Sony Computer Entertainment back in black

Sales of 4.9 million PS3s, 5.76 million PSPs give once-ailing game division record quarterly earnings of over $5 billion; analysts remain skeptical.

Three months after posting an $841 million operating loss for its second fiscal quarter, Sony Computer Entertainment Inc. is back in the black. Today as part of its overall earnings report, Sony reported that its game division posted a profit during its third fiscal quarter, which ended on December 31, 2007. SCEI posted a ¥12.9 billion (around $121 million at today's exchange rate) profit on ¥581 billion ($5.45 billion) in revenue for the three-month period, up from a ¥54.2 billion ($508.9 million) loss on ¥442.8 billion ($4.16 billion) the year before.

SCEI's resurgence was in large part due to the PlayStation 3. Though the console's development and production costs had been draining Sony's coffers since 2006, the company now reports "a significant decrease in the operating losses of the PS3 business as a result of successful PS3 hardware cost reductions."

As a result, Sony made money on many of the 4.9 million PlayStation 3s it sold worldwide during the quarter, an increase of 3.24 million units from the same period the year prior, when the console launched in November. PS3 software was also up, rising 20.7 million units to 26.0 million units.

Unfortunately, the robust figures didn't keep the company from lowering its oft-vaunted 11 million-unit annual PS3 goal to 9.5 million. However, even that new figure wasn't enough for some analysts. "Sony had forecast 11 million units, while we forecasted 8.5 million units," said Pacific Crest Securities' Evan Wilson in a note this morning. "While Sony is confident in its new forecast...we remain skeptical of its target."

Today's report also touted the PlayStation Portable, which saw sales rise 1.05 million units year over year to hit 5.76 million for the quarter. As a result, Sony raised its sales estimate by 30 percent to 13 million for the year. The grass on the software side was not greener, however: The 18.3 million PSP games sold during the quarter were 3 million fewer than were sold than a year ago.

Unsurprisingly, Sony spun its Q3 numbers as the first of many profitable earnings reports. Wilson, though, still thinks the PS3 is not living up to its potential. "Sony appears to be trading the long-term success of the PS3 for a near-term profit," he said. "It is possible that it could meet its reduced target of 9.5 million PS3 unit shipments as retailers ramp inventory in fiscal Q4 (March) for the anticipated releases of Grand Theft Auto IV (April 29) and Metal Gear Solid 4 (June). However, we continue to believe that the primary barrier for PS3 is price, and until the console reaches a mass-market price point, its sales will struggle." Currently, the 40GB PS3 is $399 in the US, with the reportedly discontinued 80GB model selling for $499.

393 Comments

  • DaMiGi22863

    Posted Mar 3, 2008 3:55 am PT

    26isalways1st said
    "I under stand what everyone is saying, that the ps3 needs more games. yes, but i still wouldn't by a 360 based on the failure stats its has. Why do people have to deal with faulty hardware when they spend hundreds of dollars. why should a company that builds cheap hardware make so much money. as far as games go, the developers will follow the market, so you don't have to buy junk."

    My point exactly, with a little maintenance and care, My original PlayStation and PS 2 are still running(I don't play the PS,but I'm still keeping it) and I have a ton of games for both in addition to what games I have for my Sega Genesis System, but now I'm really looking forwards to getting my PS 3 come June.So I stand by what I said before, "Good things do come to those who wait"..

  • daleyboy928

    Posted Feb 29, 2008 9:26 am PT

    i was holding off on getting a PS3 back in '06 and '07. i was happy with my 360 and i still am. but now, between MGS4, FFXIII, the price drop, dualshock 3, GT5, etc., it looks like it's about that time...

  • Ozzie234

    Posted Feb 27, 2008 2:06 pm PT

    Yes, the 360 could be a nuisance, especially if you live in non-conditioned trailer.... stop doing that. LOL.

  • Ozzie234

    Posted Feb 27, 2008 2:01 pm PT

    Yeah, that awesome storage device (br) is so next-gen..... poor 360. I'm so looking forward to browse those many GB's and count the bits. One bit, two bit, three bit, four bit.... LOL.

  • Cristallis

    Posted Feb 27, 2008 11:14 am PT

    Now give me my Ape Escape PS3.

  • thebigarn12

    Posted Feb 23, 2008 8:06 pm PT

    good not bad

  • vdarkfall999

    Posted Feb 21, 2008 2:52 pm PT

    Damn, that's a lot of money. The gaming industry sees some serious profits nowadays.

