With global shipments of the PS2 and PSP hardware down; and the PS3 early in its lifespan - Sony has confirmed a global ¥54.2 billion (€351-million) ‘operating loss’ for its Games division in the third (financial) quarter to December 31st 2006. This compares to a ¥67.8-billion (€558-million) profit for the same period in 2005.
The company as a whole saw net income drop by 5.3%.
The drop in profits for the Games division is being blamed on, “lower than expected sales from the PSP business and higher than anticipated charges associated with the launch of the PS3 platform.” In short, while DS and DS have dented PSP sales globally, we are incredibly early in the lifespan of a new console.
According to Sony’s official release:
While shipments (the number of units sent out of the manufacturing bases) were down, sales increased 5.6% compared with the same quarter of the previous fiscal year.
There was an increase in overall sales as a result of the launch of PS3 in Japan and North America. PS2 sales declined as a result of ‘strategic price reductions’ despite the fact that unit sales were ‘relatively unchanged’ compared to the same quarter of the previous fiscal year – the actual figures are listed at the bottom of this story.
PSP sales declined due to a decrease in unit sales compared with the same quarter of the previous fiscal year.
Worldwide hardware production shipments (and decrease compared to the same quarter of the previous fiscal year):
PS2: 4.11 million units (a decrease of 1.25 million units)
PSP: 1.76 million units (a decrease of 4.46 million units)
PS3: 1.84 million units
Worldwide software production shipments (and increase/decrease compared to the same quarter of the previous fiscal year):
PS2: 78 million units (a decrease of 15 million units)
PSP: 21.2 million units (an increase of 4.1 million units)
PS3: 5.2 million units
But it’s not all bad news, apparently, Takao Yuhara also told those Tokyo reporters that the games division is expected to break even next year.
The company as a whole saw net income drop by 5.3%.
The drop in profits for the Games division is being blamed on, “lower than expected sales from the PSP business and higher than anticipated charges associated with the launch of the PS3 platform.” In short, while DS and DS have dented PSP sales globally, we are incredibly early in the lifespan of a new console.
According to Sony’s official release:
“Despite the continued favourable performance of the PS2 business, the overall performance of the Game segment is trending below that anticipated at the time of our previous forecast in October 2006 due to lower than expected sales from the PSP business and higher than anticipated charges associated with the launch of the PS3 platform.
“This deterioration was primarily the result of the loss arising from the sale of PS3 at strategic price points, as well as the recording of other charges in association with preparation for the launch of the PS3 platform. In addition, operating income from the PS2 business and PSP business declined due to sales declines.”
“This deterioration was primarily the result of the loss arising from the sale of PS3 at strategic price points, as well as the recording of other charges in association with preparation for the launch of the PS3 platform. In addition, operating income from the PS2 business and PSP business declined due to sales declines.”
While shipments (the number of units sent out of the manufacturing bases) were down, sales increased 5.6% compared with the same quarter of the previous fiscal year.
There was an increase in overall sales as a result of the launch of PS3 in Japan and North America. PS2 sales declined as a result of ‘strategic price reductions’ despite the fact that unit sales were ‘relatively unchanged’ compared to the same quarter of the previous fiscal year – the actual figures are listed at the bottom of this story.
PSP sales declined due to a decrease in unit sales compared with the same quarter of the previous fiscal year.
Worldwide hardware production shipments (and decrease compared to the same quarter of the previous fiscal year):
PS2: 4.11 million units (a decrease of 1.25 million units)
PSP: 1.76 million units (a decrease of 4.46 million units)
PS3: 1.84 million units
Worldwide software production shipments (and increase/decrease compared to the same quarter of the previous fiscal year):
PS2: 78 million units (a decrease of 15 million units)
PSP: 21.2 million units (an increase of 4.1 million units)
PS3: 5.2 million units
But it’s not all bad news, apparently, Takao Yuhara also told those Tokyo reporters that the games division is expected to break even next year.
Companies:
Sony
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Comments
Ditto 31 Jan 2007 20:31
1/1
Could we have those figures in pounds for those of us that don't speak Euro? ;)