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Increasing PS3 Sales, Strong PSP Helped Sony Narrow Losses In FY08
Posted by Leigh Alexander at 8:20 AM on June 24, 2008
Sony's game division saw sales go up 26.3 percent in fiscal 2008 to 267.5 billion yen ($AU 2.63 billion), and while the company still took an operating loss of 124.5 billion yen ($AU 1.26 billion), that's close to half of what it was in 2007.
The company also said its Japanese sales "decreased slightly", while sales rose in North America and Europe.
We've already reported Sony's unit sales by platform today, and we also took a peek inside the company's losses throughout PlayStation 3's bumpy start, but now we've also learned that Sony's actually closed some of that gap in its cost-of-sales to sales ratio (how much it costs to make a product versus how much the product earns.)
Though, as we reported earlier, Sony took a hit because the PS3 still costs more to make than they recoup at its current price point, the company says that its price reductions were "successful", in that "a significant increase" in PS3 sales ultimately cut 2007's losses nearly in half over the course of the year. The resulting broader userbase in turn drove software sales, which also helped. Sony says it also benefited from reducing its advertising and marketing expenses.
Finally, Sony credited strong PSP performance buoyed by the success of the slim and lite model for helping reduce losses in its game business segment.
Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
LittleBigPlaneteer
Posted 9:28 AM 24/6/08
@Koztah:
Again, that was only for one week, the week MGS4 and the 80GB bundle was released. The Wii (nor 360) had nothing like that to compare so obviously their sales wouldn't be as good. Plus combine that with the huge Walmart deal that provided a 100.00 GC when buying a PS3 and you can see that people just gobbled up PS3's during that week. This won't happen too often
LittleBigPlaneteer
slomo788
Posted 9:15 AM 24/6/08
@Koztah: No way!
slomo788
jsf49
Posted 9:04 AM 24/6/08
Why am I supposed to care how much profit these companies are making? I guess, if they're making too much money off me, I should feel ripped off (like with Big Oil at the moment)?
jsf49
Koztah
Posted 9:03 AM 24/6/08
@DigitalHero:
I was talking about worldwide sales though. VGChartz shows 320414 PS3s versus 296991 Wiis.
There's nothing I'd like more than for the PS3 to break out - it's the only current gen console I bothered to buy, unless you count the DS. I'm just hesitant to celebrate just yet.
Koztah
LittleBigPlaneteer
Posted 9:01 AM 24/6/08
@Koztah:
It outsold the others for just one week. Don't be surprised by that. It was all MGS4's doing. Next week, things will be back to normal with the Wii likely outselling everything. The PS3 should still be outselling the 360 worldwide though, and that will be reflected in monthly NPD sales for June as well.
LittleBigPlaneteer
DigitalHero
Posted 8:59 AM 24/6/08
@Koztah:
Check Simple 2000. PS3 outsold Wii by around 30k last week due to MGS4 in Japan. Not difficult to believe.
Kotaku Article:
[kotaku.com]
DigitalHero
Koztah
Posted 8:53 AM 24/6/08
@DigitalHero:
Actually, I was just looking at VGChartz, and if its numbers are to be trusted (I know that's a stretch) it would be outselling the goddamn Wii by a small margin. As much as I love my PS3, I find that...really strange and difficult to believe.
Koztah
Syrish
Posted 8:53 AM 24/6/08
good for sony. hope this helps them now:)
Syrish
Syrish
Posted 8:52 AM 24/6/08
hmm intressting, and good for sony:)
Syrish
archibaldleech
Posted 8:49 AM 24/6/08
I can't wait for that blue PSP coming in August!
archibaldleech
DigitalHero
Posted 8:44 AM 24/6/08
@Jebusman:
Of course not, it's actually outselling 360 month on month in Europe, Japan, and now North America. Wait until the June 08 NPD shows MGS4 reflected software and PS3 hardware sales.
DigitalHero
Antiterra
Posted 8:42 AM 24/6/08
Same mistake that waywardchemist mentioned in the previous article: those numbers relate to FY 2007, which ended on March 31st, 2008.
We'll soon have the Q1 results for '08, though.
Antiterra
shichi
Posted 8:37 AM 24/6/08
@yashichi8bit: tell me about it. i want a PSP too haha
shichi
Barbara
Posted 8:33 AM 24/6/08
What's a Sony?
