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Sony Q3: Game generated operating income of ¥0.4 billion

P

Parmenides

Banned
Sony Corporation today announced its consolidated results for the the third quarter of the fiscal year ending March 31,2009


Cumulative Production Shipments of Hardware/Software (Unit: million)


Code: 
PS1 

From Dec´94 to March´96  4.3/na

-March 31,1997         13.5/98

-March 31,1998         32.87/236

-March 31,2007         102.5/962


PS2 

-March 31,2000         1.41/2.9

-March 31,2001         10.61/38.3

-March 31,2002         28.68/160.1

-March 31,2003         51.2/350

-March 31,2007         117.89/1240

-March 31,2008         131.62/1394

-Dec   31,2008         138.15/1466.1


PS3 

-March 31,2007         3.61/13.3

-March 31,2008         12.86/71.2

-Dec   31,2008         21.30/155.9


PSP

-March 31,2005         2.97/5.7

-March 31,2006         17.03/47.3

-March 31,2007         25.39/101.4

-March 31,2008         39.28/156.9

-Dec   31,2008         51.26/196

Beginning with the quarter ended June 30,2007,the method of reporting hardware and software unit sales has been changed from production shipments to recorded sales.



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L

lowlylowlycook

Member
XiaNaphryz said:
So is this another case of the strong yen kicking Sony once again?
Click to expand...

Well all Playstation platforms have lower unit sales. So more like the strong yen kicking Sony when it's already on the ground.

Not very sporting.
 
M

Mrbob

Member
PSP over 50 million....jarrod laughed at me when I said psp can get to 60 to 70 million worldwide and around 16 million in japan.

PSP is odd tho...very good hardware sales with little software being sold.
 
X

XiaNaphryz

LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
lowlylowlycook said:
Well all Playstation platforms have lower unit sales. So more like the strong yen kicking Sony when it's already on the ground.

Not very sporting.
Click to expand...
I was going by the Change LC column in the last image that displayed what would happen if no year-to-year exchange rate change was applied.
 
F

FrankT

Member
So far that would mean $325 million loss thus far for the fiscal year with 1 quarter left if my math is correct.

I don't understand how they are forecasting a 2-3 billion operating loss overall for the company and yet post 115 million profit this quarter. They haven't had any net losses for the last two quarters for the overall company have they? Nope. I mean they would have to record a horrific 4Q for that to add up. Wait now I'm seeing they posted 197 million operating loss for the quarter. I see the operating income last quarter was 106 million with a net income of 200 million. Q1 they had 693 million operating income and 330 million net income. That would mean Q4 would have to be the worst quarter ever with that kind of guidance.

So that would mean for the first three quarters they have recorded operating income of $602 million (Q1 $693 million+Q2 $106 million-Q3 $197 million) . That would mean to reach 2.9 billion operating loss for the fiscal year ending in March they would have to record a $3.5 billion operating loss for this quarter. What in the world.
 
J

jj984jj

He's a pretty swell guy in my books anyway.
Nice PS3 SW numbers, everything else though... not so great.

Jtyettis said:
So far that would mean $325 million loss thus far for the fiscal year with 1 quarter left if my math is correct.
Click to expand...
It's all up to KZ2?
 
X

XiaNaphryz

LATIN, MATRIPEDICABUS, DO YOU SPEAK IT
Kagari said:
Game division profited?
Click to expand...

Awntawn said:
Does this mean they games division is finally profiting again?
Click to expand...

Depends on how much taxes end up being, for many companies the operating income figure is before taxes and any interest payments are applied. Net income is then the final number after taxes are calculated out of the operating income number.

EDIT: And I was specifically referring to the game division, the net income figures I see are the consolidated numbers for Sony overall. Taxes take a pretty big chunk out of the overall income numbers though, way more than what the game division generated in income.
 
M

MvmntInGrn

Member
So, they finally made a profit?

