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Sony Q1 Results: $312 Million Loss

Road

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)

What a joke, combining stuff (Sony, not the poster)

Stupid, useless Vita getting the way of everything.

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I can't help but compare Sony's Gaming division to someone like Blockbuster.

People still love movies, but the concept of actually going to a store, getting one, going home, then returning back to the store seems utterly ridiculous now. 5 years ago, it was the norm. Then Netflix destroyed them.

If Sony Games are truly run by engineers and not visionaries, it's the death knell for the group. While we here on GAF assume PS4 will be amazing from a tech standpoint (and it might be), the simple truth - borne out by numbers we have all been tracking the past 2 years - is that the vast majority of people don't want to play games the way they used to.

$60 games will be dead soon, massive consoles tied to your TV only will be dead shortly after that.

More people play games today than ever before, but they have been trained to play them on their phones, not pay for them, turn them on and off in an instant, and forget about them quickly.

It's the exact opposite of what we grew up with.

I don't know what the next generation will look like, but it simply cannot be orchestrated under the same premises that the last generation was. Otherwise, Sony won't exist in a couple of years. I don't care who you are, after a while you have to make money to stay in business.
 

AOC83

Banned
If Sony Games are truly run by engineers and not visionaries, it's the death knell for the group. While we here on GAF assume PS4 will be amazing from a tech standpoint (and it might be), the simple truth - borne out by numbers we have all been tracking the past 2 years - is that the vast majority of people don't want to play games the way they used to.

$60 games will be dead soon, massive consoles tied to your TV only will be dead shortly after that.

More people play games today than ever before, but they have been trained to play them on their phones, not pay for them, turn them on and off in an instant, and forget about them quickly.

It's the exact opposite of what we grew up with.
.

People grew up with Tvs and still go to the cinema. Console/PC gaming won´t die anytime soon because it´s just the superior experience to tablet/IPhone.
 
People grew up with Tvs and still go to the cinema. Console/PC gaming won´t die anytime soon because it´s just the superior experience to tablet/IPhone.
Horrible comparison there. Arcades basically died out, which would be the better comparison to film/television.
 

AOC83

Banned
Horrible comparison there. Arcades basically died out, which would be the better comparison to film/television.

Arcades died because some day they could offer nothing consoles couldn´t.
Consoles still have higher power , huge TVs, better quality games, Dolby Sourround, reasonable hardware price etc. and Tablets/Phones won´t offer this anytime soon.
 
Well when it comes to the gaming division, the $150 PS3 should help this Xmas. I just hope they are modest for PS4. Pulling a VITA/PS3 styled device will only hurt them /professional opinion
 

Cheech

Member
Only if their target is to clear out inventory, like HP's TouchPad.

Well, right. Either they aggressively cut the price to $150, or the retailers will take care of the Vita problem themselves. TouchPad is a great example. Also, ironically, PSP Go.
 

i-Lo

Member
No. Vita needs games that aren't replications of console experiences.

Not talking about direct replicas, rather off shoots of franchises that are strong enough to create new Vita sales. The initial growth may require existing IPs for a better mid life stream of Vita centric games.

For example, iirc Uncharted GA sold more units than say Gravity Rush.
 
Vita is a disaster. It's expensive and there're hardly any games for it. Sony totally missed the ball on that one. 3DS is doing okay despite the high launch price, lack of launch games and gimmicky 3D feature. They cut the price and got good games out, the two things that the Vita is lacking and the two things that don't seem to be coming anytime soon.

It seems like the overall market for handhelds has shrunk dramatically and the market cannot support both the 3DS and the Vita.

On another note, Sony's stock is down 8.9% right now on the NYSE.
 
No. Vita needs games that aren't replications of console experiences.

3DS has done pretty well with "console experiences". I guess this is the part where someone says they don't count because they work on handhelds and we are back to square one. Monster Hunter and Mario Bros. were console games before they were handheld games FYI.
 
3DS has done pretty well with "console experiences". I guess this is the part where someone says they don't count because they work on handhelds and we are back to square one. Monster Hunter and Mario Bros. were console games before they were handheld games FYI.

3DS console experiences are older and therefore aren't as tired out as playing current gen console games on VITA. Who wants VITA Uncharted when u can buy PS3 versions?

Now, if VITA had Jak and Daxter, Dark Cloud, Sly, Parappa, Medievil, I could really see better sales for it. Games like Gravity Rush are what VITA needs. FFX will help, Resistance, Mod Nation, and Uncharted wont, IMO.

