Sony's numbers add up

The electronics giant takes a hit with costs associated with the PlayStation 3 but bounces back with strong sales of other consumer goods.

Things may not be as bad as previously thought for Sony Computer Entertainment. Yesterday, a survey of five analysts by financial news service Bloomberg predicted that the company could be reporting a 50 percent drop in profits today. However, according to Sony's consolidated financial results for the third quarter of 2006 (the three months ended December 31, 2006), profits were only down 5.3 percent and stood at 159.9 billion yen (approximately $1.3 billion), compared to 168.9 billion yen ($1.4 billion) in the same period last year.

The Tokyo-based corporation did report a loss of 54.2 billion yen ($455 million) in its game division for Q3 2006, compared to a profit of 67.8 billion yen ($556 million) recorded in the previous year's third quarter. This was mainly due to selling the PlayStation 3 at "strategic price points"--console hardware units are often sold at an initial loss for the manufacturing company, with the money recouped from strong games sales. Other factors included additional costs incurred during the preparation for the launch of the next-generation console and a decline in PlayStation 2 and PlayStation Portable sales. PSP sales were "lower than expected."

In Q3, the PS2 shipped 4.1 million units worldwide, of which 1.7 million were sent to North America, 1.7 million to Europe, and 770,000 to Japan. The figures showed that the PS3 had shipped 1.84 million units in total, with 800,000 of those going to Japan, and 1 million to the US. The PSP shipped 1.76 million units worldwide in Q3, less than half the amount in Q2, with 860,000 shipped to Japan, 890,000 to Europe, and 10,000 to North America. It should be noted that in the previous quarter, Sony shipped 2 million PSPs to North America, and the industry-tracking NPD Group reported that more than 950,000 PSPs were sold in the US in December alone.

However, things certainly aren't all negative for Sony--sales of Bravia televisions and Cyber-shot digital cameras were mentioned as being especially strong, contributing to an increase of almost 17 percent in sales and operating revenue for its Electronics division.

In October, Sony slashed its predicted forecast to 80 billion yen ($656 million) for its group net profit, down 38 percent. However, the company has now returned to its original, more optimistic, predictions and raised the forecast back to 110 billion yen ($902 million).

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Discussion

607 comments
samad5
samad5

Yeh, but dont you think that people who by Gog of War II will want to continue with the franchise on the PS3, much like Resi Evil 5, GTA4 & MGS?

timothyt
timothyt

Well, I for one held off on buying a few PS2 games (Okami and God of War) until I got my PS3 because ever since I got my 360 I've hated the corded controllers on my PS2 (they were never long enough anyway). On the PS3, God of War plays great, but I think Sony's shooting themselves in the foot by not releasing God of War II for PS3 only. It would help them move PS3s and that's what they need to be doing right now. At LEAST they should have released a BluRay Hi-Def version of GoW II for the PS3 and a "normal" version for PS2. Okami was 3rd party; so you can understand why a 3rd party developer would opt for the biggest install base, but GoW II is Sony published. It should have been a system seller for the PS3.

samad5
samad5

melante your point about the PS2 sales is spot on, although I assume overall rate of software sales might have fallen compared to previous years. Europe is still yet to receive FFXII, Okami and God of War 2 and when they do it'll be a big boost for Sony. But as that'll be the end of the supply line in games for the PS2, ppls focus will gradually turn to the PS3 especially with full backwards compatability.

SnowFarmer
SnowFarmer

This should just serve as even more proof that these financial analysts, are not smarter than the majority of people that post here. It must be nice to get paid big bucks to make guesses.

