Despite a doubling of PS3 revs, Japanese giant sees flat quarterly revenues and sinking profits due to lackluster electronic sales.
A burden on the Japanese electronics giant following the PlayStation 3's 2006 launch, Sony Computer Entertainment has steadily risen, attaining profitability during the third of its 2007 fiscal year. Though the division's annual revenue was still in the red for the year, its losses halved from the prior year, thanks to lowered production costs, increased PS3 and PSP sales, and still-strong PlayStation 2 and software sales.
For the first fiscal quarter ended June 30, Sony's games division reaped ¥229.6 billion ($2.1 billion), a 17 percent increase over the ¥196.6 billion ($1.8 billion) the business brought in over the same period last year. PlayStation 3 and PlayStation Portable sales drove growth for SCE, and the publisher noted that the stalwart PlayStation 2 continues to show signs of age, seeing a slip in year-over-year sales. Despite the slip, the publisher noted that PS2 software and hardware sales continue to contribute to the games division's operating income, which stood at ¥5.4 billion ($50 million) on the quarter, up from a loss of ¥29.2 billion ($270 million) a year ago.
Global quarterly sales for the PlayStation 3 hit 1.56 million, a 123 percent increase over a year prior and 260,000 units more than the 1.3 million Xbox 360s Microsoft sold during the same period. Sony has now sold more than 14.4 million PS3s globally since its November 2006 launch. In comparison, Microsoft has sold over 20 million Xbox 360s internationally since its November 2005 launch as of last week. Nintendo, which will release its quarterly financials tomorrow, reported 24.4 million Wiis were sold worldwide from November 2006 to the end of March 2008.
While not quite as dramatic as the PS3's gains, PSP sales rose 75 percent to 3.72 million units for the quarter. PS2 sales slid 43 percent, down to 1.51 million units for the three-month period.
But while SCE soared, Sony Corp's overall revenues were grounded. For the quarter, Sony saw revenues of ¥1.98 trillon ($18.3 billion), a marginal .1 percent gain over the ¥1.97 trillon ($18.2 billion) posted over the same period of time a year ago. Underlining that stalled momentum, Sony said that net income was down a staggering 47.4 percent over a year prior, falling from ¥66.3 billion ($613 million) to ¥34.9 billion ($323 million).
Sony divisions suffering most significantly were its film and electronics segments. Facing a tough comparison against last year's megablockbuster Spider-Man 3, Sony noted that the Adam Sandler-led You Don't Mess With the Zohan was the biggest contributor to the division's ¥159.6 billion ($1.5 billion). That tally represents a 31 percent year-over-year decrease in sales, and as financial news service Bloomberg notes, the ¥8.3 billion ($76.7 million) loss is the division's first in seven quarters.
Sony's electronics business fell on equally hard times. While the division saw revenues grow a diminutive .7 percent to ¥1.4 trillon ($12.9 billion), operating income was way down, falling 57 percent to ¥44 billion ($406 million). Sony attributed the yen's growing strength against the dollar as a primary cause for the tumble, also noting increased price competition and a decrease in equity for its Sony Ericsson mobile division. These causes offset gains made by the company's flagship Bravia LCD televisions, which saw increased sales and profitability in all regions, the company said.
I really hope that Sony really start to pick up more and more PSP titles. I bet they are making PSP2 and have just neglected the origional :( Well, if they are, for pitties sake but 2 ANALOGUE STICKS ON IT!!!
its getting better and i find it funny how the 360 had a 12 million head start and its down to 6 in under 2 years
impressive sales, the original xbox sold 24 million in its entire life time (4 years). and gamecube sold 21 million in its life time (5 years). we are only 2 years into this generation and it seems like just the begining. I just hope that it wont be over to soon. if xbox 360 share the fate of xbox, a brand new xbox will come out next year. it seems like 360 is doing just as crappy as the original.
@world69star69 "I say: man you don't want that at all, you don't know what you are asking for. One console is not the answer, never will be. It would stifle competition. They could charge an exorbitant price on games, and deliver crap titles every other month, and it won't make a lick of difference ...... As much as I like sony hardware/software, I don't want Sony to be the lone game company. Like i said competition is what drives the industry and cause" I agree with competition, but the PC is an interesting comparison. One hardware platform, however it's not just MS that develops games, but lots of others too so there is still a lot of choice. Also interestingly, PC games seems to be cheaper.
It's funny listening to the fanboys. At the end of 2006 they said we'll get you soon! In 2007 they said this is the year! In 2008 they said this is year! 2008 is almost over, and I think the same can be said for the PS3, as it will cement itself in the #3 slot, behind Xbox360 and Wii.
The PS 3 is still in trouble. We heard all of last generation how the original Xbox was gonna catch up to the PS 2 and it never happened. It's wishful thinking. PS 3 is gonna have to not only sale consoles but also sale games, and right now the 360 is sellng the most games and thats not including the mad money coming in from Xbox live. That is what developers look for.
