SONY's quarterly Earnings Announcement. Gaming division made a profit last quarter (september - december,2007)

SONY's Game division has managed to beat the analysts prediction by posting a profit of 113$ million last quarter ranging from September,2007 to December ,2007.

The hardware sales for ps3 ,psp and ps2 in the third quarter of 2007 stood at :-

Unit sales of Hardware (Unit: million)

PS2 5.4

PS3 4.9

PSP 5.76

*****NOTE :- Beginning with Q1 FY07,the method of reporting hardware and software unit sales has been changed from production shipments to recorded sales.

So SONY is infact reporting the console sales to customers begiining from the second quarter of 2007.

SONY's overall net income went to to beat analysts projections by posting a 5.8% profit margin over the fiscal quarter of last year. The net income rose to 1.756 Billion dollars.

Please look at the full balance sheet in the alternative section.

[HarryEtTubMan]

HAHAHAH PS3 sales AREN'Y EVEN CLOSE to it's peak. Not even close. It's still the price the Xbox 360 was when IT LAUCHED HAHAHAHA PS3 is gonna have suck good sales in a year or two... Sony knows it and are setting it up... I love the doubters.... YOU WILL BE PWNED.

[leon76]

That is the right talking... I'm tottaly agree with you!!!!

[zambrota]

$113 million is definitely not bad when NIKKEI expected SONY to post a loss of 236 million last quarter.

4.9 million ps3s were sold to customers between september --december

BTW *******

Those are sales to customers not retailers/shipment units

"Beginning with Q1 FY07,the method of reporting hardware and software unit sales has been changed from production shipments to recorded sales. "

VGCHARTZ please update your ps3 sales

Thank you

[BLaZiN PRopHeT]

thats retail sales not consumer. sold to sony is sold to retailers thats where they get their money from not the consumer.

[ravinash]

Most of the sales that Sony have done are towards the later half of the year since the price cut and later games coming out, so why not have they sold 4.9 units world wide.
We all know that there is a hugh demand for Wii, but they are restricted by the number of units they can build.

[zambrota]

quit trolling OK

you could easily see that sentence in SONY's balance sheet

"Beginning with Q1 FY07,the method of reporting hardware and software unit sales has been changed from production shipments to recorded sales.
"

dont be neogaffers who say "SHIPMENT" is not the same as "SHIPMENT to RETAILERS" but WAREHOUSES????

in FInancial /Managerial accounting terms there is nothing like Shipment to retailers. a shipment to warehouse translate into "A SHIPMENT OF MERCHANDISE TO THE RETAILER/WHOLESELLER"

[gaffyh]

Maybe Blazin_Prophet and Gaystation_3 should be in the Open Zone...

It's good to see that Sony made a profit last quarter, but they sold 4.9 Million so it was expected, although I thought it would have been a lot more profit.

[Cyrus365]

Interesting Sony Made a profit from their gaming division, does this mean, there not losing on their PS3 anymore and/or at break even point.

And they sold 4.9 PS3 (From Sept to Dec 07 Period? Worldwide?)

[zambrota]

SOLD to customers i mean

It is good that SONY has changed their reporting from SHIPMENT to SELLING TO END USERS

even despite that 4.9 million is a huge number.

I think VG massively underreported ps3's europe sales.

I think PS3 might be at 5m/very close to 5m in europe

[rawg]

They've cust costs on PS3s but are still losing money on each unit. The PSP and PS2 are both profitable plus they get revenue on software sales across all platforms. If you add it all up they managed to make a profit which probably surprised a lot of investors.

[sonarus]

they are gaining profits off software sales resistance and motorstorm have been pretty profitable they have cut hardware costs as well but they are prob still cruising off the sales of psp's and ps2's. considering every ps3 is still sold at a loss thats pretty impressive. they were able to turn profit quicker than msoft too

[The_Engineer]

and with less consoles sold too, one is a veteran who knows what he's doing, the other is a big dollar second year rookie who been inconsistent. I'll side with experience on this one.

[kewlkat007]

when your looking at Corporation Quarterly numbers?

quite sad..

