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Sony posts $312 million loss for Q1 2012; Game division underperforms

"Sony has posted a loss again for Q1 2013, totaling to $312 million. Their game division performed poorly too as you can see below, and showed decline in hardware and software."

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DaThreats1458d ago

Atleast the total loss is less than the last fiscal quarter

NastyLeftHook01458d ago

units (3) | 16m ago XD

Yeah, these numbers were way better than the last fiscal quarter.

portal_21458d ago

Yes, also I seem to remember a certain $380m acquisition lately...

portal_21458d ago (Edited 1458d ago )

Edit...or does this count as 2nd quarter?

andibandit1457d ago

@portal_2

Im no guru at economics, but arent a companys assets included when calculating these things?

gaffyh1457d ago

Even Kaz Hirai can't turn around the company's fortunes in just a single quarter!

I'm more worried about the fact that they expect sales to stay flat for consoles, which to me suggests no price cut and no slim PS3. unless they're just being conservative.

Diver1457d ago

@ten tons,

yep. far too many peeps only looking at the headline.

http://www.engadget.com/201...

Sony's first-quarter figures for 2012 show that despite the company's optimism three months ago, it's made a net loss of $312 million. It pulled in a whopping $19.2 billion in sales for the three months ending June 30th, partly credited to bringing Sony Mobile fully into the family. However, the cost of restructuring the Mobile Products and Communications Division (of which Sony Mobile is a part) came to $143 million, wiping out the additional gains to record a loss of $356 million. Gaming-wise, the PlayStation maker suffered a $45 million loss as falling sales of the PSP and PS3 were only partially offset by the sales of the PS Vita. There was better news in its imaging division, while sales of compact cameras fell, DSLRs and "Professional" products took up the slack, resulting in a profit of $160 million.

In a trend we've seen across the Home Entertainment industry, sales of LCD televisions continued to fall, forcing the company to eat a loss of $126 million. Movie and TV recorded a loss of $62 million, although that's primarily due to a dip in advertising sales in India and the cost of marketing (but not producing) The Amazing Spider-Man, the profits of which won't be recognized until September. Finally, while it spent big to purchase EMI this quarter, big-ticket albums like Usher's Looking 4 Myself and One Direction's Up All Night helped the division make a profit of $92 million. While Sony's treading water to execute Kaz Hirai's "One" Strategy, it's still got $8.4 billion stashed under the mattress, and in the face of lower sales, is hoping that reduced costs will help it make $1.6 billion in profit by the end of March 2013.

SuperLupe1457d ago

"We don’t know how much PS3′s they shipped this quarter as they seem to be combining both PS3 and PS2 now"

Doesnt smell good.

bobshi1457d ago

@gaffyh

I think they expect them to stay flat, rather than falling as we will get the PS3 'Super Slim' to engage new buyers.

bobshi1457d ago

I'd love to know what the disagrees are for, and yet the guy who says there will be no super slims has less disagrees when we've all seen the certification pictures...

Yet more cowards who don't post their point of view...

BattleAxe1457d ago

Within 2 years Sony will have taken a huge bite out of Apple's market share. They're making all the right moves, and they've got the resources to take on the likes of Apple and of course Microsoft. I think that only good times are ahead for Sony.

+ Show (6) more repliesLast reply 1457d ago
decrypt1458d ago TrollingShowReplies(3)
nukeitall1458d ago (Edited 1458d ago )

I'm surprised with new hardware, like PS Vita Sony shipped fewer handhelds combined by almost 30% than yoy quarter. Heck the entire division under-performed. MS had similar result, but they got years of earnings to prop them up (and also other very profitable divisions).

Sony is also hiding the PS3 sales number by combining it with PS2. I would have love to see the numbers, as MS too had major decrease in Xbox 360 sales.

It's time for new hardware! I have been waiting for some time now! Kinect was a good start though.

-Superman-1458d ago

Sony needs to make PS4 price right.
If they make PS4 same way as PS3(making costs more than you sell), then you get loss. Lets hope PS4 makes some profit. If Sony PS4 is loss, then we wont see any more exclusives games from Sony. No Uncharted, No LittleBigPlanet, or new IPs.

