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

Thursday, 1 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

  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

Comments are now closed on this article.

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    We have five pairs of tickets to giveaway for the Call of Duty European Championships, taking place in London this weekend. The event takes place this Saturday February 28 and Sunday March 1 at the Royal Opera House in Covent Garden. Winners can watch teams will go head to head for a $10,000 prize pot […]

  • Republique Remastered has released on Mac and PC

    Republique Remastered, which was announced earlier this month, is now available for Mac and PC. The game is 20% off through Steam, GOG and the Humble Store for $19.99 until March 4. Thereafter, it will run you $24.99. The Remastered edition contains all five episodes of the game, with 1-3 available now and the remaining […]

  • LA Cops coming to Xbox One in March

    Isometric shooter LA Cops is coming to Xbox One on March 13. Already on Steam Early Access, the game looks like it’s been heavily inspired by Hotline Miami. Walk into a room, open fire, leave bloody puddles in your wake. It’s being published by Team 17. Check out the video below for some 70s cop […]

  • We have $500 of Steam Wallet funds to giveaway!

    We’re giving away 10 Steam Wallet prizes worth $50 each to VG247 readers, courtesy of Bundle Stars. All you need to do to be in with a chance of winning $50 Steam credit is to enter your details below. Join the Bundle Stars Steam group for entry in the sweepstake, and gain extra entries for […]

  • Lapsed Final Fantasy 14 players tempted back with 10 day freebie

    Square is offering lapsed FF 14: A Realm Reborn players a chance to come back to the game for 10 days worth of free adventuring. Provided you’ve already bought and registered an account you’ll be able to play free of charge from Feb 27 to March 9. Square wants you to sample the new content […]

  • Advanced Warfare: Sledgehammer looking at “opportunities” to recreate classic Call of Duty maps

    Sledgehammer Games has told VG247 it’s looking at opportunities to recreate classic Call of Duty maps in Advanced Warfare. According to co-founder Michael Condrey, players of the latest Havoc DLC are asking how Exo abilities and verticality can be added to classic franchise maps. “We’re taking a look at some opportunities to really highlight the […]

  • GTA Online reader playlist week 7: and the winner is…

    Stuff was shot. But only one player emerged victorious. GTA Online player e031271 won last night’s VG247 reader playlist, beating myself, Matt and regulars solidorwot and Revolting. Congratulations, Mr e031271. A deserved victory. We play a GTA Online playlist in an open session every Wednesday on PS4, because it’s both funny and fun. Anyone’s welcome […]

  • Leaked screens reveal The Reef as Destiny’s new “social space”

    A handful of leaked Destiny screens seem to confirm that The Reef location will be the new social space in Destiny. The new addition is likely to be revealed as part of the upcoming House of Wolves expansion. Reddit user Megamanexe4 dropped the screens on the site earlier this morning, along with grabs that reveal […]

  • Darksiders creator teases Battle Chasers game

    Joe Madureira, creator of Darksiders, has released art that strongly suggests a Battle Chasers game is in the works. Battle Chasers was a comic book from the late 1990s that suffered notorious production problems between issues and was never finished. Madureira formed Airship Syndicate after the collapse of THQ, where he co-created Darksiders. His latest […]

  • Infamous video nasty Axe recreated in GTA 5

    The trailer for notorious horror movie Axe has been recreated in GTA 5. The shot for shot remake is the work of gigerbrick who has previously recreated exploitation flicks like Machete and Hostel using Lego. The original Axe movie was banned in 1984 in the UK but passed with cuts in the late 1990s. Movie […]

  • Payday 2 for PS4 and Xbox One includes “a year’s worth of paid DLC” for free

    Payday 2: Crimewave Edition will include a year’s worth of paid DLC from the PC version of the game for free. The new-gen version of the game will be available June 2015, and includes almost all of the paid and free DLC released so far for Overkill’s popular first-person shooter. That DLC includes The Big […]

  • Yes, Mortal Kombat X will require Xbox Live Gold or PS Plus

    Mortal Kombat X won’t bypass Microsoft and Sony’s premium online play requirements. Reports that Mortal Kombat X wouldn’t require PS Plus or Xbox Live Gold started circling earlier this week thanks to a communications error. Answering fan questions on Twitter, producer Shaun Himmerick accidentally gave the impression that premium console subs would not be required […]

