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Sony predicts 30 billion yen loss for Games Division

Gamezine:

"Sony has revised their fiscal 2009 forecast, revealing an extra loss for the Games Division.

Sony is expected to post their first net loss in 14 years, of 150 billion yen ($1.65 billion/£1.21 billion), for the fiscal year ending 31st March 2009. The following numbers are merely the companies revised predictions over those announced in October 2008, where they predicted a net profit of 150 billion yen.

As for the Games Division; Sony expects a 30 billion yen loss, which equates to $336 million/£243 million."

Update:

Should be fiscal 2008 (which ends 31st March 2009).

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gamezine.co.uk
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pixelsword3221d ago

They just used "dollars" instead of "yen".

techie3221d ago

No...this is about games division...plus this has graphs, more info and links to extra special documents :)

gaffyh3221d ago

And this is why I don't see a price cut happening any time soon. Maybe next christmas

andyo133221d ago

that loss is still less than the loss microsoft has on its 360 for the rrod alone

lightning3603603221d ago

Sony really is a sinking ship...give it another year...

thats_just_prime3221d ago

funnt thing is I told a friend a while back that I figured that sony lost at least a billion dollars on the ps3

Powertesties3221d ago

You have to spend money to make money. Unless you sell haunted sh*t on ebay!

eagle213221d ago

Sony's game division is fine. 2009 will break even.

Ju3221d ago

Funny thing is, these losses do not come from PS3 sales. PS3 was stable compared to the prediction (10M and on track). What hurts the gaming division is that PSP and PS2 sales are down (15 vs 16M predicted for PSP and 8 instead of 9 for PS2). Its not even a big chunk. The biggest problem is the electronics branch, not the gaming, and certainly not the PS3. You could argue, the PS3 could not offset these losses, but come on. Its not the PS3 who is at fault here, more or less the economy in general.

40cal3221d ago

Are getting there asses handed to them today.

So far.
Sony
19.05 -3.53 (-15.63%) Jan 22 1:46pm ET

Microsoft
17.36 -2.02 (-10.42%) Jan 22 1:46pm ET

Our global economy just plain sucks right now.

dcbronco3221d ago

Actually the PS3 did cause the loss. If there was no PS3 there would be a profit. The PSP and PS2 make money on the hardware side as well as software while the PS3 loses money on the hardware.

thats_just_prime3221d ago

LOL 5 disagrees for just restating the fact thats in the article. Make you realize just how pathetic all the ps3 fanboys on here are

PlayStation3603220d ago (Edited 3220d ago )

cause Sony's Gaming Devision (PS3) didn't lose $1 billion, they lost $336 Million. Sony lost $1 Billion as a whole (Tv, Movie, Music, etc).

But in either case, ouch. That's a good amount of money lost bro. :/

+ Show (10) more repliesLast reply 3220d ago
Droid Control3221d ago

Guess that price cut isn't on the cards this march now sony, huh?

Not unless you've gotten use to losing money and want to lose more per console...

techie3221d ago

Doesn't exactly work like that. More consoles equals more software sales.

caffman3221d ago

the NDP figures didn't you?

InMyOpinion3221d ago

deep and Pirate Thom, SDF's Stormtroopers. Spin Division Team Alpha.

techie3221d ago

Jenzo: I don't spin. This open zone poster said there won't be a price cut unless they want to lose money. Instead, I mention that a pricecut would equal more sales, and so more software sales also - which could equal profit.

Man_of_the_year3221d ago

Not true. If the console is losing money now - a price cut would increase the amount of money loss per console. If the PS3 continues to sell less than average year after year - it will take awhile to gain profits on the console - atleast until the manufacturing of the console comes down it self.

I think that is what the DROID was referring to - that since the PS3 is not turning over a profit yet, a price cut would induce a higher loss per manufacturing of the console.

techie3221d ago

Actually they would make the console profitable, and then cut it to a price which would see them break even on the console, but make money in software/accessories.

Man_of_the_year3221d ago

So you are assuming AFTER the current price of the PS3 reaches enough units sold that it is turing a profit and THEN they lower the price - well i agree with that but again the situation with them with having great losses like the article states - they may not be able to do so because of the current times.

theKiller3221d ago

since they predicted it.

finally, its about time!!

+ Show (6) more repliesLast reply 3221d ago
voodoo3413221d ago

but Sony reduced the predicted operating income(loss) for the gaming division by 30 billion yen, they didn't say they were making an operating loss of 30 billion. Massive difference there.

techie3221d ago (Edited 3221d ago )

An extra 30 billion loss, yes. This 30 billion extra could result in less than 30 billion operating loss, or more than 30 billion operating loss. It depends on their previous forecast.

Edit: You have to ignore the (loss)...they haven't reduced the loss, they have reduced the income.

karlostomy3221d ago

Here's the relevant quote:

"In the Game segment, operating income (loss) is expected to be lower by approximately ¥30
billion. Of this, approximately ¥15 billion is due to the impact of the appreciation of the yen
and approximately ¥15 billion is due to lower-than-expected sales."

ReBurn3221d ago

The global economy is hammering the game industry. I guess it really isn't recession proof like the armchair analysts here at N4G seem to think it is.

techie3221d ago

Yens strength is hurting Japanese business. That's where HALF of the losses are coming from. For the dim...$400 console brings in much less yen.

karlostomy3221d ago

of which, the gaming forecast is thus:

"In the Game segment, operating income (loss) is expected to be lower by approximately ¥30
billion. Of this, approximately ¥15 billion is due to the impact of the appreciation of the yen
and approximately ¥15 billion is due to lower-than-expected sales."

It shows quite clearly that the appreciation of Japanese currency and lower-than-expected sales account equally for the losses of its ps3 gaming division.

A double blow for Sony.

I would suggest that a price drop for ps3 seems an unlikely event for the time being.

Cyrus3653221d ago

Actually what it means...

Sony forcasted a greater loss than expected due to the yen increasing vs. the us dollar, which means their profit, or in this case their losses are greater than normal. But that only accounts for half.

They said lower than expected sales...I bet you that's not the result of PS3....Especially if PS3 is being sold at loss. IF they sell more, their losses become bigger. Where they lost (Or than expected sales) are probably their forcast for PSP (Which they turn a profit), probably the new PSP 3000's didn't sell globally as well as they expected. And they probably had a higher than expected forecast for PS2 as well (Which again they turn a profit).

And there is a possibility (Doubt it) that PS3 sold more than expected, which would result in a bigger loss, which wasn't covered by PS2/PSP sales.

On top of that, probably they were expecting higher sales for their first party games, Resistance 2, Motorstorm, Littlebigplanet, etc.