Sony expects game business to be profitable this year

Sony expects game business to be profitable this year

Thu 20 Sep 2012 9:09pm GMT / 5:09pm EDT / 2:09pm PDT
Financial

SCE's Andrew House optimistic about PlayStation line's performance heading into holiday season

Sony Computer Entertainment

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

playstation.com

Studio closures and layoffs paint a grim picture of Sony Computer Entertainment's financial fortunes of late, but the PlayStation maker is still expecting a positive performance for the fiscal year.

At the Tokyo Game Show today, SCE president and CEO Andrew House told Reuters, "I think we will be profitable this year. We have a growing installed base, growing connectivity of the PS3."

If House's prediction is to come true, the PlayStation business has a bit of ground to make up. In August, Sony announced that its fiscal first quarter (three months ended June 30) saw the company's Game division post an operating loss of $45 million. For the fiscal year ended March 31, Sony's Game division posted operating profits of ¥29 billion ($370m/£229m); House declined to tell the news service if that number would be improved upon.

Sony's latest gaming push was unveiled this week at the Tokyo Game Show. The company announced a second redesign of the PlayStation 3, as well as new colored variants of its PlayStation Vita hardware.

3 Comments

Jim Webb
Executive Editor/Community Director

E-mpire Ltd. Co.

The PS3 Super Slim and increased margins on the Vita help. But if the Yen moves from 77 to 70 against the USD likes it is now predicted to, it might erase those gains.

Posted:8 months ago

#1

Paul Jace
Merchandiser

I was under the impression that Sony's game business(and not the company as a whole) had been profitable for atleast the last two years. Atleast I thought I read that somewhere else.

Posted:8 months ago

#2

Jim Webb
Executive Editor/Community Director

E-mpire Ltd. Co.

Paul, they had a loss last quarter. It wasn't a big loss but after several quarters of profits it certainly raised questions.

The other issue to consider is the fact that for the past several years Sony has contained the Games division within other segments of Sony. It was housed in the Consumer Products and Services division for a while and a couple of others. Because of this, any profits and losses from the division are attributed to all the products and services therein and you can never be sure which products and services are providing actual profits and/or losses.

At the start of this fiscal year, Sony moved the Games division back into its own segment. And it posted a loss.

Posted:8 months ago

#3

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