  • billyjunxix

    Posted Feb 18, 2008 11:46 pm PT

    quinseyboy my friend you are definitely right. This year is the year that people will really see the POWER of the PS3. While the xbox 360 constantly got the RROD on the other-hand SONY is proving its real potential as the only true NEXT-GEN console. I used to own an xbox 360 which brings me nothing but regret becuase I cant believe that I just waste my money on the xbox 360 which is a broken piece of crap which is the most regretful decision ive ever made because its sucking the fun of playing a videogame because im actually afraid of having a RROD..every minute i play im scared that it will overheat which it definitely does..my xbox 360 broke last august and I cant believe that I shifted to microsoft at that time because I owned a PS1 and PS2 and never had any kind of problem about overheating which I almost constantly play 24/7..almost 24/7. Now im loving and enjoying every minute of my 40GB PS3..im feeling constantly amaze by the POWER of my PS3..im always amaze by thinking how HIGH TECH the PS3 is. Take it from me who used to owned an xbox 360 for 7 months and now I owned and a very proud owner of MY PS3. Sooner or later PS3 is the only one standing on this next-gen wars. PS3 is the only REAL NEXT-GEN CONSOLE..BELIEVE IT!

  • quinseyboy

    Posted Feb 18, 2008 4:54 am PT

    sony will dominate this year. i really dont want MGS4 to come out that late (june!) cant wait that long.

  • Karaam

    Posted Feb 17, 2008 7:09 pm PT

    thats good news, its getting better an better. no downs until now for sony. guess they are happy

  • billyjunxix

    Posted Feb 14, 2008 10:40 pm PT

    i even got demoted twice from gamespot because i used to cheer for 360 and being bias about the PS3. But to tell you the truth PS3 is the best NEXT-GEN console or shoul i correct my self..PS3 is the ONLY REAL NEXT-GEN console because for real you cant call the xbox 360 a next-gen console because of its high failure rate ist just a matter of time when will all the 360 got the RROD. And you cant call something that has a high failure rate a next-gen console because that means a down fall for humanity because were supposed to be upgrading our technology. Not to have a machine that will constantly broke. For now the real next-gen is PS3 and wii because they pass the stress test. SONY and NINTENDO if you look and compare at theire past consoles to the present PS3 and wii they really evolve.

  • billyjunxix

    Posted Feb 14, 2008 10:06 pm PT

    aBathingApe_

    I think you are full of $h!t..if you are beside me Im going to punch your face.
    I use to have an xbox 360 which by the way already broken and I use to write the kind of bull $h!t youre writing right now because i use to love my xbox 360 im so blind to see the truth..i use to be bias about this thing. BUT guess what my xbox 360 got the red ring of death for me xbox 360 is so cheap its like a tikkingtime bomb thats about to explode anytime without warning so all you xbox 360 fan boys dont even try to compare the the crappy xbox 360 to the most superior PS3 because we all know the truth youre just so afraid to admit that. PS3 has a better graphics if you have both PS3 and 360 you should know that by now because I already noticed the difference when i first played on my PS3. But you should have already noticed that if you really have a PS3..you know what i think of you..i think your a f_king liar its either you dont have a PS3 or youre just to bias to see the truth. Remember i used to have a 360 which is already broken by the RROD, i use to love my 360 check my unions and my past comments which i used to chher for 360 and being bias about the PS3. But now im telling nothing but the truth PS3 is the real next-gen console. PS3 is the best console right now. f_ck you aBathingApe_

  • Fantasy33

    Posted Feb 7, 2008 5:26 am PT

    Its nice seeing sony getting back in the market. And they will deffantly win this year.

  • Mr_duong

    Posted Feb 6, 2008 3:54 pm PT

    btw cod4 and assasin's creed are identical on ps3.
    the online on ps3 and 360 is also identical. its just on a matter of fact who plays it, and achievements are for ur own opinion in which i personally dont care of em.

  • Mr_duong

    Posted Feb 6, 2008 3:53 pm PT

    aBathingApe_
    yeah well i spent much time on all my ps3 games, and really ive had more quality time with them too. i too have a 360 and a ps3 and even though 360 has more games ps3 delivers some great experiences too. you just havent tried them, i mean uncharted was just amazing and ratchet and clank is just pure fun.

    360 is also fun too with all its games, but the way u wrote ur message it seems like u think all the 360 games are far superior that u dont spend time on even the wii.

  • erik_wolff

    Posted Feb 5, 2008 12:58 pm PT

    aBathingApe_ The only reason I bought a PS3 is because I traded in a bunch of games at EB Games and got $436 and the PS3 was on sale for $450 with either Spiderman 3, Fan 4, or Pirates 3. I got Fan 4 and traded it in sealed for $14, making my PS3, free.

