PS4 development costs eats into PlayStation profit

4.7
Increased research and development expenses related to PS4 were a key cause for the PlayStation division's significant operating loss in Sony's first financial quarter, the company has told investors.

In the three months ended June 30, the games unit generated sales of 118 billion yen (£789m / 1.2bn) - essentially flat when compared to the same quarter last year.

Sony said this figure was reached by a mixture of slowing hardware sales and an uptake in software. Unit sales of PS3, PSP, and PS2 hardware all fell (Sony neglected to mention Vita here), but this loss was offset by the favourable impact of foreign exchange rates and increased game sales.

The company bundled together PS3 and PS2 in its home console sales figures, and Vita and PSP in its handheld numbers. Combined PS3 and PS2 hardware sales came in at 1.1 million for the quarter, compared to 2.8 million a year earlier, while combined Vita and PSP sales totalled 600,000, down from 1.4 million.

Software sales for all platforms hit 64 million units - up from 43 million a year earlier.

However, the PlayStation division's operating losses increased by 11 billion yen (£75m / $114m) to reach about 15 billion yen (£99m / $150m) - a significant rise that squeezed profit margins.

Sony said the increase was primarily due to research and development costs related to PS4.

The corporation's full-year forecast for PlayStation hardware and software sales remains unchanged from its May outlook. It expects to shift a combined total of ten million PS3 and PS2 units, five million portable systems, and 319 million games.

As a whole, the wider company's revenues were up 13 per cent year-on-year to 1712.7 billion yen (£11.5b / $17.3b), helping it swing from a loss of 24.6 billion yen (£165m / $250m) to a profit of 3.5 billion yen (£23m / $35m).

Posted:
Related Forum: PlayStation Forum

Source: http://www.computerandvideogames.com/421934/playstation-losses-jump-on-ps4-rd-costs/

Comments

"PS4 development costs eats into PlayStation profit" :: Login/Create an Account :: 73 comments

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ScofieldPosted:

Next-Gen Consoles are gonna be Sweet.

#TeamXboxOne

xxxvrEverPosted:

I cant wait for next gen it will be awesome

-VisionPosted:

I really hope people understand that the next gen consoles are a waste. Why would you buy something for 500$ then have to agree that if you do something wrong they can completely take away your privileges of using it online.

TidePosted:

Sweg Playstation is gonna be an okay console but everyone knows xbox one is gonna be better.


I'm getting the Xbox One, but I have to disagree. They're about equal if you take everything into account.

Im-a-piratePosted:

-Lust Playstation is gonna be an okay console but everyone knows xbox one is gonna be better.


You sir are 100% correct !

RegistryPosted:

Playstation is gonna be an okay console but everyone knows xbox one is gonna be better.

StevenGerrard8Posted:

Jordan355
tbyeah
grunt987654
Kurumu
chris11854
G9H
-Examples Well at least we know they weren't planning on cheating us and stealing our money!


If you are trying to say that Microsoft cheat and steal then you are wrong. Saying stuff like this causes flame wars.


If you think for one second that Microsoft is not stealing your money then you're retarded..




Oh god another one of these uneducated people thinking that Microsoft is a crook and Sony is **** Jesus because they 100% didn't put my credit card information in jeopardy back when they got hacked a couple years ago, you know where people's personal info was being sold online.


I don't have a PS3 so I can't say anything about how they got hacked because it didn't affect me. The problem I have is that Sony had to be hacked in order for peoples money to be stolen. Microsoft has been blatantly stealing from me for the past 6 years, and they did it without being hacked.


How? I'm genuinely intrigued as to how Microsoft has been stealing from you.


I would like some insight as to how they've been stealing from you as well.


Many people forget that Microsoft got hacked like the year the 360 came out, it took years for them to hack the PS3...

Jordan355Posted:

tbyeah
grunt987654
Kurumu
chris11854
G9H
-Examples Well at least we know they weren't planning on cheating us and stealing our money!


If you are trying to say that Microsoft cheat and steal then you are wrong. Saying stuff like this causes flame wars.


If you think for one second that Microsoft is not stealing your money then you're retarded..




Oh god another one of these uneducated people thinking that Microsoft is a crook and Sony is **** Jesus because they 100% didn't put my credit card information in jeopardy back when they got hacked a couple years ago, you know where people's personal info was being sold online.


I don't have a PS3 so I can't say anything about how they got hacked because it didn't affect me. The problem I have is that Sony had to be hacked in order for peoples money to be stolen. Microsoft has been blatantly stealing from me for the past 6 years, and they did it without being hacked.


How? I'm genuinely intrigued as to how Microsoft has been stealing from you.


I would like some insight as to how they've been stealing from you as well.

james938Posted:

ConnorTraps the servers for any playstation are still gonna suck hahha




grunt987654
Kurumu
chris11854
G9H
-Examples Well at least we know they weren't planning on cheating us and stealing our money!


If you are trying to say that Microsoft cheat and steal then you are wrong. Saying stuff like this causes flame wars.


If you think for one second that Microsoft is not stealing your money then you're retarded..




Oh god another one of these uneducated people thinking that Microsoft is a crook and Sony is **** Jesus because they 100% didn't put my credit card information in jeopardy back when they got hacked a couple years ago, you know where people's personal info was being sold online.


I don't have a PS3 so I can't say anything about how they got hacked because it didn't affect me. The problem I have is that Sony had to be hacked in order for peoples money to be stolen. Microsoft has been blatantly stealing from me for the past 6 years, and they did it without being hacked.


Every company steals money. Some more than others

ConnorTrapsPosted:

the servers for any playstation are still gonna suck hahha