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Game

(Billions of yen, millions of U.S. dollars)
First quarter ended June 30
2003 2004 Change 2004
Sales and operating revenue Y125.2 Y105.4 -15.9% $976
Operating income (loss) 1.8 (2.9) - (27)

Unless otherwise specified, all amounts are on a U.S. GAAP basis.

Sales decreased 15.9% compared with the same quarter of the previous year (a 13% decrease
on a local currency basis) due to a decrease in sales of hardware, and despite an increase in
sales of software.
Hardware: Although PS 2 unit sales in Europe increased compared with the same quarter of
the previous fiscal year, unit sales in Japan and the U.S. decreased, contributing to a
decline in overall unit sales. This overall decline in unit sales, combined with strategic
price reductions of the PS 2 in Japan, the U.S. and Europe caused the decrease in sales.
Software: Although unit sales of and revenue from PlayStation software decreased, this
was more than offset by an increase in the unit sales and revenue of PS 2 software, resulting
in an overall increase in software sales. There was an increase in revenue in Japan, while
revenue in the U.S. and Europe decreased.
Operating loss of Y2.9 billion ($27 million) was recorded, compared to operating income
of Y1.8 billion in the same quarter of the previous year, mainly due to a decrease in
hardware sales, a decrease in sales of software published by SCE and the continuation of
aggressive investment in research and development for future business.

Worldwide hardware production shipments:*
- PS 2: 0.71 million units (a decrease of 1.94 million units)
- PS one: 0.57 million units (a decrease of 0.26 million units)

Worldwide software production shipments:*
- PS 2: 38 million units (an increase of 7 million units)
- PlayStation: 3 million units (a decrease of 5 million units)

* Production shipment units of hardware and software are counted upon
shipment of the products from manufacturing bases. Sales of such
products are recognized when the products are delivered to customers.

Inventory as of June 30, 2004 was Y111.5 billion ($1,032 million), a Y33.4 billion, or
23.1%, decrease compared with the level as of June 30, 2003 and a Y19.4 billion, or 14.8%,
decrease compared with the level as of March 31, 2004.

 

[Rhindle]

DOOMED. DOOOOOOOOOOOOMED.

 

[mj1108]

If this was about Nintendo and not Sony this thread would have been 5 pages already.

 

[SolidSnakex]

If this was about Nintendo and not Sony this thread would have been 5 pages already.

Then again if this was Nintendo they'd be sitting with a fanbase that's bigger than both of their competitors combined. That's why no one says anything about Sony, they're dominating and have the best developer support in the industry.

 

[DCharlie]

"That's why no one says anything about Sony, they're dominating and have the best developer support in the industry."

The scary thing is they are dominating yet they are posting losses.

 

[Alcibiades]

Recouping their investment on PS2 might take another delay...

 

[Gahiggidy]

Then again if this was Nintendo they'd be sitting with a fanbase that's bigger than both of their competitors combined. That's why no one says anything about Sony, they're dominating and have the best developer support in the industry.

^
Just say no to arrogance.

 

[Deg]

Sony need to hurry with their restructuring. Hearing baout losses in the game divison is stupid.

Operating loss of Y2.9 billion ($27 million) was recorded, compared to operating income of Y1.8 billion in the same quarter of the previous year, mainly due to a decrease in hardware sales, a decrease in sales of software published by SCE and the continuation of aggressive investment in research and development for future business.

The bolded area is where Nintendo also do well. EA and other companies make a killing in that area. Anyway GT4 to the rescue

 

[dark10x]

^
Just say no to arrogance.

Yes sir. I will just say no to Nintendo fans.

 

[sonycowboy]

