Sony sales slip 10%

Electronics giant's overall sales slide for April-June quarter due mainly to earthquake; NA PSN logins now similar to pre-security-breach levels.

Earlier today, Nintendo reported its financial results for the April-June quarter, and made headlines with a drastic $80 price drop for the 3DS. At the same time, primary competitor Sony was releasing its own financial results, though the news to come from it was significantly smaller.

Despite losses, Sony said the earthquake recovery is proceeding faster than expected.

For the three months ended June 30, Sony brought in revenues of $18.46 billion, down 10 percent year-over-year. The company also posted a quarterly net loss of $191 million, compared to a net profit of $289 million the year before.

Sony said its sales were down mainly due to the Great East Japan Earthquake, "as well as the deterioration of the electronics business environment." However, Sony added that the recovery process is proceeding more quickly than it had first anticipated.

Sony only briefly acknowledged the PlayStation Network security breach and outage in its results, saying only that it resulted in unexpected expenses being incurred, such as security enhancement measures. The PSN has apparently emerged from the embarrassing security lapse no worse for wear, as Sony said user logins in North America "have returned to a similar level as before the cyber attacks."

Revenues in the consumer products division (of which PlayStation is a part) were down nearly 18 percent for the quarter to $9.04 billion. However, that shortfall was primarily attributed to the company's TV and home computer businesses. Sony also provided a sales update for the PlayStation 3 and PSP, saying that both systems sold 1.8 million units during the quarter.

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Discussion

33 comments
rolla020980
rolla020980

@69ANT69 The earthquake and hacks were horrible things for Sony and the country of Japan, but there were no shortages of product (the title of the article is sales, not profit). The fact is that Microsoft rocketed ahead of the PS3 at first, but Sony's been catching up for a while now and is almost there. Sony was in the shadows initially... mostly because of the price taq, but not anymore.

GunGriffin
GunGriffin

This is what I was talking about the reason for the up keep in sales is not better PS3s, and PSPs, it's the fact that Sony is now a ship thats lost a full years worth of sales, and on top of that is having to make cuts to the PS Vita, and has drawn back major titles for PS3.................. The point is this is just the start.

69ANT69
69ANT69

I'm not surprised they lost money, but I am surprised it wasn't more. The hack attack and the earthquake did them no favors. They desperatly need to pick up gaming sales, Microsoft have just rocketed ahead of them, Sony have been in the shadows recently

OriginalXboxGmr
OriginalXboxGmr

I'm surprised Sony didn't lose much more money than it did. What happened in Japan earlier this year was tragic, but the hacker attack on PSN made things even worse for the company. I know that Sony will be able to rebound from this because, after all, they are the greatest and best known electronics company in the world. The holiday season is several months away and Sony should be able to make a big profit then.

packtop
packtop

I was sure they would have lost much more then 10% after psn and the earthquake. I'm sure Sony is happy to have lost only 191M after all the things that happened in the last few months.

shadowkiller11
shadowkiller11

To be honest it could be alot worse but it is annoying seeing the constant and consistent barrage of declining sales from all companies it seems as if the gaming industry was at the top of all time around 2006-7 then the fiancial issues worldwide occurred now it's all declining profits.

MuffintopX
MuffintopX

Not bad considering the quake. Everyone is losing something right now. Also the summer slump, everyone will be touting new figures come holiday season, there's alot going on around then.

Fritzzland
Fritzzland

This is nothing,is all about profits coming and going,coming and going

vadicta
vadicta

I know that I'm certainly going to help them recover some of that lost profit when the Vita launches ;)

franzito
franzito

10% is what for SONY? Some millions? They can revert!

Unholy123
Unholy123

Honestly though sony will be fine, Microsofts gonna ride the 360 till death, Nintendos allready given up on the Wii and have pretty much said hey lets just be a handheld company lets even make our next console a handheld!... Sony is about it left for console gamers who want a system thats not 2005's rubbish or some gimmicky wands... if only they took advantage of this fact instead of trying to jump on the casual bus with their stupid move...

boobush
boobush

Don't games start getting good from August to the end of the year anyways? No biggies.

godtony50
godtony50

give them a brake remember the earthquake.

emperiox
emperiox

@Nathalmighty1 I considered doing that...because at Walmart you can actually have them look up the date and print you out a new one. After the hassles though, I just said forget it. I still have the songs on my comp, so it was no harm done. I just don't understand why I had to go through all the trouble. That being said, I don't think it's going to be soon that I purchase any new Sony products except games just because of the horrible experience I had with that product.

