• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Sony Q1 Results: $312 Million Loss

goomba

Banned
Do you know how crazy you sound?

Sony despite performing selling relatively well(in the console space) at this point lacks vision to sell to customers(in the console space).

And your only justification is how another product in a different market is performing?

Relatively well compared to what ? To date it has sold less than the 360 and much less than the Wii.
 

Triple U

Banned
I wouldn't count on it. Not out of the gate. Sony lost money when they launched PS1. They lost even more money when they launched PS2. And then, well - we all know what happened when they launched PS3.

I certainly don't expect anything like the PS3 losses again - but there's every reason to believe that Sony will lose money again on the PS4 for the first year or two.



.

Well Vita(the latest product) represents a different design philosphy. A powerful system using, standard market parts and produced at an extremely slim loss margin(with supposed profit one one model). There's no reason to believe that PS4 won't follow that path.
 

Ryoku

Member
I'm not sure where to find net income numbers for Sony's gaming business specifically. All their earnings releases are here, but in the gaming sections, they seem to only release certain numbers, like sales and operating income :S

Sorry, I meant this:

dhSZt.jpg


The "2011" in the x-axis got cut off for some reason (you can still see the tick at the end), but the data is still in the chart. I'd like a graph of the profit.

EDIT:

Based off of this graph:

Alright, alright.

P7pGx.png


Which is based off of this post:


Annual Operating Income (billions of yen)

Code:
Year  Sony  Nintendo
1995    -9   72
1996    57   65
1997   117  128
1998   137  156
1999    77  145
2000   -51   85
2001    83  119
2002   113  100
2003    68  108
2004    43  112
2005     9   90
2006  -232  226
2007  -125  487
2008   -58  555
2009   -57  357
2010    47  171
2011    29  -37

Sony numbers from the graph and info added to OP, and Nintendo numbers from here
 
Do you know how crazy you sound?

Sony despite performing selling relatively well(in the console space) at this point lacks vision to sell to customers(in the console space).

And your only justification is how another product in a different market is performing?

Indeed, PSP did good, PSV is doing bad, and all of a sudden a handheld is being used for PS4 performance and not its predecessor the PS3.
 

Triple U

Banned
Relatively well compared to what ? To date it has sold less than the 360 and much less than the Wii.

Its sold less than the 360 because it launched a year later. For most of this gen(and currently IIRC) they have outpaced the 360 despite being at a much higher price.

Wii was aimed at a different, more-massive market in which it went unchallenged for most of the generation at a great price compared to others in the space.
 
Worldwide Hardware Unit Sales (Unit: Million)
Code:
Home Console      Ap-Jn'12             
--------------------------------------------------------------------
(PS3 + PS2)         2.8                

(360 + Wii)         1.81    (1.1 + 0.71)                       
--------------------------------------------------------------------
 

 Handheld         Ap-Jn'12          
--------------------------------------------------------------------
(3DS + NDS)         2.4     (1.86 + 0.54)          

(PSP + PSV)         1.4      
--------------------------------------------------------------------
 
-Sources: Sony,Nintendo,Microsoft (Sell-in Numbers)
 

goomba

Banned
Its sold less than the 360 because it launched a year later. For most of this gen(and currently IIRC) they have outpaced the 360 despite being at a much higher price.

Wii was aimed at a different, more-massive market in which it went unchallenged for most of the generation.

So? N64 launched a year after the playstation. The GameCube and Xbox launched a year after the ps2. The wii launched at the same time as the ps3.
 

Triple U

Banned
And ? N64 launched a year after the playstation. The GameCube and Xbox launched a year after the ps2. Are you saying that's the only reason the ps1 and ps2 were number one of their generation ?

You're not making sense.

N64, GCN, nor XB outpaced the PS1 or PS2 at any point. What comparision are you trying to draw with this analogy?

I don't even know what your last sentence is supposed to mean...
 

AzaK

Member
Annual Operating Income (billions of yen)

Code:
Year  Sony  Nintendo
1995    -9   72
1996    57   65
1997   117  128
1998   137  156
1999    77  145
2000   -51   85
2001    83  119
2002   113  100
2003    68  108
2004    43  112
2005     9   90
2006  -232  226
2007  -125  487
2008   -58  555
2009   -57  357
2010    47  171
2011    29  -37

Sony numbers from the graph and info added to OP, and Nintendo numbers from here
Christ. So even when Nintendo were getting their arse handed to them in the last couple of generations they were still making more net income? No wonder they still feel happy to go their own route, as whacky and frustrating as that might seem.
 
