PlayStation business swings to a £29 million loss in Q1

[AaronSOLDIER]

Sony as a whole has been losing, not SCE.

[radgamer420]

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.

Along the same lines as your article. I didnt see this thread till I posted my other thread on this. http://www.eurogamer.net/articles/20...vita-struggles

[Soldier 95B]

Sony as a whole has been losing, not SCE.

Not SCE specifically, but it appears gaming division in specific has. Not sure how they change that up. If they lower the price of the PS3, making LESS profit, will they make MORE profit from selling MORE? Might be the time to try that?

[Sub-stance1]

Sony as a whole has been losing, not SCE.

What do you mean? Back in April/ May they reported a 6.4 billion loss. 2.8 billion of that was from the Products and Services Division, which is where Playstation is. Like I said before, they are losing money but they aren't bleeding the way they were before.
http://www.gamesindustry.biz/article...-USD2-8bn-loss

[F34R]

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.

That might do more harm than good though. Less price = less money for development 1st party.

[mynd]

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

They lost $45 million, it had nothingn to do with Gakai.
This is operating revenue, not an asset purchase.

They seem to be hiding their numbers, 2.8 million PS2 and PS3 sold?
No break down in product.
Refusing to release Vita numbers? Refusing to release any real numbers.....

Sony as a whole has been losing, not SCE.

They have been lumped in with TVs for some time, this is the first time we can say that they are definatley still loosing money.

They went into Network and Products loosing money.
They came out of it loosing money.
Netowork and Products lost money while they were lumped in their.

They have "broken even" a frew times showing a very small profit in some 1/4's then it get wiped out the next...case in point the past 6 months they have made.......

.6 billion yen.

Thats 7.7 million dollars in 6 months.

They aint bleeding money, but you wouldnt call them a division in good health.

[BoyBettaKnow]

That might do more harm than good though. Less price = less money for development 1st party.

No doubt. But if it had a price drop more would sell and third party developers would have a larger install base to make games for. swings and roundabouts.

[AaronSOLDIER]

http://uk.gamespot.com/news/sony-com...-black-6185395

http://www.industrygamers.com/news/s...liday-quarter/

Sony HAS profited this gen. With this loss, either its the Gaikai deal, or Sony have bagged themselves some big third party titles for Vita, there has to be some reason for them to have gone back into the red.

[hood]

So what happens when they drop the price of the vita and noone buys it because there are no games. They need to avoid a price drop at all cost bring in some new IPs and bundle. Also the need to release multiple colors of the vita and editions. The vita is a solid device as it is and the only things slowing it down are games and apps.

[AaronSOLDIER]

So what happens when they drop the price of the vita and noone buys it because there are no games. They need to avoid a price drop at all cost bring in some new IPs and bundle. Also the need to release multiple colors of the vita and editions. The vita is a solid device as it is and the only things slowing it down are games and apps.

Agreed. A price drop isn't going to do anything in the long run.

[BoyBettaKnow]

I'm not talking about a drastic pricedrop. £170 with a game and memory card would be a sweet spot for me and many others i know. Like you said, at the moment the lack of games is what is putting me off the Vita but if it was cheaper i probably would buy one for the sake of buying one and i bet there is more than just a few of us that think like that.

[AaronSOLDIER]

I agree but only for the UK because IMO it is overpriced, PSP to my knowledge launched at £179, not £199+ like Sony have done.

[snooper71]

Sony HAS profited this gen. With this loss, either its the Gaikai deal, or Sony have bagged themselves some big third party titles for Vita, there has to be some reason for them to have gone back into the red.

my guess would be PS4 R&D and superslim production, those thing wont appear out of thin air in a month or so and they are not being sold at all at the moment.

[DeviousOne]

Sony finally turned a profit from the PS3 in back in 2010 but that hasnt made then profitable as a whole it just slowed the bleeding and the Vita currently isnt helping Sony's situation. They Need the PS4 to be a MASSIVE hit to keep the PlayStation brand going

[AaronSOLDIER]

my guess would be PS4 R&D and superslim production, those thing wont appear out of thin air in a month or so and they are not being sold at all at the moment.

Yeah probably those as well.

Sony finally turned a profit from the PS3 in back in 2010 but that hasnt made then profitable as a whole it just slowed the bleeding and the Vita currently isnt helping Sony's situation. They Need the PS4 to be a MASSIVE hit to keep the PlayStation brand going

PlayStation division is one of if not the strongest division at Sony, if they ditched the TV division they would be much better off, that's where Kaz needs to do the most work.

[DeviousOne]

Yeah probably those as well.



PlayStation division is one of if not the strongest division at Sony, if they ditched the TV division they would be much better off, that's where Kaz needs to do the most work.

While your right the gaming division of sony is the strongest. Its not as stable (while personally i do NOT want to see sony fail) they are on shakey ground as a whole company.

Here's an interesting chart i found online its not complete but gives an idea of how the market is....