"I dun care about sales, but somehow sales do help the console comes out more game and more exclusive of it!!!" Obviously. Hello from FFXIII.
Keep going PS3!!! you spend few months only to catch up until 14 million, 360 spend 2 years to reach 20 million!! I dun care about sales, but somehow sales do help the console comes out more game and more exclusive of it!!! beat that plastic box!!!
YoJim8obaJoe, this man is a rarity on "the internets" he has pointed out the bare facts - the Wii may be selling like hotcakes on the back of hype and lack of public understanding of the other choices they have (otherwise known as the Xbox 360 and PS3 or even the PC) but it's still a godawful console, it has a paltry selection of games to choose from and suffers from what I like to call "ninty-syndome" . This is where you beat the franchise horse until it's dead and continue so the twitching of the pulpy corpse gives a suggestion of life - the point being Nintendo havent made an original game since well... the early 90's and gone beyond retro and into the realms of stifled creativity.
wii sold more than this article says , lol 30 million has just been reached for wii obviously, as they sell as they come in , can we say out dated, ps3 is no where near wii , will nev3r get there ,as far as games goes like it or not wii has the same as ps3 and 360 combined, and over half of which is worth a look Bull,I love Nintendo as much as the next guy but you a fool if you think WII has alot of good games,name a good 3rd party WII game apart from No more hero's,hell name a good game that doesnt feature a Italian plumber,and on a side note,in the Wii short lifespan it has already got more games rated under 3.0 than the PS2 which is ancient and had alot of crap
pudgeman007 said: I hope one day they all just come together so then we can play everything on everything. Nooooo that would result in a atari style monopoly and games would crash due to lack of rivalry
pudgeman007 said: I hope one day they all just come together so then we can play everything on everything. I say: man you don't want that at all, you don't know what you are asking for. One console is not the answer, never will be. It would stifle competition. They could charge an exorbitant price on games, and deliver crap titles every other month, and it won't make a lick of difference. We would eventually have anotther 1983 video game crash, but instead of too many consoles and crap, we would have one company with crap, and nothing new. That is MS's goal, imo. You can see it in everything they do. Getting rid of their 1st party, they want to have multiple people make xboxs like toshiba 360, samsung 360, as that is what ms is famous for with windows. while they rake in the cash. Its not a good idea. It would suck for us gamers! Compitition is what keeps us getting good games and pushes technology and art forward. It makes people like you and me come back to video games day after day. As for the wii, I bought into the hype after playing wii sports at a friends house and bought one on ebay in march, for $300. I got 2 games for myself mario gal, and zelda, and wii sports/play. Everything else mostly seems like filler, and their casual emphasis is irritating, being a hardcore gamer. Since then i haven't touched the thing after i beat the two games. My girl loves it though for ddr and won't let me sell it. Since that time when gta 4 came out, I bought a ps3 and have since massed a library of about 14 bluray games and 7 psn titles. I love it. I am mainly a hardcore pc gamer, but the lack of new games on the pc thanks to the a-whole pirates has drove me to buying my first non hand-held console since the ps1. Sony games are innovative and very ingaging. The games take longer to make and the quality put in shows. All in all I am very happy with my purchase. I have just dropped a 320gb hard drive into my ps3 for only $85. Which makes it even better now that larger psn games and movies are out. As much as I like sony hardware/software, I don't want Sony to be the lone game company. Like i said competition is what drives the industry and causes us to have good games in the first place!
"mariokart64fan wii sold more than this article says , lol 30 million has just been reached for wii obviously, as they sell as they come in , can we say out dated, ps3 is no where near wii , will nev3r get there ,as far as games goes like it or not wii has the same as ps3 and 360 combined, and over half of which is worth a look " yeah but your system is lack lust as well, well it might be fun for groups of people and kids, You misisng alot of games, and I mean alot, zelda and mario are fun, Im 25 and want Cod4 and other games, and I want them looking good , not a ps2 upgrade, Well I do like the wii and its really fun, ps3 and 360 fans want high graphical epics, So even if nintendos box sells more, It will wear off, And b, many people are saying that nintendo is holding back on shipments to make it look like its selling out, which sells more , and they give alittle more but not to much, we dont want 3809480 wiis on the shelfs, nintendo did that with the cubs, and look what happend.. , Nintendo has money , but not sony or ms money, so they have to play it safe, I hope one day they all just come togther so then we can play everything on everything.
