PlayStation business swings to a £29 million loss in Q1

[Sub-stance1]

Maybe that rumored slim will boost the sales this holiday.

Wider company suffers a £200 million loss, cuts annual forecasts

Sony has reported significant losses for its PlayStation unit and its wider business for the first fiscal quarter ended June 30, 2012.
The company's game segment posted revenues of 118 billion yen (£967m), down 14.5 per cent year-on-year, as sales of PlayStation hardware and software declined."This decrease was primarily due to lower sales of hardware and software of the PSP and PS3, partially offset by the contribution of the Vitaintroduced from December 2011," Sony said.
The game unit also swung from an operating profit of 4.1 billion yen (£33.6m) in the same quarter last year to an operating loss of 3.5 billion yen (£28.7m).
Overall, Sony posted revenues of 1.5 trillion yen (£12.3b) for the quarter, up 1.4 percent year-on-year, but the company made a net loss of 24.6 billion yen (£201.6m), compared to a loss of 15.5 billion yen (£127m) in the same quarter last year.
The company also lowered its revenue and operating profit forecasts for the full fiscal year ending March 31, 2013. It dropped its revenue expectation by 8.1 percent to 6.8 trillion yen (£55.7b), and its operating profit forecast by 27.8 percent to 130 billion yen (£1b).
Sony now expects to sell 12 million portable gaming systems during the financial year, down from its prior forecast of 16 million, although it maintained its forecast of 16 million home console sales.
"Primarily due to the lowering of the annual unit sales forecast for portable hardware, sales are expected to be significantly lower than the May forecast," the firm said.
"Due to the above-mentioned decrease in sales and the impact of unfavourable exchange rates, operating income is expected to be significantly below the May forecast. Sales are expected to be essentially flat and operating income is expected to decrease significantly year-on-year.
http://www.computerandvideogames.com...on-loss-in-q1/

[DarkVincent07]

This makes me a sad panda

[DeviousOne]

[Ghost-Rhayne]

Sony still have a LONG way to go until they reach a stable place again. I think this is relatively clear.

[DeviousOne]

I dont think supporting up to 5 consoles on the market would help them they currently have ps2, ps3, and vita with ps4 already on the rumor mill.

[Soldier 95B]

Meh, I see nothing to be concerned about here. We already knew there has been financial issues. The new CEO is going to turn things around. He is already cutting the fat. This won't happen over night.

[DeviousOne]

The New CEO needs to pull the plug on the psp and give Vita a fair shot on the market alone

[Soldier 95B]

The New CEO needs to pull the plug on the psp and give Vita a fair shot on the market alone

Well, the Vita is a PSP, with a new name. The problem with Vita is price and lack of games. There is a lack of games because there is a lack of Vita's sold. There is a lack of Vita's sold because of the price.

It's gonna take awhile before the Vita explodes. Like the 3DS, which people thought was DOA because of price and lack of games. Price dropped, sales increased, games got made, and now it pwns.

[F34R]

no biggie... I lost $27 this week.

[BoyBettaKnow]

Don't know about you guys but the worse the Vita does the happier I get. If it keeps loosing them money eventually, soon, it will be at a fantastic price point.

[DeviousOne]

Don't know about you guys but the worse the Vita does the happier I get. If it keeps loosing them money eventually, soon, it will be at a fantastic price point.

Im with you on that one LOL

[AaronSOLDIER]

They also acquired Gaikai for $380m

[DeviousOne]

Lets see how that use that service... smh

[Sub-stance1]

I think the whole landscape of gaming is changing right before our eyes.

[DeviousOne]

I think the whole landscape of gaming is changing right before our eyes.

We are definitely in a transitional phase in the gaming world at this time the next year or two will be very interesting

[Two4DaMoney]

They've been taking L's for a lot this gen. I don't really care too much as long as I get my ps4.

[AaronSOLDIER]

They've been taking L's for a lot this gen. I don't really care too much as long as I get my ps4.

SCE has been profiting for awhile overall, this is mainly due to them buying Gaikai than anything.

[Two4DaMoney]

SCE has been profiting for awhile overall, this is mainly due to them buying Gaikai than anything.

True that. I forgot all about Gaikai for a sec.

[DeviousOne]

Nintendo was the only one that BANKED this gen....we'll see in the future

[davin_g]

Nintendo was the only one that BANKED this gen....we'll see in the future

Nintendo pretty much always banks. When you sell outdated hardware but with innovative interaction you have demand for product that is easy to program for and cheap to make. They never sell hardware at a loss and rehash games over and over with little in the way of innovation on the content side. Lets be honest...they probably buy up all the used chips in these old cell phones we throw away...throw them in a console/handheld and then make games using them. Thing is...the public eats it up...so I don't blame them. They don't try to have the most powerful systems, most functionality, best graphics, newest games...they just do what they do best....and it is proven to sell over and over and over. I'm not hating...its a beautiful business model lol.

That said I think Microsoft overall has been profitable....I don't think the Sony Playstation brand has been profitable since they started investing in the PS3 R&D. TBH I don't know what Sony does with their money....its like they burn it....they certainly don't market and buy ADs with it lol. They must have very very high overhead. I love Sony...I love the quality and I love the products and I mostly love their game selection...but man they make things so complicated for themselves I think they hurt themselves by over-analyzing and over-engineering...they could do themselves sooo much better by keeping it simple and instead perhaps invest in advertising their games and put the extra money instead of into some incredible powerful cell chips and stuff that only 1 or 2 developers can tame and put it into some more ram and just get a nice pc processor and gpu. IDK....I don't know much about all the technical side of it...but I just think that they don't really get the best ROI for the money they are throwing into it. 360 isn't some ungodly expensive kit...and the graphics and features it can handle is basically up to par with the PS3 outside a couple skilled developers like Naughty Dog and Sony Santa Monica. Anyways....hope they can turn things around...more money means more games and more to invest back into the console.

[Sub-stance1]

SCE has been profiting for awhile overall, this is mainly due to them buying Gaikai than anything.

No. I don't think so. This is only the 1st qtr report which ended in June. The Gaiki buy didn't happen til July.

[AaronSOLDIER]

Depends when they made the transaction, couldve been months before they reported they had acquired them.

[Sub-stance1]

Depends when they made the transaction, couldve been months before they reported they had acquired them.

As far as I know they just agreed to buy on 2 July. They probably haven't completed the entire acquisition just yet so his purchase should show for the next qtr.

[AaronSOLDIER]

I just find it odd that for the past 2 years or so they've been profiting but suddenly made a loss.

[Sub-stance1]

I just find it odd that for the past 2 years or so they've been profiting but suddenly made a loss.

They couldn't of been profiting because before this they reported a 2.5 billion loss for that whole division. They may not be losing as much as they used to but it doesn't necessarily mean they are profiting. I'm sure they will address it sooner or later.