2000/03/06 	720,000 units (Japan only)
2000/03/15 	1 million units (Japan only)
2000/03/31 	1.41 million units (Japan only)
2000/05/24 	2 million units (Japan only)
2000/06/30 	2.54 million units (Japan only)
2000/08/01 	3 million units (Japan only)
2000/09/30 	3.52 million units (Japan only)
2000/12/31 	6.4 million units (Japan: 3.94 million/ USA: 1.46 million/ Europe: 1.0 million)
2001/03/23 	10.04 million units (Japan: 4.65 million/ USA: 2.76 million/ Europe: 2.63 million)
2001/03/31 	10.61 million units (Japan: 4.75 million/ USA: 3.01 million/ Europe: 2.85 million)
2001/06/30 	14.95 million units (Japan: 5.94 million/ USA: 5.15 million/ Europe: 3.86 million)
2001/09/30 	19.57 million units (Japan: 6.85 million/ USA: 8.24 million/ Europe: 4.48 million)
2001/10/10 	20.04 million units (Japan: 6.86 million/ USA: 8.55 million/ Europe: 4.63 million)
2001/12/31 	24.99 million units (Japan: 8.30 million/ USA: 9.87 million/ Europe: 6.82 million)
2002/01/31 	26.33 million units (Japan: 8.95 million/ USA: 10.05 million/ Europe: 7.33 million)
2002/03/31 	28.68 million units (Japan: 9.65 million/ USA: 10.59 million/ Europe: 8.44 million)
2002/05/05 	30.02 million units (Japan: 9.99 million/ USA: 11.25 million/ Europe: 8.78 million)
2002/06/30 	33.27 million units (Japan: 10.16 million/ USA: 13.67 million/ Europe: 9.44 million)
2002/09/17 	40.04 million units (Japan: 10.97 million/ USA: 17.01 million/ Europe: 12.06 million)
2002/09/30 	41.56 million units (Japan: 10.98 million/ USA: 17.94 million/ Europe: 12.64 million)
2002/12/31 	49.59 million units (Japan: 12.47 million/ USA: 21.20 million/ Europe: 15.92 million)
2003/01/15 	50.03 million units (Japan: 12.53 million/ USA: 21.48 million/ Europe: 16.02 million)
2003/03/31 	51.20 million units (Japan: 12.70 million/ USA: 22.21 million/ Europe: 16.29 million)
2003/06/30 	53.85 million units (Japan: 13.60 million*/ USA: 23.65 million/ Europe: 16.60 million)
2003/09/06 	60.03 million units (Japan: 14.17 million*/ USA: 26.42 million/ Europe: 19.44 million)
2003/09/30 	62.63 million units (Japan: 14.26 million*/ USA: 27.42 million/ Europe: 20.95 million)
2003/12/31 	69.46 million units (Japan: 15.90 million*/ USA: 29.09 million/ Europe: 24.47 million)
2004/01/13 	70.00 million units (Japan: 16.18 million*/ USA: 29.26 million/ Europe: 24.56 million)
2004/03/31 	71.30 million units (Japan: 16.98 million*/ USA: 29.53 million/ Europe: 24.79 million)
2004/06/30 	72.01 million units (Japan: 17.52 million*/ USA: 29.53 million/ Europe: 24.96 million)

Boy, they've really stopped dead in their tracks I was hoping they'd make it up to 75 million and it wasn't even close. They only shipped 700k for the entire quarter and NONE to the US. Hopefully, this has cleared the retail channel of all of the surplus inventory that's been around since the holidays.

And I was giving a hard time to somebody yesterday sure that Sony wasn't going to post an actual loss. Well, the loss has to be related to the next gen system since Sony doesn't lose money on hardware, but they don't make much either, so hardware sales don't significantly affect their profit results (although, they certainly affect overall revenue).

 

[DarienA]

DOOMED. DOOOOOOOOOOOOMED.

IAWTP

 

[Mr Gump]

Without Nintendo, their would be no profits.

 

[Doogdogg]

If this was about Nintendo and not Sony this thread would have been 5 pages already.

More like 10 freakin chapters!

 

[DSN2K]

PS3 wont be hitting anywhere till 2007 with way Sony are right now, PSP will be to blame for that.

 

[andthebeatgoeson]

Bill Gates:
Now bleed, bitch.

 

[cvxfreak]

Ouch, Sony.

 

[Kiriku]

"Operating loss of Y2.9 billion ($27 million) was recorded, compared to operating income
of Y1.8 billion in the same quarter of the previous year, mainly due to a decrease in
hardware sales, a decrease in sales of software published by SCE and the continuation of
aggressive investment in research and development for future business."

Software sales will probably increase for SCE when Gran Turismo 4 is released. Not much to say about decreased hardware sales, any big releases during this time period? It may just be that PS2 sales are simply declining. It's been a few years, after all.
And didn't anyone else notice the last reason for the loss? They are investing, that's what all big companies do in order to have a successful future. It's nice to see that Sony aren't being lazy with the upcoming competition from MS and Nintendo. As long as they don't side-track too much (PSX and PSP).