Nathalmighty1
Nathalmighty1

emperiox... Why all the fuss over cheapy free headphones?? And also they need some proof that the product is within the warranty time so guess what... they need a receipt! But yea your totally right its customer service that is costing Sony money... nothing to do with currency exchange, natural disasters or anything, nah course not... O_o

emperiox
emperiox

Funny story: I used to be a Sony fan until I recently bought an 8GB MP3 Player that came with a 1 year warranty. The headphones broke somehow and I had to call support, which apparently is located in India so I couldn't understand a darn thing and had to repeat myself about 10 times. They then wanted me to get a proof of purchase, which I didn't have the receipt for because who honestly keeps receipts for longer than 1 week? I told them I think I threw it away and told them that it wasn't even 2 months into the warranty and they should have no problem replacing it. They told me to go back to the store and get a receipt if possible, and then to send the ENTIRE unit back rather than just the headphones (nevermind the fact that I'd already spent a little over $20 on songs). In short, I'm sure if they just improved their customer service so it wasn't so horrible they wouldn't have such a loss. Oh ya, so what I did was take it back to Walmart and get a gift card and used it on a Phillips brand MP3 player, after all the hassles they weren't getting my money. :P Would I be wrong in saying that if they improved their customer service they might actually profit a little more?

jenova
jenova

Sony has been coasting for a while. People have a brand loyalty that... isn't quite deserved at this point.

Warlord_Irochi
Warlord_Irochi

Hacking would not prevent me from buying a PS3 (If I didn't have it already). You can always rely on prepaid cards. The earthquake... maybe, but last time I checked people were still buying machines in America and Europe.

LordRaymond
LordRaymond

I doubt this was due to the hacking. Mainly because of the earthquake situation and stiffer competition in tv and computer sectors.

SDBusDriver1979
SDBusDriver1979

@ziproy To add to what method115 said that Sony is an extremely bloated company, where video game department might be doing good; 3D televisions are not selling, phones not selling out side of Japan, digital cameras are quickly being replaced by phones, and the factories manufacturing parts to all their devices shut down with power outages which affects every department in Sony except marketing. Not to mention a bunch of other departments that have never performed that well is still holding Sony back.

method115
method115

@ziproy That's not even close to what they said. Regardless of how many systems they sold compared to other companies that doesn't mean sales didn't slip overall.

ziproy
ziproy

Gamespot you just had a story about how PS3s were the most sold system last quater. Now you're telling us thats a bad thing

Granpire
Granpire

@lifemeister Sony leads in system sales this quarter, but is down in overall revenue. Nintendo's sales dropped this year too, mostly due to the same reasons as Sony I would guess. That is, except for the data breach.

thebeachguy90
thebeachguy90

Every company has it's ups and downs, so what? They'll be fine.

lifemeister
lifemeister

So what happened to Sony being top selling in June?

JohnF111
JohnF111

Poor guys, just cannot catch a break. I would honestly hate for such a thing to happen to my company(if i was running one). By the way i'm no accountant is the "net loss of 191mill" across the board or is it talking about a 191mill drop in profit or what? Google is just confusing me with this stuff.

lifemeister
lifemeister

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

jedicommand7
jedicommand7

Another story from today says the PSP and PS3 were the top selling consoles of the June quarter, which makes me wonder the sale numbers for the others (just saw Nintendo reduced profit projections). Though this story doesn't say "Sony Game division", just "Sony."

Iridescent406
Iridescent406

It's to be expected when an earthquake and security breach happen near the same times. Hope for the best for Sony.

Rocker6
Rocker6

Glad Sony is doing OK after both earthquake and hacker attack.I expected they would have big problems,glad I was wrong.

servb0ts
servb0ts

they really need to quit putting japan tragedy into their excuse box. North America also had sales whats Sony excuse?

DarkPROx2
DarkPROx2

I will boost sales. As I will be buying a PS3 soon hope it increases by 0.00000000001.

hatieshorrer
hatieshorrer

To think people said I was wrong to think the hacking attack would detour sales.