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Finance

PlayStation business swings to $435m profit

Thu 26 May 2011 6:30am GMT / 2:30am EDT / 11:30pm PDT
FinancePublishing

PlayStation 3 units sales hit 14 million, games sales jump to 148 million for financial year

Sony Computer Entertainment

Sony Computer Entertainment is a Japanese videogame company specialising in a variety of areas in the...

playstation.com

Sony's Networked Products and Services division, which includes the PlayStation business, recorded an operating profit of 35.6 billion ($435.3m / 266.9m) for the 2010 financial year, up from the 83.3 billion loss for the previous year.

The company highlighted improved software sales for the system, as well as reduced costs on PlayStation 3 hardware for the increase. Sales in the division only increased marginally to 1,572 billion ($19.2 bn / 11.7 bn).

During the year, Sony sold 14.3 million PlayStation 3 units compared to 13 million, 8 million PSPs compared to 9.9 million, and 6.4 million PlayStation 2 consoles, compared to 7.3 million for the 2009 financial year.

Software sales for the PlayStation 3 was up significantly from 115.6 million to 147.9 million, with PSP game sales also up from 44.4 million to 46.6 million. PlayStation 2 game sales dropped from 35.7 million units to 16.4 million.

As warned earlier in the week, the Sony Corporation as a whole made a significant loss during the full financial year of 256.9 billion ($3.14bn / 1.92bn) primarily due to deferred tax assets.

Sales were 7,181 billion ($87.7bn / 53.8bn) for the full financial year, a drop of 0.5 per cent compared to 2009, with operating income of 199.8 billion ($2.4bn / 1.4bn).

The company has warned that in the current fiscal year, it expects the cost of the PSN breach to hit approximately $170 million.

15 Comments

Nicholas Lovell Founder, Gamesbrief

196 198 1.0
First year that the PlayStation business was profitable? Bet Sony wish they didn't have to announce it so soon after the PSN hack and while the sotre is still down.

Posted:3 years ago

#1

Kingman Cheng Illustrator and Animator

954 182 0.2
But surely isn't that when you want to announce it? Like 'We've been kicked down but we're not down and out'?

Posted:3 years ago

#2

Joe Bognar PR Account Executive / Journalist

99 2 0.0
Crisis management. Well, done but it is a bit too obvious for me...

Posted:3 years ago

#3
Well, hopefully they invest a big chunk to improve the PSN security.

Posted:3 years ago

#4

Andrew Ihegbu Studying Bsc Commercial Music, University of Westminster

462 172 0.4
All the CoD heads that sold thier PS3 after the the psn failure buying it back. Meh.

Posted:3 years ago

#5

Temi Web design

48 9 0.2
First year of profitability? After the system was hacked and sony nearly lost their minds fighting it? Gorsh. These things just don't follow logic do they? the 2 systems that were hacked prior were both doing well in revenue. The ps3 gets hacked they post profits?

@Sebastian Lindig

They'll do that, and do their best to lock down the ps4 security so its just as hard or harder to hack. Of course when their system is locked down tight again many ppl won't find it as attractive as the ps3 is now.

Posted:3 years ago

#6

Andrew Ihegbu Studying Bsc Commercial Music, University of Westminster

462 172 0.4
To be honest this is bad news. Sony loses 170m to a security breach and makes 435m in the next quarter. Well, seeing as they haven't made profit since the PS3 came out I think they'll quickly forget what happens.

Posted:3 years ago

#7

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1
I wish they would have kept their games division separate. Now these figures are all mixed in with their laptop, PC and portable media players sales and profits....not just Playstation. Playstation could still have a loss and yet the division as a whole could posts profits on the other products and we'd never know. Or the other way around.

Posted:3 years ago

#8

Josiah Jackson 3D Game Artist

4 3 0.8

Posted:3 years ago

#9

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1
Josiah, those are production unit sales. I'm talking about the actual financial data. Revenue and profits of just the games division, not the full Networked Products and Services Division.

Posted:3 years ago

#10
All those staff cuts at Sony Computer Entertainment a few months back were too late to affect this, weren't they? A few good friends of mine lost their jobs in that mess. So the SCE group appears to be taking the pain for the other divisions' failures.

Posted:3 years ago

#11

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1
William, if the cuts were prior to April 1st, then they applied.

Posted:3 years ago

#12
Hmm, they were, but not by much. Which would suggest there wasn't a great deal of effect on this FY, certainly not $435m worth.

Posted:3 years ago

#13

Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.

2,270 2,439 1.1
Certainly not to that degree. Just checked the news wires and I'm only seeing cuts on march 31st meaning they wouldn't have any impact anyway since their pay would carry over for a week or two into the next FY. Did they do any other major cuts earlier in the year than that?

Posted:3 years ago

#14
These numbers still concern me. The PS3 is close to the "peak" of its life (most of the big titles are now out, with sequels), the PSP is waning and the PS2 slowly dying off (although hardware sales surprisingly strong?).

But with 220m in software sales (between $5-$10 profit per unit), almost 30m hardware sales (profit of $50-$100 per unit) - the "profit" from these sales is in the vicinity of $2.5bn - $4bn. To only post a profit of $400m, shows just how much they are spending on R&D & dev.

Also, total hardware sales are down on last year - with a decrease in the more profitable hardware, only partially offset by increased PS3 sales. I would guess most of the profit has come from the decreased production cost of the PS3: a drop of $25 per unit, would equate to almost $400m for the FY.

Posted:3 years ago

#15

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