  • This is what Destiny players most want next

    Destiny patch 1.1.1 has resolved or at least addressed a number of complaints voiced by the community, but there are plenty more. des Destiny community manage David “Deej” Dague has put out a call for Guardians to share their concerns – or rather, what they think the community is most concerned about. “Set aside your […]

  • Google AI can play games now, so we’re probably all going to die

    Google has brought us one step closer to our inevitable slaughter or enslavement by machine overlords. Google has developed an AI that can learn to play video games and devise brand new strategies. Let me just rephrase that: Google has created an AI that can teach itself new skills, including how to play video games. […]

  • First footage of Renowned Explorers: International Society surfaces

    Renowned Explorers: International Society is a turn-based strategy game from the team behind Reus, and it looks great. Renowned Explorers was announced almost a full year ago, but has been pretty quiet since then. Developer Abbey games has now announced that the game has hit alpha, and will be open to select testers soon. You […]

  • Cities: Skylines developer commits to mod support

    Cities: Skylines will fully support the modding community. Hailing from famously mod-friendly publisher Paradox, Cities: Skylines is a no-brainer for mod support – especially as a lack of mod support is one of the things SimCity was so heavily criticised for when it firts launched. In the developer diary below, Paradox’s Jakob Munthe is joined […]

  • Nosgoth update adds Vanguard, many fixes

    Nosgoth, the free-to-play multiplayer brawler set in the Legacy of Kain universe, has been given a significant makeover. The major feature of the latest Nosogth game update is a new playable human character called the Vanguard. “Equipped with mighty throwing axes and a shield, the Vanguard can take more punishment than any human class that […]

  • Xbox Live Gold 12 month sub $40 on Microsoft store

    Microsoft is offering $20 off 12 month Xbox Live Gold subscriptions at the moment. An Xbox Live Gold 12 month subscription will normally set you back $60, but a Microsoft Store promotion has it on offer for $40. The offer is restricted to the US store. Although you can opt to grab your sub as […]

  • Tomb Raider movie script to be penned by TMNT writer

    Tomb Raider will be Evan Daugherty’s second reboot of an established universe. The Tomb Raider movie reboot has signed on a writer and a distributor. Deadline reports Teenage Mutant Ninja Turtles, Divergent, Snow White And The Huntsman and G.I. Joe 3 writer Daugherty will write the film. Additionally, Warner Bros. has signed on to distribute, […]

  • Shelter 2 pre-orders open, launch trailer debuts early

    Shelter 2 is a game in which you are a mother lynx and must protect a den of kittens. Yes, it’s delightful. Shelter 2 is coming to Mac and PC on March 9. Pre-orders are now available on Steam at 10% off or on GOG.com with a free skin and soundtrack, or 20% off if […]

  • That Batman: Arkham Knight trailer is full of codes

    Batman: Arkham Knight’s trailer is like a Transformer – there’s more than meets the eye. The new Batman: Arkham Knight trailer contains a number of codes. Eagle-eyed users have spotted four so far, and work on cracking their meaning is progressing. According to an /r/games thread rounding up results so far, the codes pertain to […]

  • Assassin’s Creed haystacks won’t save you from a fall

    Assassin’s Creed fans, don’t try this at home. Assassin’s Creed characters can survive falls of almost any distance as long as they aim for the haystacks scattered handily throughout the environment. As you probably deduced from your familiarity with common sense, this isn’t a real thing: falling from heights kills you, the same way a […]

  • Why are people buying PS4 and not Xbox One?