You're not making sense.

N64, GCN, nor XB outpaced the PS1 or PS2 at any point. What comparision are you trying to draw with this analogy?

I don't even know what your last sentence is supposed to mean...

I think he is saying that PS3 will never outsell 360, as N64,GCN,XB never outsold the 1st released console in their gens.
 
Christ. So even when Nintendo were getting their arse handed to them in the last couple of generations they were still making more net income? No wonder they still feel happy to go their own route, as whacky and frustrating as that might seem.

They sold less, but made huge profit with each sold unit. Don't forget the 200 million units the Gameboy sold.
 

goomba

Banned
You're not making sense.

N64, GCN, nor XB outpaced the PS1 or PS2 at any point. What comparision are you trying to draw with this analogy?

I don't even know what your last sentence is supposed to mean...

Your excuse that the ps3 was outsold by the 360 because it came out a year later is lame because being first is never the reason a console wins a generation , just ask sega .

It also doesn't explain why the wii outsold both 360 and ps3 when it came out at the same time as ps3.
 

GavinGT

Banned
Its sold less than the 360 because it launched a year later. For most of this gen(and currently IIRC) they have outpaced the 360 despite being at a much higher price.

Wii was aimed at a different, more-massive market in which it went unchallenged for most of the generation at a great price compared to others in the space.

Total consoles sold isn't the be-all-end-all statistic. Profit and overall health relative to last generation should also be factored into the argument.
 

tzare

Member
Worldwide Hardware Unit Sales (Unit: Million)
Code:
Home Console      Ap-Jn'12             
--------------------------------------------------------------------
(PS3 + PS2)         2.8                

(360 + Wii)         1.81    (1.1 + 0.71)                       
--------------------------------------------------------------------
 

 Handheld         Ap-Jn'12          
--------------------------------------------------------------------
(3DS + NDS)         2.4     (1.86 + 0.54)          

(PSP + PSV)         1.4      
--------------------------------------------------------------------
 
-Sources: Sony,Nintendo,Microsoft (Sell-in Numbers)


it is facinating how ps2 still is alive. And its usually forgotten in most discussions regarding game sales/ console wars but i has sold a very respectable number of units since this gen started, i wonder how would it compare against PS3 and 360
 

AniHawk

Member
it is facinating how ps2 still is alive. And its usually forgotten in most discussions regarding game sales/ console wars but i has sold a very respectable number of units since this gen started, i wonder how would it compare against PS3 and 360

rather favorably. roughly 48.5m since the ps3 came out, and maybe somewhere around 63m since the xbox 360 launched (can't find exact numbers, so i'm estimating- but it would be neck and neck with the xbox 360 if i guessed right).
 
I just realized, PS2 could very well have outsold Wii last quarter. As a matter of fact it sold as much as 360 if PS3 had a slight drop.
 

Dalthien

Member
They sold less, but made huge profit with each sold unit. Don't forget the 200 million units the Gameboy sold.

The hardware profits were basically a wash. GBC launched at $79 and GBA at $99 (with price drops as the gen wore on) - so there wasn't a lot of profit involved per unit. And PS1 and PS2 were profitable for most of those years as well.

But Sony absolutely trounced Nintendo in software sales during those years. The difference of course was that most of Nintendo's software sold was 1st-party, whereas most of Sony's was 3rd-party. And each 1st-party unit sold is worth several 3rd-party units sold. So Nintendo was able to have marketplace turds like the N64 and GC and handhelds which always have rotten tie ratios - and still make more money than the two runaway smash successes that were the PS1 and PS2.

That's also why Sony started talking about moving towards more of a 1st-party focus as they were preparing the PS3 - because that's where the big money is if you can actually sell your 1st-party stuff.

Edit - I just remembered that the Virtual Boy catastrophe was also included in that timeframe - which makes Nintendo beating the PS1+PS2 profits even more eye-popping.
 
The hardware profits were basically a wash. GBC launched at $79 and GBA at $99 - so there wasn't a lot of profit involved per unit. And PS1 and PS2 were profitable for most of those years as well.

But Sony absolutely trounced Nintendo in software sales during those years. The difference of course was that most of Nintendo's software sold was 1st-party, whereas most of Sony's was 3rd-party. And each 1st-party unit sold is worth several 3rd-party units sold. So Nintendo was able to have marketplace turds like the N64 and GC and handhelds which always have rotten tie ratios - and still make more money than the two runaway smash successes that were the PS1 and PS2.

