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Sony Q2 financial forecast dropped as game & PS Vita sales slump

Thursday, 1st November 2012 08:52 GMT By Dave Cook

Sony has slashed its Q2 financial forecast in the face of flagging game sales, and lower-than-expected sales of PS Vita consoles.

CVG reports – by way of Siliconera – that Sony originally forecast that it would shift 16 million combined units of both PS Vita and PSP – ten for Vita, six for PSP – worldwide.

However, the company then slashed that particular projection down to just 12 million units with no revised breakdown across PS Vita and PSP.

Following today’s forecast that number sits at just 10 million units combined by March 31st, 2013. The drop from 16 million appears to be growing more significant by the day.

PS3 and PS2 forecast numbers remain unchanged at 16 million sold for the year, suggesting that all is well in the home console camp, but software sales across the brand have dropped by 15.8% on last year’s figures.

All of this has resulted in a financial loss of 15.5 billion yen/$198 million. While the number is large, it is an improvement on last year’s 27.0 billion yen loss, suggesting that uptake has improved and that finances have began to pick up momentum now that PS3 no longer sells at a loss.

What’s your take on the stats? Let us know below.

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22 Comments

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  1. Dragon246

    And corporate talk says all is well with vita.
    They need price cut asap. I have no doubt vita will sell 10s of millions more, but sony needs to show some teeth and drop the balls on prices if they want to increase vita sales.

    #1 2 years ago
  2. mistermogul

    @1 – Well spoken my man!

    #2 2 years ago
  3. Erthazus

    “What’s your take on the stats? Let us know below.”

    Sony is in deep shit. Next gen must be something special for Sony to survive in the future.

    Hardware must be perfect, new way to play must be innovative (and that thing must work too), Online service must be perfect and great games obviously.
    50% of that won’t be in the next console anyway.

    #3 2 years ago
  4. Mike W

    @3

    We wondering when you were going to rear your ugly head.

    And another thing too, did you read what you’ve just posted? Maybe I’m mistaken, but you stated that Sony needs to put out a system that works……was their PS3 faulty?

    Your post sounds like no thought was put into it and it was clearly immature. So please grow the fuck up and quit posting childish comments about an organization you clearly hate.

    #4 2 years ago
  5. Omegabalmung

    @1- Unfortunately Sony cant afford a price drop at this moment.

    #5 2 years ago
  6. Gadzooks!

    Fuck me! 200 million down in one quarter?!?!

    I’d be interested in seeing the last 12 quarters figures for the big 3 if anyone has them.

    I could swear that Sony said their games division has been profitable for a while now, but all I read recently points to them leaking cash like crazy.

    It it just seasonal or are they in the red year-round?

    #6 2 years ago
  7. Erthazus

    @4, PS3 is a horrible machine for games development, PS3 have only 256 MB Ram and with that PS3 has slow OS and Party Chat is impossible, crappy graphics card and exotic Cell Processor in which 90% of AAA multiplatform games are inferior on the PS3 compared to xbox 360.

    PS3 is a flop in every way. PS3 is also a flop in sales compared to the last two generations (PS1 = 100m, PS2 = 150m, PS3 = Maybe 65m!?)
    and even if PS3 is profitable now, that is not enough because Sony is bleeding. Fact.

    but whatever really.

    #7 2 years ago
  8. G1GAHURTZ

    @6:

    From what I understood, the loss is across all divisions of Sony, and it’s game division has been (only just) in the black for the last two quarters, at least.

    They are lowering their losses quite a lot since last year, but they’re still losing money and seeing a decline in sales.

    http://www.theverge.com/2012/11/1/3584446/sony-q2-2012-financial-results

    #8 2 years ago
  9. Mike W

    @7

    Sigh….I’m not going to argue with you, because now you’re just ranting like a fanboy. I can my advice went through one ear and right out the other.

    #9 2 years ago
  10. Gadzooks!

    #8

    Ah right. I thought something didn’t add up, turns out it’s too early for my brain to be thinking of anything but coffee.

    Ta.

    #10 2 years ago
  11. Erthazus

    @9, I’m not ranting at all. I’m just talking about facts.

    Sony need to learn what to do next. That’s all.

    #11 2 years ago
  12. Deacon

    Sad news. I know everyone’s making losses these days, but still.

    Having recently been gifted a Vita (no, I wouldn’t pay for one atm) I can attest to it’s quality. I guess I’m lucky I’ve got great games like Gravity Rush, and all the old PSP games I never got to play (Dissidia, FFIII remake etc), which I get don’t appeal to all. For what I would call your ‘average gamer’, there’s very little to entice people onto the platform, which I honestly see as a bigger hurdle than the price point. I mean, people are willing to pony up £400+ for their (imo) shitty iPhones and iPads, right?

    I love Sony’s first party divisions and all the great titles they develop / co-develop, and I would hate to see them exit the market altogether.

    For all their wrongs, I still see them as the most game-focussed of the big three (wait) – focussed most on providing the sort of games I personally enjoy, anyway.

