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Sony Q1 Results: $312 Million Loss

H

H_Prestige

Banned
AzaK said:
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.
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Gameboy

I've never seen any proof that either the n64 or gamecube were massive money makers. That seems utterly absurd.
 
M

Miles X

Member
Impressive PS2 + PS3 sales but why no breakdown 0_o

1.9m PS3 - 600k PS2 last Q. Overall rose 300k this Q so 700k PS2 and 2.1m PS3 seems like a good range.
 
P

Psychotext

Member
bigtroyjon said:
So much for the appeal to authority people

"Sony knows what their plans are. They wouldn't make a forecast that would be that far off, obviously they have lots of stuff planned."
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Funny thing is... when they hit that (if they hit that) people will completely forget that it was originally 16 million and talk about how good Sony have been at hitting their forecasts. This is (I believe) the third or fourth time this gen that Sony have had to downwardly revise after overly optimistic forecasts.
 
M

Miles X

Member
Psychotext said:
Funny thing is... when they hit that (if they hit that) people will completely forget that it was originally 16 million and talk about how good Sony have been at hitting their forecasts. This is (I believe) the third or fourth time this gen that Sony have had to downwardly revise after overly optimistic forecasts.
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Not including the times they've not bothered revising down even thought it was plainly obvious they wernt going to make their target, like the last two PS3 FY's. Still I think Nintendo got them beat on worst forecasts, do they ever hit any of their Wii ones? :p

Can only imagin how terrible MS's are, shame they don't release them.
 
F

fluffydelusions

Member
fritolay said:
VITA is starting to remind me of the Game Gear
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Austin_Powers_Mike_Myers_as_Dr_Evil.jpg
 
O

onQ123

Member
so either PS2 outsold the Wii or PS3 almost sold 2x as much as the Xbox 360.


Don't look at Vita don't look at Vita
 
R

RukusProvider

Banned
"Operating loss of 3.5 billion yen (45 million U.S. dollars) was recorded, compared to operating income of 4.1 billion yen in the same quarter of the previous fiscal year, due to the impact of the above-mentioned decrease in sales and unfavorable foreign exchange rates. Operating results during the current quarter included a benefit due to the reversal of a Blu-ray DiscTM patent royalty accrual, reflecting a retroactive change in the estimated royalty rate based on the latest license status."

Looks like Game would have lost more if it wasn't for this royalty reversal. Anyone have a clue how this was?
 
S

shinra-bansho

Member
Earnings call might shed some light on the PS2/PS3 and PSP/PSV splits.

The statement that PSV is not included in FY2011 ACT is confusing. Does that mean all PSV is in that 1.4M for Q1?
 
M

Mr_Moogle

Member
H_Prestige said:
Gameboy

I've never seen any proof that either the n64 or gamecube were massive money makers. That seems utterly absurd.
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Nintendo have a tendency of profiting on their hardware or at least breaking even. Sony on the other hand takes a massive loss on hardware. I can't believe Microsoft and Sony are still clinging to the loss-leading business model when they are clearly getting spanked by Nintendo.
 
Cornbread78

Cornbread78

Member
Forsete said:
It will.

Sony owns the CCD and CMOS market.
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Am I the only one that sees that and immediately thinks about Xenosaga? Just saying...


I don't think those numbers are as bad as some are making it out to be. Lets give the VITA a holiday to boost it's sales numbers (it took that long for the 3DS sales to pick up) and a price drop to boost the PS3 numbers (which will actually hurt the income a little a little.) From what has been see Kaz understands what needs to be done to re-org and fix, so I'm sure they can right the ship for the remainder of this fiscal year.
 
F

Father_Brain

Banned
Chris1964 said:
Still looks high. Maybe they'll try for downgrades quarter after quarter and not massive cut at once, because 12 million target is not happening.
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I expect they'll reduce it to 10M or so in their Q2 results, followed by a cut to 8M or so (if not less) when they report Q3.

As for specific Vita sales, Sony isn't talking, even when asked:

Tom Phillips said:
UPDATE: We've just listened in to Sony's investor call, where shareholders have the chance to ask questions about the company's results. Sony refused to break down individual platform sales for PlayStation Vita when asked, despite having done so in the past.
The company also noted that its software sales report does not count digital downloads, which may have negatively affected overall totals.
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And based on this MCV interview with SCEE's Fergal Gara, it does seem that Sony has abandoned the "Vita is selling as expected" lie. Took them long enough.

Vita has had a difficult start in terms of sales. Has it been a total disappointment?

