Sony has posted a net loss of 158 billion yen (£1.3 billion) for its third financial quarter ended December 31, 2011, compared to a profit of 72.3 billion yen (£559 million) a year ago.
The Consumer Products and Services division - which houses Sony's PlayStation, TV, video, digital imaging, PC and mobile businesses - recorded a quarterly operating loss of 85.7 billion yen (£710.3 million), versus a profit of 63.5 billion yen (£526.3 million) for the same period last year. Sales fell 24.4 percent to 996.5 billion yen (£8.3 billion)
Sony said: "Categories contributing to the deterioration in operating results... include LCD televisions, reflecting a decline in unit selling prices that exceeded cost and expense reductions, and the game business, reflecting higher marketing costs to promote network service platforms and lower sales of PlayStation 3 hardware due to a strategic price reduction."
The firm sold 6.5 million PS3s during the quarter, up from 6.3 million a year earlier, as well as 2.4 million PSPs, down from 3.6 million, and 900,000 PS2s, down from 2.1 million.
It also sold 66.2 million PS3 games, up from 57.6 million during the same period last year, 11.4 million PSP titles, down from 16.5 million, and 2.5 million PS2 games, down from 5.3 million.
Former PlayStation boss Kaz Hirai will succeed Howard Stringer as president and CEO of Sony on April 1.
Comments
58 comments so far...
WraithBringer on 2 Feb '12 said:
They make a valid point. They spent millions repairing the damage Anonymous caused, then there was the Tsunami in Japan and also in Thailand, their stock centre in London was raided during the London riots and to top it off the Yen is so much higher than the Euro and the Dollar at the moment that they're making little to no profit on their goods which doesn't help the billions they lost in damage control.
I just hope things start to improve, with Kaz Hirai as President and CEO, things should start to change soon as he pretty much tackled the PS3 debacle head on and made something out of nothing.
singhcoventry on 2 Feb '12 said:
Holly cow
buffig on 2 Feb '12 said:
Mistletoe cow
RustySpoon80 on 2 Feb '12 said:
You can see why Sony dont want to release a PS4 yet. If its taken them this long to start making a profit on PS3, they wouldn't want to compromise that profit level.
The PS4 will have to be cheaper to produce than the PS3 was so they can start making a profit much earlier in its life.
Hopefully cheaper Blu-ray drives and a new CELL chip could achieve this.
fitterthanmost on 2 Feb '12 said:
what a suprise that companies made less money when a big recession hit the world market?
nee50n on 2 Feb '12 said:
I could see Sony move out of the console business (and possibly be replaced by Apple).
KesMonkey on 2 Feb '12 said:
Wow. I know these are tough times, but...wow. That's a hell of a lot of money. Especially when you lose it. That's four years in a row that Sony have been losing money. For the sake of Sony, I really hope that the second half of the PS3's 10 year cycle is considerably better than the first half. They'll also need to seriously rethink their strategy for PS4, as their current one (research, develop, and manufacture needlessly complicated and expensive hardware, and sell at a loss) is clearly not working for them. That's if they're even still in the console manufacturing business in a couple of years.
Agent75 on 2 Feb '12 said:
Sony went over the top with the PS3, not forgetting the price of it at launch. The Vita price is another example. And they'll do the same with the PS4. They'll never learn. Sony still don't make a profit on their teles. They must love it.
svd_grasshopper on 2 Feb '12 said:
apple wont do good in the console business. not at all.
their sales rely on low-level IQ douchebags wanting to be seen in public brandishing their stupid-looking devices. a rounded-off, over-expensive console sitting in the corner of a room doesn't fit the profile.
furthermore its not got that speccy guy in jeans and black top to hype it up.
sony is having a difficult time right now with everything. and with two new consoles on the horizon it doesn't get any better - unless they go the microsoft route and make the ps4 a relatively weak, non loss-leading set-top casual market box.
they need to stimulate ps3 sales while this gen is still active.
