Sony Posts Profit, Gaming Loss Widens
By Ed Oswald | Published October 26, 2007, 11:29 AM
Sony returned to profitability in its fiscal second quarter thanks to a weaker yen and strong digital camera sales, however its gaming and TV divisions -- including the PlayStation 3 -- continued to struggle.
The Japanese electronics company posted revenues of 2.08 trillion yen, up 12.3 percent from the year ago quarter. Operating profit came in at 90.5 billion yen, up sharply from the 20.8 billion yen loss Sony posted last year due to the battery recall and PS3 launch costs.
Net profits shot up to 73.7 billion yen from 1.7 billion yen in the year ago quarter. The company said that as much as 30.3 billion yen of its profits could have been due to the weak yen alone, as sales in other parts of the world became more valuable.
Sony's electronics division showed the most strength, with an operating profit of 106.9 billion yen, up from 8 billion yen last year. However, losses in the manufacturer's television unit grew to 21 billion yen from 10 billion last year.
Sony's gaming division also saw expanding losses, with a 96.7 billion yen loss more than doubling last year's 43.5 billion yen figure. The company said it was not sure how big the loss would be for the entire year as of yet, but it's unlikely the situation will improve anytime soon.
1.31 million PS3's were shipped during the quarter, up from 710,000 units in the first quarter. Apparently, the consoles are still being sold at a loss, thus a recent PS3 price drop could have the unfortunate effect of worsening the gaming division's financial situation.
Price cuts on the PS3 have already been announced in Europe, Asia, and the United States within the past month.
Yeah, Sony releases a piece of crap and it comes back and smacks them in the face. It kind of reminds me of the tubgirl.com (Warning: Tubgirl isn't for the weak minded. You have been warned!).
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|Ed,
When are you going to report on the fabled 1.1 update for the PS3 that is never going to come? Dave keeps dodging the issue when we ask for a solid date.
Probably because he already knows it's not coming but is trying to convince evryone here that it is. He does this in the hopes that maybe one single person here is stupid enough to buy a PS3 instead of an XBOX 360.
When the cross platform developers say the 360 is superior in every way, I tend to believe them.
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|Why do you think the 1.1 profile wont come to the PS3?
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|Oh, believe me, I am waiting for it too. Knowing Sony and how many times they have lied about everything, the 1.1 update will probabaly come in Spring 2008.
Davey seems to think adding .... interactive CD-ROM capability and PIP ..... will somehow be superior to HD-DVD's HDi, which I use all the time.
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|Off topic:
Didn't Sony pay Target to have Blu-Ray exclusive? I was in Target today and saw some HD-DVD movies their. I was looking for Transformers.
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|I thought target just stated on their own that they would be placing blu-ray in front of HD-DVD. I buy all my HD-DVD's at my local target, so I know for sure they stock them.
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|Sony didn't pay Target for exclusives (pay offs are SOO HD DVD), they agreed on end of shelf displays.
Off Topic:
Seems HD DVD camp had to invent a shed-load of Transformers sales, as it basically flopped on HD DVD. The news reports of Transformers breaking records on HD DVD is totally bogus..
http://www.deadlineholly...-big-ass-fat-stupid-lie/
http://www.highdefdigest...ransformers_HD_DVD/1109
Imagine how many more copies Paramount could have sold, had they not took that Toshiba back hander. Ouch...
Looks like 300 on Blu-ray sold more than Transformers on HD DVD. Oh dear..
Transformers HD-DVD
Week Ending 10/21/07 = 89,871 Units (First Week sales as reported in VideoScan First Alert)
---
300 HD-DVD/DVD Combo Pack
Week Ending 8/5/07 = 56,191 Units (First Week sales as reported in VideoScan First Alert)
---
300 Blu-ray
Week Ending 8/5/07 = 107,351 Units (First Week sales as reported in VideoScan First Alert)
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|"(pay offs are SOO HD DVD)"
LMAO!!!! Could you be any more of a fanboy! Yes the beloved Sony would NEVER pay off anyone! /scarsm
BTW the pay off has never actually been proven. It is nothing more than a rumor started by some Sony cheerleaders.
"Seems HD DVD camp had to invent a shed-load of Transformers sales, as it basically flopped on HD DVD. The news reports of Transformers breaking records on HD DVD is totally bogus.."
"Two rival Blu-ray studios which prefer to remain nameless tell me"
I stopped reading right there. Any more baseless comments Joey?
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|The Sony/PS3/Blu-ray shill-drone-fanboys just can't quite work out how higher sales numbers get cancelled out by higher costs.
Poor deluded idiots.
Just like they imagine Target give away end caps for the charity of it.
FFS these guys are verging on the insane.
'Course Videoscan don't include Amazon or Walmart (only the largest & second largest retail outlets in the world).