That's also why Sony started talking about moving towards more of a 1st-party focus as they were preparing the PS3 - because that's where the big money is if you can actually sell your 1st-party stuff.

Interesting. Indeed Sony focused more on their own games this gen, hope it pays out for next gen. Last gen I really didnt pay much attention to wich game Sony made since almost everything was exclusive.
 

Derrick01

Banned
Watching this Vita situation unfold is like getting another shot at watching Dreamcast fail. I didn't care at all or pay attention back then so it just kind of happened while I was too busy playing PS2. But I have to admit this is fascinating to see.
 

Taurus

Member
Go was more of a revision, just like PSP2000/3000 and PS3 Slim, how did they do?
Go was a revision just like 3DS XL, right? How's Vita doing?

Sony has set/shit their bed so badly, that they'll be in serious troubles next-gen. Xbox 3 will be powerful and PS4 will go after the same market, but since Sony is bleeding money they can't afford to challenge MS as well as they wanted. Imho current Sony is a mess, and we'll see if Kaz can turn it around, but I suspect that it's a beginning of the end for Sony consoles (been for awhile actually). PS Vita is obviously their last handheld.
 
they're not breaking out separate hardware ps3/vita/ps2 etc sales anymore.

this is horrible. now we'll never know who wins the gen, 360 or ps3.

i cant believe more people arent upset about this, this is crushing to me.

first npd stopped giving numbers now this?
 

nofi

Member
they're not breaking out separate hardware ps3/vita/ps2 etc sales anymore.

this is horrible. now we'll never know who wins the gen, 360 or ps3.

i cant believe more people arent upset about this, this is crushing to me.

first npd stopped giving numbers now this?

i don't have any idea how i'll cope.
 

marc^o^

Nintendo's Pro Bono PR Firm
Thank God the Camera division is doing great.

It means they can put more great products in the future no problem.
This. I love what Sony is doing with their SLT series. I have invested so much money on Sony lenses I hope this division will last forever.
 
they're not breaking out separate hardware ps3/vita/ps2 etc sales anymore.

this is horrible. now we'll never know who wins the gen, 360 or ps3.

i cant believe more people arent upset about this, this is crushing to me.

first npd stopped giving numbers now this?

this gen will end once WiiU arrive on the market
 
the vita's problems run a little deeper than that. when they can't convince a high end studio that they own like naughty dog to think outside the box and make a handheld game, they've already fucked up. sony did a lot right in fixing the mistakes of the psp with the vita, and they acknowledged a big problem being the difference in quality and care between their handheld and console efforts with the ps3 and psp, but they haven't actually addressed it with the vita.

i think at a point, they'd just be throwing money down the drain with advertisements.
It's sort of because Naughty Dog and their various western studios just don't care for handheld gaming. They rather focus on a console because they are console gamers.
 

BigDug13

Member
they're not breaking out separate hardware ps3/vita/ps2 etc sales anymore.

this is horrible. now we'll never know who wins the gen, 360 or ps3.

i cant believe more people arent upset about this, this is crushing to me.

first npd stopped giving numbers now this?

It doesn't really matter the actual numbers between PS3 and 360. Bottom line is that they ended up really close to each other at the end of the day. But Sony as a company is in a very different and more precarious spot than Microsoft is right now, and the Xbox 360 on the non-gaming front has proven to be a juggernaut in getting streaming services to consumers in their living room.

Sony succeeded in making Blu-ray win the fight, but I don't think the spoils of that victory outweigh the brutal cost to their bottom line in that pursuit. HD-DVD was successful enough to showcase that Sony's Mpeg-2 technology wouldn't cut it and so they adopted Apple's video codec for blu-rays, making Apple a bigger winner.

Also, creating a super difficult platform to program for has proven to make certain titles with big open worlds play not as well, such as Bethesda's titles.

I've owned a PS1 on day 1, traded in SNES to get it. I've owned a PS2 because of GTA timed exclusivity over PC. I owned a PSP. I own a launch PS2-enabled PS3 because of the blu-ray player. So I'm not speaking as some sort of anti-Sony guy.

I saw them rise against the 3DO and Saturn to produce the most accessible and most impressive arcade-quality home machine the world had ever seen with the PS1 and have watched them struggle lately with their business model, their understanding of the market, and their ability to produce the product that people want.

Sony kind of set themselves up for failure in the next gen. By making that stupid Cell mess their machine, they pretty much guaranteed themselves to NOT support backward compatability next gen. And if Nintendo and Microsoft announce full backward compatability for the previous gen, it's game over for Sony. They can't compete with a machine that someone can trade-in their old machine for and not lose any capability on their library of games. Especially the fact that all that paid downloadable content that won't play on PS4 but will play on XboxNEXT means that even if you have to pay $50 for Xbox-live, you get the more supported experience.
 