StonecoldMC on 2 Feb '12 said:
Sony are a huge company and their Gaming division being just one part of it.
For there sake and everyone else's, I just hope that the Vita is a success and they don't run into anymore trouble, they certainly don't need it.
a3HeadedMonkey on 2 Feb '12 said:
The PS3 has been a massive financial disaster for Sony. If their next console suffers even half the problems the PS3 has caused itself, expect the Sony Computer division to go the way of Sega.
Weezer on 2 Feb '12 said:
I don't see how Sony can possibly advocate pushing forward with next-gen console development - unless they stick to off-the-shelf parts to drastically reduce costs. And in that case I don't see how it can be substantially different from what Microsoft might produce. Frankly, with my limited knowledge of company accounting, I find it astonishing that Sony can lose a shedload of money for four years on the trot and still be in business. I'm assuming huge cash reserves and/or bank loans and goodwill but... wow. I wouldn't even put money on their being a PS4 at this rate.
"apple wont do good in the console business. not at all.
their sales rely on low-level IQ douchebags wanting to be seen in public brandishing their stupid-looking devices. a rounded-off, over-expensive console sitting in the corner of a room doesn't fit the profile."
I don't what's sadder: the fact that you genuinely believe this clichéd s**t or that you posted the ignorant drivel in a public forum.
dicky1993 on 2 Feb '12 said:
i hope they don;t rush out a new console now? that wouldn't be a smart move
a_adji on 2 Feb '12 said:
The issue is the millions Sony spent developing the ps3 and coming out at such a stupidly high price which to them was still reduced from the original price. This caused them to lose stupid amounts on every machine sold.
Don't get complacent and think people will buy your products at any cost. This has messed them up since the ps3 began. They will think twice if they go ahead with the ps4
Gambini on 2 Feb '12 said:
This is off-topic, but you're doing nothing other than perpetuating a false stereo-type of Apple 'Fanboys' from about 5-10 years ago. Don't assume everyone who buys an Apple product is a 'low-level IQ douchebag' just because the product doesn't tickle your fancy.
On topic, I absolutely love my PS3, I think as a successor to the PS2, it's ticked most boxes (for me). However, it has been very poorly managed and marketed by Sony resulting in a lot of money being wasted. Sony has also had a LOT to contend with from hacking scandals to natural disasters - I sincerely hope they have a better plan for then next few years as I'd hate to see Sony bail out of the console business.
ricflair on 2 Feb '12 said:
Surely they have to ask themselves what the f**k are they still doing in the TV market when their TV business has made a loss for seven years straight. I know they have other products to sell around their TVs, like BR, PS3 and things like 3D etc for their film/music, but it just seems mental and they seem so wildly out of touch, especially in terms of their pricing of things.
It's their biggest source of revenue, yet they make massive losses on it. Fair enough the tsunami and the floods will have effected things, but seven years straight? Something's got to give, either within Sony or the Japanese economy if the Yen is f**king them over that much.
I thought the PS business was pretty solid in it's own right though? But they must've taken a large hit on the RRP recently; these £150 PS3s we've seen floating around lately aren't that price due to the retailers taking a hit.
And also, Sony have marketing costs? I thought they'd pretty much given up on marketing, because they seem to have a fraction of the coverage that Nintendo and MS have.
JBoo on 2 Feb '12 said:
With the amount of bad luck they had last year i am not surprised. It seemed every month last year they had a new thing go wrong. Oh well hopefully KING GOD Kaz
can make them better + i really would hate a gaming world with just MS in it(well i would give up gaming) LOL
phate666 on 2 Feb '12 said:
Ahahahaha!
svd_grasshopper on 2 Feb '12 said:
edited accordingly. t**t.
Barca Azul on 2 Feb '12 said:
The yen is killing Japanese companies, look at Nintendo's losses too.
The TV business is killing them (like 99% of TV makers), or should I say Samsung!