But cos Viacom/Paramount are now HD DVD they just must be lying, eh?
They just set a record for high def disc sales and the Sony/PS3/Blu-ray shill-drone-fanboys 'think' they ought to be upset (like they are).
LMFAO.
Too funny.
It's all starting to slip away and they really don't understand why.
What will the excuses be when Warner walk away?
CES in Jan is going to be so good!
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|Sony returned to profitability in its fiscal second quarter thanks to a weaker yen and strong digital camera sales, however its gaming and TV divisions -- including the PlayStation 3 -- continued to struggle.
yea im sure it was necessary to mention that the gaming division included the ps3... how else would the readers have known?
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|Usually news reports will highlight something that is an overwhelming reason for the current fortunes of the company, be it good or bad. Just look at reports on Apple, they'll almost always mention how much the iPod specifically is contributing to the current good fortunes.
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|Isn't the PS2 still a huge success? PS3 needs to be mentioned so some troll doesn't try to spin it due to the PS2's 'success'.
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|Weren't you just complaining that Betanews didn't go in enough detail about the 80gb PS3's 'limited' PS2 support?
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|MS Gaming division only posted a profit this year, so you can see there are ups and downs in developing (and re-developing) the market from each gen to the next. MS did the wise accounting thing and pile the whole 360 recall billion into last year's numbers, so now it just looks like a crappy year followed by a great year... most accounting practices would have you amortize that cost over the time period of the recall... unless you are saying that all $1billion Xbox's broke within the year... in which case they did the right thing.
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|Actually, MS Gaming division only posted a profit this QUATER..
And the only reason for this, was they took the $1.15Billion hit for defective 360 consoles, in the last quater (intentionally, so not to dent this quater)
Don't be fooled by cheap quaterly reports, year to date, Microsoft Gaming are NOT making any money, and have a long way to go.
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|minuteman, you are funny. i am sure the profits will be even greater next quater. time shall tell.
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|Only this "QUATER" huh? How do you know they won't post a profit next "Quater"? That's usually how it works when a product begins making a profit. You're posts are pathetic.
PS: I normally don't nitpick mispellings as they are usually typos, but after seeing you spell quarter wrong THREE times and even use the ridiculous spelling quaterly it's obvious you don't have a clue how the word is spelled.
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|Says the PS3 fanboy.
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|"this QUATER.."
"last quater (intentionally, so not to dent this quater)"
"by cheap quaterly reports"
Pathetic... LOL
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|As you would say back to school.
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|from the king of grammar
you actually get paid to do this ?
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|Sony is really not having good week:
Walmart will offering $198 Toshiba HD-DVD
Microsoft gaming showed its first profit ever
The 360 will possibly come with HD-DVD in 2008
The 360 and Wii sales are blowing away the PS3
Sony game divisions is not profitable.
Now Mass Effect will be released soon.
$400 PS3 = more $ loss
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|To date, PS3 has lost $1.1Billion.
However, to put that into perspective, that's LESS than microsoft had to put by to repair all those defective Xbox360's ($1.15 Billion)
The key difference, is that PS2 and PSP are very profitable.
Most of the idiots here were still soiling their daipers when the PS2 was launched, so here is a reminder what the "experts" said back then..
http://www.forbes.com/2001/01/25/0125disaster.html
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|LMAO, only a troll would take such a large sum and spin that .05 billion in comparison is sooooo much better. You forget though that while MS has spent money on fixing their problems, their problems are practically over. Sony still has a problem and it will only be fixed when solid GAMING titles are released.
Like I asked before, what competition did the PS2 have back then? Oh and if doing bad is supposed to be normal, then how do you explain the Wii's and xbox 360's success?
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|Yep, Sony's problems get fixed for free.
A simple look at this seasons game lineup demonstrates that.
If you actually HAVE a PS3, download the Ratchet and Clank demo, or log onto the Japan store and download the Gran Turismo 5 Prologue demo, why not check out the previews for Uncharted Drakes Fortune, or Unreal 3 screenshots.
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|Thats funny, every thing you mentioned was a demo of some 'future' product. I'm waiting for GT5 retail before I buy this doorstop.
Like I asked before, what competition did the PS2 have back then? Oh and if doing bad is supposed to be normal, then how do you explain the Wii's and xbox 360's success?
UPDATE
I just saw this with relation to the PS2 game sales.
* Grand Theft Auto: Vice City (13 million)
* Grand Theft Auto: San Andreas (12 million)
* Grand Theft Auto III (11 million)
* Gran Turismo 3: A-Spec (11 million)
* Gran Turismo 4 (8.79 million)
* Metal Gear Solid 2: Sons of Liberty (7 million)
* Kingdom Hearts (5.6 million)
* Final Fantasy X (5 million)
* Metal Gear Solid 3: Snake Eater (3.7 million)
* Final Fantasy XII (3.68 million)
Sony better hope to keep both the MGS and FF series exclusive, otherwise they are neck deep in sh!t. And I know for damn sure that Squaresoft isn't too happy with the PS3's performance right now.