SeanBond
SeanBond

frazzle00 "I guess the PS3 still has a ways to go when it comes to writing legible posts ." Hahahahahahahahahahahaha...Thanks a lot man, now I don't have to respond to it! jackfatal "but u r forgetting that ps3 had blue-ray drive and innovative but less than wii and more powerful than x360! " No one has successfully proved that the PS3 is actually more powerful than the 360. Most developers agree that it's essentially a wash, and most also agree that the Xbox 360 is much easier to develop for. The PS3 is more powerful in some ways, the 360 is more powerful in others. The only people who claim the PS3 is more powerful are Sony spinmeisters, and to a certain extent, Sony fanboys.

jackfatal
jackfatal

you people say wii has more innovative than ps3 then u go to x360 has better games and cheaper!! but u r forgetting that ps3 had blue-ray drive and innovative but less than wii and more powerful than x360! so almost it has all the good things in the other consols and even better at some parts!! all ur problem that right now u cant see good games and the price! isn't thats the truth??????????????????????? otherwise u r haters!

frazzle00
frazzle00

I guess the PS3 still has a ways to go when it comes to writing legible posts ;).

jakie91
jakie91

To Seanbond, Yes I'am a PS3 and We have learnt to read and write and do math problems, and if you want to know i do pictures read picture books and infact at the rate iam going at it, won't take me long for my Intelligent mind to pass you and your humans. Yet again seanbond you have opened my eyes to the world and now i can see clearly thank you seanbond!!! You are the king of all tech and i do not know why i questioned you master. The reason why i read comments is to see what people think about the news article not the whole picture like "oh sony F'd up at the start i have no idea why they would bring out a console its stuiped they should shut down now while they still have time before they make a fool of them selves" I don't want to hear i want multi-million dollar companies to stuff up stories!!! Its just saying i want the American dollar to go down as far as it can. Well if you don't your money send it over here because unlike you i love money and wouldn't buying a X360 or a PS3 doesn't matter to me.

smidsy85
smidsy85

SeanBond got owned! lol :D

melante
melante

How can analysts say that one factor for Sony's loss is a "decline in PlayStation 2 sales" when we all know PS2 is still going very strong and selling many more units than any other console? In fact a few lines later its reported that the PS2 sold more than 4m units just in the Q3 of 2006! The fact is that people keep buying PS2 over the PS3: the reason? It's really cheap now and games like FFXII, Okami, Bully, Shadow of the Colossus etc. are even better than most of those currently available on PS3. I do believe this is one of the main issues for Sony: even a huge portion of their fan base still prefers to buy a PS2 today instead of saving money and wait till they can afford a PS3 tomorrow.... (like the egg and chicken question ;-) ) yep, the PS2 is going to cannibalize the PS3 at least for a couple of more years and when it ends, it will be too late for PS3 to catch up with X360 and Wii.

frazzle00
frazzle00

It is really amusing to see people take anecdotal evidence as a concrete proof. So what if you have never had a Sony product die on you. I on the otherhand have had numerous Sony products quit on me and I have heard numerous horror stories about the Trinitron line's poor reliability. And yes I do take care of my things; my Panasonic TV is still going strong after a decade of use. Does that mean that Panasonic is better then Sony? In my experience yes, but that hardly counts as firm evidence does it? And as for Sony receiving more bashing then either MS or Nintendo....roflol. Um when the Xbox 360 was released millions of Sony fanboys around the world were jumping at every bit of negative news in as enfuriating a manner, as the Xbox fanboys are doing now. If you want to dish it out, you better be ready to take it as well :D. BTW a big ROFLOL to all the self proclaimed hardware experts (*cough* morons *cough*) on this thread ;).

matrixman2k
matrixman2k

I like 'em anyway - i just don't want them to be bullish and dominate like before...Competition is good for everyone.

King_Dodongo
King_Dodongo

they don't even care if their system is a piece of BS

Autolycus
Autolycus

your right, its not fair to make up my own number(30%). its is 100% based off of what I have seen. What i hav eseen is too many customers being skrewd. And for the record my 360 just got back from being repaired and im not too happy about that either, but considering it was free and past a year(i bought it day one) i cant complain(even though i will and do:))

Autolycus
Autolycus

JuniorXL4 Yall keep bashing the psp but it still continues to sell well ----- our store hasnt sold one in over 5 months(think about that) we didnt have one person buy one during xmas, NO LIE

Mr_Saturn26
Mr_Saturn26

bathyj, i too have not had a single playstation die on me, and i too had a tv form sony, but it lasted only 7 since the remote springs in the back broke, and the remote stores sell dont work on it. Yes sometimes its because sony quality sucks, but mostly i belive its because of the people taking care of thier stuff.

