PS3, PSP sales down as Sony Q1 losses hit $390 million

[UPDATE] Global recession batters electronics giant as quarterly PS3 sales drop from 1.6 million to 1.1 million, PSP sales go from 3.7 million to 1.3 million; software sees dramatic decline on all platforms.

Today, Sony reported its results for the April-June quarter, the first of its 2009 fiscal year--and the news was not good. For the period, the company reported net losses of ¥32.9 billion ($346 million at today's exchange rates, $343 million at constant exchange rates) on ¥1.599 trillion ($16.8 billion) in revenue. After taxes, net losses increased to ¥37.1 billion ($390.3 million). That's a major decrease from the ¥62.9 billion ($661.9 million) of net income and ¥1.979 trillion ($20.8 billion) in revenue it took during the same period 12 months previously. As bad as it was, though, the loss was less than analysts had predicted.

Unfortunately, direct year-on-year comparisons for Sony Computer Entertainment earnings are no longer possible. Today, the company announced the games division has been folded into a newly created sector, Networked Products & Services, which also includes VAIO PC sales, navigation system revenues, and income from "other networked businesses." (The move is only structural, and the SCEI name and organization will remain intact.) The new sector saw revenue drop from an equivalent ¥394.4 billion ($4.15 billion) in April-June 2008 to ¥246.8 billion ($2.6 billion) in April-June 2009. It posted a quarterly operating loss of ¥39.5 billion ($415.6 million), way down from the ¥4.6 billion ($48.4 million) in operating profit it reported during the same three months last year.

Sony did release console sales numbers for the period, which also painted a bleak picture. Quarterly worldwide PlayStation 3 sales dropped from 1.6 million units in the first quarter of the past fiscal year to 1.1 million units in the most recent fiscal quarter, while PSP sales plummeted from 3.7 million units to just 1.3 million units. VAIO sales and profitability were also down, though Sony did not offer specific figures.

[UPDATE] Figures released by Sony following the original publication of this article revealed quarterly PS2 sales, which increased from 1.5 million to 1.6 million units thanks to the new $99 price point. The company also announced April-June worldwide game software sales: PS3 games tumbled from 22.8 million to 14.8 million units, PSP game sales slipped from 11.8 million to 8.3 million, and PS2 game sales plummeted from 19.3 million units to just 8.5 million units. Sales of specific first-party games, such as May's critically lauded Infamous, were not provided.

As for the culprits, Sony blamed an increase in the value of the yen, which reduces profitability from overseas markets, such as the US and Europe. It also blamed the "slowdown in the global economy since September 2008" as a major factor. That slowdown was plainly evident in June, when the NPD Group reported US monthly game sales shrank 31 percent year over year.

Today's news comes less than three months after Sony reported a net loss of ¥98.9 billion ($1.03 billion) for its 2008 fiscal year, its first annual shortfall since 1995. That news, however, had a bit of a silver lining, as Sony Computer Entertainment reported a decreased operating loss of ¥58.5 billion ($612 million), an improvement over the ¥124.5 billion ($1.3 billion) it suffered in the year before. Also, annual sales for both the PSP and the PS3 were up, selling 14.11 million (an increase of 300,000) units and 10.06 million (an increase of 940,000) units, respectively.

654 Comments

  • krazy-blazer

    Posted Sep 6, 2009 4:22 pm PT

    Sales don't change the fact that the Ps3 is Superior then other Consoles

  • siamack_t

    Posted Aug 3, 2009 11:07 am PT

    there is always things to blame. and SONY has 'em all.
    global warming, yen's droped off, world ECO.. and such.

  • GoldenRamoth

    Posted Aug 3, 2009 10:08 am PT

    @ Justforfun44 there are more than enough games on the ps3 and blu-ray is needed allot of people use it and really like it _________________________________________________
    not to be ulber negative... but by that reasoning everyone in the world needs narcotics and drugs... Cocaine, a lot of people use it and really like it..