    Free huh, how about you add up the price you paid for all the games you traded in.

  • aBathingApe_

    Posted Feb 5, 2008 10:53 am PT

    First of all, I have a Wii, 360 and a PS3, so to anyone who thinks this is biased, eat $hit.

    The only reason I bought a PS3 is because I traded in a bunch of games at EB Games and got $436 and the PS3 was on sale for $450 with either Spiderman 3, Fan 4, or Pirates 3. I got Fan 4 and traded it in sealed for $14, making my PS3, free. I then bought God of War because it doesn't play on my PS2, Resistance, Ratchet and Clank, and Uncharted. I've barely played any of them. I've spent more time watching BluRay movies on my PS3 (which is Crash, I have Superbad as well, but its still sealed). Everytime I try to sit down and get into a game, I always decide to pick up one of my 360 games and play that instead. Its just simply more fun. I barely play my Wii anymore, except for the copy of Galaxy that I borrowed off of a friend. Check my collection for my 360 games, and you'll clearly see that I have many more for it than I do for any of my other next gen systems. I only buy exclusives on the PS3, anything like Assassin's Creed or Call of Duty 4 that is multi-console I play on my 360. Because of achievements and the fact that they are normally cheaper, have better graphics, and have better online play (in the case of COD4, obviously not Assassin's Creed).

    Again, you be the judge of what you want to buy, but remember when you have to wait a long time for the games that you actually want to play, and the fact that most of those games are going multi-console anyways, ex. Devil May Cry 4, which finally comes out today, goes to 360 and PS3, GTA4 which will go to both. The only games that I can think of that I'm really looking forward to on the PS3 are Metal Gear Solid 4, God of War 3, and littlebigplanet. Whenever we FINALLY see those games. Because I still anticipate those getting pushed back at least a few months. (Probably not GTA4, seeing as how it already got pushed back)

    Thats my little rant. Have fun with it if you actually read the whole thing.

  • jacob-goodlich

    Posted Feb 4, 2008 11:47 pm PT

    i have a 360 and a ps3, but honesly i prefer the ps3s exclusives cause almost all of the 360 s games are shooters and most are overated such as gears of war and bioshock, i do enjoy saints row, just cause and halo 3 on the 360 though, but this is definently the ps3s year.

  • mwilson76

    Posted Feb 4, 2008 10:07 pm PT

    This will be the year of the PS3. I've put off my purchase of PS3 and a HDTV, waiting on the games I want to play. Well there just around the corner and there's speculation that Sony could be bringing out a 120 or 160GB PS3. The tv's on the way but I think the PS3 will wait until furhter news, but mid April at the latest.

  • Sparky2002

    Posted Feb 4, 2008 8:51 pm PT

    i like my PS but the Blue-ray is better more for movies

    HD PLASMA & BLUERAY DVD KICK A** QUALITY ALL THE WAY

  • Itachi11432

    Posted Feb 4, 2008 6:18 pm PT

    ps3 is doing good beter then 360 did when it first came ot, so many **** failures and wack exclusives

  • nate1222

    Posted Feb 4, 2008 5:45 pm PT

    PS3 and XBox360 each have their pros & cons. 360 tries too hard to force XBL down peoples' throats. PS3 wants $400 minus BC. I'm hoping to nab a Wii. Nintendo is addressing the issues I actually give a damn about: price, BC, a plethora of classics via download, etc... PS3/360 have great games, most of them are the same games. But the 360's hardware failure rate, half-assed BC and XBL impositions have me weary. Hell, you have to be 'online to play the Arcade games you've already paid for.PS3 would be cool if it had BC and some good 'cheapies' ($20 older games), but it doesn't. Within a year, I'll be a Wii man.

  • mpg

    Posted Feb 4, 2008 3:17 pm PT

    Sony is in good shape. PS3 is selling faster and has sold more than the 360 in the same amount of time. I think both are good systems and each to his or her own.

  • razu_gamer2

    Posted Feb 4, 2008 2:43 pm PT

    Analysts remain skeptical....like we give a $**** what they think.