7.4 million cell phones? do they really sell that many cell phones? who the hell uses a sony cell phone nowadays

Sony Ericsson Xperia S. Nice phone, slim and great screen. Actually Sonys phones have allways been a favorite of mine since the W800i (my original one still works flawlessly, and it's sturdy enough to open beer bottles with it.
 
Annual Operating Income (billions of yen)

Code:
Year  Sony  Nintendo
1995    -9   72
1996    57   65
1997   117  128
1998   137  156
1999    77  145
2000   -51   85
2001    83  119
2002   113  100
2003    68  108
2004    43  112
2005     9   90
2006  -232  226
2007  -125  487
2008   -58  555
2009   -57  357
2010    47  171
2011    29  -37

Sony numbers from the graph and info added to OP, and Nintendo numbers from here

Even on the PSX and PS2 era, Nintendo financials were incredible.

Wow thats crazy that even during the PS2 era Nintendio was making a lot more profit than Sony's gaming division. How is that possible? Gamecube didnt even compare to PS2's hardware and software sales. Gamecube never sold more than 25m units worldwide.
 

Cipherr

Member
The hardware profits were basically a wash. GBC launched at $79 and GBA at $99 (with price drops as the gen wore on) - so there wasn't a lot of profit involved per unit. And PS1 and PS2 were profitable for most of those years as well.

But Sony absolutely trounced Nintendo in software sales during those years. The difference of course was that most of Nintendo's software sold was 1st-party, whereas most of Sony's was 3rd-party. And each 1st-party unit sold is worth several 3rd-party units sold. So Nintendo was able to have marketplace turds like the N64 and GC and handhelds which always have rotten tie ratios - and still make more money than the two runaway smash successes that were the PS1 and PS2.

That's also why Sony started talking about moving towards more of a 1st-party focus as they were preparing the PS3 - because that's where the big money is if you can actually sell your 1st-party stuff.

Edit - I just remembered that the Virtual Boy catastrophe was also included in that timeframe - which makes Nintendo beating the PS1+PS2 profits even more eye-popping.

This is a good look for Sony in the end. I hope they can expand their first party by leaps and bounds next gen. I really think its the key to long term health. Third party support is extremely important, but in the days of multiplats and moneyhats, it cannot be relied on to be your breadwinner. You need to be able to stand on your own and profit should such an unfortunate scenario demand it.

They did really good this gen with their first party growth. They are going to have some good stuff ready for next gen to push hardware. LBP and all that stuff.
 

tzare

Member
Wow thats crazy that even during the PS2 era Nintendio was making a lot more profit than Sony's gaming division. How is that possible? Gamecube didnt even compare to PS2's hardware and software sales. Gamecube never sold more than 25m units worldwide.

probably because nintendo doesn't usually sell consoles at a loss and they have a huge advantage by having Mario and Pokemon as flagship IPs where sony has never owned such powerful first party IPs , besides GT, and i am sure developing a GT game is way more expensive than any POkemon or Mario game out there.
 
Wow thats crazy that even during the PS2 era Nintendio was making a lot more profit than Sony's gaming division. How is that possible? Gamecube didnt even compare to PS2's hardware and software sales. Gamecube never sold more than 25m units worldwide.

You shouldnt focus on Gamecube alone, they had Gameboys remember? And like an above user said, they were selling tons of 1st party games while Sony had lots of 3rd party selling their games.
 

GCX

Member
Wow thats crazy that even during the PS2 era Nintendio was making a lot more profit than Sony's gaming division. How is that possible? Gamecube didnt even compare to PS2's hardware and software sales. Gamecube never sold more than 25m units worldwide.
Home console gaming is only one part of Nintendo's business, they sell hardware at profit and sell millions of copies of first party software.
 

noobie

Banned
Any good news from all the doom & gloom?
Has the changes Kaz made, made any difference or they caused more losses?
 

Mario007

Member
Any good news from all the doom & gloom?
Has the changes Kaz made, made any difference or they caused more losses?

Well 321 million loss isn't actually that big, compared to last year as far as I remember. For the full year last year Sony recorded a 2.1 bn loss you can see that they're at least getting a bit better. Also added to that is the restructuring costs and inclusion costs for Sony Mobile. I think Sony's expecting a profit in the next year not this one, so they are on the right track.
 
Top Bottom