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|just a reminder that $1.15 billion is allocated for repair for the "next few years".
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|Ratchet And Clank is in the stores now, idiot...
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|Goes to show you how much I care about the PS3 game line-up. Until GT5 comes out, I think I will pass on these games, specially if it is multi-platform.
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|OH MY GAWD!!! That's amazing!!! One Game!!!! I better run to the store and pickup a PS3 and Ratchet, I'm sure it's going to be sold out everywhere!!!
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|I just LOL'ed. :)
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|"Yep, Sony's problems get fixed for free"
If they admit to them.. where have you been the past 15 years or you just want to forget about that so you can blindly bash microsoft?
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|Right there with you lol. It is fun watching desperate fanboys trying to make the PS3 not look like a failure. *grabs popcorn*
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|but that's okay because soon only not yet the ps3 is going to save the world
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|and cure cancer
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|sony ps3 biggest flop in history, good buy sony and your propertarian anti consumer blu-ray format, and thanks for all the fish!
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|"sony ps3 biggest flop in history"
Based on what? Surely that's the Dreamcast, or the 3D0, or the original Xbox..
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|I'd argue betamax was their biggest so far. Don't worry though Betamax ver.2 (blu-ray) is soon to top those charts.
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|what about UMD and the cell processor
or sony mp3 player
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|The Dreamcast wasn't a flop at all, it's still popular to this day with new games coming out in Japan. It wasn't the market that killed it, but Sega themselves. The 3DO did indeed flop due to high price (sounds familiar) but the Xbox, now your just being stupid or trying to troll. Anyway arguing that the 3DO was a bigger flop than the PS3 (which remains to be seen) isn't exactly something to brag about.
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|Or Mini Discs, or Memory Sticks, or Sony's HiFD (High capacity Floppy Disk)
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|I think the PS3 is tied for first place with the Atari Jaguar....
Anyway, the 3DO had a stellar line-up of games in the short 2 years that it was on the scene. More than can be said for the PS3, with it's rather lackluster selection of 80+ titles in almost 1 year.
For such an advanced console as the PS3 to have so many mediocre (and some downright appalling) games this late in the game is laughably embarrassing.
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|Remind us what the 360 had in it's first year, apart from Gears?
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|Remind us what the PS3 has this year that even comes close to Gears?
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|The important part is the 360 did not have even close to the amount of turds that the PS3 has had.
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|Still waiting...
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|and waiting .......
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|and waiting... Maybe next year?
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|Yep... next year.
Along with all of the other products and features that consumers have been promised by Sony during the previous year.
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|Oh Joey!!! We're still waiting!!!
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|Oh dear.
I wonder where all those 'financial experts' are now?
PS3 sold at a loss before the recent price cuts and now sold at an even greater loss after them.
Hmmmmmmm. Tricky economics going on there, huh?
Where oh where are those 'experts' then?
You know, the ones who can't wait to rush in to claim Microsoft are subsidising the XBox so hugely & going down the tubes cos of it).
LMFAO
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|Those aren't experts... those are people wishing that Sony would do something other than lose money on what should have been a fantastic console. *shrugs*
Let the flaming wars begin on this one...
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|Just wanted to point out that it's still being sold at a loss. There's no mention of a "greater" loss. My guess is they're not losing "as much" on them now. If they are, then someone needs to fire their operations manager pronto.
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|Well common sense tells me that they must be selling at a greater loss. If they kept their prices the same then they wouldn't be selling consoles.
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|common sense must have eluded you. his point is that it says selling at a loss so if the manufacturing costs of the ps3 when it first came out was 900 and they sold for 600 then their was a loss of 300 per console. if the $400 retail ps3 costs $450 to manufacture then they are only losing $50 per console but still 'selling at a loss'. maybe if this article didn't speculate it would be easy to determine if he is correct.
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|Aren't you speculating yourself? What a hypocrite.
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|I'm not sure you quite understand the concept of 'economies of scale'. Prices don't necessarily go down just because time has past. The economies of scale model is based on the idea of selling a large amount of an item so as the price per unit will come down. You can't argue that Sony has really been selling that many of these things. Manufacturing costs for something as high tech and complex as the PS3 don't drop 50% in less than one year, even if they were selling the amount of consoles of 360 and Wii sales combined.
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|i didn't write a news article trying to plug in speculation for facts.
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|no they generally don't but with certain hardware prices coming down as well as the removal of certain hardware the console itself is cheaper to manufacture than it was. like i said we don't know exactly the cost as the information is not available but i was simply clarify the possibiltiy that they could be losing less on each console now compared to launch.. i never said that i knew or felt they were.
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