    PS4 is outselling Xbox One – but why? A new report may have the answer. Last month, the PS4 outsold the Xbox One in the US again, returning it to the top of the charts after just two months away. Why? What has caused this reversal in fortunes in Microsoft’s home territory? According to a […]

  • Toejam and Earl are back with a new Kickstarter

    The early 90′s are alive and well in a new bid to bring back Toejam and Earl. Toejam and Earl released for Mega Drive (Genesis, Americans) in 1991, and the eponymous characters went on to count among Sega’s best-known characters. They appeared in a platformer, a light gun shooter and finally a 2002 Xbox game […]

  • New Wander trailer shows off Azertash form

    Wander is a collaborative, non-combat MMO in which you can take on a number of unique forms. Wander players begin as an ambulant tree called an Oren and can progress through several different bodies as they explore the environment, learning its secrets. One of these, which we’d not seen before this trailer, is the amphibious […]

  • SOMA approaching beta phase on PC and PS4

    SOMA, the new horror game from the Amnesia: The Dark Descent crew, is getting close to playable. Frictional Games has apologised for its recent silence over the project, but said it’s focused on reaching beta. Sorry all for the silence! We're closing in on Beta and everyone's working hard to get there. Once that's done, […]

  • Square Enix does not condone Final Fantasy: Mystic Quest HD Remaster

    Square Enix has said it’s not involved with a fan remake of Final Fantasy spin-off Mystic Quest. 1992 SNES game Final Fantasy: Mystic Quest is being remade by Dark Design as Mystic Quest HD Remaster. The developer is even taking pre-orders for the project. Unfortunately, it looks like it is in no position to be […]

  • New Hunger teaser released by LittleBigPlanet Vita co-developers

    LittleBigPlanet Vita co-developers Tarsier Studios have released a teaser trailer for Hunger, which was announced in May 2014 at the Nordic Game Conference. The game has been rumored to be the firm’s unannounced Sony project since 2010. Platforms are still to be announced, but the studio became a first-party SCE developer a few years back, […]

  • Here’s two Mario Party 10 overview videos, one featuring amiibo

    Overview videos for Mario Party 10 and the amiibo which work with the title have been released by Nintendo Japan. Obviously each one is in Japanese, but you get the gist all the same. Mario Party 10 releases on Wii U March 20 in North America and Europe. Thanks, AGB.

  • Clan Raids announced for Call of Duty: Advanced Warfare Companion App

    Activision has announced a new Clan Raids mode will be made available through the Call of Duty: Advanced Warfare Companion App. According to the CoD community blog, raids are time-based challenges where success earns you a spot on the Clan Raids leaderboards and new Clan Raid-exclusive in-game gear like the Equilibrium set. Clan members will […]

  • Play Battlefield Hardline starting March 12 through EA Access

    Xbox One users with an EA Access subscription will be able to play 10 hours worth of Battlefield Hardline starting March 12. EA Access members will are being granted access to the game five days before the street date, with full multiplayer and all saves transferring over into the main game. It was announced yesterday […]

  • This video summarizes the contents of Destiny patch 1.1.1

    With Destiny patch 1.1.1 now available, here’s a video summary of what to expect. In the video above, Arekkz Gaming gives you a rundown of the important bits in the update. Subscribe to Arekkz Gaming for more Destiny tips and trick through the link.

  • Destiny 1.1.1 patch notes out, update is live

    Destiny’s 1.1.1 patch arrives today, so if you have been kicked from activities, it means you will need to download the patch now that it’s live. We will be pushing the 1.1.1 patch for Destiny shortly. Players will be kicked from activities and required to download the patch. — Bungie Help (@BungieHelp) February 25, 2015 […]

  • Payday 2 packs based on Hotline Miami 2: Wrong Number coming

    Starbreeze has announced another collaboration with Dennaton Games which will see masks based on Hotline Miami 2: Wrong Number appear in Payday 2. The collaboration consists of two free updates when you acquire Hotline Miami 2 or its deluxe version on Steam from February 25. The two updates, called Hotline Miami Mask Pack and Jacket […]

  • Velocity 2X making its way onto Linux, Mac, PC and Xbox One

    Velocity 2X will be released on Linux, Mac, PC and Xbox One Futurlab has announced. The developer is in charge of the port, which will be published by Sierra. According to Futurlab, the deal with Sierra came about when self-publishing proved to be difficult due to spending “more time doing PR and marketing on Velocity […]

  • Hotline Miami 2: Wrong Number finally has a release date

    A release date for Hotline Miami 2: Wrong Number has been announced, finally. The game will arrive on Linux, Mac, PC, PlayStation 3, PS4 and Vita March 10. It is now available for pre-order on GOG, Humble and Steam for 10% off for $13.49/£10.99. There’s also a Digital Special Edition available which includes tracks from […]