Despite increased PS3 sales, Sony reports Q3 losses
Despite PlayStation 3 hardware and software sales being up from the previous year, Sony has reported a 17.4% year-on-year decrease in total revenue. Reporting their third quarter financial results for the period ending December 31, 2011, the Consumer Products & Services division, of which Sony Computer Entertainment is part of, reportedly brought in $12.8 billion in revenue, a 24.4% year-on-year decrease resulting in losses of $1.1 billion.
The company cited a decrease in LCD television sales resulting from poor market conditions, the impact of floods in Thailand, and unfavorable exchange rates. Despite Sony's PlayStation 3 sales being up, the company also pointed the console's price cut as one of the factors resulting in the loss.
The PlayStation 3 sold 6.5 million units, up 200,000 from the same period in 2011. The software for the PS3 saw a growth as well, with 66.2 million units being sold – up 13% from last year's 57.6 million.
Unfortunately, other Sony consoles and software didn't fare much better. PSP hardware sales fell 800,000 units to 2.4 million. Software was also down by 5.1 million units from last year's 16.5 million to 11.4 million this year. The PS2 decline also continued with 900,000 units sold in Q3, down 1.2 million on the 2.1 million units sold in the same period last year. PS2 software was down as well with sales of 2.5 million compared to the 5.3 million in the previous year.
The PlayStation Vita, which wasn't included in the report, is off to a scary slow start in Japan with the most Media Create numbers showing sales of 18,000 last week and just over 500,000 lifetime. The Vita is set to release worldwide later this month.
Full-year outlook, for the 12 months ending March 31, was lowered to ¥6.4 trillion from ¥6.5 trillion.
Sony announced yesterday that former SCE boss and current head of the Consumer Products & Service division Kazuo Hirai would be taking over as president and CEO beginning April 1st, as current CEO and President Sir Howard Stringer shifts to become a Chairman of the Board of Directors.
[Sony Financial Report]
By Matt Liebl