New leadership
The company has struggled in recent years, particularly at its TV division, which has lost money for the past seven years.
It has been hit by price falls, an oversupply of panels, and intense competition and innovation in the electronics market, analysts say.
No wonder they annonuced Kaz Harai yesterday with these results though. been a really tough year for them though and the next year will be an even tougher one for Kaz.
StonecoldMC on 2 Feb '12 said:
Blatant stereotyping is not allowed on the board grasshopper? Not too mention that some may find this post offensive.
Edited accordingly.
Chris_Shanahan87 on 2 Feb '12 said:
you don't see MS in this position
porkchopz on 2 Feb '12 said:
And then there's people like my good self who were making tunes on a powermac based setup waaay before all these posers discovered the ipod...
I don't care what anybody says, macs are just so much more ergonomic for making tunes. Gimme Logic Pro over anything on the pc, anyday of the week.
ste hicky on 2 Feb '12 said:
Ouch. Unlike Nintendo who have no debt and absorbed last weeks loss figures without noticing, this will bite badly at SCE. No doubt.
The yen, PS3 manufacturing costs and serving a massive consolidated debt against SCE are real problems for Sony going in to the next gen. Then factor in R&D for Vita.
I mentioned it to Irongut the other week but they'll be selling studio's/ closing them down by the end of 2012. In fact, they started the other week as they have to balance a massive debt that has been made worse with this 2 billion dollar net loss.
Sales and Operating Revenue --> $ 23,370
Operating Loss --> $ 1,176
Net Loss --> $ 2,038
Again: Ouch.
Best of luck Kaz, I bet Howard is laughing his balls off.
lonewolf2002 on 2 Feb '12 said:
Do Sony's mis-fortunes bother you that much that you appear to attack/bring the competition into this for no reason?
Sentinator on 2 Feb '12 said:
If they sell PS4 at a profit then there won't be a problem. I think they could go at a profit right away. It likely means the graphical jump won't be that big next gen.
KK-Headcharge78 on 2 Feb '12 said:
Someone has their knickers in a twist
On topic I will say just 'jack of all trades, master of none' and never has this been truer for Sony as several of their divisions are drowning against the competition, gaming is not one of them quite yet but it soon could be if the Vita does not deliver BIG.
ashadian on 2 Feb '12 said:
Sony as a whole have been screwed of late but i think they will be back this year big time! They've took control of the phone arm and now are merging all their divisions and ideas together. Sony Entertainment network+Playstation Network are all combining with music unlimited and video unlimited etc. Look at how much an improvement their new Xperia S and Ion Phones are over the previous ones???? Smartphones is where the profit is at the moment and Sony have been slow to react but they have an advantage over Samsung etc in that they also have the entertainment and content already! Vita is a quality bit of kit! Sony are back baby just watch this space!!!!
ste hicky on 2 Feb '12 said:
“That’s the spirit!, If nothing else works, a total pig-headed unwillingness to look facts in the face will see us through”
http://www.thecommentator.com/uploads/article/crop_inner/a4dd82f0cc93bd85b2fc9a4954d28facc1b13597.jpg
tomcat1000uk on 2 Feb '12 said:
I think its inevitable Apple will become a successful games machine of sorts via the set top box. Just a question of when they want to formally open the flood gates.
While MS, Sony and Nintendo invest millions on developing new hardware, and games continue to need bigger and bigger teams...(and thus Originality becomes risky business). It falls on the smaller developers to come up with the original games, but these are small enough and cheap enough to launch digitally.
The iTunes store just becomes a bigger temptation. Granted it will be full of dross, but its hardly going to put off a small developer compared to the red tape they have to go through with the big 3.
Of course it wont interest us true gamers, but it will inevitably speed up retail sales decline along with traditional retail box games and allow Apple a slice of the home games market.
One things for sure, we are about to head into a revolutionary next Milestones in home gaming
ste hicky on 2 Feb '12 said:
Apple are filing patents for Apple TV not set top boxes.
