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Sony 3Q Profits Down 50% on PS3

According to an article on financial site Bloomberg.com, Sony stands to lose 50% of 3rd quarter net profit from 2005 to 2006, largely as a result of PlayStation 3. "Losses from games probably drove net income down to 84.1 billion yen ($691 million) in the three months ended Dec. 31, from a record 168.9 billion yen a year earlier," the article states. The article attributes this weaker performance to company CEO Howard Stringer's inability to better respond to Nintendo's Wii, which currently enjoys a 2-1 advantage in global sales. Despite the poor showing by Sony's game division, the company "may still exceed its full-year profit target because of a weaker yen, sales of Bravia televisions and growth at its movie unit."

"After botching the PS3's debut with production delays and cutting the price to compete against cheaper Wii and Xbox players, Sony will probably lose 191.9 billion yen from games this fiscal year, compared with profit of 8.7 billion yen the previous year," Bloomberg reports. The good news for both Sony and Nintendo is that Xbox 360 projections have fallen. "Microsoft last week cut its Xbox 360 forecasts and now expects to sell 12 million units by June 30, instead of 13 million to 15 million," the article says.

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shikwan3644d ago

Sony messed up the PS3 launch & isn't selling well...on top of that, what they do sell, has cost them 50% of their profit...........BUT the good news is that even though MS is already ahead by 10 million sales, they have downgraded their sales forecast about 1 million???

HAHAHAHAHA!!!!!!

DJ3644d ago (Edited 3644d ago )

Microsoft only sold 8 and a half million consoles, with an extra two million sitting on shelves. They cut shipment projections from the original 15 million units to an average 12 million units by June 2007.

The 360 is doing poorly, the PS3 is picking up steam, and the Wii is just kicking ass. I still find it ironic that Microsoft said they'd sell 10 million consoles before Nintendo and Sony ever showed up; two months after that broken promise, they still haven't been able to hit that sales figure. =P

FordGTGuy3644d ago

and where the hell are you getting your information DJ the tooth fairy?

Marriot VP3644d ago (Edited 3644d ago )

"the PS3 is picking up steam"

uh huh, you should stop hanging around gypsies and believing what they see in their crystal ball.

JasonPC360PS3Wii3644d ago

The voices (or Devil) in his head must have told him. He must be off his meds or he smokes crack.

TheMART3644d ago

He get's his info from right up his ass

Where Barbie Ken has put it last night. For real DJ, can you give the vgacharts link again?

I'll provide you another one with just as much credibility:

http://nexgenwars.com

29.3%
pick Xbox 360 consoles sold

10,625,889"

YOU SEE? Almost 11 million units sold. The cut back by Peter Moore is just a marketingtrick. They'll still sell about 15 million units and then say: "See? We even surpassed our forecasts by 3 million!", which makes it a big succes in the consumers eye, which will even sell it faster after that.

The PS3 isn't doing good. In it's backyard, Japan last week sold 20k. The 360 sold 8 to 9k. THat's almost 50% of PS3 sales. That's insane. No PS3 game in the top 20 Japan sales. Gears was in there at place 7 with 33.000 copies sold.

That's the truth. And you're twistking and spreading masterlies. You need to get your medicin

+ Show (1) more replyLast reply 3644d ago
DixieNormS3644d ago

You better watch out for DJ and his reliable posts.

power of Green 3644d ago

Why do these guy's keep saying MS only sold 8.5 mill?. Why does DJ need the PS3; to be the one to rule them all.

FirstknighT3644d ago

"The 360 is doing poorly, the PS3 is picking up steam"

Lets see...Gears of War is getting closer to 4 million sold! Lost Planet is getting to 2 million sold! Crackdown is going to sell a million pretty quickly! Whats that? 18 games that have sold atleast a million for the 360??? Oh yeah...they're doing really poor!

"And the ps3 is definatly picking up steam" HAHA, Another brainless comment!!! Funny stuff DJ...Your one of the many people that make this site funny. Keep it coming slappy! :)

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