Lol, you guys are making some good points. I do feel that PS3 is the superior system but up to this point, the 360 has had the better selection of games. Now if Sony has another blockbuster like MGS4 in Killzone 2, I will be hard pressed to say that the 360 has more selection of "quality" titles than the PS3. I think we are coming to a point where we will slowly start to see the differences in the consoles' abilities, namely the storage capacity of the Blu-Ray format and standard HDD. I feel that by Christmas 2009, you will see a difference in the systems that is on par with the differences between the PS2 and XBOX, but the roles being reversed.
wii sold more than this article says , lol 30 million has just been reached for wii obviously, as they sell as they come in , can we say out dated, ps3 is no where near wii , will nev3r get there ,as far as games goes like it or not wii has the same as ps3 and 360 combined, and over half of which is worth a look
@darkride66: "Um, I'm a 360 and a PS3 fan." You have stated repeatedly that you see no real reason to keep your 360. Your weak attempts to appear unbiased are dishonest to those who have read a few of your posts. -Part of the reason for all the thumbs down you get. Admit it, if the PS3 shot out maiming laser beams at people 25% of the time, you would still up sell it on Gamespot.
@ RockmanSRD. And yet still the PS3 has been selling way faster than the 360 ever did. Remember, sales are dropping off because Sony isn't shipping units to retailers, they're getting ready for the new SKU's launch next month, and summer is traditionally a slower period for console sales. When you look at the last 6 months the PS3 looks to have outsold the 360 by almost a million and a half unit. Also, compare 360 sales during Halo 3. 360 console sales also spiked down sharply in the weeks after Halo's release. For Sept and Oct of 07, the 360 moved about 1.4 million 360 consoles with Halo's Launch. While MGS4 didn't sell as much as Halo 3 at launch it moved a similar amount of consoles in that period. June/July - 1.3 million PS3's sold. I wouldn't worry about Sony so much. They seem to be holding their own just fine.
Sadly for Sony, their console sales have plummeted completely since the release of MGS4. The latest sales were only about half of the 360's, and news about their exclusives not being exclusive anymore are not going to help. Of course, one could argue that the exclusives haven't helped either. Were it not for the fact that the 360 has flat lined itself, the PS3 would be totally up ____s creek.
@ xdeiri. Um, I'm a 360 and a PS3 fan. I don't think PS3 fans are ruling the forums with thumbs up/thumbs down, and if they were it would be about time after 2 years of 360 fans running these boards. And the comments getting thumbed down are being thumbed down not because they present opposing viewpoints, but because they're posters with either a very tenuous grasp of the English language or just people trying to stir things up. They should be thumbed down.
@ Xdeiri a stupid RROD fanboy would say that. Look at our Lineup! You guys have nothing just Gears and Fable. We have more.
Sony?s fan boys are dominating the comments leading by ( z-blood ) and the gang ? Thumbing down every one, Unlike u guys we are actually busy playing games not watching movies .
@ Swizzle - Have you seen the sales figures for all of the prior SOCOM games? SOCOM was a flag ship franchise on PS2 with several million dedicated fans... SOCOM Confrontation is a big exclusive. I know a couple of different guys who were old PS2 guys/big SOCOM fans that bought a 360 who have told me they now wish they had bought a PS3 just because of SOCOM. I would agree that the only sure-fire system seller on that upcoming list is God of War 3. But you have to respect the depth and diversity of the other exclusives in the pipeline for Sony. Collectively they make up a list that will give Sony lots of good media love and will sway some people towards a PS3.
@ Yuck_too. Where did you get your data from? I just had a look using Game Release date data from Vgchartz and focusing on games released in the US. In the first 21 months for the PS3 - 145 titles. First 21 months for the 360 - 79? Is that right? I used only the US data as I didn't want to count games twice as they come out in US, then later in Europe (or Japan). This would seem to indicate the PS3 had almost double the games the 360 did in the same length of time since launch. I'd be interested in checking your source to find out why the huge discrepancy. Edit: I checked Metacritic as well for an idea. They show 192 games for the PS3 - approx 205 for the 360 from launch (including both PSN and XBL games). That also seems to back up my claim that the PS3 has the same amount of games as the 360 21 months in.
--darkride66 -- "That's funny. The PS3 has exactly the same amount of games out as the 360 did a year and a half in and I don't remember anyone being upset with the lack of titles." ~~~ I went back and plotted the charts based on time and the 360 actually had / has 31% more titles released based on the same length of time since launch.
--Loucetios -- Are you for real...the typical Sony fanboi response that you have used far more often then not is "look what's coming out" Heck people have been talking about MGS4 and FF13 since before the PS3 even shipped and Home since it debuted over a year ago, and you're going to call me out on Splinter Cell as being too far away? Frankly I don't actually care though...see unlike you I do have all the systems old and new and PC game all the time as well so I have far more then enough to keep me busy and when compared to all that it's why my PS3 is more Blu-ray player then games machine.
darkride66 @ blackace. I agree with all your points except I don't think the PS3 had a slow start, I just think people's expectations were too high. Everyone felt that the PS3 would kick down the door and make it's presence felt but the PS2 didn't do that, the 360 didn't do that, why on earth did people think the PS3 would? The PS3 is selling far faster than the 360 ever did, and comes close to matching the PS2's sales growth which is amazing considering the PS3's price point and the stiff competition it faced right out of the gate. ------------------------------------------------------------------------------------------------ exactly, accept fanboys can't see it if it didn't hit them straight into thier face.
