PlayStation revenues fall in Q2, Sony cuts handheld forecast

Sony cuts overall losses, but slashes PSP and Vita sales forecast by 2 million units

Sony's PlayStation business suffered a decline in both sales and operating income for the second quarter of FY12.

For the quarter ending September 30 2012, the company's game division reported revenues of 148.2 billion ($1.85/1.15b/€1.43b), down 14 per cent year-on-year from 176 billion on a constant currency basis. Operating income also declined year-on-year, from 3 billion to 2.3 billion ($29m/17m/€22m).

Sony attributes the decline to falling sales right across its hardware line: the PlayStation 2 and PlayStation 3 sold a combined total of 3.5 million units during the quarter, a significant drop from the 4.9 million units sold in the same quarter last year; the PS Vita and the PSP sold a combined total of 1.6 million, a slight year-on-year decrease from 1.7 million units.

"We are enhancing the line up of handheld software ahead of the year end holiday, and we are engaging in various promotions in an effort to expand the PS Vita Platform"

Masaru Kato, CFO

However, the PlayStation business reported gains in software sales: PlayStation 3 and PlayStation 2 games sold 41.4 million units in the quarter, up from 40.2 million last year; PS Vita and PSP games sold 8.7 million units, up from 8.2 million.

Sony has lowered its forecast for handheld hardware sales in FY12, from the 12 million units expected in its August report to 10 million. The company's console sales forecast remains at 16 million units for the financial year, while packaged software sales are expected to be equivalent to FY11 - around 196.7 million units.

The company as a whole showed signs of improvement, largely due to pervasive restructuring and cost-cutting measures that includes an expected 10,000 redundancies worldwide by March, 2013.

Overall, Sony reported revenues of 1.6 trillion ($20b/12.4b/€15.5b), up 1.9 per cent over the same quarter last year. Net losses for the quarter were reduced from 27 billion to 15.5 billion ($337m/208m/€260m) year-on-year.

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Latest comments (6)

Daniel Hughes Studying PhD Literary Modernism, Bangor University6 years ago
Great to see Sony's restructuring is having some effect on trimming losses, but obviously a shame 10,000 people have had to be put out of work. I wish those affected all the best.

I never expected Sony to be able to meet their handheld projections, but revising them downwards again isn't a good signal to investors. That they're selling 100,000 portables less this quarter than the respective quarter last year is also incredibly worrying; PSP is declining in every market and Vita has not in any way picked up the slack. For combined Vita/PSP sales to hover below last year's PSP sales is pretty terrible.
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Meldarion Quesse6 years ago
A while ago there was an article saying that actually 10,000 people were not made redundant but most of them were transferred to other parts of sony which are not related to playstation
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Sorry Sony, you are going to have to try harder. This *is* a start, but losing another $300m odd for the qrt is not going in the right direction. You need to post *some* form of profit in the next 12 months...
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David Radd Senior Editor, IndustryGamers6 years ago
Sony's problems are pretty deep right now and it extends far beyond their gaming division. There's still major overhauling to do until Sony Corp is, as a whole, seeing daylight.
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Bill Garrison Studying Student, DigiPen Institute of Technology6 years ago
The fact that PSP and the Vita are both considered components of Sony's "handheld business" is part of the problem.
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Nuttachai Tipprasert Programmer 6 years ago
Bill, PSP had (and still having) very strong sell in the east. It cannot be compared to NDS; that's true, but it doesn't flop either.
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