I believe their goal was to turn profit by the end of 08, while it isn't exactly a very nice profit its better than loosing more.
 
P

Private Hoffman

Banned
MvmntInGrn said:
So, they finally made a profit?

I believe their goal was to turn profit by the end of 08, while it isn't exactly a very nice profit its better than loosing more.
Click to expand...

They've made a profit before in certain quarters. Sucks that they're getting hit so hard with the exchange rate, otherwise they'd be seeing much better results.

Basically, you can think of it as a PS3 price drop that Sony incurred without that ever carrying over to the consumers. Just a shitty situation, really.
 
G

grandjedi6

Master of the Google Search
MvmntInGrn said:
So, they finally made a profit?

I believe their goal was to turn profit by the end of 08, while it isn't exactly a very nice profit its better than loosing more.
Click to expand...
Since there are still likely other costs not included in the operating income, I'd say "breaking even" would be a better term for this quarter.

Despite technically making a profit this quarter the news is grim all around: sales, exchange rate, year-to-year, etc. The only thing that seemed to save the gaming division was the PS3's cost reductions.
 
A

Angelus Errare

Banned
CHRP718 said:
thank god.
thier 1st party owns.
Click to expand...

But they're doing major cuts to electronics =( I hope this doesn't mean no more random electronics that won't sell worth a damn (Like the awesomness that is Rolly!)
 
C

Chumly

Member
Averon said:
So does this mean Sony is nearly at the break-even point with the PS3?
Click to expand...
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.
 
M

MvmntInGrn

Member
hteng said:
is the ps3 doomed or not ?
Click to expand...

Think of it like this. For the last few years the PS3 has been falling down a hole, and by the looks of it have hit a snag. The potential now exists to start climbing up the hole again.
 
L

lowlylowlycook

Member
Private Hoffman said:
They've made a profit before in certain quarters. Sucks that they're getting hit so hard with the exchange rate, otherwise they'd be seeing much better results.

Basically, you can think of it as a PS3 price drop that Sony incurred without that ever carrying over to the consumers. Just a shitty situation, really.
Click to expand...

Just to be specific compared to this quarter last year the game divisions profits are down 97%.

So no the PS3 isn't turning a corner.
 
D

DogWelder

Member
mr_bishiuk said:
Is the "operating income" the same figure that we normally compare it to? IS it diffierent to profit/loss?
Click to expand...
Profit = net income.

And for those wondering, Sony is predicting shit to go down this quarter. They are sticking to their 260 bln yen operating loss projection for FY08, which means they would have to post ~320 bln yen operating loss in the next quarter...which is just startling, wtf are they expecting to happen??
 
F

FrankT

Member
1cesc said:
Profit = net income.

And for those wondering, Sony is predicting shit to go down this quarter. They are sticking to their 260 bln yen operating loss projection for FY08, which means they would have to post ~320 bln yen operating loss in the next quarter...which is just startling, wtf are they expecting to happen??
Click to expand...

What the hell. I thought my math was correct. $3.5 billion loss for this quarter? Unreal
 
F

FrankT

Member
1cesc said:
Net income loss for the quarter is projected to be ~215 bln.
Click to expand...

That is what I'm saying what in the world is happening over there compared to the last quarter. The Yen issues were there the full quarter.
 
R

RedRedSuit

Member
lowlylowlycook said:
Just to be specific compared to this quarter last year the game divisions profits are down 97%.

So no the PS3 isn't turning a corner.
Click to expand...

Well, actually, if you look at their earnings slide show, PS3 is turning a corner. Software sales are up 57% compared to same quarter last year.

Problem is, PS2 software is down 51% (!) and PSP is down 30% or something like that. So, PS3 is doing nicely (at least in relative terms), but overall the game division is merely surviving. And next quarter it's going to be ugly....
 
i_am_ben

i_am_ben

running_here_and_there
mr_bishiuk said:
Is the "operating income" the same figure that we normally compare it to? IS it diffierent to profit/loss?
Click to expand...


my understanding is that operating income is the profit made from the normal day to day running of the business (or in this case games devision).

for example software and hardware revenues would be included in Operating income but not revenue derived from the sale of say a development studio.
 
