Sony games division posts profit

by Andrew Yoon { Jul 29th 2008 at 10:45AM }

The beginning of the PS3 life cycle was not good for the company coffers. The launch period resulted in significant losses for Sony. Q1 2008 for PlayStation resulted in a ¥29.2 billion loss (US$276 million). Look how quickly things have turned around, though. The first quarter of Sony's new fiscal year (April-June) has shown the games division posting a profit, albeit a small one. The games division was responsible for ¥5.4 billion in operating income (or US$51 million).

What's responsible for the startling change in profitability? Strong sales of the PS3 and PSP, of course. PS3 sold 1.56 million units this quarter, more than double that of Q1 2008. More importantly, 22.8 million units of PS3 software were sold during this time, an increase of 385% from the same period last year. PSP sold 3.72 million units that quarter as well.

This news will undoubtedly come as good news for investors. However, with so much money still lost on the PS3, Sony will need a few more quarters of strong earnings to recoup the costs of launching the PS3 into our homes.

[Image source]

Tags: playstation, playstation-3, profit, ps3, sales, sony

Reader Comments (Page 1 of 1)

Kiteless @ Jul 29th 2008 10:57AM

Way to go Sony! Keep it up guys. And get Home out the door! Pweeeeeese!!!! I wub you guys!

- K

Mo @ Jul 29th 2008 12:34PM

in chicago,. thats a gang sign, very appropriately for the BD's hahahaha

"In the BD hand sign the three extended fingers are slightly separated giving the "I I I" effect, also known as the "trey" sign to the BDs. A naive adult might mistake this sign for that used by Boy Scouts. "

http://www.ngcrc.com/bdprofile.html

MexicanTerrorist @ Jul 29th 2008 11:02AM

What a disturbing picture, Kaz.

Sora57 @ Jul 29th 2008 11:12AM

You think he is saying "read between the lines"?

Devin @ Jul 29th 2008 11:15AM

Wu-Tang!!!!

MexicanTerrorist @ Jul 29th 2008 11:18AM

If that was the case, then the picture would be of Yoichi Wada.

Devin @ Jul 29th 2008 11:08AM

Way to go Sony. Just continue to update the console, bring out all those 1st party titles on-time and continue dropping the price and you got yourself another year of profitability......

Also, could you try and bring back BC? Your customers are asking for it and expect more from you than the green guys across the pond....

Jon Acheson @ Jul 29th 2008 1:32PM

The lack of backwards compatibility is really hurting the PS3.

My brother was wanting to buy one, now that he has a big HDTV, but he wanted backwards compatibility, and there wasn't anything on the market then, and there still isn't now unless you buy a bundle.

He just bought a Wii.

Way to shoot yourselves in the foot, Sony.

Efeez1986 @ Jul 30th 2008 1:46AM

Oh please, if people want to play PS2 games so badly then just get a PS2. Sony needs to be looking into the future and focusing on PS3 titles instead of worrying about gamers who want to live in the past playing old PS2 games all the damn time. The PS3's out now have enough BC to satisfy people's needs to play PS2 games.

dabamf @ Jul 29th 2008 4:17PM

I don't think they will. I'm really glad that I bought a 60 Gig model. Strange, I can't think of anyone who wouldn't want BC. It was a huge selling point for me to buy a PS2 back in the day.

gamingeek @ Jul 29th 2008 11:13AM

I think that we can now all see that our investment in Sony will pay off. The PS3's lifecycle has only just begun. It's future is looking bright indeed!

Kaz: "WEST SYYYYYYYYDE for eva!"

Neo Senku @ Jul 29th 2008 12:45PM

Restu Sidu foeveru

StaticKevin @ Jul 29th 2008 1:48PM

Duke Nukem Forever!

thinkofmeasmra @ Jul 29th 2008 11:17AM

wow im suprised, it was just like 3 months ago they posted a loss and was stating their new aim in profitability and already they hit profit. You know how hard that is to do?? Bigup sony

Ott_Senators @ Jul 29th 2008 11:27AM

2008 = the year of the PS3! and 2009 = the year xbox falls!

Eddie @ Jul 29th 2008 11:51AM

Hockey sucks and so does your fanboyism. Why are you so defensive about your precious console that the xbox has to fail for yours to succeed? This is good news for "you" (even though, of course, sony isn't giving you a dime of that scratch), what are you so bitter about? Did the xbox touch you in your special place when you were little?

I have both and I'm glad both next-gen consoles are doing well. It's good news for the entire industry. Becoming a mainstream (if it isn't already) industry will start seeing a lot more "win-win" scenarios, just like how multiple studios and production companies can all turn profits in the major mainstream movie industry.

Oh, and uh, dealing the death blow to coin-ops and PC gaming ftw in 2010! Just kidding, kids.

reson8er @ Jul 29th 2008 12:00PM

@ Eddie

"Hockey sucks and so does your fanboyism."

Yes, and coming to a site named PS3 Fanboy to point out that someone is a fanboy is just as intelligent.

Good one.

PS3Diablo @ Jul 29th 2008 12:33PM

Baseball sucks, American cars suck, American electronics suck ... 3 sucks and you're out ... SONY FTW !!!