BitbyDeath1458d ago (Edited 1458d ago )

Consoles generally always sell for a loss at launch. Money is made back through games.

cee7731457d ago

The only reason ps3 was so expensive is because of blu ray $200 in 06 , now its 2012 and its now under $12 so ps4 will not be as expensive

Brosy1457d ago

I wouldn't expect sony to get in too far over their head when it comes to next-gen hardware. They might take the nintendo route and try to make profit right off bat instead of going into debt just to put out a cutting edge console. Or they could just go under and get it over with.

I bet we wont see a ps4 until 2014. They will try to hang onto the ps3 for as long as they can, before going into debt again. If they choose that route that is. Being an investor in sony right now must be grim.

cjflora1457d ago

Brosy, Sony has shown that their business model is long term. I'm sure that's what they'll do for the PS4. Even if the PS4 comes out within the next couple of year, people will be buying PS3's well into the next gen just like they did with PS2's.

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Anon19741457d ago (Edited 1457d ago )

It's ugly all around for hardware sales this year. PS2 & PS3 sales combined I think were down 14% in this quarter, 360 sales are down 43% for the first six months of the year, Wii sales were down something like 55% last quarter. The whole industry seems to be taking quite a hit.

Let's hope there's some truth to those $150 PS3 super slim rumors. That would certainly give the industry a much needed boost and ramp up some spending in the second half of the calendar year.

NBT911457d ago

I think the thing is... It really is time for new consoles. And here is the reason why -

I was able to go out the other day and buy myself a cheap XBOX 360 for only £80 the other day. They sell for £150 usually. The one I got is 2nd hand fair enough but £80 for a console is a steal, now I can go back and get all the games I missed out on not having one for cheap as well.

What I am trying to say is that its got to a point now where they have sold so many now that its easy to find someone selling one 2nd hand for cheap and so a lot of gamers who want the console and its games for the collections (like me) or casuals who just want one for as cheap as possible are just picking them up used now.

And I dont support the whole "USED MARKET IS KILLING THE INDUSTRY!" thing, but this late into the current generation it probably is not helping...

So yeah to cut it short - I think new hardware is needed because console sales for this generation are not going to really increase significantly any more due to so many very cheap 2nd hand consoles available.

I mean... £80 for an XBOX 360? Thats like, little more than the price of two brand new chart games... That is quite a steal and speaks volumes for the value of current gen consoles.

avengers19781457d ago

Are there any companies not posting loses these days

+ Show (3) more repliesLast reply 1457d ago
Xperia_ion1458d ago

The only direction now is up, Sony needs to be picky with their exclusives, it isn't worth supporting a game that is only going to sell 500k or anything below a million. Also they should fire their marketing team. PlayStation mobile is going to help Sony a lot

nukeitall1458d ago

eh?

NO! Sony (like any company) can go bankrupt eventually and nobody wants to touch them with a ten foot pole.

Have you seen Nokia lately?

Xperia_ion1458d ago (Edited 1458d ago )

I'm a optimistic type of guy. I believe all hard work pays off in the end, do you think the PlayStation brand has been lazy in providing games to its fanbase ? I understand the nature of man and its love for watching things burn, but it ain't over till the fat lady sings.

In a ironic way I think this is a good thing cause it gives Sony the perfect excuse not to come out with PS4, they going to get even more loss if Sony does that, I'm guessing when the PS3 hits ten years then PS4.

sashimi1458d ago (Edited 1458d ago )

Too big to fail! - US government

Says differently lol

too bad Sony doesn't have a monopoly to fall back on like MS or a huge amount of sheeps to their brand like Apple does.

But what can they do when they do so much business in the states and the dollar isn't worth much compared to their yen causing even more losses.

greenpowerz1457d ago (Edited 1457d ago )

You just described Sony's past history in many regards. Not so much a monopoly on electronics anymore although many nations are still monopolized by Sony electronics and have a sheepish mistrust for other brands and sheepish loyalty as shown on this site and all over the developed and undeveloped world.

I'm not sure what you mean by "to big to fail usa"

Are saying the reason MSFT is doing well vs Sony is because MSFT is really doing poorly but my government is bailing MSFT out and into success?