Bathyj
Bathyj

samad5 Frankly I dont know who is more annoying Xbox 360 fans or Wii fanboys. Perhaps these dudes actually 'sleep' with their machines given how much they go on about them. Well it sounds like they do everything except actually play them. I dont see where there would get the time since they're always here bashing Sony. And just because Sony want BR to sell ( Umm, its called capitalism ) doesn't mean they want DVDs to vanish and they aren't going to anyway. Sony has a stake in DVD's too. And BR will only be a niche market for a long time. You're all so scared cost there something better than DVD's out there but there not going anywhere just yet. Relax. Autolycus You say you repair this stuff and I'll take you at your word, but how do you know 30% of PS2 failed in your area? Did the other 70% of them come in and tell you they were fine? Number just seems high to me and small insolated samples dont paint a true picture. For example, 100% of my Playstations have never broke down, but I dont think they all are perfect. Just like 66% of my X360's have broke down but I dont think the failiure rate over all is anywhere near that high. It just was for me. If fact I want to get an extended warranty for PS3 in March but my local EB is saying because of all the XB's that came back they might not offer this anymore. :( Anyway, its just a different perspective to your own. PS. I also had a Sony 68cm TV for over 10 years before it finally died so maybe thats why I have faith in them.

SolidSnake35
SolidSnake35

Yet the knowledgeable children on Gamespot say otherwise. Who do I believe? :o

JuniorXL4
JuniorXL4

Yall keep bashing the psp but it still continues to sell well

neovota
neovota

NPD Group reported that more than 950,000 PSPs were sold in the US in December alone. that because they couldn't find a DS nowhere.

samad5
samad5

Frankly I dont know who is more annoying Xbox 360 fans or Wii fanboys. Perhaps these dudes actually 'sleep' with their machines given how much they go on about them.

Autolycus
Autolycus

and considering all i can find online closely resembling what people are purcashing, is the Amazon.com list(which shows HD-DVD as the clear winner). Where does anyone have data showing the BluRay MOVIES(not players) are outselling? I cant find a single one.(hint Blu-Ray.com and HD-DVD site are not valid because they are baised). ALSO for the record Sony is in MASSIVE trouble if the PS3 doesnt take off because they put more money into Blu-Ray then you obviously know. They make such a license off of it, they want eerything on this planet to be blu-ray which is one of the many reason I dont like sony. Because the customer (yes you) is hurt by their corporate greed. Does that make a MS lover? Nope...still just a good ole "want what's best for the consumer"

Autolycus
Autolycus

peacenutman Hooray? Anyway, haters here are really getting ignorant and stupid now, just because some people has broken PS2s, doesn't mean that ALL SONY products are crap.----- Actually thats exactly what it means. As i have said a hundred times ago, i ahve made a living repairing cheap crap put in expensive products. 20 years ago, Sony was awesome. They USED to put overrated speakers, amps, ...everything in their products. But those days are no longer. Speakers arent capable of hitting their advertised RMS. Circut boards are being made in poor quality(i know because i've had to solder the damn pins back on the main board). The capacitors are made by some crappy company(the same stuff you find in prodcut names you've never heard of before). So yes...because 30% of ps2(in my area) have broken on customers, that means you have the same crappy quality PS2, Receiver, TV, radio, speaker or just about anything else they mass produce with crappy parts. YOu don't have to like it, but it is the truth....you are paying more for SONY Badge that is actually made worse then JVC