  • Imperator2007

    Posted Aug 3, 2009 9:55 am PT

    I honestly hope the best for Sony. I'm looking to get a PS3 for a few reasons. One is a Blu-Ray player, which I would really love. Second is the games that are coming up (or that were recently released). Lots of people say that there aren't any good games on the PS3, but Uncharted 2 and God of War 3 are coming out, and great titles like Killzone 2 and Infamous are already out. Obviously they need to break out more great titles in order to save their console and keep up with the other systems. Another reason that I hope Sony does better in the future is the competition. As gamers, we all want these companies to do well even if we have gripes with one console or another. Competition gets these companies to try new things and develop better products. Despite where you stand, competition is always good for us consumers.

  • damonkeypirate

    Posted Aug 3, 2009 8:09 am PT

    LOL...ps3 has joker exclusive on batman...that will help sales surely

  • anarchist4eva

    Posted Aug 3, 2009 5:34 am PT

    A popular topic I see.. And most everyone here is a financial expert. Clearly we have some jr execs on the Gamespot forums that will be running the game companies of the future! Unless Gamespot editors that get fired for bad reviews beat them to it!

  • modernwarfare3

    Posted Aug 3, 2009 12:58 am PT

    Bad games
    Bad sales

  • frogfromarz

    Posted Aug 2, 2009 10:10 pm PT

    Even though i own a 360 i wish the best 4 sony their console is rather attractive with all its features I would get one but the price is way too much 4 me but maybe when the price drops.

  • TWilliamz

    Posted Aug 2, 2009 8:48 pm PT

    @claykenobi
    I think that sickness is just jealousy. I hate to be the one that breaks it to you, but there are ppl that have different opinions about games than you do. Games you may not like other ppl might love them. Why don't you think of some games on 360 that you don't like and look up how their sales are doing and you'll see how different ppl likes and dislikes can be.

  • Progamer258

    Posted Aug 2, 2009 7:46 pm PT

    god of war 3 might be a must have

  • ldonyo

    Posted Aug 2, 2009 5:22 pm PT

    Sony won't cut the price of the PS3, so they aren't selling. There haven't been many 'must have' titles, so those aren't selling, either. Sony is doing just about everything wrong and it's costing them big time.

  • shadowhunter0 posted Aug 1, 2009 10:10 pm PT (does not meet display criteria. sign in to show)

    shadowhunter0

    Posted Aug 1, 2009 10:10 pm PT (hide)

    @ MagicOneUp I'm not going to even bother with you I could list all the great exclusive games on the ps3 that are now and some of them have better graphics then anything on the 360 but I'm not going to there is no point I don't even know why I'm replying to you

  • ajpopa

    Posted Aug 1, 2009 9:51 pm PT

    @Godak
    Never said that the 360 does not have a troubled past, but it only takes a little effort and research to see the real numbers of what is selling and what it going back to the factory. And if you don't want to do that, I can quote RL numbers too. I have 3 friends with 360s and 3 with PS3s. Out of the 6 of us 1 of each console has gone bad. Now looking at this in further detail from what my two friends both had to say each company was very willing to fix the unit, but my buddy wth the PS3 who is a fan boy openly admit that my other friends experience did seem to go a little smoother. I myself had experienced a problem with a launch PS and could not have asked for a better customer support experience. Could have just been the CSR he was speaking to.

  • georgeorjose

    Posted Aug 1, 2009 9:20 pm PT

    before i buy a ps3 im going to buy a 42 inch lcd tv with surround sound. ill be playing my 360 and ps3 in style

  • shadowhunter0

    Posted Aug 1, 2009 8:01 pm PT

    @ ChinTikki umm no they do that because they are lazy look at kz2 it is one of the best looking games out right now and no install and there are bunch of other ones has well also you guys make to much of a big deal about install you have to do it with every game on pc but no1 complains but on the ps3 people are complaining

  • ChinTikki

    Posted Aug 1, 2009 7:56 pm PT

    @shahowhunter0

    its true blu-ray can hold more space then traditional dvd's. but you left something out. blu-ray as slow as hell, developers resort to installing the same data on to empty space on the disc to make it faster to read. that is also why sometimes u have to install the game on the hard drive. developers also have issues sometimes when putting the game on blu-ray. blu-ray isnt that great to be honest......

  • shadowhunter0

    Posted Aug 1, 2009 6:58 pm PT

    @scarface_dm yes blu-ray is needed for games like i said when i edited my last post there are already devs complaining about the lack of space on dvd and also there devs praising the blu-ray because of the amount of stuff it can hold

  • scarface_dm

    Posted Aug 1, 2009 5:54 pm PT

    I dont need blue-ray, Consoles are for games!!!