  • chkmarc

    Posted Feb 4, 2008 2:38 pm PT

    The PS3 is getting games that came out for the 360 awhile ago or are coming out at the same time. That is the reason people keep saying that it has no games. We have already seen the games on the 360. The few games that are out on the PS3 have for the most part been forgotten about. You still to date see articles written about Gears of War and Bioshock and other games on the 360. When was the last time an article was written about Resistance, Uncharted, Heavenly Sword, or Warhawk????? All were good games but nothing to scream about. It just leaves people with the impression that there are no system sellers on the PS3. Just look at the sales of the games with the exception of Resistance. You would think that those games that I listed would have sold millions of copies but to the surprise of many...no! Most of the games that people want on the PS3 are a ways off from now. Yes, they may have a release date but we know how that goes. All of my friends have 360, only one has a PS3 and he regrets buying it. I might get a PS3 when the price comes down and there are more than 10 games that I want. Right now I can only count 4.

  • darkride66

    Posted Feb 4, 2008 2:05 pm PT

    I agree with jasonbarbour. The myth that there are no games on the PS3 has to die. What's the number before people stop complaining? Is it 75? 100? 125? I don't know how many games others play in a year but I'm at maybe 20-30. Right now (from metacritic) the PS3 is showing 134 games to date, 87 of them ranked with at least a 70% or higher. I'm convinced the people who complain about Sony's lack of titles at this point simply don't own a PS3, otherwise they'd know better.

  • 26isalways1st

    Posted Feb 4, 2008 1:58 pm PT

    I under stand what everyone is saying, that the ps3 needs more games. yes, but i still wouldn't by a 360 based on the failure stats its has. Why do people have to deal with faulty hardware when they spend hundreds of dollars. why should a company that builds cheap hardware make so much money. as far as games go, the developers will follow the market, so you don't have to buy junk.

  • jasonbarbour

    Posted Feb 4, 2008 1:52 pm PT

    why does everyone say the PS3 has no games? compared the # of games the 360 had after its first year and the # the PS3 had after its first and its clear that the PS3 developed way more, as for GOOD games, well the best so far have been for both systems anyway, COD4 was way better than Halo 3 and the PS3 version was better than the 360 version (better graphics and 4 people splitcreen online) And you ppl say Sony needs more exclusive, but you just named a ton more than the 360 has, all the good exclusives the 360 has are Gears, Halo, Bioshock, and Mass Effect, 4 games only, while Sony is throwing out exclusives right and left with tons more on the way.

  • Treblemaka

    Posted Feb 4, 2008 1:25 pm PT

    Sony needs a better games. That's the reason it outsold the the original xbox. Exclusives is the key word here. Better online would hurt either.

  • NND1

    Posted Feb 4, 2008 1:11 pm PT

    Hate 360 all you want, the truth is that it is a TON of FUN, has great games, nicer online and a lot ot people love it!! When Sony achieves this they will get props tooo..

  • Vegeta-sama

    Posted Feb 4, 2008 12:22 pm PT

    waraga... you should throw out names that don't or have little potential to sell... MGS4, Resistance 2, and a new Jack will sell... GT Pro will sell around a mill like it always does... but that's it... with only the first two really looking like system sellers, but don't forget FF13... that series was the PS1 system seller

  • waraga

    Posted Feb 4, 2008 11:20 am PT

    HEY we got msg4,haze,killzone2,2days2vegas,ico3,resistance 2,jack4 ,Africa,grand torismo pro, man can any see this as a good starting year for sony exclusive

  • batman360

    Posted Feb 4, 2008 10:58 am PT

    Finally some good news for Sony. They need some good exclusive titles and lower the price point. I'm a Sony fanboy at heart but I'm not going to be in denial that they need to devise a plan fast.

  • waraga

    Posted Feb 4, 2008 10:55 am PT

    This is a bunch of crap the playsation 3 sales are sky rocketing 2008 promises to be the ps3 year with the back up of the super blueray drive we all know that GAMESPOT is xbox 360 home land and will proudly put this as the main headlines.Come on lets be realistic.

  • GrimBee

    Posted Feb 4, 2008 10:46 am PT

    "Back in black!
    I hit the sack...
    It's been too long I'm glad to be back!
    Yes, I'm let loose!
    From the noose...
    That's kept me hanging around I've been looking at the sky
    and it's gettin' me high
    Forget the hearse 'cause I never die I got nine lives Cats eyes!
    Cruisin' every woman, never wonderin' why (?)

    'Cause I'm back Yes, I'm back Well, I'm back Yes, I'm back Well, I'm back, back Well I'm back in black Yes, I'm back in black!!"

    I would imagine Kaz Hirai walking around his nice livingroom (or condo) singing this right now And probably ending with "Riiiiiiidge Raccerrrrr"

  • carljohnson3456

    Posted Feb 4, 2008 10:38 am PT

    "26isalways1st I can't believe that people would choose the xbox 360 over the ps3 after all the problems that hunk of crap has. You get way more for you money with the ps3, and it won't melt."

