PS4 is selling well, but its launch helped Sony lose $1.25 billion

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PlayStation 4 sales are going strong at over 7 million sold, but it was a costly console launch that contributed to Sony’s $1.25 billion loss for the financial year ended March 31, 2014.

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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"PS4 is selling well, but its launch helped Sony lose $1.25 billion" :: Login/Create an Account :: 35 comments

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ORL_MAGICPosted:

AR15 That is a huge chunk of money for them to lose. I know they are worth billions if not trillions, but still!


No company is worth trillions. Not even google nor apple are. Sony is almost worth 20 billion.

ORL_MAGICPosted:

ZE_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.

CutlerPosted:

-Mashiro
Miss Not good Sony, not good. You'd expect them to have made a lot of money considering they've sold more than the Xbox One, but clearly consoles aren't the only thing they have.


The money both Sony and Microsoft made (or lost) from their consoles is chump change to them. The real money is in the game sales and subscription fees you pay after the initial console purchase. That's why companies sell consoles at a loss, they know they'll get their money back and then some if they just be patient.


Its chump change for Microsoft. But it is different for Sony. Sony is having a problem with money right now and are struggling.

OasisPosted:

Launching a global product not to mention the r and d cost, doesn't come cheap? No shit.

SakiPosted:

Miss Not good Sony, not good. You'd expect them to have made a lot of money considering they've sold more than the Xbox One, but clearly consoles aren't the only thing they have.


The money both Sony and Microsoft made (or lost) from their consoles is chump change to them. The real money is in the game sales and subscription fees you pay after the initial console purchase. That's why companies sell consoles at a loss, they know they'll get their money back and then some if they just be patient.

ZE_BLUEZPosted:

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

CearnsyPosted:

No company likes to lose money not even anyone does especially not 1.25 billion

SayPosted:

I see people rarely actually read the articles. Its not just the ps4 that sony is losing money on>

SuperrOwlPosted:

Yet aother victory for Microsoft .

-yoghurtPosted:

thats soo much money to loose


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