@ blackace. I agree with all your points except I don't think the PS3 had a slow start, I just think people's expectations were too high. Everyone felt that the PS3 would kick down the door and make it's presence felt but the PS2 didn't do that, the 360 didn't do that, why on earth did people think the PS3 would? The PS3 is selling far faster than the 360 ever did, and comes close to matching the PS2's sales growth which is amazing considering the PS3's price point and the stiff competition it faced right out of the gate.
Darkride66: "CVM_123 said "now sony really should invest in their games." That's funny. The PS3 has exactly the same amount of games out as the 360 did a year and a half in and I don't remember anyone being upset with the lack of titles. A bit of a double standard, perhaps?" I love it how dark says something like this, and then not one person refutes it, but he's got 3 thumbs down. Shows how good at arguing the people are who say ps3 has no games. All they have is hand gestures. Half the arguments in the world could be avoided by people either A) thinking about things before they say them, or B) researching things. Fanboys neglect both of these preventions.
I'm surprised Sony had loses in it's film and electronics, as those were the divisions that were originally keeping the gaming division afloat when the PS2 launched. The PS3 is definitely doing better now, which is no surprise since it did so poorly when it first launched. There was no place for the PS3 to go, but up. The PS3 still won't catch the XBox 360 this year, but it should next year some time. I think once the American economy levels off the 360 and PS3 will both sell better in America. It'll take awhile for the PS3 to catch the 360 in America. It may never happen before the new XBox system is released. I don't see any of them catching the Wii. The Wii still continues to outsell it's competition 2:1 every week in all 3 regions. It's amazing. Good job Sony in getting the PS3 back on track.
Gaming division is going very nicely.... this christmas period will be pretty interesting for PS3/360.
"Sony has now sold more than 14.4 million PS3s globally since its November 2006 launch." "Microsoft has sold over 20 million Xbox 360s internationally since its November 2005 launch." means this end of year = PS3 will > 360? I wish it does because PS3 will have more and more games because it will be not neglected by 3rd party game developers. "the secret game ", FFXIII, GT5, God of war 3, resistance 2, motor storm 2, Home will totally push the PS3 sales and close to nintendo sales and above far away from 360...
CVM_123 said "now sony really should invest in their games." That's funny. The PS3 has exactly the same amount of games out as the 360 did a year and a half in and I don't remember anyone being upset with the lack of titles. A bit of a double standard, perhaps?
PS3 Little Big Planet SOCOM Motor Storm 2 Resistance 2 Ratchet & Clank Quest for Booty Killzone 2 Infamous God of War 3 I keep seeing this list pop up on a regular basis. And this list is a valid reason for purchasing a PS3?! Man plz. Some of you guys know damn well that the only meaningful titles on this list are God of War 3, Resistance 2, LittleBigPlanet(although I'll be damned if I buy that game), and maybe Kill Zone 2. I can guarantee that that entire list won't be huge sellers or system sellers, some of them but not all.....As a matter of fact the only real possible system seller on the list is God of War 3. Don't become a hype machine, becuz who'd want to truly take a gamble on all of those games being superb titles when in reality the possibility of that happening is not as great as some ppl boast? I've already seen third party titles that'll make some of those games look and possibly play like an old school tiger handheld, i.e. infamous v. prototype, IMO at least. And it's a good thing everyone can enjoy most of those third party games when released.
The only game comin out on Wii to look forward to that is gonna sell prolly with no doubt, is Monster Hunter Tri. With that said we still don't know when that's comin out, no information on it can be found plus the fact that they took it's section down on the japan Monster Hunter site. I dunno I think CAPCOM might have a lil surprise for us, and I hope it's Monster hunter going multiplateform or comin back to the PS3. Other than that, what's the look forward to? Maybe that new Tales game? Oh and that uuuhhh Mad World game. 3 games. Milk em.
cwhas2godhands I watched my roommate playing it. And he gave it up in 3 days after it gets so repetitive and horny. I don't play sucky games.
I love how 360 fanboys used to bash ps3 owners saying ur justifying the system for games in the future!, where people like Yuck_Too are talking about Splinter Cell: Conviction which is slated for a extremely late 09-2010 release,
yah, i muted the online chat on my 360 a long time ago, mostly because i was afraid my cursing would make children cry. henry4th, have you played GTA4? Judging from your post, I'm guess no.
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