Tue, Feb 01, 2011 | 09:19 GMT

Sony PS division has lost $4.7 billion since launching PS3

thisisliving

Sony’s Q2 financials today have taken total PlayStation division losses to $4.7 billion since PS3 launched in November 2006.

The facts:

  • FY 2007: -$1,970,923,859
  • FY 2008: -$1,079,994,103
  • FY 2009: -$577,207,240
  • FY 10Q1: -$413,541,667
  • FY 10Q2: -$653,333,333

Total loss: $4,695,000,202

All figures come from Sony’s investor relations page.

Note that both quarters so far this financial year include losses from Sony’s Vaio business. Figures for the full fiscal years are losses purely from gaming. Prior to Q1 this year, the division was called “Game”: it’s now known as the “Networked Products & Services” division.

It’s also worth noting the following. These are the losses Microsoft’s Xbox division suffered during the first Xbox’s release. As you can see, they’re not as heavy as those currently being incurred by Sony:

  • FY 2002: -$1,135,000,000
  • FY 2003: -$1,191,000,000
  • FY 2004: -$1,337,000,000
  • FY 2005: -$539,000,000

Total loss: $4,202,000,000

Thanks, Psychotext. You can read a full breakdown of where the platform holders stand financially in this NeoGAF post.

60 comments

#1

Blerk
30/10/09, 11:40 am

Ouch! That’s gotta hurt.

#2

Psychotext
30/10/09, 11:42 am

Nintendo were asked to comment… but they couldn’t stop laughing long enough to say anything.

#3

Blerk
30/10/09, 11:43 am

Perhaps we’ll luck out and they’ll asphyxiate? :-D

#4

Psychotext
30/10/09, 11:45 am

That’s cold. :P

#5

Razor
30/10/09, 11:47 am

The merger into NPS makes everything look worse that it might have been had Game still been an individual business.

You can clearly see that Game losses were halving each year until the merger.

Still, it’s not great.

#6

Psychotext
30/10/09, 11:51 am

Worth mentioning that this quarter includes the launch of the Slim… that will have cost them a fair chunk.

#7

distraet
30/10/09, 11:57 am

If only I had a nickel for every… nickel Sony lost.

#8

Brol
30/10/09, 12:01 pm

To compare Microsoft’s and Sony’s losses, you would need to take inflation into account. Then I think the numbers should be roughly equal.

Anyway this just shows how unsustainable the console business has become… I’d be really surprised if Sony and MS get their next generation consoles out anytime soon.

#9

Hero of Canton
30/10/09, 12:04 pm

This Is Worrying.

#10

Psychotext
30/10/09, 12:04 pm

Here’s a thought… imagine those numbers without the PS2 propping up the division.

#11

Blerk
30/10/09, 12:04 pm

Wait ’til BDH arrives!

#12

Razor
30/10/09, 12:10 pm

“Anyway this just shows how unsustainable the console business has become… I’d be really surprised if Sony and MS get their next generation consoles out anytime soon.”

Yep.

And the days of expecting next generation hardware to be powerful all conquering machines are well and truly over.

#13

The Hindle
30/10/09, 12:14 pm

The ps3 has now sold 27m worldwide its catching the 360 big time plus add ff 13, GT 5 and GOW 3 all massive games and i predict by next summer the PS3 will be in front.

#14

The Hindle
30/10/09, 12:21 pm

I think feed is spamming this website

#15

Patrick Garratt
30/10/09, 12:22 pm

I’ve just global-deleted him. He should vanish in a second.

#16

Quiiick
30/10/09, 12:22 pm

Oh dear, now we have an ad-bot spamming the comments sections … :-(

#17

Quiiick
30/10/09, 12:23 pm

Thanks, Pat!

#18

JonFE
30/10/09, 12:24 pm

Thanks Pat – much appreciate it!

#19

Psychotext
30/10/09, 12:52 pm

“I predict by next summer the PS3 will be in front”

Sell 7m more than the 360… in 9 months? Given they both generally sell 10m to 13m in a year? Pachter would be proud. :D

#20

darthmahon
30/10/09, 12:58 pm

That is a scary amount of money. I don’t get how much Sony earn elsewhere, that is not sustainable :/

#21

blackdreamhunk
30/10/09, 1:08 pm

yea sony should just give me 4 billion I can use it wisely lol

#22

blackdreamhunk
30/10/09, 1:10 pm

yea sony should just give me 4 billion I can use it wisely lol

yea so much for your next generation of consoles ahahahaha

what is sony going to tell their share holders.

bankuprt console game devs and bankuprt hardware companies.

any one else want to debate with me?

my words are solid.