I don't think they'll enter the console market, per se, but that doesn't mean i don't think they are a major threat to all 3.
Even more so if they have one standard of tech in every TV on the market.
KK-Headcharge78 on 2 Feb '12 said:
Genius
Barca Azul on 2 Feb '12 said:
They trade in undervalued Dollars, not Yen and also dont have TV's
billysastard on 2 Feb '12 said:
i wonder how much their lawyers cost them, not just in terms of their legal fees but also in the damage caused by revenge attacks globally, add that to the many people boycotting them totally for various misdeeds over the years and it must add up, they are getting their arses handed to them in the tv market, the ps3 launch was a disaster only surpassed by the nintendo virtual boy and their own ps vita, frankly the sooner they quit the console business the better and they can join thq and take their online passes with them.
NEO_SUPERMAN on 2 Feb '12 said:
GAME OVER.
bjjcjc on 2 Feb '12 said:
I think sony messed up pretty badly with the PS3. Yes it may be a bit more powerful than the 360 but Sony made the PS3 in a way that it was much harder for developers to extract this power. The split memory architecture and the lousy read speed of the 2x blu ray drive in the PS3 caused major bottlenecks.
The two most expensive components at launch in the PS3 were the Cell Processor at $230 , the Blu Ray drive at $350, and the GPU at $70, compared to the 360 which cost $100 for the CPU, $100 for the GPU and $50 for the 512mb GDDR3.
Sony ought to be able to create a much more powerful version of the cell processor at a much cheaper price than $230 per processor, especially considering they bought the fabrication facilities from toshiba. you would now also be looking at a price of $50 or less for a 10x blu ray drive, leaving alot more to spend on other components.
martinawatson on 2 Feb '12 said:
cock
martinawatson on 2 Feb '12 said:
Didnt really help that IBM, stitched them up a bit, dont rule Sony out though, and definitely don't rule Apple out, Apple could make a play now that would knock the others into a cocked hat.
There is a number of things that Sony could do to stimulate sales , but often it seems that they cant really get themselves organised enough.
bjjcjc on 2 Feb '12 said:
No way I am ruling them out. As I pointed out in my original post, Sony are probably in a position to make a games console that is much more powerful than the PS3, and losing much less money per unit in the process, if any. I just hope they learn the lessons of the PS3 and release a console which allows developers to extract every little bit of power from it that they can.
sjholland87 on 2 Feb '12 said:
Why would you give up gaming if it was just microsoft and nintendo?
Sony fanboy much.
sjholland87 on 2 Feb '12 said:
Sorry but any person who calls music 'tunes' can not be taken seriously.
I create all my music on a windows using Adobe Audition and a wonderful free programme called Audacity. I also spent a grand total of £300 less than I would have done on a mac.
I can guarantee their will be no difference on the output.
Son congrats on being brainwashed with the "must buy mac for media" bullcrap
Barca Azul on 2 Feb '12 said:
I think if this were the case, id probably be playing 3rd party mostly based on today!
Imaduck on 2 Feb '12 said:
Sj, surely the fact that JBoo refers to Kaz "Riiiiiiiiiiiiiidge Racer" Hirai as "god" should tell you all you need to know about the capacity of his brain
On topic: that's a painful blow. Sony can take it if anyone can, but it will have some repercussions sadly. Hey, all I can say is I hope they learn from it. I think they had made some mistakes this gen, which I feel is good for them in the long run. What doesn't kill you makes you stronger right?
rip_it_up on 2 Feb '12 said:
Love blackadder goes forth.
spaced73 on 2 Feb '12 said:
things could have been so differant,if only they had not postponed the european release date i and probably many others would not have bought a xbox360,been a fan of the playstation up until that point,dont want them to pull out of the console market and hope they get back on track.