Bathyj
Bathyj

Spmeone actually complained about all the Xbox bashing? Because I looked back through some of the posts and it either people bashing PS3 or people defending PS3. As usual. Just like every story, no matter what the subject. Am I the only one reading these things? You know why XB doesn't get bashed as much. Because people who like PS3 probably either just want to talk about the positives of that system or they dont actually have any problem with XB and in many cases actually own one. Why do XB owners feel the need to knock PS3? Why aren't they just happy to talk up their own? God, I wish I knew.

humptygrumpty
humptygrumpty

well bravia tv's are probably the best, their cameras are certainly not the best but they look cool and for some reason thats counts for alot in the digi camera market. as a side note i also like some of their sereo systems, i;e i'm still very happy with mine after 6yrs. still to be impressed with the ps3, not really excited by its exclusives thus far and the uk price is too high for me. and the psp is rightfuly getting slowly garroted by the DS. but each to their own, and no company is perfect

Cloud_Strife89
Cloud_Strife89

I love how people keep saying "The games just aren't there". Well no $h1t sherlock, the consoles been on shelves for how long? 2 months, I don't think the 360 had a whole lot going for it either in that time. The PS2 sucked it big time in it's first year, but when Q4 01 rolled around BAM! FFX, MGS2, GT3, DMC! Give the PS3 some time and it will own just like the PS2 did. After MGS4, Lair, Motorstorm, Heavenly Sword, FFXIII, and FFvsXIII show what this system can do you'll see a lot more 3rd party support. Sony is clearly doing just dandy financially as this shows, so all the haters who are waiting for them to die, well keep dreaming. O btw i'm not a fanboy, I'm huge Nintendo fan and future Wii owner and i'm buying a 360 as soon as the new model with the HDMI port and quieter processor comes out.

pdias_92
pdias_92

Sony is not going down that easy . Sony holds 60% of the Market . Come on it's sold over 200 million units worldwide in 2 generations ( PS1 and PS2 ) . PS3 WILL sell as good , just wait until the good games come out .

trigun123
trigun123

i always liked sony because they made great games, but im starting to lose faith in them because they just arent cutting it in sales and the games arent coming out fast enough. I mean yes you can bring out all the lame facts and statistics but its right there in front of you. PS3 is just too expensive and not far enough ahead of the 360 technology wise to justify the purchase. It doesnt have enough games out, and those that are out arent very interesting or different from 360 games (what the heck, they arent GOOD games). I hate to say it but id rather have an xbox at this point. I just dont like their games because microsoft games dont have the character sony games do

devilnevercry9
devilnevercry9

not interesting to listen to this stuffs that's not about you something related to

Yuck_Too
Yuck_Too

--InFaMoUsInTeNsE -- Ya ya...March 23rd and it's all over. We all know that the true make or break for Sony is shipping PS3's Europe. Japan and N. America were just play grounds until the real deal happened. Now MGS4 will improve things...to bad it's release date has slipped from March to TBA 2007. FF will help things too...as some point. But fact remains in the grand scheme of things the PS3's market share is around 3% and that is a lot of catch-up to do.

smoothn00dle
smoothn00dle

I think we need some balance comments on Mircosoft. When comes to Financial report, Companies always play PR game. That understandable because the amount of interest involved. "We need positive earning every quarter. Mark to Mark accounting is our answer." Enron Microsoft Profit Sinks 28 Percent in Vista's Shadow http://www.itjungle.com/two/two013107-story03.html

ahmsyh
ahmsyh

Xbox must really suck, u know why? because if it is as fun as u MS fanboys claim it to be, u would all be playing yr games instead of posting irrelevant comments on anything that has to do with Sony. Has for Sony, the price is what is holding them down 4 now, because so many people i know whom all also agree with the fact that they no many people who are currently saving money just to get the ps3 not xbox360 but the ps3, so time will surely tell. wait and see paranoid MS fanboys

InFaMoUsInTeNsE
InFaMoUsInTeNsE

Yuck_Foo: March 23rd, then it's really over. Or just the begining of Sony getting started. Whichever way you look at it, it's gonna happen. PS3 is coming to the rest of the world March 23rd, then the competition really begins.

jrdnsandwhich
jrdnsandwhich

wots goin on with sony nowadays!!!they seen to be doin terrrible on the ps3 sales in japan and america and now there sellin ps3s on ebay and amazon for like 699 pounds and other websites sellin them for 999 pounds with 1 game and no control pads!!!what the hells goin on with sony!!!

