Sony profits sink, game division floats by

by James Ransom-Wiley { Oct 29th 2008 at 4:45PM }

With the celebratory horn tooting out of the way, let's turn to Sony's overall quartely results -- a tune, you'll find, that's distinctly grim. A 72 percent plunge in net profit and a 16-year-low share value sum up the voyage through the current economic storm. Still, the game division has posted a 10 percent rise in profit and narrowed its loss from ¥96.7 billion to ¥39.5 billion ($379 million), as PlayStation 3 hardware and software sales proved incredibly buoyant. Indeed, PS3 hardware sales totaled 2.43 million units worldwide over the quarter (besting Xbox 360 sales), as reported earlier.

More impressive, though, PS3 software sales nearly doubled in the quarter, reaching 21.1 million units. While PlayStation 2 sales were actually greater than PS3 sales in the hardware (2.5 million units) and software (23.1 million units) categories, the platform actually saw decreases of 0.78 million and 14.9 million units, respectively. The PSP business also saw a lull in software sales (um, and releases), down 0.8 million units, but still managed to move 3.18 million hardware units into eager, sweaty palms -- hang tight, the games are coming next year! Overall, however, SCE continues to post losses, and, like the rest of the company, is crippled by the weak value of the yen against the dollar and euro.

Tags: financial, fiscal-fun-facts, sce, sony

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Reader Comments (Page 1 of 2)

Matthew Hilario @ Oct 29th 2008 4:47PM

wtb backwards compatible ps3.

Chin-Poh @ Oct 30th 2008 2:20AM

Too bad Sony's killed B/C entirely and the memory card readers in the new models, the new 80gb and 160gb models have the 40gb's functionality. : (

Jake11- Born and raised in W. Philly @ Oct 29th 2008 4:48PM

the problem is the strengthening yen. It's more expensive to import expensive Japanese electronics like PS3s and Bravias

Draco @ Oct 29th 2008 9:26PM

agreed.

The Yen is way up, which is a problem because they report in the Yen, 100 USD is not worth anywhere near what 100 USD was at the beginning of the year, wouldn't be surprised if its tacked on 100$ to the price of the PS3 in the states.

TheNewmanDynasty @ Oct 29th 2008 4:50PM

Lol I sent this tip in!

LMAO at sony. Just keep on sinking and sinking.

So much for the year of the ps3...

5th hot meal @ Oct 29th 2008 4:53PM

grow up nublet.

Martin Bormann @ Oct 29th 2008 4:53PM

Ever had one of those days where your asshole just itches the entire day? That's how today is.

TheNewmanDynasty @ Oct 29th 2008 4:54PM

You just might want to see a doctor and get that checked out martin...sounds nasty.

Martin Bormann @ Oct 29th 2008 4:57PM

My drug test was even worse. What came out had the consistency of spoiled milk.

C'est la vie!

Solomon @ Oct 29th 2008 5:20PM

You are some funny shit right there. They say laughter is good for your health and with you around I am going to live forever. Which is a good thing because that's how long I am going to be playing LBP!

Killjebus @ Oct 29th 2008 5:27PM

Hey Asshat,

Is it also funny that alot of peoples stock in the company is tumbling which might lead to layoffs? Is that FUNNY too?

As many of you know I am all for bashing stupid shit that the different console manufactures say and do but wishing the DEATH of a company that employs thousands and thousands of people with FAMILIES not to mention the financial loss of stocks is as pathetic as Palin calling Obama a terrorist when she has a secessionist hubby.

I think you are supporting the WRONG candidate, you should be voting for McHATE and not Obama with all of your ridiculous hate for a company.

TheNewmanDynasty @ Oct 29th 2008 5:31PM

Uhh killjebus so I should feel sorry that they bet on the WRONG company...?

Uhh how about not. No I don't care about the employees and the families. I don't know them. Plus if they do get fired I'm sure they'll find new work.

So fuck sony.

BTW I already voted early for Obama/Biden. I have a bad feeling that things are going to be a bit crowded here in lovely North Carolina on Election Day. I pray that NC sees the light and become a Blue State but anything can happen.

Libby Dole cannot leave the Senate soon enough for me.

Killjebus @ Oct 29th 2008 5:32PM

Funny, Sony has been down this road b4 and look how it turned out. (PS2)

http://www.forbes.com/2001/01/25/0125disaster.html

Vidikron @ Oct 29th 2008 5:39PM

Wait... what does being a secessionist have to do with being a terrorist? You lost me on that one, Killjebus.

Oh, and thanks again for your brilliant insight, Newman.

Killjebus @ Oct 29th 2008 5:44PM

"BTW I already voted early for Obama/Biden. I have a bad feeling that things are going to be a bit crowded here in lovely North Carolina on Election Day. I pray that NC sees the light and become a Blue State but anything can happen."

Asshat,

Since you are in a swing state MAKE SURE you tell anyone you can that people need to check and make sure the machine registers who you vote for. There are reports from several different swing states that voting machines are switching Obama votes to McLIAR votes. If you see this happening contact your local democratic office immediately.