Where's the Patapon? Loco Roco? VITA needs those, there's a great market on handhelds for unique experiences and franchises that can't do as well on consoles anymore
 

RurouniZel

Asks questions so Ezalc doesn't have to
Weirdly I get the impression that Sony's holding out on a Vita price-cut because of Project Diva, of all things. I wouldn't be surprised to see Sony slash Vita's price about a month or so after Diva fails to substantially increase Vita sales.

I mean after Project Diva what exactly does the Vita have coming? FFX? At this point I wouldn't be surprised if that were quietly cancelled.
 
Arcades died because some day they could offer nothing consoles couldn´t.
Consoles still have higher power , huge TVs, better quality games, Dolby Sourround, reasonable hardware price etc. and Tablets/Phones won´t offer this anytime soon.
This isn't true at all, arcades still offer custom interfaces/feedback that consoles could only dream of, and they're not tied to hardware cycles so they can always offer higher spec visuals/audio over consoles. Consoles don't have any inherent parity that home threaters don't have with cinemas.

The reason arcades died out was that consoles became "good enough", and the same could easily happen for tablets vs consoles some day. Look at how tablets are replacing PCs for some, or how handhelds killed consoles in Japan, "good enough" for emerging platforms is a threat in every market.
 

Erethian

Member
3DS console experiences are older and therefore aren't as tired out as playing current gen console games on VITA. Who wants VITA Uncharted when u can buy PS3 versions?

Now, if VITA had Jak and Daxter, Dark Cloud, Sly, Parappa, Medievil, I could really see better sales for it. Games like Gravity Rush are what VITA needs. FFX will help, Resistance, Mod Nation, and Uncharted wont, IMO.

It's not that they're older, it's that there isn't as easily an analogous experience immediately available on a console. You can't buy 3D Land for your Wii, for example.

Though I think there are some genres that don't work well on a handheld. RE: Revelations would have been better off as a console game, and I can't help but think that first-person shooters are always going to sell much, much better on a console.
 
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.

It's just hilarious how Sony managed to sell a little over 257 million consoles, plus games, & accessories from both PS1 & PS2, & still haven't come even close to making what Nintendo made, through Wii alone even. All they made was at least $644 Billion Yen during 1996 to 2005, & managed to lose most of it due to PS3.
 

GavinGT

Banned
Clueless analysts making ridiculous claims isn´t an indicator.

I'm talking about shrinking sales, unsustainable development costs, increased interest in mobile and F2P, etc...

There will not be a PS5 or a fourth Xbox. It just won't happen.
 

Taurus

Member
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.
I would not want to invest in a company that treats its stockholders like this. It's just slimy.
Holy shit! Where's that :lol.gif when you need it? This is just crazy.
 
Not talking about direct replicas, rather off shoots of franchises that are strong enough to create new Vita sales. The initial growth may require existing IPs for a better mid life stream of Vita centric games.

For example, iirc Uncharted GA sold more units than say Gravity Rush.

And what exactly would stop people from looking at the spinoffs and deciding that they'd rather play the real games on systems they already own? Banking on spinoffs is one of the many reasons why the PSP didn't do that well. They may lure over the dedicated fans but most people are just going to skip them.

What Sony desperately needs to do is double down on Vita development exactly like they did with the PS3 when it was bombing just as badly in 2007. Throw their best developers at it and come up with an array of brand new, interesting franchises for it. They won't do this of course because it's Sony and they clearly have no interest in actually being (or no clue how to be) successful in the handheld market.
 

McHuj

Member
It seems like the overall market for handhelds has shrunk dramatically and the market cannot support both the 3DS and the Vita.

On another note, Sony's stock is down 8.9% right now on the NYSE.

Thta's my belief. I think there'a a market for a dedicated handheld gaming device but not two. We may see something similar happen in the console market next gen as well (perhaps that's why there are rumors that both MS and Sony will have very similar hardware).

If you're a development house, you can't support WiiU, PS3, 360, 3DS, and Vita with next gen coming soon, all very different hardware with different capabilities. In the west I don't think you can be an exclusive handheld dev either (for the DS you could have).
 

