Sony lowers PS3 sales estimates while upping those for PS2 and PSP
By Dave Parrack
Sony’s net profit rose by 25% in the three months up to December 2007, and the gaming division posted a profit of 12.9 billion yen, reversing last year’s loss due to production costs. But despite these increases, Sony have cut their unit sales estimate for the PS3 for the rest of the financial year.
Things are getting better for Sony, and especially the Sony Computer Entertainment Inc. subsidiary, who in October had to admit to losses of $841 million over the last quarter. That deficit has now been turned around to a healthy profit, although it’s not the PS3 that Sony has to thank for it.
In fact, the Playstation 3 is still losing money, with the approaching retirement PS2, the PSP, and games sales having to make up the shortfall from the newest hardware release.
Chief financial officer Nobuyuki Oneda said:
“Sales of the PS3 have been robust since the introduction of the new model. We are receiving strong feedback and feeling very confident going forward.”
“However, the momentum is not enough to cover the sluggishness we saw in the first half. So we have decided to change the sales target for the PS3.”
The sales target for the under performing PS3 have now been changed from 11 million, down to 9.5 million units for the financial year ending March 31st 2008. That’s a significant drop, and shows that despite a good holiday season, and improved sales around the world, Sony still aren’t shifting PS3s in the quantities they originally forecast.
Sony claim to have sold 4.9 million PS3 consoles during the last quarter, adding to the 10.5 million it has sold sold since it was released. This compares to the mighty impressive 20 million Wiis already installed in people’s front rooms over roughly the same time period.
The Playstation Portable did considerably better, selling 5.8 million units, and prompting Sony to increase sales estimates for the handheld from 10 million to 13 million units until the end of March.
The PS2 also did surprisingly well, and Sony expects to now sell 13 million of the last generation console over this current financial year.
Which just begs the question: Will the PS3 ever actually make money for the company?
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January 31st, 2008
Even if the ps3 never turns a profit on its own, the money it will make sony from winning it the HD DVD war will more than make up for it.
January 31st, 2008
i love 2 play nintendo ds
February 1st, 2008
I dunno… I read that Sony was using it’s gaming division as an ATM to finance some of it’s other divisions back in the days the PS2 was hot.
These days, the PS3 is practically a money pit. All those 10 million units sold were sold at a loss. Not one was sold for a profit because they cost more to produce and Sony is selling then below production costs.
The only way the can make money is through software sales. But even there they have some difficulties.
Then you have that Sony spent millions securing exclusivity from Warner Bros. and other major motion picture companies in order to bring them over to supporting the Bluray format. That means that they are spending whatever money they are currently making.
And if Sony had simply produced a PS2 system with graphic capacity similar to the Xbox 360 and no bluray format, they would still be leading the gaming business. They had it all but got arrogant and believe the sheepheads would support whatever they did… they got it wrong.
February 7th, 2008
You have a distinct lack of foresight. if sony did things any other way they wouldnt be sony. Sony markets bleeding edge quality technology. Everything they make is flawless and they always think of the future. Im glad i purchased a ps3 the way it is. Built in wifi, HDD Blue Ray. Mouse and Keyboard support HDMI, from the get go. im sorry man sony have guts i have no respect for MS there Xbox is only selling well in the States where people appreciate FPS, and Sequels and mediocre graphics with no artistic inspiration (Well im being a little biased there you do have Bioshock and Mass Effect but thats it)