Do NOT let the rethugulans intimidate people into not voting. If you can, go to a voting site and assist (especially the elderly) in voting help. McCHEAT has thousands of PAID people trying to get people NOT to vote.

I live in Il. so I know it is safe for Obama, since you are in N.C. you can make a DIFFERENCE.

Nothing can stop us now!!!!!
GOTV!!!!

Sorry for the off-topic post but my families and everyone elses future is MORE important than a videogame blog.

Killjebus @ Oct 29th 2008 5:49PM

"Wait... what does being a secessionist have to do with being a terrorist? You lost me on that one, Killjebus."

The AIP calls for violence in seceding from the United States hence the terrorist comparison. But more to the point I was showing yet again the Pot (Palin) calling the kettle (Obama) black.

Gun Barrier @ Oct 29th 2008 6:08PM

Killjebus, if thats how your really feel, then you should be happy that Nintendo is making money for its workers and country, even if you do hate the "wsm."

BTW im voting, but it wont make much of a difference in NYC, no matter who i choose, since new yorkers are self proclaimed to be democratic.

PSN: johnnynumber5 @ Oct 29th 2008 6:19PM

Sony won't fail. They are to big of a company with very smart people at the helm. Just about every major corporation is in trouble right now. The United State economic collapse has had a global effect. Sony isn't going anywhere. Trust me.

DastardlyDealings @ Oct 29th 2008 6:58PM

"calling the kettle (Obama) black."

*cough* ahem *cough*

Haggard @ Oct 29th 2008 7:11PM

I don't know why people voted down Killjebus since the reports of 'broken' voting machines are actually true.

Newman - let's do a quick roleplay: Sony has gone bust and now Microsoft is the only company offering a hardcore console. This is called a monopoly and leads to higher prices, lower quality and is generally bad news for consumers.

But of course, you'd be happy playing Halo 9 and Gears 6. Woops, the servers are down again - but what's the alternative?

SyChO @ Oct 29th 2008 8:32PM

"While PlayStation 2 sales were actually greater than PS3 sales in the hardware (2.5 million units)"

Rofl!!!

Vidikron @ Oct 29th 2008 9:07PM

I don't know why people keep laughing about the PS2 sales. While things aren't that rosy for the PS3 right now, the fact so many people are still buying PS2 bodes well for the legs of the PS3. Many of those same people will likely be buying the PS3 once the next gen starts because they know that Sony won't simply abandon the system as the other companies have proven they will do to theirs.

josh @ Oct 30th 2008 1:33PM

They don't "know" any such thing. Sony hasn't stopped supporting the PS2 because the PS2 is making them money, maybe/probably/definitely more than the PS3. If the PS4 comes out and they deem that they would lose money by supporting the PS3, they will cut support. This is not a bad or evil decision on their part - they are in business to make money. If a products ceases to be profitable, you phase it it out.

brysonial @ Oct 29th 2008 4:58PM

sony sucks

TheNewmanDynasty @ Oct 29th 2008 5:01PM

What's really fun about sony is how they overcharge for everything they sell yet they still post losses.

It's absolutely hilarious. I mean damn for the price they're charging for a HDTV you'd think that would make up for w/e losses they're getting from the ps3...

juju187 @ Oct 29th 2008 5:37PM

you talk as if sony just started a new business play,
1980's walkman check the prices on those back in the day...

naxe @ Oct 29th 2008 5:47PM

@ whatever the ^&ck your name is.

And whats funny about you Sir is .. Nothing.

your pretty much an asshat from what i can see.
No offense or anything.

Binary Daoist @ Oct 29th 2008 5:05PM

I can't wait to play Sony games on my xbox

Gun Barrier @ Oct 29th 2008 5:46PM

they make games?

Phantom @ Oct 29th 2008 6:44PM

Sony own a shitload of games studious what are you talking about , and Insomniac and MM are pretty loyal to Sony . I think Sony owns the studio that made Shadow of Collassos (suddenly I can't spell) , and the Gran Turisimo etc .

Haggard @ Oct 29th 2008 8:02PM

Yeah, that's Team Ico - they're freaking geniuses. Naughty Dog too are experts. I'm less keen on Insomniac due to Resistance but I do happen to think Ratchet and Clank is pure brilliance.

Lavat @ Oct 29th 2008 5:05PM

Somehow I expect the Yen to rise Early next year. Things are in such a swing it is hard to tell if you are going up or down.

Marty @ Oct 29th 2008 5:09PM

Good thing the PS2 was such a success... I imagine the games division would be a lot less buoyant without it.

Arnon @ Oct 29th 2008 6:24PM

100% correct.. can you imagine if the PS2 was just an 'average' console?

Vidikron @ Oct 29th 2008 5:13PM

"Still, the game division has posted a 10 percent rise in profit and narrowed its loss from ¥96.7 billion to ¥39.5 billion"

I think you meant to say that the game division saw a rise in income, not profits. You can't have profits and post a loss at the same time.

The Fuzz 53 @ Oct 29th 2008 5:19PM

As per this Yahoo Finance artical, it is actually a strong Yen that is hurting them.

http://biz.yahoo.com/ap/081029/as_japan_earns_sony.html

Example: PS3 in US costs $400. At a rate of 100 yen per $, Sony gets 4,000 Yen. At a rate of 90 yen/$, Sony only gets 3,600 Yen.