    While I wouldnt call the 360 a "hunk of crap" - I mean, I do love my 360 too, I do agree that it has far too many problems that hender me wanting to spend money on it. I like to think of my consoles in the long term... like how I can go back and play my NES, SNES, PS1, PS2 games with those systems that are/or almost are 10+ years old. I like to think I'll be playing my PS3 10 years from now... but I really cant see my or many other 360s lasting that long.

  • tsiper

    Posted Feb 4, 2008 9:09 am PT

    I have both systems the PS3 and the 360 and I'll tell you what I love my 360 for the games and the online play! Sony needs to get its act together fix online and get the games. Right now my PS3 mostly acts as just a Blu-ray player. I can't wait for MGS4 though man I love those games but there still has to be more than just MGS4, They need to catch up its very painful to watch as a long time Sony fan.

  • jimjam146

    Posted Feb 4, 2008 8:34 am PT

    The problem that the PS3 faces is a lack of exclusive games. If MGS4 and Killzone are "system sellers" then the console will have a bright future. If these games turn out to be disappointments or are perpetually delayed as they have been, Sony will be in trouble. @26isalways1st
    People choose the 360 for the games. Halo II, Bioshock and Mass Effect are better than any three PS3 exclusives you can name. Until that changes, M$ will continue to outsell in the US. Its that simple.

  • 26isalways1st

    Posted Feb 4, 2008 8:23 am PT

    I can't believe that people would choose the xbox 360 over the ps3 after all the problems that hunk of crap has. You get way more for you money with the ps3, and it won't melt.

  • jackaldc10

    Posted Feb 4, 2008 2:27 am PT

    2008 is to be PS3's year but im still having my doubts , MGS4, GTA4 ,RE5 only big names i have heard so far 3 games will not make this console they need more

  • wingnut99

    Posted Feb 4, 2008 12:21 am PT

    Well rumor is MS is putting out a Blu-Ray add on for right around $100.

  • YukoAsho

    Posted Feb 3, 2008 9:41 pm PT

    The PS3's turning around, but analysts are3 still peeing all over it. No surprise there. The PS3 isn't THAT much more expensive than the 360 anymore, and the victory of Blu-Ray over HD-DVD (it's all but over now) combined with what's going to be a much better year software wise will move PS3s much better in 2008 than in 2007.

  • wingnut99

    Posted Feb 3, 2008 9:04 pm PT

    The big market is here in the U.S. Still there is more 360's in home's than PS3's

  • alberto2045

    Posted Feb 3, 2008 8:50 pm PT

    hmm thats pretty nice awsome, I bet you that if Sony releases a bundle packet PSP with FFVII then its going to be a huge hit and a great thing for its sales also, it did well in Asia so I am sure it is going to do well here

  • Sparky2002

    Posted Feb 3, 2008 8:29 pm PT

    lol dont everyone jump on wingnut, guy probly does not know
    there is the EURO, AUS. YEN. & THEN THE US.

    HOLE OF EUROPE HOLE OF ASIA & HOLE OF AUSTRALASIA & THEN FINALLY YOU GET AMERICA..

  • lb003g0676

    Posted Feb 3, 2008 2:46 pm PT

    Wingnut... the world doesn't revolve aaroudn US, globally the market is predominanatly PS3 aimed, althoguh only just ebcuase of pirces and such. ANd only recently did that happen. But stay ignorant if you want. You will miss out on MANY cultural delights, and don't moan when you don't get MGS4.. whcih looks amazing, it's pretty much undeniable. ANd when you don't get ICO 3. And Just as globally (Australia) when you don't get L. A noire.... the list is endless. The basic games coem to the 360 becuase it's simpler to develop for... fact.

  • Chapel18

    Posted Feb 3, 2008 2:04 pm PT

    to be completely honest..the ps3 is a value...look at how much the 1phone costs...now that is a rip off...but no one ever says anything about it

  • seany_lad

    Posted Feb 3, 2008 10:47 am PT

    hope they bring out a demo for this

  • banana5

    Posted Feb 3, 2008 1:21 am PT

    metal gear solid 4 will make a hell lot of money. the 15 min preview wasnt the games full potential. thats why they dely the game alot. when it comes out it will be awesome. and it also has some online.

    grdwalker is 100% right

  • grdwalker

    Posted Feb 2, 2008 11:06 pm PT

    wingnut99
    you can never trust videos and screenshots, and pre-release titles never look as good as they are when released.

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