Sony attributes losses to PSP and PS3

Posted Feb 1, 2007 at 9:46AM by QJ Staff Listed in: News, Opinions & Analysis Tags: Nomura Securities, Sony
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PSP and PS3 - Image 1


It was only the other day when Sony released their Q3 Financial Report. To tell you the truth, it was weird that the report was mostly comprised of shipment details for the PS3 and the PSP, and the topic of the company's real financial status was skillfully avoided. Online site VNUNet was able to talk to Sony and its statements, remarkably, speak of the sad truth:

This deterioration was primarily the result of the loss arising from the sale of the PS3 at strategic price points, as well as other charges associated with preparation for the launch of the PS3 platform. In addition, operating income from the PS2 and PSP businesses fell due to sales declines.


It is in this light, and probably out of genuine concern, that marketing firm Nomura Securities issued these statements and suggestions:

How and when the company intends to address the problem of weak demand for PS3 hardware remains unclear. In our view, making the PS3 profitable will not be an easy task. We think that a critical stage is approaching for the PSP, which in our view occupies an ambiguous market position as a game console and a multi-purpose audiovisual machine.


Nomura added they believe that Sony losses might exceed their earlier prediction of US$ 1.65 billion and it can go as high as US$ 2.05 billion. On the other hand, Sony seems oblivious to the matter as they're feeling quite comfortable with these dealings:


 
 
 

Comments [refresh]

by td - 2007-02-01 05:14
» ...

well numbers would have rose a lot if they had actually shipped in europe when they were meant to

by Devise - 2007-02-01 05:39
» ...

They need to release a PSP with Blu-Ray playback.



Isn't it funny that there was that talk about sony releasing portable movie files in Blu-Ray releases that could be played on sony devices (e.g. PSP). They probably think PSP owners are going to buy Blu-Ray titles because of that.



I honestly think this company would not care if the PS3 & PSP failed as long as Blu-Ray is the winning HD format.

by Jag - 2007-02-01 06:23
» on standby

Sony's not getting any money from me. I haven't bought a ps3 yet. I'll wait till next year when FF13 comes out maybe.I still don't see myself spending 600 dollars for it. FF13 will change my mind though!

by Chagunt - 2007-02-01 06:48
» Coudn't be #1 forever

Well, it looks like Sony will finally lose a console war. Hopefully, the loss will motivate them to do better on the next console. A little humility is just what Sony needed.

by SonyLover - 2007-02-01 09:02
» Doing it the SEGA way

Sony will not last much longer as a console provider according to this financial report. At the declining rate they are going, I would give them 2 more generations (tops!) of consoles before they stop building new consoles. It will be even worse if BlueRay does not pick up and stick around.



We all know Sony will be in trouble when the day comes around that they start manufacturing a true Sony HD-DVD player

by rd261 - 2007-02-01 10:25
» ...

How can you compare sega to sony? Sega was just known for making game consolesm, sony is considered to be the electronic giants. Look at the sales of their lcd's and cameras. Yeah they may not be #1 on this generation but that does not mean that there wont be a ps4 nor psp2. People may say that the psp is doing poorly but considering that is its 1st year and it has taken like 40% market share away from ninty, I thing its doing pretty damn good. The xbox didnt sold half of what the ps2 did and still is not considered to be a failure. Nintendo lost two generations and look how strong its the wii today. It may be good for sony to loose this generation, that way they will learn to listen to the consumers like they did with the psx and ps2.

by lavino - 2007-02-01 12:05
» I bet you...

instead of announce a new 3.10 fw and state that all new PSP units will be revered to 1.5 fw.. their psp hardware unit sales will rise ;) Well, the only ppl not happy about that will be the game makers.

by Lurker - 2007-02-02 03:31
» Agreed

Exactly. Sony Arrogance is what hurt them this time. Dont get me wrong i still love my PSP and my SXRD. But the Ps3 IMHO is dead in the water.

by kilk - 2007-02-02 12:15
» cool

i like the design of the ps3

pretty cool now wats going on here

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