    Everyone read just4fun's post, he hit the nail on the head

  • shadowhunter0

    Posted Aug 1, 2009 5:32 pm PT

    @ Justforfun44 every1 was saying that with dvds when the ps2 was release I mean we don't need dvds format for games and now look at it also there are already devs complaining about the limited space on a dvd

  • wills_b

    Posted Aug 1, 2009 5:23 pm PT

    What's interesting is how long Sony can sustain this. Obviously they were hoping to use the PS3 as a vehicle to increase the uptake of blu-ray, and I think it's safe to say that has been successful, but probably at the cost of pushing them behind Microsoft in the console stakes. I'd think that was too high a price to pay.

    The way I see it, Microsoft has very deep pockets. They know the importance of the game division will only increase in the future, and they are desperate to tie up everything in our living room and put their name on it, and are trying to use the 360 to do that.

    So my point is that even if the 360 loses money, which it amazingly isn't, they will continue to fund it.

    Sony on the other hand doesn't have anything like the cash reserves, so at some point if the PS3 is unprofitable, they will ditch it.

    Could Sony be the next Sega? Will there be a PS4?

    I don't own a PS3 but I like competition.

  • MontyPython4-r

    Posted Aug 1, 2009 3:46 pm PT

    Speaking of DVD's. Blu-Ray is a very small improvement (you can only tweak sound and picture that much). DVD's are cheaper and the quality is perfect for me. Also, nice to know that PSP's sales are higher than PS3's. I'm a PSP owner and that means I'll be getting many good games in the upcoming year (higher sales = more games developed)

  • Justforfun44

    Posted Aug 1, 2009 3:18 pm PT

    shadowhunter0 a lot more people use DVD and they don't need Boo-Ray.

  • Boredrandomguy

    Posted Aug 1, 2009 2:55 pm PT

    i think that people are poor and im a king thats the only thing wrong. no seriously.. this battle between consoles is so stupid. i thinl that mircosoft and sony should join and design the ultimate console so that everyone can play each other. there would be no decrease in sales cause everyone would still hav a console. its name would be something new and not a combination of playstation and xbox. if u think about it, it would be so awsume cause all ur mates wuld be on the same console so u could always havin a good tiime on it. so it would have the design and styling of playstation and the online of xbox. it would hav the power and creativity of playstation and the..... funness of xbox. basically littlehalozone in one word I HAVE ALL THREE AND THEIR ALL FING AWSUME

  • shadowhunter0

    Posted Aug 1, 2009 2:29 pm PT

    @ Justforfun44 there are more than enough games on the ps3 and blu-ray is needed allot of people use it and really like it

  • Xaviersx

    Posted Aug 1, 2009 1:55 pm PT

    Well it is good that Sony has been able to cut it manufacturing costs substantially over the life of the console, as stated in another Gamespot article: http://www.gamespot.com/news/6214569.html?tag=latestheadlines;title;1

    Even with fewer units sold, the costs of subsidizing the current SKU into consumers' homes should be down as well with manufacture costs. What Sony needs is increased sales of games to consumers and the licensing/development fees associated. Sony's no real slouch in console sold, so where are the game sales, where are the consumers multiple purchases especially on a system so many say doesn't cause them any failure issues? Wasn't there a units sold number that they (Sony) already achieved??? What Sony wants is Microsoft to pull a Dreamcast, and Nintendo to reverse places. I don't want any console to fail out of its consumers lives (the competition is good in that the companies at least try to woo us as consumers) too bad so many users do want a console or two to fail and fail us.

  • Inconnux

    Posted Aug 1, 2009 12:58 pm PT

    Sorry Sony Fanboys but Microsoft is NOT losing money... latest financial reports Nintendo +$426 million, Sony -$390 million (plans to shut down 8 production sites and cut 16,000 jobs) , and Microsoft +$7818 Million (+$178 million for games division). All of them are down this quarter but only Nintendo and Microsoft are making a profit.