MS, Sony and we all know Nintendo doing great the last 2 quarters.

[beoulve]

kewl, I don't know how you look at it. $1.57 billion net income for a corporation is not sad at all unless you just sour they made profit.

[Lord Anubis]

Ah very good, it seems Kaz kept his promise. Going to 45nm will help them but the exclusives this year will skyrocket sony.

[zambrota]

well KAZ empected to make profit this quarter

not LAST QUARTER

so he will be more than Happy

I think SONY will invest that 113m in purchasing some exclusives

[Lord Anubis]

I hate the double post glitch.

[Lord Anubis]

3rd? :(

[xhi4]

A year and they're already making a profit, insanee. Took the 360 yearss to make a profit, don't think they have even yet!

[rawg]

but I believe they are still down about $5B over the lifetime of the original Xbox and the 360.

[krik]

@rawg

Actually MS's entertainment division is still down about $6.5B... but it does not really matter anyway as long as they stay profitable in the future.

[Kenshin_BATT0USAI]

With the 360s current sales, I think its likely they with break into a profit by the end of the year, likewise with Sony. Wii was profitable to start.

[Mu5afir]

They didn't make a "real" profit, if you remember the $1 billion repair fee.

[Kain81]

Cool
Sony must cut the Price for the PS3 and PSP in this year, to sell more Units and with the Line up for 2008, sony can Catch up with M$

[Kain81]

Finish this Fight

[SSCOOLCHEA]

remember in wrestling you have to grapple first before you do a special move , well thats what there doing right now . I cant believe anybody has doubted sony anyways . the xbot is the little kid thats on the side just hoping he can play beyond becasue nobody wants to jump in ......

[diatom]

I'm confused. After reading some other posters comments over the last year, I thought Sony was going bankrupt.

In any case gratz to Sony and hopes for an even better 2k8.

[eddierivera]

You people know how to make me smile dont you? And just to let you know,, Xbox360 losses money on their consoles,, even though they overpriced everything.. They make money throught there download content and charging for xbox live. Sony makes money on downloads, but the thing that surpises me is that they dont charge for online. The would be making bank if they did.

[Diselage]

Actually the xbox 360 turns a profit for every console sold and has been doing so for a while now.

[ravinash]

They would have if it weren't for the RROD issue.
MS put aside over 1 Billion $ to deal with this issue, but it also help when reporting their profits as they don't need to meantion the money set aside to fix their machines.

[robbo918]

Nothing against M$ but while the X360 is selling at a SLIGHT profit currently everyone forgets the $1 billion they spent on the extended warranty which adds up to a loss on every X360 sold.

Grats on the profit Sony!

[BLaZiN PRopHeT]

um your wrong recored sales is sold to retailers.

[zambrota]

"Beginning with Q1 FY07,the method of reporting hardware and software unit sales has been changed from production shipments to recorded sales. "

A sales/reported sale is different from recorded sales where the item sold is counted only after it is sold to END USERS

an FOB/SOLD is when a merchandise is sold from MANUFACTURER TO RETAILER. In other others it is what you call SHIPMENT

In Accounting terms there is no difference between shipement to warehouse (as some GAF trolls say) and shipment to retailer.

a SHIPMENT/FOB to retailer is "REPORTED SALES"

"RECORDED SALES " are only which end up with the END USERS (customers)

***I have never heard of the term SHIPMENT TO WAREHOUSES . thats actually FOB in modern times meaning the same as shipment to retailers

[Violater]

Sony has moved 10.5 million PS3s worldwide since the console's launch in November 2006. By comparison, Nintendo has sold more than 20 million Wiis for the same period, while Microsoft has shifted an estimated 17 million Xbox 360 units since its launch in November 2005.

Am i missing something here, or is the gap getting smaller?

[mikeslemonade]

This is where Microsoft screwed up. They don't have a fallback console to make money, so they didn't even have a profitable quarter until Halo 3 and this past quarter.

[Bathyj]

This is unbelievable. What a turn around. Seriously.