Barbara
dipsetboy17
Posted 8:28 AM 24/6/08
as long as they keep their current success up, then we all benefit
dipsetboy17
Jebusman
Posted 8:26 AM 24/6/08
The PS3 isn't going to die anytime soon, but odds are it will be nothing like the PS2 was.
Jebusman
thefragilenin
Posted 8:26 AM 24/6/08
sounds pretty good to me
thefragilenin
Katorok
Posted 8:25 AM 24/6/08
All is not lost =D!
Katorok
SigmundTheSeaMonster
Posted 8:25 AM 24/6/08
Shouldn't that read "Sony dropped PS3 prices and consolidated model line to show better numbers, but still has deathgrip on the PS2" /grin
SigmundTheSeaMonster
yashichi8bit
Posted 8:25 AM 24/6/08
"Sony says it also benefited from reducing its advertising and marketing expenses."
Ah damn, no more animal blood covered promo events and racially influenced dominatrix ads.
PS, all I want for Xmas is a PSP
yashichi8bit
transparency
Posted 10:10 AM 24/6/08
confused. sony reported fy #s beginning of this month. what's happened since then?
transparency
ghnvt
Posted 10:06 AM 24/6/08
They will eventually make money, but seriously the audience for the Wii is much larger, still it is funny that they are proud that they "almost" made money.
ghnvt
Ariance
Posted 9:46 AM 24/6/08
@Antiterra: Exactly
Leigh Please fix this pronto.
It caused stupid fanboys to open there mouths in the PS3 article you guys posted which showed that majority of commenters have no idea when a fiscal year starts and ends. Could you also please post sources
Here's a few
Index - [www.sony.net]
Slide Presentation - [www.sony.net] (Click slide 14)
Annaual Report - [www.sony.net]
Ariance
Goreful
Posted 9:44 AM 24/6/08
@yashichi8bit:
Don't forget things like demonic crying dolls and chicks sitting on toilets pulling the handle.
Goreful
element7
Posted 9:38 AM 24/6/08
PS3 will continue to grow in sales with other stellar franchises on the horizon.
element7
kingme
Posted 11:29 AM 24/6/08
I think by the end of the Fiscal Year, Sony would just break even, or probably gain money from it.
kingme
mfwahwah
Posted 11:15 AM 24/6/08
As long as Sony doesn't go bankrupt I'm happy :P
mfwahwah
YourAnthony
Posted 11:12 AM 24/6/08
good things are getting better, next year should be good.
YourAnthony
yashichi8bit
Posted 11:02 AM 24/6/08
@Goreful: I tried imagine that crying baby thing never actually happened...now its back to haunt me in my dreams. Damnit Goreful!
yashichi8bit
Greenup
Posted 11:46 AM 24/6/08
All systems make there money of video games not the hardware. Everyone going out and buying ps3's for mgs4 will prolly buy other games as resistance2,cod4,killzone2 and many other games so i think this is helping sony out alot. MGS4 prolly did'nt influence people to go out and buy a ps3 as much as halo might have did for the 360 but I think MGS4 did a pretty good job moving systems for sony.
Greenup
Wolfers
Posted 12:30 PM 24/6/08
"Finally, Sony credited strong PSP performance buoyed by the success of the slim and lite model..." That fits my case pretty well. I had no desire for a PSP, saw the Silver pack and had to have one immediately.
Wolfers
ChiChi_BBQ
Posted 2:20 PM 24/6/08
@Wolfers: I just got a PSP last week too. Go to Amazon.com and get used games for less than $15. Been enjoying watching converted movies on the PSP before bedtime too, not to wake up the family.
ChiChi_BBQ
maraxusofk
Posted 5:00 PM 24/6/08
was about go go buy another psp cuz i have an extremely old gold psp fat wit a ta-86 motherboard and couldnt upgrade to 3.8m33. thank goodness for helpful, genius online forums.
maraxusofk
hezz05
Posted 10:31 PM 24/6/08
Bring the PSP Lite in Ceramic White to Europe and I'll buy Sony! ILL BUY!
hezz05
Talleh
Posted 11:40 AM 25/6/08
My PSP was stolen...:(
Talleh