Sony's Playstation Profits Down 86% In The 3rd Quarter
As systems and software sales have continued to slump for Sony. For the quarter that ended on the 12/31/12, Sony’s games division posted revenues of $2.86 billion dollars. This is a 15% drop from last year. However, operating income was for Sony was even worse dropping 86%.
These slumping sales are a result of declining returns from Sony’s hardware & software line-ups. PS3 & PS2 Unit sales were down from 7.4 million units to 6.8 million units. Sony’s full year expectations did not change from November expecting to sale 16 millioin units, however this number is still 2 million units less than the previous year.
The portable PSP & PlayStation Vita systems had a little bit greater success with unit sales increasing to 2.7 million units sold up from 2.4 million units. This isn’t all good news for Sony as they were forced to lower their yearly expectations to 7 million units down from 10 million units.
Sony has identified their main problem with the PS Vita, “slow penetration”. Sony hopes to address this problem with a strong line-up of upcoming titles. This makes sense being that a common complaint for the PS Vita is the lack of really compelling games.
Exciting new games would certainly help Sony as softwear sales were also down on both console & portable systems. Packaged titles sales on the PS2 & PS3 dropped to 61.7 million units from 68.7 million units last year. PSP & PlayStation Vita titles feel to 8.9 million units from 11.4 million units the previous year.
It isn’t all doom and gloom as Sony has shown signs of recovery. Total revenues were up 6.9% from last year, although Sony suspects that this could due to the world economy as well as the consolidation of Sony Ericsson last year.
Sony has reported another loss but it wasn’t as big as it was during this same quarter of last year. The blow was softened by an improvement in Mobile Products and Communications Division, while still reporting a loss did experience a 94.4% raise in revenue.
This isn’t all bad news for Sony, as they are hosting an event in New York on February 20th. Many suspect that this could be the reveal for Sony’s new console.
Details beyond this are very scarce as Sony hasn’t revealed it’s future plans other than hoping to improve promotion of the PS Vita as well as maintain it’s healthy game division. Sony is also keeping mum on plans on any future consoles.
Could we be seeing the new system? Will Sony get the 3rd party support in games to improve the criticized library of the PS Vita? Will marketing of the PS Vita get better and encourage fans to get their hands on this innovative system? While Sony has optimism regarding its future fans and observers should keep their eyes on this situation for the year of 2013.