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Games revenue up 96% for Sony, year on year

Games revenue up 96% for Sony, year on year

Thu 31 Jul 2014 7:24am GMT / 3:24am EDT / 12:24am PDT
HardwareFinancialPublisher

Hugely successful quarter sees PlayStations outselling Xboxes by 3:1

Sony's latest financial report has revealed the full impact of the PS4's success on the PlayStation business, with the majority of a phenomenal 95.7 per cent increase in revenues attributed to the platform and its attendant services.

257.5 billion Yen ($2.5bn) was generated in sales by Sony's Games & Network Services arm in the three months from April to June 30. A note in Sony's report puts the credit for that growth largely in the PS4's account, attributing it to both hardware sales and "a significant increase in network services revenues accompanying the launch of the PS4. Sales to external customers increased 101 per cent year-on-year."

Since its launch in November 2013, the PS4 has transformed the fortunes of the division, turning last year's first quarter loss of 16.4 billion ($164m) into an operating profit of 4.3 billion Yen ($43m), despite being offset by the inevitable accompanying downturn in PS3 hardware and software sales.

Sony's figures aren't broken down in too much detail, but the report does reveal that 3.5 million console units (PS4 & PS3) were sold through to customers in the quarter, up from 1.1 million the year prior, along with .75 million portable units (PSP, Vita and Vita TV), up from .6 million. Combined software sales rose from 68 billion Yen to 85 billion Yen.

That 3.5 million figure puts a huge amount of clear water between Sony and Microsoft in terms of hardware sales, with Microsoft reporting just 1.1 million Xbox One and 360 units shipped during the same quarter.

For the full year, Sony forecasts revenues of 1240 billion Yen for Games & Network Services, with an operating income of 25 billion Yen.

Sony's English-language investor call is due to take place at 22:00 JST (14:00 BST, 9:00 EDT), this story will be updated to include any new information that arises.

4 Comments

John Karageorgiou consultant

29 34 1.2
This makes a very strong statement with respect to the overall value proposition of the PS4 in relation to its competitors. The PS4 console is hitting all the right notes with the gaming community. With a flood of top quality games scheduled still to arrive on the PS4 console within the coming months, including Destiny (exclusive content), Driveclub, The Order 1886 and the most famous of all Unchartered 4 (A Thieves' End), I think that the PS4 console is very well positioned to continue on its forward momentum and further increase the sales gap in relation to its competitors.

Posted:2 months ago

#1

Dan Pearson European Editor, GamesIndustry.biz

109 295 2.7
Historically, Sony has published units to customer numbers, but we're in the process of clarifying whether the 3.5 million figure is for shipped or sold units with Sony itself.

Posted:2 months ago

#2
In general terms, its almost impossible for them to accurately know sell-through figures - and it doesn't really matter. Sony get paid on shipped hardware (sold to retailers).

Overall, they posted a operating profit of around $700m for the qrt (which is good for Sony!).

Ironically, their biggest division by far is still "financial services" - this made $400m profit.. They also made $150m from building sales, and $50m from selling their share in SquareEnix.

Posted:2 months ago

#3

Klaus Preisinger Freelance Writing

1,130 1,162 1.0
There is another measure of success, beyond looking at sales numbers. It is looking at how much a company has responded to pressure and how it adapted.

On one side you have Sony who are basically on Plan A since the original PS4 announcement. Little to no adjustments there. On the other side you have Microsoft, who appear in full panic mode. Rotating leadership of Xbox division, Kinect being not as indispensable as initially claimed, unbelievably quick adjustment of DRM strategy, adjustments on the service level and value of XBL, entire TV content division stopped from growing any further, other programs created in response to devastating feedback.

Those things happen for the reason of sales numbers being lack luster, it is not just because of a philosophy adjustment. Making money is the philosophy, that which gets it the way gets removed. By that logic:
a. Sony is currently making more money, selling more consoles to consumers
b. Nintendo is not primarily driven by money.

Posted:2 months ago

#4

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