[AaronSOLDIER]

Yep they have work to do, we'll see how it goes but I doubt Sony will be going anywhere any time soon, and SCE will be one of the last divisions dropped if it comes to that.

[Old Man Gamer]

I believe that they need to get out of the handheld market. At least the one they are in. They are marketing the Vita to an older audience but this is not something that is going to have mass appeal to older gamers. Based on the comments in this thread about the the current state of Vita sales, that is starting to flesh itself out.

[DeviousOne]

Yep they have work to do, we'll see how it goes but I doubt Sony will be going anywhere any time soon, and SCE will be one of the last divisions dropped if it comes to that.

SCE will be the last to go but with the Vita not selling well and PS4 (cost to make and R&D) the small profit they make with the ps3 covers ps4 cost and the vita is already being sold at a lost NOW. Vita needs a 3ds turn around and quick a price drop would make the bleeding worse in the short run with NO guarantee that it help in the long run Sony is in a tough spot. I would've held off on the Vita and push the PSP for another year or two

[DeviousOne]

Nintendo is fighting for the hand held market against smart phones and tablets Sony would be wise to pull out and focus on cloud gaming and the PS4. Its sad because Vita is really an impressive piece of tech that fact that it has TWO joysticks is just great for gaming but too pricey for that kinda money general population would buy an iphone or galaxy phone and NO im not comparing the vita to those phones just stating at the price what people would rather spend money on.

[TDbank24]

Sony has nothing to worry about. The fact that the PS3 is only 3-4 million sales behind the 360 after all that has happened this generation shows that the PS brand is as strong as ever and here to stay.

They'll turn it around. They caught a lot of bad luck and the future is bright from here on out.

[mynd]

http://uk.gamespot.com/news/sony-com...-black-6185395

http://www.industrygamers.com/news/s...liday-quarter/

Sony HAS profited this gen. With this loss, either its the Gaikai deal, or Sony have bagged themselves some big third party titles for Vita, there has to be some reason for them to have gone back into the red.

No one said they hadnt eeked out meager results now and then they have.

but you miss a couple of key points:

1/ Since they merged with Network Products, you cant tell if they have or have not made a profit, so it's poinoltess to speculate, they likely did, but its unlikey it was huge.

2/ One 1/4's profit does not make them "make money", take a look at the entire fiscal year around that.
Just because they make a 120 million in Dec 07.

take a look at the 07 fiscal year

(Million)
-237
-841
113
-287

So that year they lost 1.2 billion.

Same goes for 08
They lost -597 million despite making 4 million in one 1/4.


@Devious, no one after 09, thye combined it into another division. So you excell sheet is a bit wrong.

[DeviousOne]

Sony has nothing to worry about. The fact that the PS3 is only 3-4 million sales behind the 360 after all that has happened this generation shows that the PS brand is as strong as ever and here to stay.

They'll turn it around. They caught a lot of bad luck and the future is bright from here on out.

When compared to the xbox360 only behind 3 or 4 million when microsoft had a YEAR head start is impressive....

However when you compare it to other Playstation Consoles

ps1: 100 Million
ps2: 150+ million
PS3: 64+ million

Its not meeting the bar previous playstation consoles have set. I firmly believe this has to do with the ONE year start microsoft had on ps3. If they were released at the same time it be a different outcome however in that first year the 360 established itself in the market and ran. The Problem is with PS3 vs xbox360 its MOSTLY your a PS3 guy or Xbox360 guy while YES some own both its in the minority population of gamers.

You have 2 consoles going after the same gamer now that microsoft is seen as a Market leader its going to continue to be an uphill battle for the playstation brand

[DeviousOne]

No one said they hadnt eeked out meager results now and then they have.

but you miss a couple of key points:

1/ Since they merged with Network Products, you cant tell if they have or have not made a profit, so it's poinoltess to speculate, they likely did, but its unlikey it was huge.

2/ One 1/4's profit does not make them "make money", take a look at the entire fiscal year around that.
Just because they make a 120 million in Dec 07.

take a look at the 07 fiscal year

(Million)
-237
-841
113
-287

So that year they lost 1.2 billion.

Same goes for 08
They lost -597 million despite making 4 million in one 1/4.


@Devious, no one after 09, thye combined it into another division. So you excell sheet is a bit wrong.

Its not MY sheet its a sheet i found online im still searching thru forbes and creditable sites for up to date figures

[Old Man Gamer]

Nintendo is fighting for the hand held market against smart phones and tablets Sony would be wise to pull out and focus on cloud gaming and the PS4. Its sad because Vita is really an impressive piece of tech that fact that it has TWO joysticks is just great for gaming but too pricey for that kinda money general population would buy an iphone or galaxy phone and NO im not comparing the vita to those phones just stating at the price what people would rather spend money on.

It is a great piece of tech but it's in a market dominated by Nintendo, Apple and Google (Android phones and tablets). Granted, the Vita is more geared towards "core" gamers, people would rather game on a device they always have with them (phone) or something with a bigger screen (tablet or pad). Plus, it will be hard to convert those already heavily invested in the 3DS.