#23

Blerk
30/10/09, 1:21 pm

4 billion, eh? That would probably keep you in hardware upgrades for about six months, BDH!

#24

ranksshabba
30/10/09, 1:23 pm

$
2001 -1,666,000,000
2002 - 866,000,000
2003 - 938,000,000
2004 -1,011,000,000
2005 - 464,000,000
2006 -1,329,000,000
2007 -2,066,000,000
2008 + 267,000,000

Total $8billion dollar loss.

Don’t Microsoft’s losses in the segement that includes Xbox read something like this? (segement includes Xbox, PC gaming, Zune & etc)

#25

Komond_Deckard
30/10/09, 1:31 pm

Correct me if I’m wrong, but:
———
The facts:

* FY 2007: -$1,970,923,859
* FY 2008: -$1,079,994,103
* FY 2009: -$577,207,240
* FY 10Q1: -$413,541,667
* FY 10Q2: -$653,333,333

Total loss: $4,695,000,202
————-

How can FY 10Q1 and FY 10Q2 be facts? That means 2010 Q1 and Q2 isn’t it? As we are not in 2010, that are estimations, not facts. So the total loss is 1,000,000,000 estimated, and 3,600,000,000 fact.

#26

BeastModeYMOB
30/10/09, 1:32 pm

Who cares? The systems are selling! Gaming has lost its main point. GAMING! All u ppl that is arguing ove #’s need to get some pussy & chill.

#27

theevilaires
30/10/09, 1:36 pm

what goes up must come down. Its the basic principle of karma. Sony did so well in the PS1 and PS2 era that they simply were poised to hit a bad time sooner or later. They’ll bounce back. 2010 is looking to be much more in their favor.

#28

Psychotext
30/10/09, 1:40 pm

“How can FY 10Q1 and FY 10Q2 be facts? That means 2010 Q1 and Q2 isn’t it?”

Financial year ending 2010. We just finished Q2.

@ranksshabba: Not sure where you found those figures, but they’re not accurate… look here: http://www.microsoft.com/msft/reports/ar09/10k_fr_dis.html

#29

Patrick Garratt
30/10/09, 1:42 pm

KD – These are results for Sony’s fiscal years, which end in March. Sony’s first quarter runs April-June, and Q2 – which was reported today – ends on September 30. We’re in Q3 now.

#30

G1GAHURTZ
30/10/09, 2:06 pm

I blame Blu-Ray.

Will HD-DVD get the last laugh after all…?

#31

Blerk
30/10/09, 2:09 pm

No.

#32

Bojangles
30/10/09, 2:10 pm

The dead don’t laugh.

#33

Psychotext
30/10/09, 2:13 pm

They do make odd noises if you poke them though. True story.

#34

Syrok
30/10/09, 2:19 pm

Is dogging not enough for you Psycho? Do you really have to engage in necrophila as well?

#35

Psychotext
30/10/09, 2:22 pm

I put them in cars and watch them… uhh… decompose?

#36

David Macphail
30/10/09, 2:53 pm

For all the idiots in the comments predicting the doom of Sony thanks to the PS3 maybe you should take ALL the facts into account:

Sony owns exclusive rights to the HD movie market (Blu – Ray) worth over $10,000,000,000.

Sony has vast amounts of income from PS2/PSP/PS3 software sales as well as making a profit on the sale of PSP and PS2 hardware.

Sony also has vast amounts of income coming from their TV manufacturing side, standalone Blu – Ray player manufacfturing and a host of other consumer electronics.

Sony also have a lot of money pouring in from their movie studios such as Columbia Pictures.

Believe me, Sony can take the loss, if they couldn’t they would have cut the PS3 off like a diseased limb a long time ago, they’re not idiots (Like SEGA were).

#37

Blerk
30/10/09, 2:57 pm

Vast amounts of income don’t mean squat if you’re still making a loss.

#38

G1GAHURTZ
30/10/09, 3:12 pm

Nah, no-one is saying that Sony is doomed.

The PlayStation brand is way too valuable to them for them to just give up on anyway.

It’s like the Atari brand. Even after all the years and years of huge losses, it’s still going because it’s one of the most recognisable brands in the world.

And also like Walkman. Even when the cassette player became obsolete, the brand is still going, even though it’s nowhere near as big as it was.

I’m sure that Sony and the PlayStation brand will keep going for some time, but the market dominance is clearly totally gone now.

#39

Psychotext
30/10/09, 3:21 pm

“Sony owns exclusive rights to the HD movie market (Blu – Ray) worth over $10,000,000,000.”

Actually… no. Sony share the rights, and the licensing income for blu-ray with the twenty other companies on the board of the blu-ray disc association.