    And for those that don't believe that the PS3 is a pain for developers, take it from John Carmack... http://www.edge-online.com/news/carmack-ps3-performance-lags-behind-360

  • Justforfun44

    Posted Aug 1, 2009 12:37 pm PT

    More bad news for Sony fans so what do they do? They talk about Xbox 360 hardware failures.

    Why don't we talk about PS3 failing? PS3 highest priced console, no PS2 compatibility, not enough games, no one needs Boo-Ray, Sony losing money, and strong competition from Microsoft and Nintendo. Don't forget PS3 YLOD since PS3 fails too.

  • ChinTikki

    Posted Aug 1, 2009 11:13 am PT

    @ sonicmask your life=fail. microsoft has only sold 30 something million units. how the hell do you figure that the number of consoles that have failed has exceeded 1 billion................... seriously go back to school and freshen up on your math skills.

  • Godak

    Posted Aug 1, 2009 9:51 am PT

    @ajpopa

    My PS3 has never died. My friends' PS3s have never died. What are you talking about? Listen, the 360 has a higher failure rate. Accept that the 360 is a great console that has had a bit of a troubled past.

  • hatieshorrer

    Posted Aug 1, 2009 5:10 am PT

    @sonicmask

    "Microsoft 360 console has excessed 1 billion in failures"

    Thats amazing sonicmask because the X360 has only sold about 32million X360s less then 3% of the number of X360s to fail. You might want consider another gaming magazine.

  • shadowhunter0

    Posted Aug 1, 2009 12:31 am PT

    @ siouxboy stop your blu-ray is crap stuff now there is a big difference between blu-ray and dvd and the stuff you are seeing is on your crappy tv and its not even in hd trust me once you get a blu-ray player and an hd-tv you will be surprise at the difference I know I was btw I bought my ps3 many 4 games but I also like to watch movies the higher price for blu-ray is totally worth it

  • ajpopa

    Posted Aug 1, 2009 12:19 am PT

    Biggest appeal of the PS3 to me was the Blu-Ray player, but as some people learn the hard way don't put all your eggs in one basket. In other words what happens when your PS3 dies? And yes they do die... the death numbers(I.E. PS3 vs 360) work out almost exactly the same when you look at the overall number of units sold. I have a stand alone Blu-Ray and a 360. I would still LOVE to have a PS3, but they really need to adjust the price. That is what the final decision maker was for me on which one I bought. Sony get with the program! Drop your console price and make it up on software and hardware. Fact: PS2 Dual Shock sold for 39.99 cost to manufacter it was 50 cents. And by the way even at launch pricing the companies lose money on their consoles.

  • godzillavskong

    Posted Jul 31, 2009 7:16 pm PT

    @sonicmask, I'm sure Microsoft is making a profit even though it may state otherwise in the Gameinformer mag. If they weren't you would bet they would be out of the console business just as quickly as they got in it.They are paying lots of $$$ in repairing the 360s and that is one thing that I will agree with, when it comes down reliability, Sonys' PS3 is far more reliable, but when you play yours as little as I play mine it shouldn't have a problem.

  • sonicmask

    Posted Jul 31, 2009 6:16 pm PT

    mariokart64fan

    ^^^^^^^^^^^^^^

    HE JUST SPOKE THE TRUTH.. MICROSOFT ISNT MAKING ANY PROFIT.... READ AN ARTICLE IN GAMEINFORMER... ITS SAYS " Microsoft 360 console has excessed 1 billion in failures and SHOWS NOT FKING SLOW DOWNS!!! STOP UR BLSIT!

  • sonicmask

    Posted Jul 31, 2009 6:08 pm PT

    sony loses money cause consoles aren't selling and microsoft loses money cause their consoles breaks faster then wii's sales.... AND NINTENDO SELLS!!!

  • rudolph228

    Posted Jul 31, 2009 1:03 pm PT

    All I know is that if you go and get all the accessories that you need for a 360 to match up to what comes with a PS3 in box it turns out to be more expensive. I'm happy with my PS3. I agree that paying for online game play isn't that consumer friendly, in my opinion anyways, but you all have to admit that it's a smart business decision.

