Sony’s Game Division Is Doing Pretty Good

Brian Ashcraft of kotaku AU writes:
2009 was a rough year for many companies. Sony’s video game business is doing pretty good, though.
While Sony has not yet disclosed its financial results, the company does expect a slight dip in its forecast and has issued a revision for the financial year ending on March 31, 2010. Sales and operating revenue for Sony are expected to be down 1 percent from what was predicted this past February.

However! Sony’s Networked Products & Services division (video games and computers) is doing better than the company had originally expected.

[Joule]

Its only gonna get better from here.

[euchreprof]

Enough Said.

[Redrum059]

It's been kick azz since 2008 and still keeping the momentum, as a matter of fact, they are not only keeping the momentum but they are constantly picking up the pace.
I can easily say that Sony knew what they have been doing from the start.

[baconbits69]

Gran Turismo 5
Enough Said.

[Redrum059]

Playstation3 computer entertainment system
nuff said :)

[ALFAxD_CENTAURO]

The Survival Horror for Move enough said.

[E46M3]

how are they doing good?

Instead of making 1 billion usd loss for the year. They are expected to announce a loss of 440million usd.

So while its a good thing to announce less loss, however being in a loss is not a good thing.

Overall Sonys losses on the PS3 including the last year will be at 5.2 Billion USD. Sony needs to turn this around.

[t850]

Dam people actually disagreeing on the fact that Sony does need to turn this around.

Financial reports from Sony will be out on Thursday. They are expected to post a loss. I dont see what shareholder will be happy about it.

Overall this console gen has been hard on Sony and Microsoft with each of them being around 5billion usd in losses.

[commodore64]

Yeah, I agree, I would not call this good at all.

I had thought the loss for ps3 stood at $4.7 billion?
That 5.2 billion figure, where did you get that from?

It just makes me wonder how Kaz Hirai was stating that the ps3 was making overall profits, yet every quarter the ps3 losses rise?

So does that mean Sony has been losing money on the slim overall since release?

The evidence would certainly indicate this.

[t850]

They are expected to announce further losses on thursday. Which amount to 440million USD.

Add those up to 4.7billion usd and about 5.2billion is what you end up with.

[bunfighterii]

I'm not exactly part of anybody's corporate cheer squad, but it's my job to monitor stocks and profit/loss forecasts....

I have no idea where you guys got your facts from because Sony Corp. is expected to post an operating profit up on expectations. Their gaming division is also posting a profit.

See the attached article:

http://www.reuters.com/arti...

[t850]

Those are profits for sony as a whole. Doesnt change the fact that Sony games division is expected to post a loss on this thursday.

http://www.nytimes.com/2010...

[bunfighterii]

@ t850
There's nothing in that article suggesting its gaming division made a loss- if you read it says that they revised last years loss forecast due to stronger performance in consumer electronics which includes gaming in televisions.

[commodore64]

@ bunfighter

The 4.7billion and 5.2 billion figures are referring to accumulated losses that Sony has incurred on the ps3 until now.
http://www.joystiq.com/2009...

Kudos to you for attempting some damage control.
It may be true that the ps3 is poised to post operating profits in the next quarterly report overall, but that doesn't change the underlying sunk cost.
For someone who purportedly looks at this stuff for a living, you seem to be missing a big chunk of the big picture.
No offence.

[sikbeta]

IF we talk about Games, Sony is The Best, Game after Game, keep getting better and better, if we talk about money, I don't give a damn, I'm a Gamer, not a shareholder

*waiting for GT5 + LBP2*

[unrealgamer58]

=]

[Godmars290]

"Very Nice!"

[Nuclearwinter]

"Jagshemash! Great Success!"

[Sheddi]

haha rofl

[Dylantalon1]

i would like sony to buy insomniac game studios

[dc1]

Insomniac = quality

[RememberThe357]

I'm sure Insomniac was given the opportunity to be bought the same way Naughty Dog was. I think Ted Price likes the fact that he can basically do what he wants :)

[dc1]

Yet,.. wait you're right.. In fact I agree with.
I wish the the best for Naughty Dog and Insomniac. They're fantastic developers.

[Max Power]

I thought talon standed for talented?