*waits for -nathanexplosion- to call me out for calling out nonsense*

nukeitall1457d ago

@sashimi:

US Government isn't a company!

That said, I have no clue what you are trying to say. Sony did have a monopoly at one point with the Playstation 1 and 2!

They lost that thanks to first MS, then Nintendo did them in.

@Xperia_ion:

"I believe all hard work pays off in the end, do you think the PlayStation brand has been lazy in providing games to its fanbase ?"

I disagree, if you work hard in the wrong direction. In business, time and time again has shown that execution is worth far more than ideas and that is where I think Sony isn't doing too well.

Just look at their product history in recent times:

* PS Vita overpriced with lack of software
* PSP Go badly supported
* PS Move non-existant support
* 3D push didn't do much (heck, Sony's own TVs had major 3D crosstalk problems and was among the worst)

One thing they kind of got right ironically, was the PS3 simply because compared to the competition i.e. Xbox 360, it is very very competitively priced from a value stand point. In that respect, Xbox 360 is way expensive!

"it ain't over till the fat lady sings."

True, but it could swing either way!

SuperLupe1457d ago

"too bad Sony doesn't have a monopoly to fall back on like MS or a huge amount of sheeps to their brand like Apple does"

They do have a lot of sheep, do you even read the comment sections in N4G ?

Outside_ofthe_Box1457d ago (Edited 1457d ago )

SuperLupe, mind telling how the comments of N4G show that Sony has a lot of sheep?

+ Show (3) more repliesLast reply 1457d ago
EnemyCrab1457d ago SpamShow
dubt721458d ago TrollingShowReplies(1)
Dee_911458d ago

its called a recession
google it

Frankfurt1457d ago TrollingShowReplies(1)
Straightupbeastly1457d ago

Microsoft just posted a hefty profit

shutUpAndTakeMyMoney1457d ago (Edited 1457d ago )

"Microsoft reports first quarterly loss EVER in 26-year history as a public company.
That $6.2billion hit meant that Microsoft lost nearly $500million in the second quarter of 2012, its first quarterly loss as a publicly traded firm"
http://www.dailymail.co.uk/...

They are worth 50+ Billion and the only lost 500M that is nothing.. They seem to be doing much better than sony.

And now that this is happening..

http://www.youtube.com/watc...

X720 will be a true cross platform console since they own windows and are making it easy for devs to make 360/pc & most likely 720/pc games all on dx11 hardware next gen.

Sony will take a step back if they don't expand to the 600 Million windows pc's with gaikai(though planetside 2 looks amazing).

http://www.engadget.com/201...

MS is a strategic beast! But sony make better games.

givemeshelter1457d ago

Sony has been in financial restructure since the mid 1990's more than 4 times. This goes beyond recession.
This current recession just made matters worse for Sony, however Sony has been in financial trouble since the 1990's overall.
Sony needs to abandon some of its less profitable divisions such as HDTV's and Multi-Media devices and Cameras.
Sony expanded when times were great for them (1970's and 1980's)
However when tougher times hit and more competition cam about in the 1990's-2000's, Sony kept the same business model....even when analysts, investors and the market told them they need to change. They did not and look what has and is happening now to them?

Sony will continue to slide until they do some DRASTIC changes. If not. They won't be around in the next10 years or less.

Fel081457d ago

Hmmmm than why companies like MS and Apple are having good profits?

Dee_911457d ago

did i mention microsoft?
i didnt mention apple.. i didnt mention alot of corps thats making a profit in this recssion.
Haha ironically you 2 @straight and fel should actually google it.
Theres no hopee for this site.

dcbronco1457d ago

I think they were just pointing out that Sony's main problem has nothing to do with the recession. Everyone is in a recession, but other companies haven't made the mistakes Sony have. At least they are still projecting a profit for the year. Unless sales continue to decline. They really need a $150 PS3. Sony can't afford another yearly loss. It would probably mean a major restructuring. Far more than the changes made so far.

Or it could be the beginning of the end for the company. Another yearly loss will mean another stock downgrade. If that doesn't happen before the end of the year. And that might lead to the stock being delisted. Which leads to people taking their money out of the company. And that might be the end of Sony.

Dmarc11456d ago

Yea and I was pointing out recession hits some harder than it hit others...

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