  • ChinTikki

    Posted Jul 31, 2009 12:49 pm PT

    @ real-guitarhero. its not 100 dollars a year to have a xbox live membership.... @nightshade869
    the reason i didnt get a ps3 wasn't because i was stubborn or waiting for a price cut. like i said i dont give a crap bout blu-ray. im into sports games and first person shooters. Pretty much all the games i own are on both consoles except a few. games like nhl and nba look exactly the same on both consoles so why the hell would i wanna pay an extra 100 dollars on a console that is supposed to have better graphics and yet they look exactly the same. and to be honest i wouldn't say that infamous or killzone 2 are the best games on the market right now..... your acting like 360 has nothing coming out this year either.

  • real-guitarhero posted Jul 31, 2009 12:39 pm PT (does not meet display criteria. sign in to show)

    real-guitarhero

    Posted Jul 31, 2009 12:39 pm PT (hide)

    its all about online play for me
    i dont wana spend 100 dollars a year for xbox live when for ps3 id get it for free, thus saving more money then buying an xbox since the ps3 is 100 dollars cheaper whatever, im waiting for next gen consoles anyhow..

  • brendanhunt1

    Posted Jul 31, 2009 12:24 pm PT

    wait untill Q4 when all the top games come out.

  • janderdarkmoon

    Posted Jul 31, 2009 12:23 pm PT

    @ claykenobi
    Thank you for setting such a high for benchmark the most ignorant statement of the day. You baby fan boys crack me up, you think that your tastes are somehow superior others. Or that because Sony was on top in the past that everything else they touch automatically the best and a must have, You obviously don't know you're gaming history or choose to block it out. Stop trying to justify your own nonsense by belittling others, it just makes you appear arrogant and close minded. And the truth is that you're missing out is you because you choose to blindly pledge loyalty to one company and buy whatever they shovel you. You're way seems much more backwards than a person liking a console because it delivers the most games they enjoy. So go ahead pledge your undying loyalty to Sony or Nintendo or Microsoft, but here's a little secret, that name brand you so blindly follow is just a business, they only want your money and you make it really easy for them to take it.

  • izmickey

    Posted Jul 31, 2009 11:38 am PT

    @scarface dm

    Why are you on sony articles since you bash sony and the ps3 alot?? Go back to playing your xbox360. you're right btw we can keep our blu-ray but you can keep your RROD.

  • hatieshorrer

    Posted Jul 31, 2009 11:35 am PT

    @scarface dm

    Your right I have a friend who is a total JRPG fan and she wants a Playstation 3 for Final Fantasy IIIX and the Blueray movie FinalFantasy IIV Advent Children etc. but even she says the console isnt worth $399.99 for the games she wants when their are more JRPG games she wants for the PS2 which cost $99.99.

  • scarface_dm

    Posted Jul 31, 2009 11:22 am PT

    It comes down to what games you prefer more, In my opinion Im more interested in upcoming 360 games than ps3 ones, but still ps3 has some amazing games and I think the reason I dont own one is because of the price. People call me a 360 fanboy, but I will open my arms to the ps3 if the price was reduced! just my 2 cents

  • nightshade869

    Posted Jul 31, 2009 11:18 am PT

    The PS3 has some of the best gams on the market right now and they just keep roling in. The only reason you don't have a PS3 is because you are either stubborn, waiting for a pricecut, or don't want to get one because you don't want to look like a hypocrite. It offers the most and best game experience out there. If you don't have one fine, the other two have great games too, (well the 360 does), but that doesn't take away from the fact that Sony is delivering better games now and in the future.

  • scarface_dm

    Posted Jul 31, 2009 11:13 am PT

    I agree with chintikki, you sony fanboys can keep your blue-ray I buy a console for games

  • McGregor

    Posted Jul 31, 2009 11:05 am PT

    @Phazevariance

    The idea behind a price drop is to generate more add-on sales. Selling more consoles means selling more controllers, games, and other various accessories. This also happens to be the area where the hardware developers make their money back on hardware losses. Sony might lose a little money on hardware sales but in the long run they will make money because they have a larger user base. It's like paying $100 now to make $1000 in the future.

  • McGregor

    Posted Jul 31, 2009 11:00 am PT

    Well I wasn't disappointed. I came in here to laugh at all the flame wars going on and it's been quite successful from a humor standpoint. Everyone arguing that their polygons are brighter haha! This sucks for Sony. I really hope they drop the price soon.

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