R

Rhindle

Member
RedRedSuit said:
Well, actually, if you look at their earnings slide show, PS3 is turning a corner. Software sales are up 57% compared to same quarter last year.

Problem is, PS2 software is down 51% (!) and PSP is down 30% or something like that. So, PS3 is doing nicely (at least in relative terms), but overall the game division is merely surviving. And next quarter it's going to be ugly....
Click to expand...
That's not really turning a corner. Software sales up 57% is not really very impressive when the installed hardware base almost doubled over the same period.

What's happening is that PS2 software sales are rapidly evaporating, while PS3 software sales are not growing fast enough to fill in the gap, and they're evidently far from breakeven on the hardware.
 
I

itxaka

Defeatist
Jtyettis said:
That is what I'm saying what in the world is happening over there compared to the last quarter. The Yen issues were there the full quarter.
Click to expand...


Maybe they are expecting the wordwide crisis to hit them harder? I don't know.
 
D

dfyb

Banned
DOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOMED!

gj sony. profit isn't easy in this industry as a hardware manufacturer unless you're nintendo. hopefully a price drop makes sense soon.
 
R

Rhindle

Member
Jtyettis said:
That is what I'm saying what in the world is happening over there compared to the last quarter. The Yen issues were there the full quarter.
Click to expand...
The fourth quarter is always the strongest quarter for electronics companies, and the 1st quarter is often the weakest. So they're expecting sales to tank due to normal seasonality + continued deteriorition in the economy.
 
F

FrankT

Member
Rhindle said:
The fourth quarter is always the strongest quarter for electronics companies, and the 1st quarter is often the weakest. So they expecting sales to tank due to normal seasonality + continued deteriorition in the economy.
Click to expand...

I understand that fully, but I do not understand how they go from $197 million operating loss last quarter to a $3.5 billion operating loss this quarter unless the shit is really hitting the fan. I'm going to take a look at there Q4 last year to get a comparison.

With that said I'm not sure how they even provide guidance after this quarter if such happens. Next fiscal year after this quarter could be horrid.
 
R

RedRedSuit

Member
Rhindle said:
That's not really turning a corner. Software sales up 57% is not really very impressive when the installed hardware base almost doubled over the same period.
Click to expand...

That's not really a very fair way of looking at it. They sold less hardware than in the same period last year, yet they sold a shitload more software. This is good for the profitability of their PS3 business. Besides, the install base didn't quite double compared to this time last year, but grew like 80%.

What's happening is that PS2 software sales are rapidly evaporating, while PS3 software sales are not growing fast enough to fill in the gap, and they're evidently far from breakeven on the hardware.
Click to expand...

That is completely true.

However, PS3 itself -- in that quarter, at least -- did well in terms of contributing to profit. Certainly not well enough to make up for PS2's fading away.
 
G

Gaborn

Member
dfyb said:
DOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOMED!

gj sony. profit isn't easy in this industry as a hardware manufacturer unless you're nintendo. hopefully a price drop makes sense soon.
Click to expand...

Considering their projections for next quarter... it's gonna be a while.
 
R

RubberJohnny

Banned
DOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOMED!

gj sony. profit isn't easy in this industry as a hardware manufacturer unless you're nintendo. hopefully a price drop makes sense soon.
Click to expand...

I think Sony care more about profitability than some imaginary second place boasting point - a price drop is the last thing they need right now.
 
D

DarkMehm

Member
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
 
U

Uncle

Member
deepbrown said:
The games division made a profit? But I thought it was predicted it would be making a 30billion yen LOSS? Wtf?
Click to expand...


One quarter. It's still in the red for the whole fiscal year with one quarter to go.
 
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