85

PlayStation 3 puts Sony in the red

Supernouva | May 18, 2007 | News | Playstation 3 
Sony lost over half a billion dollars, and that money loss is all attributed to the PS3. The PS3 may be a nice console, but you can't get around the fact that it really isn't doing very well yet. It could still make a profit, but it won't be easy.
Sony lost more than half a billion dollars in the fourth quarter, but it was the pesky PlayStation 3 -- not the entertainment division -- that was responsible for the red ink.

Company posted a loss of 67.6 billion yen ($573 million), about 1% more than loss in comparable quarter last year, even as sales in the frame were up 13% to $16.8 billion.

Much of the loss was connected to the vidgame biz, which Sony continues to operate at a loss because of high production costs and intense competition from Nintendo's Wii.

Conglom announced Wednesday that it missed its PS3 sales targets for the year; the company shipped about 5.5 million units, roughly 500,000 short of its previous projections.

But studio was a revenue driver for the group; homevid titles like "The Da Vinci Code" and "Casino Royale" helped send profit at the division up 56% and sales up more than 30%.

Division also is expected to book solid revenue numbers in the current quarter thanks to the eye-popping success of "Spider Man 3," with b.o. having a far more meaningful impact on the bottom line than individual movies traditionally have on a company of Sony's size.

Through last weekend, sequel has earned $622 million worldwide, according to studio estimates.

At the electronics division, sales rose by the high single-digits in Europe and the U.S.

News Story attached to:
5 comments | go to source (www.varietyasiaonline.com) | Add to favorites! favourite this article | send to friend
Related Articles
47 JoWood Puts 30 Top Titles on Single Blu-Ray Disk! (3)comments November 9, 2008
74 Sony Playstation 4 to be based off the PS3 Cell Processor? (5)comments October 1, 2008
54 Former SONY PlayStation Europe CEO Chris Deering Joins PlaySpan (0)comments October 23, 2008
1266 The girls of Red Alert 3 (9)comments October 22, 2008
67 Red Steel 2 delayed? (5)comments September 7, 2008
Register as a member to subscribe comments.
  • 1 thumbs!
    Final Blade | May 18, 2007
    Its too early to say that it will fail.
    • 0 thumbs!
      Gotenks | May 19, 2007
      Exactly. As you said it's to early to predict if PS3 or any of the other consoles will fail.
  • 0 thumbs!
    iLLmatic | May 18, 2007
    I don't understand why these news stories keep getting posted as if its a surprise. Everybody loses money on consoles early on; Sony loses more because it costs more. Its as simple as that, but things will change later.
  • 0 thumbs!
    Ameer | May 18, 2007
    We need to blanket ban these stories. Tbh, I'm getting sick of the same story being regurgitated through tens of different sources.
  • -1 thumbs!
    Seeker X | May 19, 2007
    Same thing, different words.

This news story is archived and is closed to comments now.

Submit Newshelp
(0.1199/d/aeon)