Around the same time Nintendo’s fiscal report showed drastically slowing profits, Sony decided to one-up them (for the worse). Sony’s own Fiscal Year Quarter 2 2009 report showed that their “Network Products and Services” area (i.e. the Playstation 2 and 3 consoles, and their respective games) had a $654 million loss during this quarter. Analysts took the numbers and were able to determine a very perturbing statistic: The Playstation 3 has lost Sony $4.695 Billion in total.
While this may seem very drastic, it’s not too bad in comparison to previous consoles like the original Xbox by Microsoft, which tallied up a $4.202 billion loss over it’s first four years as well. That said, it’s not exactly good news either.
In regards to the fiscal report, Sony CFO Nobuyuki Oneda said he was not worried because the PS3 units themselves were getting cheaper to produce:
The difference between sales and materials cost has been reduced to between 10 and 20%. Within the year, it could be in the single digits. We’ll be able to reach profitability at some point in the next term.
Profitability next year does look like an achievable goal considering the large increase of Playstation 3 sales since the launch of the new Slim model (that number is somewhere to the tune of 800,000 if you were wondering).
Sony also contributed lost profitability to decreasing Playstation 2 sales (which really, at this point, should just be considered a bonus. It’s celebrating its ninth birthday this week!) and the depreciation of the yen, which also hit rival Nintendo pretty hard. I Guess we’ll stay tuned to see if Nobuyuki Oneda’s words ring true and the Playstation endeavor gets a little more profitable in the coming terms.
Do you think that Sony’s console will record profits in the coming quarters?