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Sony Q1 financials: $1.2bn in game sales, Vita ignored

Thursday, 1st August 2013 08:10 GMT By Dave Cook

Sony has posted its first-quarter financial report for the year, revealing the company’s numbers were relatively flat, despite a 322% increase in operating costs thanks to the impending launch of PS4.

In a hurry?

Sony’s game division earned ¥117.9 ($1.2 billion) in sales for Q1 2013, down slightly from last year’s ¥118 ($1.2 billion)

Operating loss saw a 322% drop year-on-year due to the production of PS4 at ¥14.8 billion ($149 million).

PS3 sales hit 1.1 million units, while combined PS Vita and PSP sales hit 0.6 million.

Sony wasn’t specific, but expects its full-year figures for the year ended March 31, 2014 to rise sharply, but added that operating loss will also rise due to PS4 production and marketing.

For the three-month period ended June 30, 2013, Sony’s game business raked in ¥117.9 ($1.2 billion) in sales, which is a slight dip on last year’s Q1 revenue of ¥118 ($1.2 billion).

Due to the increased cost being ploughed into PS4 R&D, production and marketing, Sony’s operating income dropped 322%, resulting in a loss of ¥14.8 billion ($149 million). By contrast, Q1 2012 yielded only a ¥3.5 billion loss.

The site adds however, that the Q1 2012 loss wasn’t as bad due to Sony winning a Blu-Ray patent case during the period and receiving compensation.

Sony’s PS Vita handheld was notably absent from the document, while the company confirmed that sales of PS3, PS2 and PSP were down. PS3 sales hit 1.1 million for the quarter globally, while combined sales of PS Vita and PSP hit 0.6 million. However, raw PS Vita figures were nowhere to be seen on the document.

Predicitions for the financial year ending March 31, 2014, Sony expects sales to rise thanks to PS4 and operating income to drop thanks to marketing the console.

Sony shifted 64 million game units in Q1 2013 alone across physical and digital formats.

Breaking news

30 Comments

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  1. Dragon246

    PSP+Vita = 0.6 million
    PS3 = 1.1 million (ps2 not in forecast anymore)

    Operating income = $370 million
    Net income = $35 million
    Sofware sales = 64 million units (50% up YOY)

    Game division = -$149 million (PS4 R&D)

    Projection (FY2013)-
    PS3- 10million
    PSP+Vita- 5 million

    @Dave,
    http://www.sony.net/SonyInfo/IR/financial/fr/viewer/13q1/slide/image/02_image.jpg
    Sony Sales are at $17 billion. $1.2billion is just the Game division.
    And 1.1 million is just PS3.
    http://www.sony.net/SonyInfo/IR/financial/fr/viewer/13q1/slide/image/14_image.jpg

    And LOL, TV division made profit. That turnaround.

    Some insight,
    All divisions made profit except game and others. Game division losses are officially attributed to PS4, but a main contributor is because some moron in Sony decided to do PS4 hardware payments in dollars, and with yen depreciating, PS4 is more costly to develop now.

    TV turnaround is pretty awesome, 1st profit in 10 YEARS if I am correct.
    Phone division is performing better, on track with projections. They are 4th largest in terms of sales of smartphones. PC sales are down.

    Vita sales are horrible, Sony is probably not planning anything to reviving it this year. With hardly any noteworthy games to come, its safe to say its sales will be pretty abysmal this year.

    #1 12 months ago
  2. Dave Cook

    I know $1.2 billion is just for games. I thought people would have been able to figure that out tbh. No worries though, edited.

    The official document I’m looking at right now says PS3 and PS2 combined sales hit 1.1 million

    UPDATE: And there’s the footnote. I see it now. Thanks bud.

    #2 12 months ago
  3. Dragon246

    @Dave,
    If they are the same documents, see the conditions below. It says PS2 isn’t included from FY2013 onwards.

    http://www.sony.net/SonyInfo/IR/financial/fr/viewer/13q1/slide/image/14_image.jpg

    Great work though on both Sony and Ninty numbers. Financial reports aren’t for everyone. Vita ignored is probably right too.

    #3 12 months ago
  4. Francis O

    ?

    #4 12 months ago
  5. Dave Cook

    @3 I hate them man. I’m a words guy not a numbers guy :D Thanks dude.

    #5 12 months ago
  6. monkeygourmet

    @Dragon

    Are the results everything you hoped?

    #6 12 months ago
  7. Dragon246

    In contrast,
    Apple – $7billion
    Samsung – $7billion
    MS – $5billion
    Google – $3billion

    Sony has a LONG way to go before even thinking of standing together with the industry leaders right now.

    Some more info-
    http://www.bloomberg.com/news/2013-08-01/sony-profit-beats-estimates-as-weaker-yen-boosts-overseas-sales.html

    #7 12 months ago
  8. Dragon246

    @6,
    Fanboys hope, analysts predict. Dont mix me with your clan.
    Yup, Sony (only just) exceeded expectations.

    #8 12 months ago
  9. Francis O

    Dragon, your not trying to spin these numbers as good are you?

