Sony Reports Significant Year-Over-Year Losses For Q2
![Sony Reports Significant Year-Over-Year Losses For Q2 [Sony's PlayStation 3 Price Cut Blamed For Year-Over-Year Losses For Sony's Consumer Products & Services Division]](http://tftscdn4.nexus404.com/Blog/thumbnailimages/alt/sony-ps3TFTSThumb220153.jpg)
Sony’s decision to cut the price of the PS3 earlier in the year may have allowed the console to begin closing in on Xbox 360′s current number of units shipped, but it doesn’t look like the price cut did anything to actually help the company make money.
According to Gamasutra, Sony‘s Consumer Products & Services division – the division of the company that handles the PlayStation family of products – suffered a loss in profits in quarter 2 of Sony’s fiscal year, which ended on September 30th. Consumer Products & Services is reporting a revenue of ¥779.7 billion ($10.1 billion), which is down 12.3% from the same quarter in the previous year. As if that wasn’t enough, the division also reported an operating loss of ¥34.6 billion ($449 million), whereas last year, the division reported a profit of ¥1.0 billion.
Sony isn’t the only company that’s struggling in the middle of the current fiscal year, with Nintendo also reporting massive losses for the first half of their fiscal year ending March 2012, and preparing to report their first annual loss in the last 30 years.
It isn’t all doom and gloom, though, as PS3, PSP, and software sales all saw a slight rise over the same period last year. The discounted price of the PS3 obviously isn’t helping profits, but as time goes on, Sony will be able to optimize PS3 hardware in order to lessen the blow of loss they’re taking on each console sold. In addition, the holiday shopping season is approaching fast, which means that Sony should see a climb in both hardware and software sales and hopefully means a rise in profits.
Only time will tell how quickly Nintendo and Sony can bounce back from this little rut, but I’d say that 2012 should be a better year for every one of the big three – so long as none of them decide to launch a product entirely too soon.
Credit: Source.Nintendo Reports Losses For Fiscal Year 2011, Has Been Selling 3DS Below Cost Since Last Year's Price Cut
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Uhh.. I can tell you why PlayStation isn’t doing too well; its because the Sony network security is shoddy. I could just be an ignorant poster but you aren’t going to tell me that the security breach a few months ago didn’t put a sour taste in possible buyers mouths. I own a PSP and haven’t bought a single game thanks to sites like TPB but I will never buy a PS3.
I for one welcome our new hacker overlords.
I sincerely doubt that Sony is struggling because of network security. Did you not see the part where I said that PS3 sales were up over the same quarter as last year? Sony sold 3.7 million PS3s in quarter 2 alone, so it doesn’t really look like people are worried about network security – Sony is simply losing money on every PS3 sold thanks to the price cut, it’s as simple as that.
But sure, go ahead and blame Sony’s losses on network security when you go and pirate your PSP games from the Pirate Bay. That makes a lot of sense.