McHuj

Member
What Sony desperately needs to do is double down on Vita development exactly like they did with the PS3 when it was bombing just as badly in 2007. Throw their best developers at it and come up with an array of brand new, interesting franchises for it. They won't do this of course because it's Sony and they clearly have no interest in actually being (or no clue how to be) successful in the handheld market.

The problem, imo, is that development for a good game takes 18-24 months so unless there has been stuff in the development pipeline for the last year or so, they're fucked. They can't decide now "we need more games, lets develop them starting today", if that's the case, it's too late.
 

Castef

Banned
Time to go third party? They also bought Gaikai... that could be a nice idea.

Third party software house streaming games everywhere with Gaikai.
 

Frillen

Member
3DS has done pretty well with "console experiences". I guess this is the part where someone says they don't count because they work on handhelds and we are back to square one. Monster Hunter and Mario Bros. were console games before they were handheld games FYI.

Mario handheld games doesn't really have any restrictions though, and are enjoyed just as much on handhelds as on consoles. The same can be said about Monster Hunter really. CoD Vita and GT Vita for example are going to be gimped versions of the console counterparts. People aren't going to buy CoD Vita when they can play a superior console version (on a 46+ inch TV with surround). And even though it's easier to play FPSs now with a second analog stick, it's still not as good as playing with the PS3/360 controller. Mario games, on the other hand, plays pretty much similary, handhelds or consoles.
 
It's not that they're older, it's that there isn't as easily an analogous experience immediately available on a console. You can't buy 3D Land for your Wii, for example.

That's one example - which doesn't work for other 2 games from Nintendo trinity - MK7 and MH3.
 
The problem, imo, is that development for a good game takes 18-24 months so unless there has been stuff in the development pipeline for the last year or so, they're fucked. They can't decide now "we need more games, lets develop them starting today", if that's the case, it's too late.

This also applies to third parties, and it's why I've said for a while that TGS is their last chance to prove that a turnaround is possible, since it'll probably be the last wave of announcements for titles that began development before Vita launched. If major third-party titles weren't greenlit before launch, it's not likely that they've been greenlit since, sales being what they are.
 
Their TV business is killing them more than. Why not just back out?

Pride and arrogance have always been Sony's biggest problem. They are too proud to drop a division that they were once so well known for. There may be other factors too, but I truly believe that stubborn pride is the driving force behind many of their seemingly boneheaded decisions over the years.
 

Erethian

Member
That's one example - which doesn't work for other 2 games from Nintendo trinity - MK7 and MH3.

MK7 and MKWii are completely different entries in the franchise, and MH3G is not only the G version of Tri, but has obvious gameplay benefits from being on a handheld.
 

AOC83

Banned
I'm talking about shrinking sales, unsustainable development costs, increased interest in mobile and F2P, etc...

There will not be a PS5 or a fourth Xbox. It just won't happen.

This generation sold more consoles than any other before although PS3/360 haven´t even reached their real mass market prices yet. And just because mobile gaming/F2P are gaining popularity doesn´t that mean they are going to replace classic gaming, especially when we keep in my that they have a almost completely different target audience.
 
That's one example - which doesn't work for other 2 games from Nintendo trinity - MK7 and MH3.

MK7 isn't as distinct from MKWii as 3DL is from Galaxy, but it still has new tracks and significant additional gameplay features. MH3G's sales are driven by local multiplayer, which, despite the similar content, is a very different experience from what's possible on consoles.

And hey, look at NSMB. Say what you will about the franchise, but if Nintendo were following the Sony route, the 3DS and Wii U titles would be the same game with cross-platform multiplayer.
 

GCX

Member
I'm talking about shrinking sales, unsustainable development costs, increased interest in mobile and F2P, etc...

There will not be a PS5 or a fourth Xbox. It just won't happen.
It's silly to predict anything with such certainty.

The tech market is evolving in ways that makes it impossible to predict how things will play out in 5-10 years. The fact is though that there is a market for big budget console games and smartphones/tablets won't replace that experience. It's entirely possible that consoles won't exist in their current form in 10 years but in that case there are other solutions that have replaced them.

Also this console generation has lasted 7 years already which is more than any gen before it. It's no wonder sales are shrinking.
 
There will not be a PS5 or a fourth Xbox. It just won't happen.
I tend to think there will, though they'll be hardware (semi)agnostic subscription services rather than loss taking boxes filled with bleeding edge chips.

In 10 years the only company putting out traditional consoles will most likely be Nintendo. And they'll probably be ridiculed for it.
 
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