flyfletch on 2 Feb '12 said:
Yep, because as a company, it seems MS do a lot more right, they for a start turned the Xbox division into a profit making division in i think around 3-4 year, even taking into account the RROD debacle. Sony have made a loss on the PS3, pretty much from day one, simply becuse it was car crash when released, you can argue the point if you wish, but anyone who remembers the release of the PS3 and the 2 years of under whelming games and bad cross platform releases after that would not be able to deny it, so its no surprise, and they have only really started to turn it around, but a bit late, as this generation has pretty much run it course, I wish it was different because i loved all my playstations from the start, but its been a bit harder to show this one the love......im getting there though lol
flyfletch on 2 Feb '12 said:
This Made me laugh lol though i cant disagree with your train of thought lmao
Very_Silver_Ownz on 2 Feb '12 said:
After the epic fail launch of the PS3 and MS buying up all of the exclusives I'm surprised Sony has even lasted this long.
Other than a few stupid mistakes such as removing features from the PS3 I have really enjoyed the PS3 and also the PS1 and PS2. I also don't like the thought of a Microsoft only future.
KippDynamite on 2 Feb '12 said:
Sony is a humongous company, and their gaming products are not a very large part of it. This is like fearing that The Colbert Report will be cancelled because Viacom posted some losses.
Also, keep this in mind: Sony is posting huge losses. The board thus decided to get rid of Stringer. Who do they choose to put in charge of things? The guy who runs their (relatively small) Playstation division. I doubt that they would have put Kaz in charge if they didn't think that he knew how to make a buck.
Who knows, though. Corporations do crazy things.
And for those that think Apple will dominate in the gaming market? Well, for those who think the Vita is expensive then they might have to close their eyes at the fact that Apple's "mobile gaming" machine costs just as much, has naff controls, and is greatly underpowered. And it would DEFINATELY recieve a yearly redesign.
Mmmmgrolsch on 2 Feb '12 said:
Why? So you can get to sleep at night knowing they won't rape your dog again? Or did they do bad things to you mate?
Damn evil Sony! You do nasty things to all these poor people like billysastard.
In all seriousness, you've got to be a right prat to hope any of the console manufacturers drop out.
jm3811 on 2 Feb '12 said:
There are too few exclusives on the PS3 and the other consoles cost less, that's for the gaming part.
For the rest Sony have done some iffy products and poor marketing.
ChrisBradley on 2 Feb '12 said:
Sony RCA also closed Arista, Jive and J Records in October, and a month later they bought EMI's publishing sector for £1.4 billion, so its alot of reductions and spending, so hopefully in 2012 it should bounce back with that aquisition. the hacking scandel didn't help, pretty much everyone heard that and put at least a few people I know off buying a PS3, though i still got one in the midst of it, so it may not have been that great of a loss
i don't think its time to panic just yet
sjholland87 on 2 Feb '12 said:
So very true.
Fanbois remind me of right wing politicians. Nobody likes them but we have to listen (or in this case read) them.
sjholland87 on 2 Feb '12 said:
And took EMI's profit margins with them...
So it negates the loss of the purchase which was around the same (plus whatever was made after the purchase). If anything, they made a gain as they closed underachieving subsidiaries.
porkchopz on 2 Feb '12 said:
Although the best-looking PS3 exclusives (GoW, Killzone, UC2, etc) still look better than anything on the 360 - just to play devil's advocate.
porkchopz on 2 Feb '12 said:
I can see why your username is fitting now (only joking lol). The PS3 may have taken some time to get going in a market which was already dominated by 360 and Live. However, to say that anything left a worse stain than the hardware problems MS faced with the RROD is just daft IMO. I mean...they made Alfa Romeos look like the pinnacle of reliability!
KK-Headcharge78 on 3 Feb '12 said:
The fact that Sony's main problem is the not the game area is worrying considering how over stretched it is across several categories not a single one of which it leads. Pick up the FT or read the business threads the picture is far from rosy. One thing is for sure the games market needs Sony (and I don't have a PS3 btw)
Old Skool Gamer on 3 Feb '12 said:
f**k me and call me fred!