PS3 helps Sony reduce quarterly loss

Sony's game division saw higher revenue on much stronger sales of the PlayStation 3 console during the July to September quarter but the division still recorded a loss during the period, the company said Wednesday.

Sony reduces operating loss with PlayStation 3

Still no price cut for PS3

Sony's game division saw higher revenue on much stronger sales of the PlayStation 3 console during the July to September quarter but the division still recorded a loss during the period, the company said Wednesday.

During the quarter the operating loss was 39.5 billion yen ($408 million), which was less than half that recorded in the same period last year, while sales rose 10 percent to 268 billion yen.

Red ink was reduced primarily thanks to the better performance of the PlayStation 3. The console is now approaching the second anniversary of its launch and appears to be gaining popularity after a weak start -- but the continuing losses remain a worry for the games unit.

Shipments of the PlayStation 3 during the quarter were 85 percent higher than a year earlier, at 2.4 million units, while software shipments more than doubled to 21.1 million units.

The latest figures put shipments in the first half of Sony's financial year at just under 4 million units. For the year to the end of March 2009 Sony expects to ship 10 million consoles, a target that remains unchanged from its last earnings announcement in July.

Since the beginning of October, "Sales of the 80G-byte version of the PlayStation 3 got off to a good start in Europe and North America ahead of the start of sales in Japan," Sony's chief financial officer Nobuyuki Oneda said at a Tokyo news conference on Wednesday. "As we approach the year-end holiday season we will continue to expand to a wider user base by strengthening our game software line-up and expanding non-game and network content."

Shipments of the PlayStation Portable picked up, rising 23 percent on the same quarter last year to 3.2 million units. Sony launched a new version of the PSP in October in Japan, after the end of the second quarter, so the kick from the launch of that device hasn't yet been recorded. However Sony did revise up its shipment forecast for the full year from 15 million to 16 million units. Shipments of PSP software dropped 6 percent, however.

Sony's previous generation PlayStation 2 continues to sell, especially in emerging markets where the PlayStation 3 is either too expensive for many gamers or not available. During the quarter console shipments were 2.5 million units, down 24 percent on the same period in 2007. Software shipments fell 39 percent for the same period.

Software shipments for the year are expected to be 250 million units across the three products.

Demand for the new PlayStation Network is strong, with the total number of users now past 13 million. Around 5 million of them signed up during the last six months, said Oneda.

Comments [23]

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Toneman

How can they make money with PS3 if they take a loss for every system sold? Either way, good for Sony if PS3 is helping.

ea5t5ide031

Well Hopefully Everything Works Out N Things Get Better Cuz As Of Now I Barely Turn My Ps3 On 360s Still The Better Consonle For Now At Least I Got Resistence2 To Look Forward 2 N Dont Get Me Started On My Wii Biggest financial Mistake Of My Life Guess Well See Wut Happens

artsaber

deadmanwalking wrote:

wow, that's really looking at the glass half full. Sony stock holders are in a real bind, sell now and take a huge loss , or hold on tight and hope that they don't have to file bankruptcy.

remember even though they saw it pick up a bit---we are looking at RECORD LOSSES.

I think we can find record losses with many companies this year if we follow the stock market. All I can figure is that Bluray sells are decent and the PS3 can be thanked for that revenue flow. in other words, PS3 consoles sell Bluray movies as well as games. Ususally PS3 owner = Bluray consumer also.

monkbaine

Toneman wrote:

How can they make money with PS3 if they take a loss for every system sold? Either way, good for Sony if PS3 is helping.

They pulled it off with the PS2.it's not too difficult to see it happening for the PS3 as well.

VoiceOfReason

Talk about flat out spin... What about PS2 outselling PS3? Nope lets not bring that up.. 90% revenue reduction? NO lets not bring that up.. I hope Sony is sending you guys a check for ruining what little cred you have on flat out lies to boost moral for Sony fanboys... Yeah the PS3 is the greatest profit machine ever and it sales 50 million a year.. Thats why SOny is only making 500mil this year and still has a last palce console...

i_need_a_username

woah their losses were much much less than last year..drastically, they lost bout 1 billion last year and now they lost 480 million...Ps3 is getting more common

donkeykong57

Sony really needs to step it up.

I think putting so much money in the development of the PS3 was a big mistake. You don't need expensive hardware to do the job. Just look at the 360. Since Sony choose to make the hardware top of the line, they still lose money on ever PS3 sold at $400 a pop.

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