PS4 is selling well, but its launch helped Sony lose $1.25 billion
It’s the company’s fourth annual loss in five years, totalling ¥128.4 billion / £746 million / $1.25 billion.
Compared that to the previous fiscal year, which saw Sony pull net income of ¥41.5 billion / £241 million / $406 million, and it’s clear to see that the Japanese giant had a costly year through 2013/14.
It wasn’t all negative however, as Sony’s net sales rose 4.3% to ¥7,767.3 billion / $75.4 million, thanks – the company said – to the strong launch of PS4, a leap in its smartphone sales and the impact of “foreign exchange rates.”
While other areas of Sony’s business are slipping, games continue to thrive with a year-on-year sales increase of 38.5%, totalling ¥979.2 billion / £5.7 billion / $9.6 billion.
As we said in the headline however, those console launches don’t come cheap, and the PS4 release contributed to the game division’s ¥8.1 billion operating loss and of course, Sony’s overall losses.
Just how expensive was the launch? Well, considering last year, Sony posted operating income of ¥1.7 billion / £9.9 million / $16.6 million, we’re guessing quite. Quite expensive.
It’s an expense that seems to be bearing fruit however, as Sony shifted some 3.7 million PS4, PS3 and PS2 units in Q4 last year, compared to 3.4 million year-on-year, and 14.6 million consoles for the whole fiscal year, down from 16.5 million in FY 12/13.
Vita seems to be in a bit of a pinch however, as Sony sold some 700,000 PS Vita, PS Vita TV and PSP consoles in Q4, which was a dip on the 1.3 million sold in the previous year. Sony stated that portable hardware sales have dropped from 7 million units to 4.1 million in a year.
Lastly, in software, Sony sold 91 million combined units in Q4 2013, up from 79 million the previous year, while overall software sales increased from 266 million units to 374 million for the full-year.
Posted:
Related Forum: PlayStation Forum
Source: http://www.vg247.com/2014/05/14/sony-2014-financial-sales-report-ps4/
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Comments
KixaPosted:
XxPiiRaTexXRageCreation Sony will probably go out of business in the next 10 years. They should just stick to playstation and dump everything else.
they're losing money on the playstation, how would it help to dump everything else that makes profit?
Next 10 years? i doubt it there going to make tons in the future with there new systems.
XxPiiRaTexXPosted:
RageCreation Sony will probably go out of business in the next 10 years. They should just stick to playstation and dump everything else.
they're losing money on the playstation, how would it help to dump everything else that makes profit?
RageCreationPosted:
Sony will probably go out of business in the next 10 years. They should just stick to playstation and dump everything else.
GaryPosted:
This doesn't seem like a big loss for a company of Sonys size, but to us it is a really big number. Sony will surely make that money back in no time.
General_RaamPosted:
ORL_MAGICZE_BLUEZ Compared to both MS/Sony they both have other things they develop and publish. But the one thing that keeps MS in such good compared to Sony is the way they can publish something without money loss, MS has been in this kind of industry aka technology alot longer than Sony so chances of them knowing what there doing is much higher. Granted Sony is very experienced they still have less appealing things to the public, MS has Windows, Sony has small world round hardware. Not bashing on Sony but they need to fix themselves preety quick because if they go into the garbage sorry for those who bought Sony accessories. -_- Sony
Sony has been around since 1946.
Yes, but they focused on photography and video for nearly 50 years.
108Posted:
Sony was always in a bad place financially, I Think they should've promoted the PS3 and got more sales from it. Making a stronger console in the scheme of things might have killed them.
DiamondsPosted:
they are for sure trying to work on a cheaper model to produce to atleast break even and not lose money for every unit sold
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