to dismiss old tech when there is nothing wrong wid it. Its got great games and its not like the wii is very tech superior to the ps2 and it is referred as a current gen console!!

Rheinmetal
Rheinmetal

@mrboone01: For marketing reasons maybe. But anyway, we all know that Sony wouldn't ever dare to do something like that, so it's only theoretic.

svdbygrce02
svdbygrce02

yet another reason why PS2 backward compatibility was ditched

luckjon
luckjon

Rofl, Go Playstation 2!

shadowysea07
shadowysea07

puts a smile to this old mans face to see people still buying ps2's. that means gamers still have taste imo

monson21502
monson21502

a bunch of songs run threw my head when i read that sony lost 3.17 billion.. and every single one of them have the word smile in them:wink:

Llama345
Llama345

Ahh glad i grabbed a backward compatible ps3 when i could. I'm back to being poor and there are really no new gen games i want. my ps2 library is still awesome and i love running through it.

godzillavskong
godzillavskong

Sorry Sony, I purchased a 46in Bravia LCD 4 years ago, which still works fine, but my other two recent tv purchases were from Toshiba, which offered the same tv spec wise, for a bit less.I guess you can contribute their losses in that area to a very competitive market. Almost every time I see a Best Buy ad I see them advertising Samsung, or LG for that matter.They will bounce back.

BrianC6234
BrianC6234

"I want the PsOne console back in production and PSOne titles as well. I'm serious." The PS2 and PS3 can both play PSOne games so why should Sony keep making the PSOne?

BrianC6234
BrianC6234

"How is PS2 still going!? I am not hating it, but I am impressed by it's lifespan, especially during this generation of games." What's really amazing is I still have my PS2 and it works. And it's one of the fat ones which I bought the first day they came out in the US. It's still hooked up and working. I doubt any console will be that good ever again. They all get too hot inside now and just won't survive this long.

THE_DRUGGIE
THE_DRUGGIE

Well, now I see why Sony won't work toward making the PS3 backwards compatible with the PS2 anymore: there's too much money to be made in making the systems separate. I own both, so no problem for me. Still, it seems a bit unfair to the consumer who wants complete backwards compatibility...not to mention the slim model has a nasty habit of completely wrecking discs when it malfunctions (take it from me; buy the old model if you need a PS2). Anywho, good to know that Sony isn't going completely bankrupt on this series of unfortunate events.

HaloPimp978
HaloPimp978

The PS2 is a gaming God, it will never die. But sad to see them lose 3.17 billion dollars, that is a lot of money. Its unfortunate that the Earthquake and Tsunami happened with all those lifes lost.

servb0ts
servb0ts

Sony posts $3.17 billion loss, PlayStation division sees $434 million profit. Electronics giant takes in $87.78 billion in annual revenue; 14.3 million PlayStation 3s, 8 million PSPs, 6.4 million PS2s sold during the year. Sony come from behind victory "Priceless".

CaptainHerlock
CaptainHerlock

Their "loss" is from a deferred tax payment. So it has little to do with the entertainment or electronics division. I have a feeling many of you just saw the headline and didn't bother to read the entire article.

DarkNeoBahamut
DarkNeoBahamut

oh, looks like Sony is doing great, too bad about the Earthquake, so many lifes lost and damages.

CaptainHerlock
CaptainHerlock

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

soulless4now
soulless4now

They're still crazy about the psp, I see.

CaptainHerlock
CaptainHerlock

Let's also not forget that Sony has no major motion picture in theaters this year. Spider-Man is still a year away.

Flint247
Flint247

How is PS2 still going!? I am not hating it, but I am impressed by it's lifespan, especially during this generation of games.

Samox
Samox

Wonder what the next report will look like, considering that this one is from March and doesn't include the cost of the whole hacking fiasco.

wiidsduelpack
wiidsduelpack

Guys, remember when Nintendo lost $400 million dollars in a quarter. Sony is posting a loss because it takes money to manufacture the NGP. / NGP is causing the 3.2 billion loss. You will see things get better. Well, the biggest obstacle toward growth is reconstruction from the GREAT TSUNAMI and NGP

LondonGamer986
LondonGamer986

"6.4 million PS2s sold during the year." People still buy PS2s?

FamousCalibur
FamousCalibur

I really hope things work out, aside from their mistakes they make what we use (well, at least the ps3 anyways). I loved my PS2, still do. Unfortunately I was young and didn't take good care of some of my games. Either way, Sony is still a good company, and hopefully it'll tighten up its security so it'll be a secure company again. Or at least the console anyway. I still have my PS2 and will take care of it so my children can play some of the classics for it someday. I love you Sony, and while other companies like Microsoft and Nintendo, there will always be a PlayStation in my heart. :)

calvinx6
calvinx6

damn Sony i hope everything turns out great with you

GamerLegend10
GamerLegend10

shame, sony is a good company...and although i dont own a ps3 i loved ps and ps2 :)

sneut
sneut

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

sneut
sneut

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

TheArcade
TheArcade

Guys, this financial report is from March... the hacker debacle isn't even factored in yet. Next report expect a 170 million dollar loss via Sony's gaming division.

MCenturion
MCenturion

This is all very nice and dandy but I just want the PSS to hurry and be back up already. I wanna try out Outland and the other new game demos. But most importantly the InFamous 2 Beta.