Video Games: Sony FINALLY Profiting After 5 Years

Jack. Bauer

Sony Not Anticipating a Loss With PlayStation 4 Launch
Company returns to profit for the first time in 5 years.

Quote:

Sony is not anticipating to make a loss with the launch of the PlayStation 4.

During a earnings call today, Sony CFO Masaru Kato stated, "Unlike PS3, we are not planning a major loss to be incurred with the launch of PS4."

Kato's prediction (caught by Eurogamer) is mainly down to PS4 using a chip that has required much less R&D and investment by the company.

"At the time we developed PS3, we made a lot of in-house investments to develop the chip – the Cell chip," said Kato. "Development of the chip saw the silicon processing and all the facilities invested by us ourselves.

"Yes we have a team working on chip development – but we already have existing technology to incorporate and also product investment and all the facilities will now be invested by our partners, other foundries, so we don't have to make all the investment in-house."

The company's net income was 42.8 billion yen (roughly $436 million). While this isn't huge, it's a healthy improvement considering the huge losses of a year ago, and it's the first time the company has been in profit since 2008. Not too shabby for Kaz Hirai's first year in charge of the whole company.

Meanwhile, in the games segment sales were down 12.2% and operating income (a measure of a film's profit excluding taxes and interest) was down by 94% to $18 million.

Combined sales of PS3 and PS2 consoles have fallen to 16.5 million from 18 million last year. This isn't surprising though, factoring generation fatigue and the announcement of the PlayStation 4. Sony's portables – PSP and Vita – sold 7 million units, which is a slight improvement on the 6.8 million sold last year. While up, it's worth noting that the Vita's price-cut in Japan (Feb 2013) undermined the fact more units were shifted, earning Sony less money overall.

The report is optimistic about the future of the company's game business: "Sales are expected to increase significantly primarily due to the planned introduction of the PlayStation 4 in the fiscal year ending March 31, 2014. Operating income is expected to be essentially flat year-on-year primarily due to an increase in research and development expenses and marketing expenses related to the introduction of the PS4."

Its fortunes haven't reversed entirely but this is a much leaner, streamlined, and ultimately more profitable Sony than the company of a year ago.

Live Long and Prosper, Sony.

Artemisia

They better believe they will lose money on the PS4

I mean, watch them sell it at a loss.

H-I-M

Rise up Sony this is just the beginning.

!ola

Georges

Yas.

I'll keep supporting them anyway, just got a PSP

Georges

Quote:

Originally posted by Artemisia

They better believe they will lose money on the PS4

I mean, watch them sell it at a loss.

Well, better hardware is cheaper so I think they won't lose anything really.

GotMyBlueprint

finally
shame they will never recover the billions they lost after all these unsuccessful years though

Starburst

What a kii.

I guess when you're in a position where your company hasn't profited in so many years you have no choice but to poorly replicate the true innovator (Nintendo) for sales.

Georges

Quote:

Originally posted by Starburst

What a kii.

I guess when you're in a position where your company hasn't profited in so many years you have no choice but to poorly replicate the true innovator (Nintendo) for sales.

How has the "true innovator" never released an original game after 2001?

Rigalo

Lol when did Sony copy Nintendo for sales? Pop stans should stop acting like they know what they are talking about in other realms of the world.

Jack. Bauer

Sony aren't exactly bringing anything new to the table with the PS4, do they really expect to keep up with making a profit this generation?

Georges

Quote:

Originally posted by RihLORD's #1 Stan

Sony aren't exactly bringing anything new to the table with the PS4, do they really expect to keep up with making a profit this generation?

It's not necessary anymore, most of the genius ideas in gaming have been already discovered, or it's too soon to develop them. They will make a profit because the price will be fine, they learned from their mistakes and will get great games.

I hope they integrate the Xperia lineup with this though, I want a full Sony ecosystem

Attitude

I'm ready for them to reveal the PS4's price at $499 US dollars.

Ishiba_Makuza

Sony winning, as usual

DvnR

Quote:

Originally posted by Artemisia

They better believe they will lose money on the PS4

I mean, watch them sell it at a loss.

http://www.ign.com/videos/2013/05/09...ation-4-profit

xoxoxoxo

Lulu

Slayyy

Starburst

Quote:

Originally posted by Rigalo

Lol when did Sony copy Nintendo for sales? Pop stans should stop acting like they know what they are talking about in other realms of the world.

I think you need to stop acting like you're so damn educated with your goofy ass Pokemon avi.

Lulu

It's not about who does it first, it's about who does it better

Sony remains #1

DvnR

Quote:

Originally posted by Starburst

I think you need to stop acting like you're so damn educated with your goofy ass Pokemon avi.

Motion controllers were not invented by Nintendo.

It was a copy.

But they weren't marketing it for anything short of a PlayStation Smash Bros. They practically embraced it.

The Vita did not copy Nintendo.

I think you forget that the PlayStation controllers are exactly like the set-up and there is a touchscreen. The interface was taken from the look of smartphones if anything. There is simply delusion to lead you to believe that Vita was ripping off Nintendo in any sort of way.

Katamari

Quote:

Originally posted by Starburst

I think you need to stop acting like you're so damn educated with your goofy ass Pokemon avi.

lol have you actually played PS All Stars tho. The only thing it has in common with SSB is that both of them are mascot fighting games