But who cares. I blame their losses mostly on incompetence.

sk8monroe81 @ Oct 29th 2008 5:24PM

u realize that sony for so many years rode the other side of this money game... when to dollar was much stronger about 1995 - 2003. which allowed sony to post higher profits back then.

The Fuzz 53 @ Oct 29th 2008 5:21PM

Whoops, I left out a 0. Should be 40,000 and 36,000 Yen.

sk8monroe81 @ Oct 29th 2008 5:21PM

duh duh duh duh duh duh duh duh

" A 72 percent plunge in net profit and a 16-year-low share value "

that just sounds bad... sorry sony and sorry sony fanboys.. i know it hurts. that sucks.
sony does better when they are on the offensive side and not the defensive side of things.
now instead of thinking of new ideas and new games, sony will have to do what the "market" wants... i.e.- more shooters, casual games, and online games.

wow the ps2 sold more units than the ps3... hmmmm...
i can see why they took out BC.. lol.

Shagittarius @ Oct 29th 2008 5:26PM

If your outselling the Xbox and the games division is making more money than before, only your being dragged down by the rest of your company why would you abandon your strategy rather than bolster it?

sk8monroe81 @ Oct 29th 2008 5:31PM

shag- from the article:
"SCE continues to post losses" and, like the rest of the company...

SCE = ps3 and ps2 (sony computer entertainment)

the division of sony corp that handles gaming is SCE which continues to post losses, NO PROFIT.... drr. drr. drr.

SCE is not being dragged down by the rest of sony corp.

nice fanboy attempt to twist the truth though.

what strategy do you feel sony is using now? lol

Tramd @ Oct 29th 2008 5:38PM

are you retarded sk8monroe?

"Still, the game division has posted a 10 percent rise in profit and narrowed its loss from ¥96.7 billion to ¥39.5 billion ($379 million), as PlayStation 3 hardware and software sales proved incredibly buoyant. Indeed, PS3 hardware sales totaled 2.43 million units worldwide over the quarter (besting Xbox 360 sales), as reported earlier. "

The game division is a part of SCE, SCE is not just the game division. Go home fanboy.

Shagittarius @ Oct 29th 2008 5:38PM

I know we can all read but...

"as PlayStation 3 hardware and software sales proved incredibly buoyant. Indeed, PS3 hardware sales totaled 2.43 million units worldwide over the quarter (besting Xbox 360 sales), as reported earlier."

"More impressive, though, PS3 software sales nearly doubled in the quarter, reaching 21.1 million units. "

So they reduced their losses while the rest of company increased its losses. Thats how I read that...

Vidikron @ Oct 29th 2008 5:42PM

Well, someone is still making a profit because Sony has a whole posted a profit. The gaming division roughly halved their losses. So they are headed in the right direction but still have work to do.

sk8monroe81 @ Oct 29th 2008 5:46PM

shag and tramd-
u 2 realize that lowering losses is still a loss and not a profit right?
SCE and the gaming division lowered their losses, but still posted a loss and lost money for sony corp.

and 16 year low share value means something too, not to those of you that dont understand that stuff though.

sales can double but you can still lose money.. lol.

Tramd @ Oct 29th 2008 5:55PM

if sales are doubling how is that a bad thing for the ps3? Who cares if SCE is still operating at a lost? The ps3 is raising profits, stop being a moron and spinning that into the negative. It is in no way bad for sony.

Man how thick headed are you? As for their stock falling... just throwing this out there, maybe it has something to do with that global economic crisis? Perhaps you've heard of it? I guess you're right though, doesnt mean much to those who dont have a clue what they're taking about.

PS3 sales grow and help lower the loss of the entire division and its somehow a bad thing, right. Troll more.

Zertoss @ Oct 29th 2008 5:59PM

SCE = Sony Computer Entertainment
SCE IS Sony's games division!

If you still don't believe me: http://www.scei.co.jp/index_e.html

/facepalm

Shagittarius @ Oct 29th 2008 6:05PM

I'm sorry Sony didn't make enough money this quarter to regain the losses sustained through the developement period of the PS3, perhaps somewhere in the 10 year lifespan of said product they will recoup all their losses, however the fact that they are doing better is indeed good news.

No matter how you try to spin it.

sk8monroe81 @ Oct 29th 2008 6:10PM

tramd- the entertainment and especially THE GAMING markets have not YET been affected by the financial crisis.
it may have actually helped out.
when you can buy a game for $ 60 that may last many hours it is actually cheaper to game than go dine out or see a movie or take a drive..
go check out sales figures for gaming this year and it is actually higher than years past...

what has declined - travel, gas, driving, dining out, buying name brands, jewerly, etc.

tramd- doubling sales is obviously a positive move, but for any business, it is always bad news if you posted a loss and SCE posted a loss. end of story. if a company or division continues to post losses they will have to shut down or close that division. end of story. doubling sales probably means that they doubled from a low amount that wasnt great.
twist it anyway you want to. its ok.

xbox sales in japan went up by 1000% wow...