    #9 12 months ago
  10. monkeygourmet

    @Dragon

    Why do you think the TV division made profit? As in what factors do you attribute this turn around on?

    #10 12 months ago
  11. viralshag

    Jeeeeez, Dragon, you’re SUCH A FANBOY! I mean look at the way you are being honest about the poor performing Vita. Are you sure you don’t want to amend your statement about lack of games to LOADS of games coming out and how that means it will have a blisteringly hot year ahead??

    :P

    In truth, good post in #1.

    #11 12 months ago
  12. Joe Musashi

    I’m anticipating a thrilling role-reversal of yesterday’s Nintendo figures topic here. Don’t let me down guys!

    JM

    #12 12 months ago
  13. Bringit

    Vita wasn’t ignored.

    #13 12 months ago
  14. Dave Cook

    @13 yes, it was. it was lumbered in with PSP sales and not given its own fous.

    #14 12 months ago
  15. Belmont

    @14

    Agred, Vita is ignored here.
    And people keep saying “indie” ! platforms need AAA to breath and survive (and of course,better pricing). I think Sony either announces a price cut and a few AAA titles, or Vita is in trouble.

    P.S: I really want to know who thought those prices for Vita’s memory cards were right !!

    #15 12 months ago
  16. Dragon246

    @Viral,
    I agree. I should have typed something like this-
    1. ____ is the last gaming console as we know it!
    2._____ is well on the way to get 20 BIG EXCLUSIVES.
    3._____ fanboys wont buy the console anyway.
    4.______ fanboys are closet fanboys.
    And so on…..

    Sorry :P

    #16 12 months ago
  17. DrDamn

    @15
    Main unit price cut and a lot more sensible pricing of memory cards would go a long way towards helping. I think it’s got a decent enough collection of very good games and a lot more on the way, but it could do with some proper stand-out titles which sell the system. Stuff like the rumoured full-fat version of Football Manager 2014 would be a good start.

    #17 12 months ago
  18. PEYJ

    Anywhere one can find actual life time sales figures for PSP and ps3?

    #18 12 months ago
  19. Lengendaryboss

    Ok i honestly thought this would be popcorn worthy ;)

    So in addition to ignoring PS Vita at E3, it now happens in financials. Come on Sony have guts like Nintendo and reveal poor sales figures.

    #19 12 months ago
  20. Clupula

    @19 – I think it has to do with the fact that most people aren’t deluding themselves with “just wait for x game and the Vita will just magically turn itself around and outsell everybody else” talk, unlike certain other console fanboys.

    Even Vita owners can say, “Hey, I like the system” or “Hey, I wasted money,” and then admit the system is not doing well.

    #20 12 months ago
  21. monkeygourmet

    I still feel Sony should concentrate on less product range but with more quality.

    Their business model at the moment seems to be that of ‘Jack of all trades, master of none’.

    In the 80′s – 90′s this was more feasable, but with so much competition, I feel they need to trim the fat away now.

    1 Good tablet range
    1 Good laptop
    1 Good Mobile device
    etc… etc…

    Basically, a model similar to Apple.

    I have no confidence in their support for products whatsoever. The PS brand being the best but then I see devices like the Xperia Play and even Vita to some extent and just feel they are trying to throw enough shit and hope some of it sticks.

    Here’s a good example:

    http://www.amazon.co.uk/Sony-HMZ-T2-Mounted-Display-Personal/dp/B009RP02MU/ref=sr_1_1?ie=UTF8&qid=1375351318&sr=8-1&keywords=sony+3d+headset

    #21 12 months ago
  22. monkeygourmet

    @20

    There’s been plenty of that from both sides, ‘Soul Sacrifice’ on Vita being a good example.

    #22 12 months ago
  23. Clupula

    @22 – Well, if you want to go back a year, yeah. But once that didn’t exactly set the world on fire, most Vita owners just accepted reality.

    I do not see that from a lot of the Wii U crowd.

    Personally, I think Sony and Nintendo should just drop both systems and focus on the systems that will be successful for them (PS3/PS4 for Sony and 3DS for Nintendo), but I doubt that’ll happen anytime soon.

    #23 12 months ago
  24. monkeygourmet

    @23

    For me it’s about quality game ratio.

    That is a personal thing and only the individual will know if a console contains enough games to make him/her purchase.

    I would happily own a console that is barely supported (by games like COD, FIFA etc…) if it has enough games on it that strike a chord with me.

    The Vita now has that, so I repurchased. With FF10, Killzone, Teraway etc… I know it has enough to make it worth my while.

    Same thing with the Wii U / 3DS after it picked up the pace.

    Nintendo may very well cut the Wii U’s lifespan short if these sales figures continue. But, I could never pass on one because of sales figures and miss all the great games on the system.

    Same with Vita. To say they are both dead is just silly IMO.

    You have to remember, the Nintendo crowd get defensive like any fanboy crowd. People tend to judge on machine power; just look at the bickering over specs on the PS4 / Xbone. The Wii U is easily disregarded because of power.

    Positives like price, games B/C etc… Are rarely brought up.

    Same with Vita. It’s always; it has no games! etc… etc…

    The main problem with Vita is price and the memory card issue IMO.

