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PlayStation business swings to a £29 million loss in Q1

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.

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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 Vita introduced 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."

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