SeanBond
SeanBond

jakie91 "If you can't shut up, go complain on the knights of the round Xbox To SeanBond aka (Sir Obvious leader knight of the round xbox)" Knights of the round Xbox? Now I'm wondering if I should've suggested you read picture books instead of CNN.com...If you don't want to read the comments on these pages, don't do it. Are you a PS3 console, yourself? Because if you're not, it shouldn't matter to you whether people hate it or not. Try taking your meds before you get overexcited and write crap like this again.

L1qu1dSword
L1qu1dSword

During the last few months reality has not been very kind to Sony and Gamespot merely reported the news as it was happening. Sony fans began to get mad at Gamespot for reporting "negative ps3 propaganda" and even began claiming that Gamespot was biased towards 360. I need to remind you all that no matter how badly the PS3 does; because of you Sony fanboys Gamespot will have to release the occasional article like this one just to shut you guys up. The facts speak louder. 360 currently has better games and has better games coming in the future. Better graphics, better games, and lower price. Wii is simply a lot more fun and innovative then the PS3. Gamespot is NOT biased. Reality itself is biased because in reality PS3 is overpriced, overhyped, and riding on brand loyalty alone.

L1qu1dSword
L1qu1dSword

"a better version of GTA IV (bet on that)." 360 will have better graphics, framerate and exclusive downloadable content from XBL marketplace. So yeah I'll take that bet.

Yuck_Too
Yuck_Too

I giggle at the people who said "Wait till the PS3 ships then it's over" Followed by "Wait till March then it's over" And now I see "Wait will Dec. and then it's over" And I'm sure soon enough those same people will say "Just wait until the end of '08 and then it will really be over" Well you can keep waiting...I'll keep playing...in fact I've been playing for over a year while these benchwarmers have been waiting to get in the game. I can hardly wait for the "Just wait for the PS4" comments to start.

Jakan5587
Jakan5587

Sony is just trying to cover up their gamings stench with the profits of thier other electronics. We all know Sony is a good company overall... but I don't care about thier T.Vs. I care about thier gaming division. We all know thier gamng industry lost a hell of alot. Going from making a profit of 556 million, to making a loss of 455 million is rediculously bad. The rest of you can feed off of this crap, but the company's overall profits are irrelevant. I want the game industry's numbers... which we all know is far into the negatives.

Jakan5587
Jakan5587

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

Megavideogamer
Megavideogamer

Aren't we cheering for Sony Playstation 3? Sony is a good company.

Kane04
Kane04

For the people that are saying ", and it will rule AGAIN

EliteScout
EliteScout

An end of an era? They've only just got going. Microsoft also made a loss on 360's might i add.

moored41
moored41

well i think personally its coming to an end of an era for Playstation. The huge loss they get for a PS3 sold is just not good at all - and people arent buying them, no matter how good the games are and how many there are-if the damned thing is too expensive its too expensive! i played one, and im never touching one again, theyre appaling- i mean cummon, it was at a proper london based gideo games convention and it broke. seriously-god knows how much money and it broke. its just not good enough. im sorry sony but it seems that the first nail in the coffin was the PSP and the last is the PS3. Sorry sony, youve had your day. Now lets see who wins the Ninty/M$ war (go ninty!)

Ansem_Rev
Ansem_Rev

Yeah ps3 went UP IN PRICE IN CANADA LOL!! from 659.99 to 699.99...

jackfatal
jackfatal

@jameston80 check out all the aritcles that has no relation to sony and u will see how much hate there is for sony!! so dont complain about this article!! and probably when the ps3 will sell good again!! u will see more of these everywhere! for every action there is an reaction! the xcrab started the attack on sony fans, and we are much more then xcrab fans!!