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[Karma]

Yes, written off Jonny. I thought once that's done it's "pack your bags and forget your losses" no?

I don`t know what a write off is but Sony does and they are the ones writing it off. :lol

http://www.youtube.com/watch?v=rCZRqH7sRyA

 

[xbhaskarx]

This seems to be the most common headline:
Sony profits fall 95 percent (CNN)

 

[FrankT]

Why is this thread even necessary when there is already one dedicated to earnings calls for all 3 hardware manufacturers?

http://www.neogaf.com/forum/showthread.php?t=284797

There is always a separate thread for quarterly earnings of the big three. Anyhow, $325 million loss so for this fiscal year with this quarter left, but they have projected an additional 30 billion Yen ($300 million) loss for the division based on there earlier projections. I don't think we have those internal estimates, but I'm wondering how much that is in comparison to date. At break even for this quarter they would be at that amount now if they projected a 25 million profit for the year. They say additional losses however so it would seem there latest estimates had it at loss as is and this quarter will report a loss on top of that.

 

[Hcoregamer00]

The OP mixed Production Shipments with the new Unit Sales, here is everything with the new method aka normal shipments:

LTD:

PS3: 21.3 million
PSP: 49.58 million
PS2: 136.32 million

Software LTD:

PS3: 155.9 million
PSP: 186.3 million
PS2: ~1.45 billion

Wow, the PS3 is hitting the gamecube sales worldwide. Pretty impressive for a console that still didn't hit the magical $200 price point.

The PSP Hardware is great, but the software sales suck. Piracy really is killing the system along with the lack of development.

 

[Zombie James]

Wow, the PS3 is hitting the gamecube sales worldwide. Pretty impressive for a console that still didn't hit the magical $200 price point.

And did it in a little over two years vs. the Gamecube's six.

 

[Hcoregamer00]

And did it in a little over two years vs. the Gamecube's six.

Well yeah, I am just happy that the PS3 wont have development drop off like a rock like the Gamecube did. The software sales are strong and the hardware sales are decent for the price point.

 

[Elios83]

There is always a separate thread for quarterly earnings of the big three. Anyhow, $325 million loss so for this fiscal year with this quarter left, but they have projected an additional 30 billion Yen ($300 million) loss for the division based on there earlier projections. I don't think we have those internal estimates, but I'm wondering how much that is in comparison to date. At break even for this quarter they would be at that amount now if they projected a 25 million profit for the year. They say additional losses however so it would seem there latest estimates had it at loss as is and this quarter will report a loss on top of that.

Wait, those 30 billion yen are not the net loss expected for the fiscal year as many websites wrongly reported:

http://www.sony.net/SonyInfo/IR/financial/fr/08revision_sonypre2.pdf

As you can see by yourself Sony announced that the operating income of the gaming division for the fiscal year will be 30b yen lower than expected. They weren't even talking about net profit/loss.
Unfortunately that isn't enough to predict full year net profit/loss without knowing what they were expecting in first place.

 

[lowlylowlycook]

Well yeah, I am just happy that the PS3 wont have development drop off like a rock like the Gamecube did. The software sales are strong and the hardware sales are decent for the price point.

Actually it's the fact that 3rd parties are going multi-platform for almost everything HD that is going to keep the games coming to the PS3. Otherwise the higher cost of developing PS3 games would probably more than make up for the increase in install base over the GC.

 

[FrankT]

Wait, those 30 billion yen are not the net loss expected for the fiscal year as many websites wrongly reported:

http://www.sony.net/SonyInfo/IR/financial/fr/08revision_sonypre2.pdf

As you can see by yourself Sony announced that the operating income of the gaming division for the fiscal year will be 30b yen lower than expected. They weren't even talking about net profit/loss.
Unfortunately that isn't enough to predict full year net profit/loss without knowing what they were expecting in first place.

(2) In the Game segment, operating income (loss) is expected to be lower by approximately ¥30 billion. Of this, approximately ¥15 billion is due to the impact of the appreciation of the yen and approximately ¥15 billion is due to lower-than-expected sales.

It's there lower projected operating income (loss) of there internal estimates, and I'm saying if they projected 25 million profit for the year they would already be at that now with a break even quarter. No we really cannot extrapolate it out for this quarter without there estimates however. Early on however I thought they had projected a profit for the fiscal year, but it would seem that has been downgraded over time.

 

[jarrod]

Wow, the PS3 is hitting the gamecube sales worldwide. Pretty impressive for a console that still didn't hit the magical $200 price point.

It's a little bizarre though considering it's tracking almost identically to GameCube in Japan and America. Then again, those were GameCube's (proportionately) strongest regions, while they're PS3's weakest.

 

[DeadGzuz]

I dont think so considering the fact they are making pure profit on all PS2's sold and PS2 softare along with PSP i think. PS3 software should be making money also but for some reason they only have $4 million profit. That means they are probably losing a fair chuck on PS3 hardware I would say.

I suppose you figured the exchange rate into your professional analysis?

 

[ultim8p00]

On this page you can see all the official Playstation shipments platform by platform easily (also for future reference):

http://www.scei.co.jp/corporate/data/bizdataps3_sale_e.html

Darkmehm has done all the right maths already:




There are a few interesting things in my opinion in this quarter's results:

1) PS3 is basically dead on their hardware sales target (actually with 8.45m units shipped so far in FY2008 and one quarter to go they'll probably exceed their 10m target without any price cut) and right now it is the main software driver in the company which means PS3 is also Sony's most important product right now.

2)Revenues in the company are going down rapidly because PS2 is unexpectedly dying pretty quickly (with a 50% YOY decline in both hardware and software sales) after having held well for so much time.
PSP is really weak (and even declining) in software sales (PS3 is about to surpass PSP's lifetime software sales) and PS3 steep growth in software sales can't offset those.
Notwithstanding the lower revenues especially from profitable products and the stronger yen the quarter was profitable which means as Sony stated that the PS3 business is starting to hold on its own.


I think that with this situation there's no doubt we'll see actions to restore revenues.
PS2 as a profitability safety anchor is gone, but they'll proably try to play the $99 card before dropping production during 2010 in time for their 10 years plan. The key to Sony's revenues and profitability at this point is PS3 because it's their only product with strong growing software sales.
They will need to push PS3 software sales by a LOT this year to be profitable and that can't be done without a competitive price on the system itself which imo will definetly happen during the year.
Also PSP software situation is desperate and it's such a missed opportunity with a 50m installed base, Sony promised a software comeback in 2009 for the system, they definetly have to do something, they should try the digital download model seriously (also as a test for a future handheld), release many more important games.
So basically in 2009 Sony's main goals should be making PS3 their focus as a revenues driver and try to resurrect PSP software business.

Maybe that's why they are reporting like a ~215 billion dollar loss for FY 2008? They are thinking about a price drop?