[NYC_Gamer]

sony is doing it big

[AK46]

For a company that takes a loss of manufacturing a PS3, it sure does make up for it in media sales, and then some.

[Godmars290]

Sold it at a loss making it up trough software sales. Then the cost of making them dropped, and they were making more money.

[cayal]

and now they swim in the profits of PS2 hardware.

[Nicholas Cage]

time off from the skuzzy and its good to hear positive news from the game business.

[Sigh]

Most third party companies treated ps3 like sh** (exceptions EA, From Software, Atlus), so it's good that they now feel pressured from Sony's outstanding first party.

[Ravage27]

Sony: PS3 Slim has been a phenomenal success and with the new 40nm RSX hardware revision, things are looking very rosy from here on

PS3 gamer: OMFG LBP2,GT5 and Socom4 this fall!!!! And maybe both inFamous2 and Resistance3 too! Add all that to released games like GOW3,HeavyRain,MNR,WKC,FF13,3D -Dot Hero and RoF, 2010 has been nothing but amazing for ps3 gamers :)

[TheTwelve]

...first party Sony games used to mean "suck". How that's changed...now they're the best games of all, IMO.

12

[zenosaga04]

Hahaha that's true I remember back in the ps1 days when it said SCEA I'd steer clear... except for the excellent Crash Bandicoot series, and a few of the series made by 989 studios.

Sony's really turned it around for their first party studios.

[Sarevok]

You forgot legend of dragoon!

[Figboy]

during the PS1 era, i was all about Capcom (Resident Evil, Dino Crisis), Squaresoft (FFVII-FFIX, Parasite Eve, pretty much almost ALL of their RPGs), and Konami (Metal Gear Solid, Castlevania: SOTN, Silent Hill).

until Ape Escape, Alundra, and Legend of Dragoon, i tended to steer clear of SCE games.

it really wasn't until the PS2, when Sony realized that Nintendo's strategy of having a strong stable of first and second party games, and started to pump up their in house and 2nd party developers, did i take a notice of SCE.

we got Ico, Shadow of the Colossus, Dark Cloud 1 and 2, Jak, Ratchet, Sly, God of War, Mark of Kri/Rise of the Kasai, Ghosthunter, Primal, and so many genuinely awesome 1st and 2nd party games during the PS2 era, that those were the titles, even more so than future Metal Gears, Final Fantasies, Resident Evils, and Silent Hills, that got me to buy a PS3.

i was comfortable with investing in the hardware early, so i could focus 100% on the software later.

i always find it funny when i read comments like, "man, i wish i had a PS3 so i could get GoW3, LBP2, The Last Guardian, Heavy Rain, etc, etc," because i can get those games now, without having to factor in hardware costs.

if i had waited on the PS3 until NOW, not only would i have to pay for the console, but i'd have a HUGE back catalog of awesome games to play from 2007-2009, AND the hot new games still releasing throughout the year.

Sony has some a long way as a games publisher, although they get most credited for the successes of the PS1 and PS2 (and history will give them the credit they deserve for the PS3 when this gen is all said and done, i guarantee it), but i think they should be praised for cultivating such a collaborative, healthy, industry pushing first and second party family.

[Pillage05]

While you may not have to worry about hardware cost now, as an Actuary student I have to say that putting that money you spent on a Ps3 early into a savings account instead and sat on the interest...your ps3 would have cost relatively much less now(even without price cut) and you'd have the extra money to spend on games :P. Just sayin'

[PirateThom]

Jumping Flash, Medievil, Ape Escape, Vib Ribbon, PaRappa the Rapper, Destruction Derby, Gran Turismo, G Police, Cool Boarders were all published by Sony.

I wouldn't say SCE games have ever really "sucked", but the quality has improved to a shocking degree.

[kasasensei]

Good job sony, bringing back your brick from the 2007's hell...
You did very well. Like a phoenix, should i say. ^^

[n4gno]

Xbeta's don't want to see profits : so 2006 :)

even if they are selling ps3 with no profits at all, they are selling millions of games, controlers, and : bluray !!! (that does'nt count in video game department, but in fact, it's a huge profit coming from ps3 success)