Sony Expects Loss to Narrow for Year

The Sony Corporation said Monday that it would probably book a much narrower loss last year in part because of cost cuts and better electronics sales.

Sony said it expected a net loss of 41 billion yen ($440 million) when it reports earnings Thursday for the fiscal year ended March 31. The result represents a big improvement from a 98.9 billion yen loss the previous year.

In its previous forecast released in February, Sony projected an annual net loss of 70 billion yen and an operating loss of 30 billion yen. On Monday it downgraded its revenue forecast to 7.21 trillion yen from 7.3 trillion yen.

[Captain Tuttle]

nm

[Kevin ButIer]

Get back to your Delorian, this is 2010

[HolyOrangeCows]

Keep hyping Average Wake's DLC starter pack and pretending that it's the PLAYSTATION3 that's lacking in the game's department.

[Crystallis]

I know some ps3 owners who have over 30 games and I also know some 360 owners who have less then 5. So does that mean 360 owners in general do not buy games?

The comment you made is the most invalid point I've read so far on N4G.

[sikbeta]

Crystallis, you don't use logic with an idiot troll like this one, it's just a Waste of Time...

[Figboy]

for the 360, i have Fable 2, Mass Effect 1 and 2, and some Xbox games like Fable 1, and KOTOR 1 and 2.

i used to have Crackdown, but got rid of it (more for new games, than for any reasons against the game itself, since i loved it).

i won't list the PS3 games i've had, but it was plenty. i get multi-plat games on my PS3 also, because i prefer the controller, and if the multi-plat has MP, there's no way i'm getting the 360 version, since i barely play online as it is enough to warrant paying for LIVE for those games.

free online play is a BIG reason why i stick with my PS3 when the mood to play online strikes me.

some people have an opposite collection; more 360 titles than PS3 titles, and there's nothing wrong with that either.

the problem is that people treat it as if it's BAD to prefer one console over the other. it's only bad when you baselessly bash the other guy simply because you don't like it.

i'm not a fan of Microsoft, but i AM a fan of Bioware, Bungie, Lionhead, etc, and other 360 centric developers that are KNOWN to make quality games. i'm supporting THEM more than i'm supporting Microsoft.

same goes for PS3 devs like Naughty Dog, Insomniac, Sucker Punch, and Santa Monica Studios. hell, if they were developing on the 360, i'd be right there with them. it's never been about the platforms as much as it's been about the games, and any extra features i can get that bring value to my purchase (ie, built in HDD, built in Wi Fi, free online, etc).

[astar123456789]

ps3hasnogames.... are you nuts, ya then god of war 3 didn't sell any thing right or uncharted 2 sold nothing... why am i wasting my time on you... go troll on your box if it works..

ps i have over 30 games and more coming

[Tripl3seis]

ps3hasnogames bro stop wit ur bullshit go play ur 360 or u have nothing 2 play at this moment

[ATLGAMER]

U guys are nuts....ps3 has long legs and so does psn u doubt it but the time is comming

[DlocDaBudSmoka]

29 disc n 36 psn games

[stonecold1]

91 ps3 games and more still coming out which i will be buying more later i the year plus 130 blu ray movies theres already been 7 exclusives to the ps3 already this year and still not 1 360 exclusive in sight

[Anon1974]

Since the whole credit crisis started almost 2 years ago now, the US dollar and Euro plummeted in value and that's what's really been hurting Sony, like all other Japanese electronics makers. It's not so much that consumer spending dropped, but when you sell as much as Sony does to the west they were getting hammered with the foreign exchange. That situation has somewhat improved, but it still has a ways to go and this recent uncertainty with Greece and the effects that it's had on global currency markets isn't doing Sony any favors.

[Solotov]

Up until the last couple years Sony has always had the exchange rate advantage, as the dollar was valued more than the Yen. It is about time, US corporations get a break.

[booni3]

as much money as they make, theyre still losing money. that blows.

[RageAgainstTheMShine]

Sony is now all set to deal with M$ and Nintendo now that the Format Wars is won and software piracy is in check.

Now Sony can focus and take care on the Console Wars.

May the Force be with Sony.

[KwietStorm_BLM]

Did Sony ever announce their numbers and PS3 sales after the end of the previous fiscal year?

[Anon1974]

Sony's year end is the end of March so this update will be their entire fiscal year update. May 14th of last year was when they put out their last fiscal year end. You can view that document here:
http://www.sony.net/SonyInf...

At the time Sony was anticipation that they'd take a loss on the Game division for this fiscal year.
"We anticipate that the Game business will continue to record a loss due to the negative impact from the appreciation of th yen and a further decrease in sales of PS2 business despite our expectation that the profitability of the PS3 business will improve due to hardware cost reductions and an enhanced line-up of software titles."

The PS3 has been profitable for some time, we know because Kaz flat out said the PS3 is a profitable platform for them but still foreign exchange and declining PS2 sales take their toll.

What's funny about those that claim the PS3 "lost" billions is they really have no idea. When people throw around arbitrary numbers about how much the PS3 "lost", is that taking into account the profit the PS3 platform has made or is this just some general number encompassing the entire division?

Truth is, we don't know for sure because Sony, just like Microsoft, has never released exactly how much their consoles have made or lost within their respective divisions. We know the PS3 is profitable simply because we take Sony's word that it's profitable as they're subject to audit. Microsoft, to my knowledge, has never even claimed they make a dime off the 360 when all is said and done. The division might make money, but we have no idea what's going on inside that division. Any profit they make could be all from Windows on Mobile apps for all we know.

[TrueStoryGuy]

I think Sony will be able to create a profit sometime next year. ModNation Racing and LittleBIGPlanet 2 getting a release this year, PlayStation Move and the first time profitable PS3 will surely push Sony's Gaming division towards profit.

Can't wait to see what the surprise is at E3 this year. Sony is looking to please a lot of people this year.

[mookins]

But Sony was doomed! D:

[commodore64]

As is well know, the Sony gaming division has lost a substantial amount of money. In fact, the ps3 is in the hole to about $4.7 billion.
http://www.joystiq.com/2009...

For the astute among us, this loss, over the four year period, means the ps3 has lost MORE money than the xbox1, in the same time.

It is high time that Sony turns this around.
Sure, we can blame the world economy and exchange rates, however, that is really just excusing the fact that the ps3 costs Sony too much and isn't making enough money.

With this earnings revision I genuinely hope that Sony can claw back some revenue and reduce its costs some more.

[E46M3]

Even narrowed down 440 million usd is a huge number.

When added to the already 4.7billion in loss. Sony's overall losses will be at about 5.2 Billion USD. Which is huge.

When are they going to start making profits on the PS3? and question is will they be able to cover these losses by the end of the generation?

If they cant cover these losses in the next 3-4years (when its time to launch PS4), i dont understand how they will make a PS4 launch since launching a new console will just equal to more losses.

[commodore64]

@ e46m3

Yeah dude, don't forget that the $4.7 billion loss applies to the ps3 exclusively.

This latest $440 mill loss, however, is over the whole company.

Thus we might expect the gaming division to start making profits soon, if they are not already.

Still, Sony likes to bury those ugly ps3 loss numbers in their balance sheet where average investors can't get at 'em.
Sneaky.

[Solotov]

Sony will probably post a loss again for the next year. The economy is still at least a year off from recovery. Apple is killing them in the electronics business; Samsung is killing them in the flat-panel TV business; Nintendo is killing them in the videogame business. All Sony seems to be talking about lately is 3D, which spells trouble....