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Forums - Sony Discussion - Sony Computer Entertainment 2011 Fiscal Report 94.3 billion Yen deficit

NintendoPie said:

Sony doesn't really have that many Japanese games to make a huge difference.

The biggest thing would be getting Square Enix for sure, that's really it.


FFXIII-5 exclusive for Wii U.



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Fumanchu said:
mantlepiecek said:
Fumanchu said:
mantlepiecek said:
Expecting the company to make profits when they will obviously be investing money on PS4 R&D is a bit silly, that is all I wanted to say.

I think it's a bit silly to attribute a 1.2 billion dollar loss exclusively on R&D.

If it's not the only reason then it will be the biggest reason easily.

Why? In the years prior to the PS3 release SCE was profitable.  Obviously it was buoyed by the great selling PS2, but it also didn't take anywhere near a 1 billion dollar loss against the previous FY until the PS3 was released and sold with heavy losses.

Microsoft losing 229 million last quarter is more murky...we don't have the transparency of looking exclusively at their gaming division, which is what this is showing. We also know that they've invested in other areas of its' E&D division, namely payments to Nokia for Windows phone and the recently revealed Surface tablet.

Well if it is useless to guess then there is no use guessing. And yeah during the PS2 years SCE was a lot more profitable then it is now, and I am thinking that PS3 R&D also included costs of blu-ray which might have been included in some other division.

Once they change the divisions like that it gets much more difficult to compare losses and profits.



Dgc1808 said:
I really want to see some evidence to the idea that SCE as a whole from the beginning is in the red because of the PS3. I do not believe that.

 

http://gamrconnect.vgchartz.com/thread.php?id=136006



and if the PDF in the op is right... Sony is basicly at zero which is better then being in the red





 

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Pavolink said:
NintendoPie said:

Sony doesn't really have that many Japanese games to make a huge difference.

The biggest thing would be getting Square Enix for sure, that's really it.


FFXIII-5 exclusive for Wii U.

Yes! Nintendo nailed it there!



mantlepiecek said:
I like how people are more concerned about pointing at Sony's losses rather than look at the explanation of why they might have happened.

Because Sony doing badly gives some people an erection.

It's not rocket science why Sony is doing so badly. Simply put the global financial crisis, competition from MS and Nintendo (in regards to playstation) and the Japanese earthquake as well as fluctuating currency exchange rates has all added to the problems over the last three years of consecutive red reports.

According to the financial times publication Sony's three years of loss is due to a "lack of resilience" and "inability to gauge the economy."

Maybe that's it.



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Dgc1808 said:
I really want to see some evidence to the idea that SCE as a whole from the beginning is in the red because of the PS3. I do not believe that.


Saw Nikkom's post however I am going to carry on anyway as doing it in dollars I feel leaves room for error as Sony is of course Japanese. Also as the chart has no source I am unsure where the information for FY2008 onwards comes from as the game division itself wasn't visible. 
Okay so here we go. Format is the same as before. Millions of yen, brackets losses etc. A FY is from the 1st of april to the 31st of march the next year. So for example FY2005 is April 2005 to March 2006. 

Also I found that actually FY1995 is available. Given that the game division was still turning a loss then I think it is safe to say FY1994 was most definitely also a loss and earlier than that would be quite considerable losses as they would only be R&D with no revenue. 

FY1995 - (8,938)
FY1996 - 57, 045
FY1997 - 116,936
FY1998 - 136,500
FY1999 - 76,935
FY2000 - (51,118)
FY2001 - 82,915
FY2002 - 112,653
FY2003 - 67,578
FY2004 - 43,170
FY2005 -  8,748
FY2006 - (232,325)
FY2007 - (124,526)
FY2008 - (58,500)
FY2009 - (53,174)
FY2010 - 10,817
FY2011 - (94,374) 

Up to FY 2008 when it is purely game division = 227,073 million yen - FY 1994 & PS1 R&D. 
Up to FY 2011 when it joins CP&S = 90,342 million yen - FY 1994 & PS1 R&D

I think interesting thing is you can clearly see the effect of PS3 R&D costs towards the end of the PS2 lifetime. Also I should mention I haven't ever seen anyone claim that the PS3 wiped out all profits ever. Only ever the claim that it wiped out all PS2 era profits. 

If NikkoM can find a source for his chart in dollars for the Fy2008 and on then that would be great. As is it does seem likely that so far over the course of the entire Sony Game division operating income has come out to pretty much 0. 

