Sony Raises Profit Forecast Due to PS4 Sales; Still Projecting Major Losses

By | 2 years ago 

Every time Sony and the PlayStation 4 are brought up, the consoles’ on-going success and popularity are sure to be mentioned. It’s a widely known fact at this point, but every month there’s news about the PS4 once again performing better than the Xbox One (like last month), and we find ourselves patting the system on the back for a job well done.

Of course, the PS4’s massive amount of sales hasn’t just been acknowledged by the people that bought the system, but Sony as well. This was a big factor that prompted the company to shift its focus from other businesses like smartphones and televisions, in favor of better supporting their gaming efforts.

As a result of these recent decisions, as well as the aforementioned success of the PS4, the Japanese company has now updated their profit forecasts for their fiscal year ending March 31, 2015. The good: Sony’s expecting to bring in way more money. The bad: They’re also expecting bigger losses.

Back in February 2015, the company initially thought it would achieve an operating income of 20 billion yen (about $167 million), but has since increased that amount to 68 billion yen (about $567 million). Their projected net loss of 170 billion yen last month was revised in the updated forecast as well, and is now set at 126 billion yen ($1.05 billion). While Sony is probably enjoying the thought of losing less money than expected, it’s still a large sum of money, and an amount that can’t be easily lost.

“The forecast for consolidated sales has been revised upward primarily due to an anticipated increase in Financial Services revenue as well as an increase in sales in the Music, Imaging Products & Solutions, and Game & Network Services (“G&NS”) segments when compared to the February Forecast.”

PlayStation Hardware Family

The losses most likely come as a result of their other divisions’ lack of success. Sony’s Bravia branded TVs aren’t selling as well as other, more popular brands, and the company completely closed its laptop section a while back. There’s also the fact that PSN (as well as Xbox Live) services were down for a decent chunk of time last year, which could have also had a negative impact on the company overall.

All that being said, things are looking up for Sony, as if the new forecast profits wasn’t enough to determine that. The Wall Street Journal (via Game Informer) notes that the company’s shares have seen a 94% increase compared to last year. The PS4, PSN/PS Plus and interest in Project Morpheus are, presumably, the cause of this, because the PlayStation side of Sony continues to do far more for it than anything. That isn’t to say it’s the most interesting, however.

Sony’s final results will be released next week, on April 30. Meaning we’ll actually see if the company’s revisions were worth it or not.

Sources: Sony, Game Informer, The Wall Street Journal

tags:PS4, Sony