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Joystiq

Nikkei: Sony enters the black in fiscal Q1, game division turns a profit

by Ben Gilbert on Jul 26th 2010 8:30PM

According to a report from Japanese newspaper Nikkei (translated by Andriasang), Sony will be reporting its fiscal 2011 first quarter results (April 1 through June 30) in the coming days, posting an operating profit somewhere between 10 billion ($114.63 million) and 30 billion yen ($343.89 million). Among the factors contributing to Sony's reported profits was the games division, apparently achieving as much through "cost-cutting measures."

If this report is accurate, the company will be improving year-over-year profits by anywhere from $382.63 to $611.89 million -- not to mention enjoying a rare, profitable quarter for the gaming division. Sony refused to comment on the report, and the company's official release and conference call won't take place until this coming Thursday.

Via: Andriasang
Source: Nikkei

Tags: fy-2011, playstation, profit, ps3, psp, q1-2011, sony

Reader Comments (22)

/throws confetti

Congrats Sony! Give Kevin a raise, that hard-working exec is the key to your financial success!

@scratchh
I agree, he definitely helped a lot.

@scratchh

You seem to think American PS3 sales are more important than they really are (in the same way Joystiq think NPD data and Neilson stats are important).

People need to wake up, GLOBAL numbers are what are important.

PS3 outsold the Xbox by 2.2m units in 2009, and it's outsold it by 2.8m units in 2010 to date. Most of that is not the US sales (the US consumers are brainwashed by the US media into supporting the US console)

Let's not understand how awesome this is. This is a tough economy and Sony has an expensive system with expensive games. It's not ideally suited for the down economy. Hell, if they had clairvoyance they probably would have done everything completely differently.

This is awesome news for Sony. They have had a lot of success in gaming and I'd hate to see the industry without their contributions. I'd hate to go to the past where one game company dominated and squashed third parties, or the future, where everything will come together to the permanent subscription cycle MS has been salivating about for 20 years. Not that Sony is noble... of course they are anything but and have driven me nuts. But competition in this industry, which Nintendo doesn't provide a gamer like me, is critical. I hope MS and Sony are fighting this out for 50 years.

@Dustin F

Understand was supposed to mean understate.

LOL I'm stupid.

@Dustin F Expensive system with expensive games? It's equal in cost to the 360 in games and console price (unless you get an arcade... but who does that)

But yeah, agreed on everything else.

@DustbinK

Oh, I agree that it's a much better value than the 360.

Both of them are expensive in my opinion. It launched at $600, it's $300 or so now years into the gen. Games are $60. That's a lot of money considering how high unemployment is for the 18-34 male demographic.

Just my opinion. I think Sony has done everything they can to fix this problem, which is why the PS3 is a very strong value today.

Sony deserves it. :)

...amazing what one little price drop can do.

Does this mean that Sony's Software division will be better funded?
---When can I get cross-game chat for my Ps3? =(

How am I kidding, there is no way to allocate enough resources for cross game chat to work without coming into conflict with the resources that run a game. = No Cross Game Chat.

But Hooray to Sony for turning in a profit in an environment that hurts them the most.

Only 4 years baby!!

It's nice to know that we can look into the future, see the first fiscal quarter of 2011 and know Sony did well. How are the reviews on Infamous 2?

@OnToGloryReturns That's funny. And you're right. All we have is speculation at this point. We won't know for sure until Thursday.

Thank god they turned a profit. If not MS would have control of the hardcore gaming market. Now i don't own a PS3 or plan to anytime soon but this means Sony will keep on competing with MS in the future. Which is good for me as an Xbox owner because MS will have to keep on bringing me premium products. Competition FTW!!!!!!

@kives343

Thank You!! Competition is the best thing in the world. Creates innovation and thus creates better consoles, systems, features, games, and anything.

This is why I hate FANTOYS!! or people who buy ONLY on the fact that there is a logo branded on the thing. Not saying, they can do it. More power to them its their money but it hurts innovation in general.

I would like to appreciate your comment with my offer of a +1

If true, great job Sony!

Two thumbs up!!!

Have they recouped the money from research and development, and from all the systems they've sold at a loss in the last four years? Then they haven't turned a profit.

@MNeko

In the same way Microsoft have lost over $9bn on the Xbox. It's in the past dude...

@GeorgePunk It's still money lost. If you spend a billion dollars on a product and only receive 500 million as a return on your investment, that's a net loss of 500 million dollars. Sony's going to have little to show for this console generation. Probably Microsoft as well, thanks to high initial development costs and the expense of repairing systems because they didn't design them right the first time. Nintendo's the only one of the three that knows how to act like a fiscally responsible business.

Actually George, I was being funny (as anything related to Kevin is).
I agree that world sales, not just US, are clearly what is important from a financial perspective for Sony. But the US market has been and for the forseeable future will remain a critical bell-weather market due to the US's unenviable position as the biggest consumer nation and enviable position as leader in game development (at the moment).
Finally, your media brainwashing argument is nonsense. Personally I love my PS3 and don't own an xbox, but the xbox ecosystem was designed and marketed effectively towards a US audience, which is why it did well here in the US, good in Europe (similar culture), and piss-poor in japan/Asia.

Good to see that the company's finally getting back on track

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Breaking News

Nikkei: Sony enters the black in fiscal Q1, game division turns a profit

Reader Comments (22)

Posted: Jul 26th 2010 8:39PM Ezio Auditore da Firenze said

Posted: Jul 26th 2010 8:40PM scratchh said

Posted: Jul 26th 2010 10:38PM TManifest said

Posted: Jul 27th 2010 3:06AM GeorgePunk said

Posted: Jul 26th 2010 8:42PM Dustin F said

Posted: Jul 26th 2010 8:43PM Dustin F said

Posted: Jul 26th 2010 8:45PM DustbinK said

Posted: Jul 26th 2010 9:07PM Dustin F said

Posted: Jul 26th 2010 8:42PM CrimsonRyan said

Posted: Jul 26th 2010 8:48PM ShadowXIII said

Posted: Jul 26th 2010 9:11PM xiLeShadow said

Posted: Jul 26th 2010 9:23PM trickybuz93 said

Posted: Jul 26th 2010 9:34PM OnToGloryReturns said

Posted: Jul 26th 2010 10:33PM Starcade said

Posted: Jul 26th 2010 9:38PM kives343 said

Posted: Jul 26th 2010 10:26PM xiLeShadow said

Posted: Jul 26th 2010 10:34PM MLC said

Posted: Jul 26th 2010 10:55PM MNeko said

Posted: Jul 27th 2010 3:04AM GeorgePunk said

Posted: Jul 27th 2010 3:59PM MNeko said

Posted: Jul 27th 2010 9:32AM scratchh said

Posted: Jul 27th 2010 8:45AM Mr Khan said

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