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Sony Q1 Results: $312 Million Loss
- Thread starter Parmenides
- Start date
MagicWithEarvin
Member
I'm trying to find the interview, but I'm wondering if anyone else remembers him saying this or am I just crazy?
Since "Game" is its own category now, can we start comparing Nintendo and Sony again? Think Sony is less negative after one quarter of FY13, in that case.
Edit:
Even better! Can someone update that old chart now for Sony and Nintendo?
Edit:
Even better! Can someone update that old chart now for Sony and Nintendo?
Sony have a lot of problems, but given last several months of acquisitions and investments they made, having funds to invest in things isn't a problem for them. At least not yet.
nvm I found the graph. I wasnt comparing the right units. Graph is in billions of yen not millions of dollars. my bad. Anyways you can see PS3 hasnt lost everything they made with PS1 and PS2. At least this can be updated now with the 2011 figures.
edit: oops see that it was already posted.
You are right the PS3 hasnt lost all the PS2 and PS1 profits just all the PS2 profits.
Lion Heart
Banned
PS1 > PS2. I always knew it.
Canis lupus
Member
Indeed, Sony game division made 1/5th of Nintendo's losses last Q.
michaelius
Banned
They are probably banking on Madden/Assassin/Cod to push reasonable numbers.
Oh wow. Probably shouldn't make a successor to one of the few things they have thats currently going good. Such sound logic. And a company with as much money as Sony(yes even after all these losses) doesn't need to rely on profits made or not made this gen to launch another product not sure what you're on about. Not really how that works...
JohnnySasaki86
Member
so according to the graph and 2011's numbers, in order for Sony to offset the losses incured from PS3 and break even(not counting PS1 and PS2), they would need to generate a profit of $5 billion, or about 395 billion yen, in the gaming devision. So yes it could take more than a decade to do that. Not quite a lifetime but might as well be.
Loghorn150
Banned
Throughout that graph, they managed to make at least $644 Billion Yen throughout the PS1 & PS2 days. But then throughout 2006 to 2009, they managed to lose at least $462 Billion Yen of it, so that's now $182 Billion yen before 2010.
But what about FY 2010, FY 2011, & Q1 of 2012?
More like 1/3. You can't compare one company's operating loss with another company's net loss.
Perhaps the popular sentiment was that they nearly wiped away all their previous profits. So they're about a half billion dollars ahead of where they started 17 years ago.
Still, I don't see how anyone can look at those numbers and think putting out another Playstation is a wise idea. The console market is losing steam, the Playstation brand has lost appeal, and game development is riskier than ever. Plus, they can't afford to loss-lead this time around, whereas Microsoft happily will. Sony is at a competitive disadvantage in a market that is already stagnating.
casinoman921
Member
Any guesstimates on Vita sales for the quarter?
Such depressing numbers.
Such depressing numbers.
Canis lupus
Member
That chart would include 29b Yen for FY11
Ico Team.
Loghorn150
Banned
They need to. Otherwise, they're going to drive themselves out of the gaming industry for good.
Yep. (as long as the numbers in the graph are correct - although they look right at first glance).
I don't get their thinking. The console WILL sell regardless of its power. There are people who WILL buy it in the face of competition if it has the games (PS1/PS2). I'm a believer that better tech is great, but not if it means losing money when you're already losing money in the first place. They're poised to suffer losses yet again, but the question is: How much?
Naughty Dog
Annual Operating Income (billions of yen)
Sony numbers from the graph and info added to OP, and Nintendo numbers from here
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 -37Sony numbers from the graph and info added to OP, and Nintendo numbers from here
because free psn.
you can not accuse sony of not innovating with their hardware. In fact it's one of the biggest reasons the PS3 lost so much money.
making an affordable console that makes money from the start would mean that they don't innovate at all and just put out proven, better and cheap tech. That may be the way to go this time but that depends on how Nintendo and MS approach next gen and what other innovations happen in the PC/tablet space
Sold to consumers would be about 600k for the quarter. (200k US + 175k Japan + rest of world). Maybe a bit higher if Europe was stronger than North America.
Canis lupus
Member
PSP did around 230k in Japan while Vita did +-175k using MC numbers(actual sales). I'm guessing total shipments is around 600k for PSP and 800k for Vita. But I'm comparing apples with oranges really.
timetokill
Banned
So the "score" (lol) is --
Sony: 248
Nintendo: 2939
whee.
looking at those golden wii/ds years is insane in comparison.
Sony really needs to play it safe next gen and go with a cheaper super profitable console to make sure they can launch stronger in the gen after.
They need to worry more about their profit and less about fanboy console wars.
It's pretty much what Nintendo did after the 64. Kinda.
They need to worry more about their profit and less about fanboy console wars.
It's pretty much what Nintendo did after the 64. Kinda.
They're not losing money right now because of the PS4. Companies take losses in the year that the system launches - not this far out. Gaming revenue is down 15% this quarter vs. a year ago. That's why they're losing money.
Loghorn150
Banned
And even more than $2,939 Billion Yen for Nintendo if you count the years before 1995.
gundamkyoukai
Member
The PS brand is still strong not as strong as before but still strong .
Also of course the console market is stagnating this gen has gone on for to long .
I don't see how it makes any sense not to bring out PS4 when it's one of the few products that can make them money .
All they have to do is bring a okay piece of hardware and not lose to much money on it in the beginning and they will be find .
bigtroyjon
Member
Revenue is down and Sony has a ton of fixed costs(developer salaries being the big one) that have to get paid regularly no matter how much money they generated in a specific quarter.
Just wanted to say that it is not my graph. I got it here on GAF somewhere. I can not confirm it is 100% correct or not.
Canis lupus
Member
I dont think Sony was ever driven by fanboyism or console wars.
timetokill
Banned
honestly, the Vita is doing worse than the 3DS ever was. It's really not wise to compare them.
on a side note, did I miss something? MH4 for Vita?
And who´s going to buy that thing? Sony isn´t alone on the market.
Canis lupus
Member
Ive never understood the "Sony should make a cheap console and play it safe". What if Sony could put a console for 400 bucks(assembly, transport etc) in stores but sell it to 450. Contrarily they could put a more powerful console at 500 bucks but sell it 450 and lose money on it.
So they just have to do monumentally better than the previous generation under conditions which are far worse. Got it.
Now if some gaffer would do a graph of that ...
Not really Nintendo for the most part as always done the "cheap" console route.
For example in 1997 it was estimated that N64 was 50$ cheaper to make than PS1.
Castor Krieg
Banned
The new console is probably already locked-in as far as specs are concerned. It will be a technical monster, which will be a disaster, but Sony cannot do it any other way - they are high-tech company, driven by engineers. You cannot re-orient a company just like that, and tell them "make something cheap and not so powerful", it is a mindset problem.
Nintendo was able to do that, because they never saw themselves as a high-tech company. They preach "fun, not specs" all the time. I think Sony's R&D would rebel if asked to make a Wii.
I beg to differ
Plenty would buy a specced up PS3(4) especially if the price was right, the OS/online was smartened up, and full BC.
I think so anyway.
Well then they're their own worst enemy much like Sega and will have no one to blame but themselves if the seemingly inevitable happens.
SirIgbyCeaser
Banned
You can't say that because vita has not had a holiday yet. Not in europe or the US.
true.
Not in the west, you mean.