Phileoca @ Jul 29th 2008 1:31PM

No Eddie, Hockey does not suck.

And yes, with the PS3 succeeding Sony does indeed give me money. It's called owning stocks. Sony stocks go up, my portfolio increases.

Think outside the box Eddie before you try and put someone down. You gain nothing.
/delevel

Popfrogs @ Jul 29th 2008 1:35PM

lol @ Eddie and Deaftly. Guys who spend their time posting on fanboy sites like this one and X3F then come along and criticize others for being fanboys = douchebags.

JAH75157 @ Jul 29th 2008 1:39PM

hockey doesn't suck. damnit

Arnon @ Jul 29th 2008 2:28PM

Does anyone ever think for a minute on forums? Isn't it a -huge- possibility that people come here and post so they can read up on new information, instead of trying to look like a daft fool and say things like "THE 360 WILL FALL!"

Arnon @ Jul 29th 2008 2:31PM

(Comments suck on this) Lol at that statement, because both consoles will be inferior within a couple of years. And God help us all that I'll get thumbs down for a statement that I can guarantee will be true. But people hate to be wrong! So they throw negative comments at things that have no meaning whatsoever.. and by the way, I thought SONY lost $3.3billion from the PS3 because it should cost a lot more than it does.

fossett44 @ Jul 29th 2008 11:30AM

360 fanboys are crying right now and i love it

Maya Butreeks @ Jul 29th 2008 3:43PM

The real question is, why is deftly here? you are douchenozzle haha!

Arnon @ Jul 30th 2008 4:40AM

You're the one calling him a "douchenozzle" for his own opinions ;>_>

Wrathbringer @ Jul 29th 2008 11:31AM

Go Sony! I'm glad to see our favourite company has made a profit on the PS3, especially so quickly after its rocky start. Now things can only get better...

ComicShaman @ Jul 29th 2008 11:35AM

The article doesn't mention it, but I expect that venerable old workhorse, the PS2, also must be given some credit. One of the things Sony does best is continue to support the older generation consoles.

Popfrogs @ Jul 29th 2008 1:38PM

You'd support the PS2 if you were running Sony also because the thing is a money printing machine. It costs almost nothing to make, there's a gigantic game library, and poorer countries are still buying the hell out of it. It's finally becoming affordable for many people.

Sony would be stupid to just quit making the PS2. They'd be smart to make a waggle wand for it.

Pip @ Jul 29th 2008 11:38AM

This was all over the news this morning. It's BAD news, because they should have posted profits around 600m like last year, so they're down a TON.

I don't understand how this was spun as good news? They blamed most of their losses on their cell phones not selling as good as they should. Which makes sense since the iPhone has pretty much taken that market by storm.

http://money.cnn.com/2008/07/29/news/companies/sony.ap/index.htm?postversion=2008072906

"Sony profit plunges nearly 50%."

gamingeek @ Jul 29th 2008 11:41AM

The economy in general is soft. People are finding themselves with less and less disposable income these days for video games, TVs, and cell phones. Sign of the times I'm afraid. EVERYONE is hurting right now.

RC @ Jul 29th 2008 11:47AM

That is company wide. We are talking about the games division.

TheSh0wstopper @ Jul 29th 2008 11:55AM

Dude stay ON TOPIC!!!

We are not talking about Sony as a company, we are talking about Sony's GAMES DIVISION!!! Re-read the article that you linked. It covers Sony as a company thats why cell phones and Spiderman 3 (the movie) was in the discussion. As far as SOny's Games division goes this is not a "spin" but in fact actual good news.

-TheSh0wstopper

Andrew Yoon @ Jul 29th 2008 12:08PM

Sony may be struggling, but it's not because of PlayStation.

Arnon @ Jul 29th 2008 2:24PM

Didn't SONY lose $3.3 billion due to the fact that the PS3 should cost around $1000 or so? >.>

frankym @ Jul 29th 2008 11:41AM

Sony...TAKE A HINT......Release AAA exclusives often and without delays and you will continue to see things improve.

PS4 here we come.

Jerses @ Jul 29th 2008 11:49AM

Wow... shark teeth

The_Punisher @ Jul 29th 2008 12:01PM

50 Million down, 2.95 billion to go

Sorry, i couldn't help it :(

jimb @ Jul 29th 2008 12:18PM

I know this is off topic but.....

Why are all the Posts posted by PS3 fanboy wirttin by or filed under writting by the ps3 fanboy staff and the same for the majority of X3F posts I think I read in some article somewhere that AOL was going to sell of the game division of blogs and have fired bloggers and some are posting for nothing. It also said that they are currently limited to five posts a day or something.

Organic_Shadow @ Jul 29th 2008 12:19PM

If they can either hold out until next spring for their next price cut, or lower production costs even further between now and then, PS3 sales cost/price won't really matter anymore.

For the most part it's all about game sales now- where most of the money is made anyway. MGS4 is still hanging in there and with all of the late-Summer and Fall games coming out I don't see why they wouldn't be in a good position by the end of the fiscal year. Now that more publishers are on board or up to speed with PS3 development, things should stabilize through next year unless the buy-out wars continue...