    #12 2 years ago
  13. Psychotext

    @6: That’s nothing compared to what they were losing at one point. The PS3 was bleeding anywhere up to 0.9 billion dollars in a quarter.

    This quarter their game division made 29 million dollars… which is little compared to some of the losses they’ve made, but at least everything is looking a lot more stable these days.

    #13 2 years ago
  14. ManuOtaku

    #1 agree Dragon, and i would also like to add they need to reduce the price of the memory cards too, just thinking in the regions and/or countries that do not received the bundles, and because of this they need to buy the memory cards too.

    Also i will like to add that sony needs a more healthy balance between games focused on the handheld experience and only found on vita like dokuro, ragnarok, escape plan, gravity rush, with games that offer the console experience in a handheld, i prefer the former rather than the later, i know maybe its just my case, but maybe there are other gamers that think this way, therefore i dont say dont focus on one over the other, just find the healthy balance, in order to keep everyone happy, i understand the main philosophy of the vita is the console experience on your hands, just also bring the traditional handheld games mindset too, at least in equal terms if possible, or something that one is close enough to the other.

    #14 2 years ago
  15. Belmont

    @ Erth

    First of all,it’s not just PS that is experiencing losses and causing trouble for them. Sony’s TV business has been losing cash for 10 years.
    Then,about PS3; It’s not a flop.360 has moved 70 million,PS3 has moved around 65,so that 5 million turns PS3 into a flop?
    The Cell chip has been excellent for all those studios that invested talent and effort into it,not just Naughty Dog but Crytek and others…
    About Sony in general, I personally still have faith in them.

    #15 2 years ago
  16. mistermogul

    @5: Either could Nintendo with the 3DS but it happened anyway.

    #16 2 years ago
  17. ManuOtaku

    #16 mistermogul i think both situations are different, nintendo reduce and/ or cutted completly their profit margin, therefore they did had this room to manouver a price cut, Sony as i understand, is selling the vita at a loss right now, the components are more expensier than the console itself, therefore it will be more hard to do, becuase the loses will be bigger and they are not in that position anymore they are in a tight spot right now, financially speaking in multiple divisions.

    #17 2 years ago
  18. DrDamn

    @17
    Has it ever been confirmed they are selling it at a loss? I.e. per hardware unit. Breakdowns show component costs well below the selling price, but that doesn’t factor in a lot of things. The only thing I can find that Sony have said relates to making a profit over all (taking into account R&D costs) is going to take 3 years. The other point is – can they afford not to drop the price? It’s not clear cut. Keeping it at the current price for too long could be a lot more harmful than taking a hit now for bigger profits down the line.

    #18 2 years ago
  19. OlderGamer

    Ya all know how I feel on Sony. And for all of the nagh sayers and haters that jump down my throat on such subjects, it would really stink if I was correct. I don’t want to see Sony bow out. But they have been a mess this gen, they did it to themself. Mostly. The strong yen is hurting Nintendo and Sony a like, and they didn’t cause that.

    If Sony wants to survive they really do(as Erth suggested) need to get their act together and start putting together a flawless strategy going forward. That or I am going to start looking like I am a lot smarter then I am.

    Because personaly, I don’t see Sony surviving next gen, not in its current form.

    #19 2 years ago
  20. OlderGamer

    @15 Belmont, the thing is: lets say i was in the hardware biz and I sold double my competition. If I did it at a loss for longer then my competition. If I didn’t sell as many games as my competition. If I didn’t have as many paying online subscribers as my competition. I would run a good chance of losing to my competition.

    Love it or hate it, charging for XB Live Gold was genius. It created a sold revenue flow, something that Sony couldn’t match. And PSN+ is a good start, but Sony is still years worth of sales/profits behind, and I believe they don’t come close to the user base anyways(of paying PSN+ to paying Gold).

    For such a close user install base, MS games regurlarly and greatly outsell PS games. Both as exclusives and multiplate. That too is lost liscencing revenue.

    Maybe it better hardware(PS3 and Vita). But when it costs so much to manufacter you lose the chance to be able to drop the price. And you lose more mony, longer. Going into the 8th year of this life cycle, we should be seeing 100usd systems. We would have in other gens. But we aren’t here because these systems cost too much money to produce. And Sony simply can not compete directly with MS on price point. The yen hurts. But so did Sony choices when it comes to hardware design.

    My point Belmont is that install base is only one part of the picture.

    #20 2 years ago
  21. Belmont

    @#20 OlderGamer

    I get it.I’m still a believer that Sony guys could have done a lot better in almost everywhere.For example is PS Home very profitable?

    #21 2 years ago
  22. Goffee

    I guesd Sony must be toughing this out in the knowledge the Capcom/Nintendo love-in ends soon, presumably next spring when it can Announce Monster Hunter Freedom 5 Vita. Otherwise it wouldlikely have caved in by now to a cut

    #22 2 years ago