We would love it to be selling more and we intend to make it sell more and help it sell a lot more. The feedback from many consumers who’ve got their hands on it is positive – so that’s a very good start. The key thing for the rest of the year is the key software drive for the console so as we look towards September, LittleBigPlanet, that really is taking the concept on another level because of the Vita functionality. And of course the other key big third party IPs – Call of Duty, FIFA, Assassin’s Creed – will do tremendous things for the Vita. So it’s our job now to take that strength of software and give people more reasons to buy.

I think we haven’t quite hit the spot with the killer software just yet and I have every reason to think that will happen in the next few months.
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O

Opus Angelorum

Member
Chris1964 said:
Still looks high. Maybe they'll try for downgrades quarter after quarter and not massive cut at once, because 12 million target is not happening.
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Absolutely.

The PSVita sold 600,000 in March (on the back of the US/Europe launch), so even at the rate it would struggle to reach 5 million by March 2013.
 
T

tuffy

Member
fritolay said:
VITA is starting to remind me of the Game Gear
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As a former Game Gear owner, I thought it was more like a PSP. More powerful than the competition, but with far weaker battery life, little third party support and lots of stripped-down ports of full console titles.

So that would make the Vita a Nomad? That's not quite right either, because the Nomad had a full selection of Genesis titles to play. The Vita is not so fortunate.
 
G

GavinGT

Banned
UPDATE: We've just listened in to Sony's investor call, where shareholders have the chance to ask questions about the company's results. Sony refused to break down individual platform sales for PlayStation Vita when asked, despite having done so in the past.
The company also noted that its software sales report does not count digital downloads, which may have negatively affected overall totals.
Click to expand...

I would not want to invest in a company that treats its stockholders like this. It's just slimy.
 
C

Culex

Banned
Opus Angelorum said:
Absolutely.

The PSVita sold 600,000 in March (on the back of the US/Europe launch), so even at the rate it would struggle to reach 5 million by March 2013.
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Vita is averaging about 45k a month in Japan => 540k a year (not including holidays). This is a major drag on worldwide sales....only problem is that it's suffering everywhere.
 
F

Frillen

Member
So can someone give me a valid reason as to why Sony doesn't include digital sales? What do they lose by sharing them?
 
F

FishyJoe

Neo Member
Mario007 said:
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.
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I'd say don't count your chickens before they are hatched. Who knows, maybe they'll do better than forecast, but also as likely it will be lower. It's only been one quarter and they've already lowered the forecast.

Considering their PSP/Vita forcast is still probably unrealistic based on Q1 sales, I'd probably bet on them lowering again at least for the game segment.
 
F

frankie_baby

Member
The next quarters shipment figures should be interesting, there is likely already a glut of vitas on shop shelves (possibly more than enough to cover an entire quarters sales) I'd expect the next quarter to be even lower than this one and yet another slashing of the forecast
 
L

lunchwithyuzo

Banned
murderofMonkey said:
sony was still building up there sce while nintendo was as big as ever since ~ 1995. im not sure how this is affecting the operatin income, though
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This isn't true at all. Nintendo hugely bulked up their internal R&D teams for N64 (EAD especially) and during the late 1990s/early 2000s they invested in a ton of external developers (Rare, Silicon Knights, Leftfield, etc) and even more start ups (Marigul, NST, Mobile21, NdCube, Brownie Brown, etc). Nintendo was growing right alongside SCE really, and SCE themselves were already pretty sizable as of 1995 (having built up SCEI since the early 1990s on SNES games, building up SCEA teams like SISA/989 and Singletrac in 1993/1994 in prep for PSX and acquiring Psygnosis in 1993).


tzare said:
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.
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Well, Nintendo built their IPs up with careful planning and consistent quality, it's not like Mario and Pokémon just came out of nowhere fully formed and sold like crazy. I think a lot of Nintendo's 1st party success comes from their roots as being a toy and card games maker, and the integrated approach they have to making hardware and software. Ensuring product appeal and innovation is really in their DNA, which is why they have such a wide catalog of successful and influental videogames.

Sony meanwhile still has the mindset of an electronics giant, and their development is almost wholly segmented. I think that comes through in their products as well, not only versus Nintendo but also other previous Japanese hardware makers like Sega, SNK or Hudson. If you look at Sony's lone huge franchise (GT) it's also a brand that's appeal entirely hinges on real world licenses... the problem at Sony is a problem of creativity from the top down, and while they do mitigate that somewhat by acquiring and absorbing hugely creative external devs (like Media Molecule for example) I still think the segmentation leads to a disconnect that impedes those games anyway. It's a structural problem, and not one I'm sure Sony can really change.
 
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