Plus, the licensing income is no-where near as lucrative as you seem to be making it out to be. Based on current projections by the BDA you’re looking at about $100 million to $350m per year of licensing revenue over the next 5 years. That figure (dependant on them hitting their targets) then gets split as appropriate between the BDA.

As for this: “Sony has vast amounts of income from PS2/PSP/PS3 software sales as well as making a profit on the sale of PSP and PS2 hardware.”

The numbers you see above include all of that. As for the rest of the profits, Sony as a whole made a $227.8 million dollar loss in the last financial year. But it’s all aside from the point, because like GHz said, no-one was talking about Sony being doomed.

#40

Blerk
30/10/09, 3:31 pm

Well, BDH was. But he doesn’t count.

#41

Psychotext
30/10/09, 3:33 pm

My mind automatically filters everything bar the funny stuff about BDH now. ;)

#42

G1GAHURTZ
30/10/09, 3:40 pm

any one else want to debate with me?

my words are solid.

LOL!!!!!!!!!

I did miss this quote the first time around…

#43

Gregormeister
30/10/09, 4:02 pm

1. I think Sony can look positively into the future. Losses due to the PlayStation hardware fall every month. Now, while the slim is out (and sells like glowing shit) the profit WILL come. And it will come soon.

2. The PS3 is out for three years now and developers mentioned recently, that they didn’t touch the real potential of this black powerbox yet; the climax of PS3 games will come not before late 2010 or 2011. Even Naughty Dog said that are lot possibilities to optimise their U2-engine. (Golden times await us!)

3. According to Sony the PS3 will get a life cycle about 10 years; so we not even saw one third of these time span! Look at the PS2 – it still generates money; an it started to do that really late – later perhapt than the PS3.

4. In spring 2010 Sony releases their new motion control system that works similar to the Wii’s, and that should catch some Wii owners, too. Compare ANY Wii game to Uncharted 2 oder something else that releases these days – the graphics (and sounds) are poles apart from each other. Wii owners with a HDTV will have some reason to do the jump next year, especially if they realise the gap between the potential they have with their Wii and the potential the COULD have with a PS3.

5. Yes, I’m a die-hard PS3 user and I’m VERY happy with it!

Greetz from germany,
Gregormeister

#44

G1GAHURTZ
30/10/09, 4:06 pm

Hello Germany

From London.

#45

Psychotext
30/10/09, 4:07 pm

Just one little point re your post there Gregormeister. The gaming division was back to being profitable the year after the PS2 was released. Between 1998 and 2006 they only had one year of losses, the year the PS2 was launched.

#46

theevilaires
30/10/09, 4:34 pm

wow a hardcore German PS3 lover…fucking cool. Hey maybe we can hang out when I come visit your country on vacation next year. :D add me on PSN the id is the same.

Wir hoffen, Sie bald in meiner Kontaktliste sehen

#47

David Macphail
30/10/09, 8:15 pm

OK, Sony don’t have the right of Blu – Ray all to themselves but they ARE the leaders of the pack. Blu – Ray was Sony’s invention, the rest of the companies just joined with them rather than risk competing against them.

Blu – Ray is a Sony product, meaning, for all intents and purposes, they OWN it.

#48

The Hindle
30/10/09, 8:33 pm

Hey Psyco i come to that fact because A FF13 is exclusive in japan so add like 1m to 2m in bundles and sales there. B. GT 5 is coming next March, again world wide system seller as every GT game has sold 10m to 15m plus a lot of consoles.

C GOW 3 is next March, again worldwide system seller but will move more Ps3s in the Usa. Gran Turismo and Gow are Sonys equivlent to Halo and Gears as in the fact they will shift a lot of consoles.

Id say they will be pretty much even by next summer anyway if not in front. Also the motion controller will bring a lot of the wii users to the Ps3 in my opinion anyway.

#49

Psychotext
30/10/09, 10:47 pm

@David Macphail: If you go right back to the start, it was actually two companies. Sony and Pioneer. But they needed far more than just the two of them to develop it, and another 7 companies joined in the development.

@The Hindle: We’ll have a look next summer. ;)

You’re talking about the PS3 selling somewhere in the order of 2x what the 360 is going to over the same period though… which is just a little unrealistic.

#50

Talyis
31/10/09, 2:39 am

Don’t listen to Psychotext seriously check out all of his other posts he’s just a MS fanboy, I do agree Sony has lost a ton of money but 4 billion is a little much why would they keep the Playstation division going with that big of a loss! And hey Psychotext I noticed you mentioned of MS losses I’m sure they lost billion on the hardware failures alone but then again they did make some of that back when the gamers had to buy a second or third 360 I honestly think MS has still lost more money this generation!

Leave a Reply