    Saying that:

    I would not choose a Wii U if it was going to be my only console, well, not at the moment anyway.

    #24 12 months ago
  25. Kreion

    @24

    The problem with the Wii U is that it has had two direct competitors barreling down on it for the last year. This was the perfect time for Nintendo to keep the good games coming and draw people to the system before the hype for more powerful systems swept them away, sadly they’ve not been overly successful there. Personally I’ll likely pick up a Wii U when it’s cheap and get Smash Bros on it, that’s it. Otherwise I have little desire for the console right now. Power is always going to be important to a system…though when it comes down to the PS4 and X1 it’s a bit less so. Simply because they’re not that far apart.

    The Vita at least only has one main competitor, but unlike the DS I wouldn’t say that Sony has the same built in handheld fanbase. At least not one which has as strong feelings about their systems. Add to that the focus of Sony is rather more on the PS4 at the moment…well it’s understandable why people might not be excited by it.

    Though I don’t know what Sony could do to really up the anti here…

    #25 12 months ago
  26. Francis O

    These numbers are horrible, The Damage control going on by Dragon is insane. Rip Nintendo apart for the Wii U, then praise Sony for making far less money than Nintendo’s gaming division?

    #26 12 months ago
  27. Lengendaryboss

    @Francis
    Oh you make me laugh you do :) Hahaha

    You call Dragon’s damage control “Insane” but when you defend Nintendo constantly, try to avoid the current situation and focus on the positive future (Yes Francis i believe the Wii U will have a positive future) and damage control every negative comment by the usual posters: thats what? Is it also not insane but at a much higher level?

    I smell a hypocrite within Francis.

    #27 12 months ago
  28. Francis O

    Legendarychump

    There was no damage control going on. Nintendo profited, the 3DS is killing, and the Wii U has a bunch of good software coming out for it.

    I simply attacked the people bashing Nintendo, I never “damaged controlled” the numbers. Look at what Dragon is doing.

    #28 12 months ago
  29. Lengendaryboss

    @Francis
    I simply attacked the people bashing Nintendo” No. no. no you went on to have an argument/disagreement for people having a different opinion than you, you went on to defend Nintendo, has anyone done that like you on this post?

    “Then Nintendo released a bunch of software and those haters disappeared and nobody here will even admit they thought the 3DS would fail. But anyway, I’ll make sure to bookmark this page, and have a laugh about it in a few years when the Wii U is doing just as good as the 3DS is now.”
    That right there makes you no more better than the haters themselves, it just makes you petty and pathetic.

    http://www.vg247.com/2013/07/31/nintendo-q1-¥36-4-billion-gross-profit-wii-u-sold-0-16m-units/comment-page-1/#comment-517418
    That right there is all your handiwork, listen to Mike.

    “I never “damaged controlled” the numbers.” You what? “focus on the positive future and damage control every negative comment by the usual posters” Thats exactly what you did.

    Sure Dragon is damage controlling the numbers (or making more sense of them) and you are doing what i said above: which one led to a more heated argument? The difference between you and Dragon are the methods in which you defend your companies and how aggressively you pursue that. You beat Dragon in that regard: oh and unlike you Dragon can actually admit the PS Vita is in a bad place right now: you haven’t done that for Wii U.

    “These numbers are horrible, The Damage control going on by Dragon is insane. Rip Nintendo apart for the Wii U, then praise Sony for making far less money than Nintendo’s gaming division?”

    “You call Dragon’s damage control “Insane” but when you defend Nintendo constantly, try to avoid the current situation and focus on the positive future (Yes Francis i believe the Wii U will have a positive future) and damage control every negative comment by the usual posters: thats what? Is it also not insane but at a much higher level?”

    Read it more carefully and you will find you have just called yourself insane: it doesn’t matter which method of damage control you’re using: its still damage control no matter what you say.

    PS: Does that software include third party games you know the games that sell in the millions: GTA, MGS, Battlefield, FIFA, Skyrim, Saint Rows, Tomb Raider, Mirror’s Edge, The Wolfstein Game, The Evil Within and many more. Say what you want about those games: people actually want and enjoy them, myself included.

    #29 12 months ago
  30. sebastien rivas

    Thanks Dragon for more insights.

    Looks like Sony is not in such a bad place but as many mentioned, competition is fierce and Sony have to make right call for a couple of its branches.

    We say or hear that Vita has poor sales, Vita could be better if more games but in all honesty just like I thought wiiU was an expensive remote for the wii, I really thought PsP and Vita were just one of the same while after light /quick research Vita and PSP GO are not the same at all.

    My question is, why having 2 handheld products on the market at the same time that look different and seem to be manufactured differently?

    Does screen size and amount of input buttons and in machine power matter so much that the gaming market needs 2 “different” devices and attributed names by a same manufacturer?

    I cannot avoid assuming that Sony just tripped over itself on that one.

    Also as a consumer 2 pennies, PsP makes me want to buy, Vita repels me.

    Although I must say that both devices look very promising on paper. So why does Vita far finishes behind?

    #30 12 months ago