Whats most amazing is that PS2 and PSP have been selling like gang-busters (whatever that means)but the high priced PS3 with no games and that isnt even really a console but a movie player, is right behind them.

Why have 1 big selling console when you can have 3?

[Iamback]

Lets be honest this is all thanks to PS2 and PSP and of course software sales. But that is good actually...in a way. To be able to make profit and cover loses on PS3 is just INSANE! Lets not forget that just month ago it costed 700-800 dollars to make PS3 and they were selling it half the price, so ton of money has been lost. It just shows you what a mamoth PS2 is and with help of PSP Sony has big stack to cover it self.

Just imagine what profit will Sony make once they begin breaking even on PS3?! With that and PS2, PSP + software sales on all 3 platform, they are going to make a KILLING profit! Mark my words, next year our jaw will drop to the floor once Sony post this report for 2008

[rofldings]

Imagine what they'd be making if PSP software wasn't pirated to hell :o

[moparful99]

You're right the ps2 and psp have alot to do with it but sony has also announced huge earnings off of the DL content from the PSNstore despite the fact that only 3% of the stuff on there actually cost money. Also sony managed to cut production cost of the ps3 in half and it just wasnt a month ago. Nobody really knows when sony managed this but I suspect the price drop back in the fall as the most likely time. Why would sony take an even bigger loss on the ps3? They knew that it would spur sales but still that would have been a $400 loss on every console.. thats huge. I love all of these reports that sony has lost this generation already, but the ps1 didnt outsell the N64 in its first year. People seriously underestimate the ps3 and sony. My money is and always has been on sony, they know what they are doing and they dont have to throw around bags of money to get what they want. Sony has a history of innovation and the best part? they listen to the customer, how many complaints have come up about the ps3 and sony adressed them within the year? You listening microsoft?

[Iamback]

Lets be honest this is all thanks to PS2 and PSP and of course software sales. But that is good actually...in a way. To be able to make profit and cover loses on PS3 is just INSANE! Lets not forget that just month ago it costed 700-800 dollars to make PS3 and they were selling it half the price, so ton of money has been lost. It just shows you what a mamoth PS2 is and with help of PSP Sony has big stack to cover it self.

Just imagine what profit will Sony make once they begin breaking even on PS3?! With that and PS2, PSP + software sales on all 3 platform, they are going to make a KILLING profit! Mark my words, next year our jaw will drop to the floor once Sony post this report for 2008

[mikeslemonade]

The PS3 hardware is breaking even. At launch the PS3 was $825 to make. Where they're losing money is the money they spent on relations and software, but that's of course covered by the PS2. The PSP actually isn't making that much. I'm guess about 25% or less of that profit is made by the PSP.

[Iamback]

But they JUST started braking even, few weeks ago it was announced. Or otherwise profit would have been a lot higher.

[dale1]

the idiots on this site who said they should scrap the ps2 are feeling a little daft now
sony has three platforms out there for three types of consumer it would be totally stupid to get rid of the ps2 for some years yet, those customers will switch when the ps3 comes down to a price point that they can afford,with bluray coming down in price and more consumers buying into bluray it will be quicker than you think

[Jdoki]

Well done Sony. This may only be one quarter, but considering all the negativity surrounding the PS3 it's a good result.

The profit made may indeed be down to the PS2 and PSP rather than PS3, but surely that's a sign of a good strategy.

Most of us armchair commentators had written off Sony a while back. It's only in the last few months that I have started to appreciate what Sony are trying to achieve.

I'm sure MS wish they could have turned things around so quickly. Profit drives business, and MS have been lacking that. Cutting short the life of the XBox left them exposed to the 360 costs. Not having any complimentary products, such as a handheld, also must be pinching them.

I hope both companies keep making profit. It's good for us consumers, if not good for our wallets!!

[Petraeus]

VG posted where they contacted Sony directly and Sony themselves said the announced #s were shipped(sold) to RETAILERS.

Go look it up.

Sony seems to be trying to muddy the waters a bit with their reporting and disclaimers. This is normal it seems.

Grats to them on making some $$ however.

