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Sony Hopes for Playstation Profit Boost

The head of Sony Corp's PlayStation division hopes to raise its profit outlook for this year, in stark contrast to the Japanese electronics firm's mobile business which has forecast deep losses and sent Sony's stock reeling.

With Sony's three core electronics businesses - the third is imaging - looking increasingly lopsided, the company is having to shrink and restructure in mobile, and focus its growth hopes on image sensors and the 20-year-old PlayStation games console.

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foxbusiness.com
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Thatguy-3101064d ago (Edited 1064d ago )

Well seeing how they're charging online this time around I would expect it would benefit them more if they continue to sell more PS4's. Then put in the fact that the games are selling really well on that system. However, they can't expect that that alone is going to change the whole company around when it comes to losses. They really have to be careful and minimize their products. For example, the Z series was introduced at the beginning of last year. They had the Z1,Z1s,Z2,Z3 and all the compact options for them in 1 YEAR. WHY??? I don't see why they simply don't just stick to one or two a year.

Destiny_Awaits1064d ago

Yes, but it's also quite interesting to think how much they will try to innovate in terms of charging users as the PS4 is becoming so instrumental to their whole company! TVs are declining, smartphones are not doing so well for them, so PS4 its shining light in gaming sector!

Thatguy-3101064d ago

Yea I truly see it. The PlayStation 4 and the service itself is becoming the heart of the company where the other devices implement well with it. Like the new tablet and phone being compatible with the system.

frenchtoast1063d ago

Actually their smartphones have been doing quite well since splitting from Ericsson. It's only he TVs that are having issues, because they are too expensive and not that much better than the much cheaper Samsungs.

Abash1064d ago (Edited 1064d ago )

This is news worthy? That a company can make more from customers on their wildly successful new platform than the ones that are playing on a platform that's going to be 8 years old soon?

Of course the PS4 base is going to make them more money

Destiny_Awaits1064d ago

I think it is news worthy! Sony is falling in the overall consumer electronics market, PS4 is doing well for them. If it's going to be their 'cash cow', you can be sure that lots of revenue innovation is coming up :)

MrPink20131064d ago (Edited 1064d ago )

The PS3 shows how it unfortunately sank previous Playstation profits. They still can't sell the thing for under $200 and it's 8 years old now! On the contrary the PS2 was very profitable for them in the later years.

So why is Sony not abandoning mobile if it continues to lose then money? You also have to understand they don't make much money on the games division and a new game console, the PS5 may be questionable. Sony may end up being a service provider with the likes of PSNow showing hardware will become irrelevant and the investment in creating new hardware won't be needed. That's why Sony says they need to invest more in its online infrastructure. They have fallen way behind the likes of Google, Amazon, Apple and Microsoft in this area.

Baccra171064d ago

Sony didn't learn during the days of PS2 that having Playstation carry your company while all your other product lines fall to the wayside, what makes you think they're going to be any different now?

spacedelete1064d ago

i'm sort of helping them and sort of not helping. i brought a PS4 and PlayStation plus but i have not brought a single PS4 game. i just live off free PlayStation plus games so i'm not sure i'm doing my part.

Silly gameAr1064d ago

Lmao. I'm sure they'll be ok.

DanteVFenris6661064d ago

Warframe and dcuo are the best ones. They don't even require plus

+ Show (1) more replyLast reply 1063d ago
skydragoonity1064d ago (Edited 1064d ago )

Profit is inevitable, the ps4 is doing wonders

Ka7be1064d ago (Edited 1064d ago )

Did you even read your own link. Its say nothing about the PS4. And it has nothing to do with the PS4.

And skydragoonity is right PS4 is doing wonders. 11 million PS4 Consoles sold in just 9 months....

Dudebro901064d ago

Not sure if you know this. Sony makes the PS4...

No one said the PS4 wasnt doing well, but a profit from Sony is not going to happen. Period.

Ka7be1064d ago

Not sure if you know this. Sony has lots of divisions. The loss in profit was mostly cause by the mobile division.

Dudebro901064d ago

Again....No one said the playstation division was responsible for the loss, or that the playstation was failing in any way.

Look, if you can't handle that Sony as a company is not doing well, then thats your own problem, but don't try to spread nonsense that the Playstation is somehow saving Sony and they will be profitable, because thats just not true.

roadkillers1064d ago

Man, if only I owned as many stocks as you guys :)

spacedelete1064d ago

someone named dudebro giving an insight into Sony's financial problems. oh the irony.

MrPink20131064d ago

Dudebro is right though, the PS4 won't save the company on its own. That's why Kaz is cutting even more jobs and continues to try and restructure the company. PS4 sales are a small fraction of what's needed to carry Sony through these tough times they have faced for about 10 years now. Go and look back at their stock value prior to 2006 to now.

+ Show (4) more repliesLast reply 1064d ago
MeliMel1064d ago

Yet they posted a loss of almost $2billion. PS4 better keep up this momentum its on.

SouthClaw1064d ago

Wonder if Sony will be forced to sell off the Playstation brand...

ThatOneGuyThere1064d ago

their one cow? why would they do that? lol

Wikkid6661064d ago

They actually are selling insurance now. I think it's that division holding their head above the water.

mochachino1064d ago (Edited 1064d ago )

It wouldn't be that bad if something like Google bought it. At least MS couldn't throw around their huge bank account at developers anymore. Well, not without major consequences. And Android OS may have a brighter future than Windows. Just saying, every phone/chromebook could have remote play...even plug your Chromecast into the TV upstairs and have remote play.. Really not bad at all.

Google Play Station

SouthClaw1064d ago

They would be an interesting buyer but they don't have much history with hardware. Maybe a dual team up with Samsung maybe.

extermin8or1063d ago

I don't think either company would do it justice they'd want to go the "entertainment box" route... And push online only. No Sony just need to stop being effing morons with some of their business strategies the issue isn't their products. I have an xperia z2 and it's a great phone and last quarter it sold well- so why the eff have they launched/are about to launch A SECOND FLAGSHIP PHONE like 4/5 months later. One flagship a year is how they should be playing this anything else is stupid it's how Microsoft/Nokia, apple,Samsung, HTC etc all do it.... So why do Sony feel the need to be different... And downright stupid -_- just annoys me sometime.

joeorc1063d ago

Its not a public IPO, there is no public stock for you to buy!!!! They are not going to take their entertainment arm for public buy in, think about that. Why would they do that with the new Viacom deal that went through, and then invest into more network services! Just to get rid of it ..what than sell it off so then what the rest of Sony go?

This impairment is restructuring costs, they are cutting the work force and reduction of production unit models.

WilDRangeRfc1064d ago

Not gonna lie since the 360 I prefer Xbox,but I bought a PS4 to support a company that I grew up with ( PS1 and 2 ),they need to cut the slack sell everything that loses money downsize and come up with a different strategy and products that are able to compete with others at the same price,quality isn't a problem but price is,their TV,s are quality but so are Samsungs and their a lot cheaper this is the problem for Sony as soon as they sort this out there's no problem,oh and I lied I bought a PS4 for TLOUR aswell ha! best game I have ever played

MegaRay1064d ago

I know the PS4 is selling well and all but if you want a boost, you need to give people areason to buy a Vita. A Jak 4 or Ratchet Redux or a new Ape Escape, seriously