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Sony Posts Q1 Loss As PlayStation Sales Decline
Sony posted an operating loss and revenue decline during the first quarter ended June 30, both of which extended to the firm’s PlayStation business.
Sony's company-wide operating loss totaled 25.7 billion yen ($270.5m/£165.4m), compared with a 73.4 billion yen profit a year earlier.
Net loss was 37.1 billion yen ($390.5m/£238.7), compared with a net profit of 35 billion yen the previous year.
Revenues also fell 19.2 per cent to 1.6 trillion yen ($16.83b/£10.25b).
Sony’s networked products and services division, which houses the PlayStation unit, saw sales down by 37.4 per cent to 246.8 billion yen ($2.6b/£1.59b), primarily due to a “decrease in sales in the game business and of VAIO PCs.”
The division reported an operating loss of 39.7 billion yen ($418m/£254.2m), with profit declines in the games segment and on VAIO PCs again largely responsible.
During the quarter the company sold 1.1 million PS3 consoles, compared to 1.6 million in the same quarter last year. PSP sales fell from 3.7 million to 1.3 million, while PS2 sales were up by 100,000 units to 1.6 million.
Quarterly PS3 software sales declined from 22.8 million units to 14.8 million. PSP game sales were down from 11.8 million to 8.3 million, and PS2 software sales from 19.3 million to 8.5 million.
For the full business year to March 2010, Sony maintained its guidance of an operating loss of 110 billion yen ($1.16b/£704.3m).
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Copyright 2006 - 2009 Future Publishing Limited, Beauford Court 30 Monmouth Street Bath, UK BA1 2BW
England and Wales company registration number 2008885
I know they can afford to slide forever, but how long are they willing?
Sony complains about how much money they'll lose if they drop their prices, but how much more do they lose every day by not selling Playstations and their $1,500 Eee PC?
huge drop for PSP sales, Sony needs to cut the price to $149
Yep. But for some reason Sony thought it made more sense to INCREASE the price of PSP to $249 with the new model. PSP-Go is going to fail on an epic level and put the final nail in the coffin for the PSP line.
They'll bleed red through every orifice imaginable in addition to having the endless, heavy menstrual cycle they're having now if they dropped the price to $149.
I think the reference is to the PSP-GO
Still, this would only be true if the PSP & PS3 were considered such unprofitable platforms that they would fail at any price. Being more competitive, they could at least subtract the losses from people avoiding the platform if their prices were more congruent to current economics.
You're right, I misread that.
I think the implied reasoning that drop in PS3 sales helped cause the loss is a bit false. I mean isn't the PS3 selling at a loss, if so that means that the losses due to PS3 sales this year are less than last year.
Sure, the install base represents potential software sales in the future, but just looking at the bottom line from the quarter, the drop in sales should technically help. If anything the missing income from the immediate purchases that happen when most people buy their PS3's is what actually hurt.
People are clearly stuggling to hold down that second job. :)
jb1 shows his ugly face, again!
Wall_E, it was Sony who made that comment.