Sony profits dip, games division way up

by Justin McElroy { Jul 29th 2008 at 3:45PM }

OK, Sony fans, there's good news and there's bad news, which do you want first? ... Bad? OK. Sony's profits from April to June dropped to ¥34.98 billion ($326.9 million), which is about half as much as it made during the same period last year. (Ouchers!) The problems came from the lack of a big summer hit like Spider-Man 3, poor performance from Sony Ericsson and other factors.

So what's the good news? Well, the video game division (earnings dead weight for quite some time) actually battled back to put up ¥5.4 billion (around $50 million) in profit after PlayStation 3 shipments rose to 1.56 million, a far cry from what we were hearing last October. It ... lives!

Tags: profits, ps3, sony

Reader Comments (Page 1 of 1)

DeaconGTG @ Jul 29th 2008 3:49PM

Great pic. I heart my PS3, but Frankenstein is a good analogy for that behemoth.

j.howlett @ Jul 29th 2008 3:52PM

it's alive

FOXHOUND @ Jul 29th 2008 3:54PM

LOL if that's a scene from YOUNG FRANKENSTEIN, then I'm gonna go put it on the Ritz right now. XD

Shagittarius @ Jul 29th 2008 4:14PM

Its pronounced 'fronk -n- steen'

Tiptup300 @ Jul 29th 2008 11:30PM

No! Walk _this_ way!

browntown @ Jul 29th 2008 4:06PM

Nice, now it means more great games from SONY. Now that the engines are built for many games, hopefully we get great games from each dev every two years, 09 looks pretty good as well, keep it up.

Nutchos @ Jul 29th 2008 4:07PM

So does this mean this mean the playstation 3 is now profitable or is the PS2 carrying the division?

Either way, good news all around. All three manufactures seem to be back in black for the new gen consoles.

Spiza @ Jul 29th 2008 4:23PM

Don't forget that the PSP has been doing better as well.

Vidikron (FU) @ Jul 29th 2008 5:27PM

Probably the PSP and PS2 help a lot, but this means that the PS3 isn't pulling the whole ship underwater anymore.

Leobebes @ Jul 29th 2008 4:14PM

Good you need Sony in this race to keep things fresh and competitive.

Ninjakamster (PS360 FTW!) @ Jul 29th 2008 9:09PM

Exactly, its a shame so many just want Sony to abandon the market like Sega sadly had to do.

F1 & The Way PC used to be. @ Jul 29th 2008 4:43PM

Goooood!!! Everything has gone exactly as I've desired!

Nugent @ Jul 29th 2008 4:47PM

@Nutchos: If you go over to Edge Online there is a more detailed breakdown. Most of the increase in profitability with regard to the PS3 probably came from increased PS3 software sales.

We can see why they haven't been buying out exclusives though; that's still a relatively slim amount of profit for a company as big as Sony. If they were paying out in the sums MS was rumored to be paying, they'd be in the red for this quarter.

dark_inchworm @ Jul 29th 2008 4:49PM

Sony Ericsson is doing poorly? Funny, I've been seeing the W580i phone everywhere. (This, for the record: http://en.wikipedia.org/wiki/Sony_Ericsson_W580 )

Maybe that'll show up on their next report.

And really, while I am kinda on the middle ground concerning Sony's Playstation division, I do thoroughly enjoy my W300i phone.

dark_inchworm @ Jul 29th 2008 4:50PM

Oh, and... sorry if I seem like I'm peddling their products. Can I interest you in some fine leather jackets?

Ayrkain @ Jul 29th 2008 5:28PM

It's not just Sony-Ericsson; it's also the weak dollar vs. the yen and the consequent effects on the electronics market.

Marty @ Jul 29th 2008 5:01PM

Sony's investors aren't paying much attention to the good news, Joystiq. Their stock fell about $2.50, first time under $40 in a long time.

The_Punisher @ Jul 29th 2008 6:35PM

Once again negative. Can't you TRY to say something positive?

On second thought, don't bother. I wouldn't want to be the cause of your death.

nick @ Jul 29th 2008 6:03PM

The stock fell because Sony admits that it's outlook is not favorable at the moment. Consumers are spending less on higher cost or higher end items right now, and Sony typically sells electronics that are higher cost or higher end.

Also, Sony is still carrying a good amount of debt. As of March this year, they had 10 billion dollars worth of debt.

Lately their movie business has been underperforming.

The PS3 is peforming better, but has been a slow starter. Sony's game division has almost always carried the company during difficult times. The PS3 needs to carry the company.

Blu-Ray is the only high definition disc format now available, but hasn't yet achieved mainstream success. I would think they'll be a renewed push around the Christmas holidays this year. The players really need to be sub $200.

Sony needs to jettison under performing units, which would probably mean ditching the audio line (ie walkmans) and their phone business is becoming a money pit. Long term, Sony's music division could be a concern too.

EliteBeatsAgent08 @ Jul 29th 2008 6:17PM

Not to mention the ps2 and possbily the psp are the only things keeping "sony games" afloat these days.

Maverick Saturn @ Jul 29th 2008 8:09PM

Oh?

NoHitHair @ Jul 29th 2008 8:54PM

Proof that a healthy mix of brand loyalty, extermination of exclusivity, touting comparable hardware as miraculous (Cell) and a willingness to drop half a grand to purchase a product for only a single title (MGS4) will sell anything.

Sprinkle some gamers who obsess over ownership of all new consoles regardless of their merit, add a dash of typical public short-term memory to absolve that pesky PR problem and the blatant technological plagiarism that left the Sixasis' motion controls a rug-swept deformity and you've got yourself quite the cashcow.

I considered using $400 as kindling to keep me warm at night but perhaps this is a better investment.

na2ru1 @ Jul 29th 2008 9:49PM

I brought the ps3 since launch. 13 games.

WTF is it with all the sympathy for xbox these days?

NoHitHair @ Jul 29th 2008 10:43PM

Who said I'm pro-Xbox? I have problems with the entire industry as a whole. Even Nintendo, the company who traditionally bent over backwards for their customers is beginning to severely disappoint - something I believed could never happen.

And 13 games for a console after over a year and a half is very sad indeed. I doubt you still play all of those titles (or even most). And how many of those 13 are exclusive? It's a bit of a moot point to discuss the advantages of the PS3 if the games presented in defense of it are available on other systems.