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Sony's Q2 losses were because of the PS3 price drops

Sony PS3 price drops resulted in Q2 losses

| Business, Financial & Legal News | Posted: Nov 5, 2011 1:45 am

Sony have just posted their financial results for Q2 of the current fiscal year, where they've noted significant losses in profit for its Consumer Products & Services, which is where the PlayStation products live and breathe. Sony explained that the loss was due to a number of factors, including the deterioration in the cost of sales ratio as a result of the price reduction on the PlayStation 3 earlier this year.

 

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Other factors that led to losses, were the decline in sales of the video game business, LCD televisions and foreign exchange rates. But, during the quarter, Sony sold a total of 3.7 million PlayStation 3 units compared to 3.5 million in the same quarter of the last fiscal year. The PSP also saw a spike in sales, up to 1.7 million units compared to 1.5 million year-on-year. PlayStation 2 sales dropped from 1.5 million to 1.2 million.

 

Software wise, PS3 sales were up 37.4 million for the quarter, from 35.3 year-over year. The PSP saw a drop to 8.1 million from 11 million, and finally, the PS2 slid from 5.6 million to 2.8 million. For the quarter ended September 30, the Consumer Products & Services sector posted revenue of ¥779.7 billion ($10.1 billion), down 12.3 percent compared to ¥889.0 billion ($11.4 billion), and an operating loss of ¥34.6 billion ($449 million), compared to last year's ¥1.0 billion ($12.8 million) profit.

 

Overall, Sony recorded a decline in revenue for the quarter of 9.1-percent, down ¥1.56 trillion ($20.5 billion) from ¥1.7 trillion ($22.2 billion) year-over-year. Net losses sat at ¥27.0 billion ($350 million) compared to profits of ¥31.1 billion ($398.3 million) year-over-year.

NEWS SOURCES:Gamasutra.com

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