[big0]

Why write Sony off after they dominated the last two generations it doesn't make any sense you don't sell 100 million consoles twice and not have a idea of what your doing. No matter how crazy Ken Kutaragi seems his plans work.

[Mercutio]

wow, I wonder how much the 360 has actually sold ( not retailers but customer wise), now that the ps3 is around 9 million.

[Boink]

but I notice nobody mentioning they downgraded their forcasts from ~11 million to ~9.5 million.

I remember the comments here when MS lowered their forcasts.

http://uk.reuters.com/artic...

[ReBurn]

Well done, Sony! There's no time to rest. Now keep those games flowing...

[AngelOFDeath]

best quarter earnings since Q4 of 06, great job sony, keep up the good work

[INehalemEXI]

Price cuts are coming o0.

[timmyp53]

.

[PSWe60]

hmmm...PSP sold better than PS2, that's a pleasant surprise.

[wageslave]

Interesting to note is that Sony sold two major portions of the company this year;

In September, Sony Sold its portion of the Cell Fabs to Toshiba for $870 Million:
http://www.gamestooge.com/2...

Also in September, Sony Sold 35% of its Sony Financial Division to the market for $2.9 Billion:

http://www.joystiq.com/2007...

What does this mean? That almost $4 Billion in "income" this year came from Selling assets. And, as my Grandpa always used to say about Business "You cant sell the furniture and call it income."

[AceLuby]

But neither one of these 'sales' would be reported in their gaming division... so your point is...?

[Meus Renaissance]

You call it profit?

[Kenshin_BATT0USAI]

Wouldn't have Microsoft have done the same thing with Bungie and the other studios they lost within the last year. Come on man that doesn't even relate to the gaming division.

[m9105826]

Good try, but this is for their gaming division...

[bootsielon]

This is *just* the gaming division. Reading, anyone? If we listen to your claims, Sony's income is actually a lot more. And yes, they CAN call it income, since selling something that they didn't need at a premium is still profit, whether it's furniture, transistor patents or a unit of financial services.

[fenderputty]

gaming devision gets to report the income off of sales of assets from other devisions of the company? Go back to school son.

[HardcoreGamer]

well everybody hates ken, because as mad as his ideas are, they are quite genius as well, even sony kicked him to a different position, but look at the ps3, the train is moving very fast ,

and its catching upto 360,,, i dont know about ps3 catchin up with the fisher price esque system The Wii, but ya never know,

[DJ]

The hater's can say what they want; it still won't change the facts.

[TwissT]

Good job Sony with these profits we are sure to see a price drop of the PS3.

[chaosatom333]

good, now they can start buying companies for making exclusive games for ps3 and hopefully give EA, some good programmers, lol.

[InYourMom]

for Sony they have the PSP and PS2 because things wouldn't be so rosey if they just had the PS3.

Still funny that all their 11mil ship talk had to be dropped. Everyone knew it was a load except for the droids.

[beoulve]

it's not end of march yet stupid bot, fiscal year isn't over yet. That's why they haven't announce it. God! use your brain before you talk.

[Spike47]

Why so much hate?

Jeez it's like you guys are terrorists and the PS3 is America.

Seriously do u guys hate sony that much?

I don't hate MS, I just dislike their way and their fans way of thinking.

Other than that I am grateful for the contributions that Ms has given for the gaming industry.

I bet SOME OF YOU FANBOYS DON'T EVEN HAVE THE BALLS TO SAY THE SAME ABOUT SONY.

[Spike47]

- Yeah
Why so much hate?

Jeez it's like you guys are terrorists and the PS3 is America.

Seriously do u guys hate sony that much?

I don't hate MS, I just dislike their way and their fans way of thinking.

Other than that I am grateful for the contributions that Ms has given for the gaming industry.

I bet SOME OF YOU FANBOYS DON'T EVEN HAVE THE BALLS TO SAY THE SAME ABOUT SONY.

[Boink]

how MS fanboys differ so from sony fanboys?

they're all the same...

same goes with sony and MS, all big companies act the same way. or are you saying that sony has never done anything underhanded?