EDIT: want to add that up to 2007 NikkoM's chart does seem accurate so it is possible that 2008 onwards are also accurate. Of course the issue is that given up to 2007 is easy to find publically it would of course be accurate, whereas 2008 on is seemingly harder to find. 

Second edit: FY2008 was available on a slide in IR - financial information - Sony group - Presentation slides 08. Have updated accordingly. 



Turkish says and I'm allowed to quote that: Uncharted 3 and God Of War 3 look better than Unreal Engine 4 games will or the tech demo does. Also the Naughty Dog PS3 ENGINE PLAYS better than the UE4 ENGINE.

Zim said:
Dgc1808 said:

Up to FY 2007 when it is purely game division = 285,573 million yen - FY 1994 & PS1 R&D. 
Up to FY 2011 when it joins CP&S = 33,764 million yen - FY 1994 & PS1 R&D

I think interesting thing is you can clearly see the effect of PS3 R&D costs towards the end of the PS2 lifetime. Also I should mention I haven't ever seen anyone claim that the PS3 wiped out all profits ever. Only ever the claim that it wiped out all PS2 era profits. 

http://gamrconnect.vgchartz.com/post.php?id=4655172

Thanks for the numbers. Pretty interesting. Also, I still don't think it's fair to say that it's all do to the PS3. It's been profit for the division most recently before this. That's with other consumer electronics bringing  things down and R$D for new systems. PS3 did take a big bite of the pie though. No doubt about that.



4 ≈ One

NiKKoM said:
Dgc1808 said:
I really want to see some evidence to the idea that SCE as a whole from the beginning is in the red because of the PS3. I do not believe that.

 

http://gamrconnect.vgchartz.com/thread.php?id=136006



and if the PDF in the op is right... Sony is basicly at zero which is better then being in the red





Damn, Nintendo was racking in loads even during the N64 and GC era! And just as it looks like Sony never made much money with the PS1 & PS2

EDIT: OH wait, i forgot about handhelds.

Dgc1808 said:
Zim said:
Dgc1808 said:

Up to FY 2007 when it is purely game division = 285,573 million yen - FY 1994 & PS1 R&D. 
Up to FY 2011 when it joins CP&S = 33,764 million yen - FY 1994 & PS1 R&D

I think interesting thing is you can clearly see the effect of PS3 R&D costs towards the end of the PS2 lifetime. Also I should mention I haven't ever seen anyone claim that the PS3 wiped out all profits ever. Only ever the claim that it wiped out all PS2 era profits. 

http://gamrconnect.vgchartz.com/post.php?id=4655172

Thanks for the numbers. Pretty interesting. Also, I still don't think it's fair to say that it's all do to the PS3. It's been profit for the division most recently before this. That's with other consumer electronics bringing  things down and R$D for new systems. PS3 did take a big bite of the pie though. No doubt about that.


I found Game division only Fy 2008 and so have updated my post accordingly. I will keep looking for 09 and 10 for a bit. 

The whole PS3 wiped out PS2 era profits is a difficult statement to verify. PS3 R&D costs are lost in the late year PS2 profits. Then PSP R&D, PSP losses or profits , Vita R&D, PS4 R&D etc all get muddled up in there. As a general statement though it does at least have some merit. The losses in FY 06-09 are utterly vast and in those periods it is likely the PS3 was the major cause of the losses. Then whatever the earlier R&D costs for PS3 were are lost in the PS2 profits are. Of course we don't know how much the PS3 is now profiting as those figures get lost in PS4 R&D, Vita R&D etc etc. 

In general I think even though it's a murky statement, that saying the PS3 wiped out all PS2 era profits is a reasonably fair thing to state. Those big losses in the early years and the R&D costs are simply too big. I remember that the Cell alone cost Sony and their partners (IBM etc) $400million to develop. 

EDIT: For the life of me I can't find the Game division for 09 and 10. None of the investor relations information on Sony's site contains it. The only real notable thing is that during FY2010 it is noted that the game division and PS3 greatly helped it achieve a positive operating income.



Turkish says and I'm allowed to quote that: Uncharted 3 and God Of War 3 look better than Unreal Engine 4 games will or the tech demo does. Also the Naughty Dog PS3 ENGINE PLAYS better than the UE4 ENGINE.

And this is exactly why I have been saying that Sony cannot afford to have a loss leading business model for the PS4 and may need to cut back capability in order to have a consumer friendly priced console that they can at least break even on. I am sticking with my prediction that it will be the Gamecube of the next gen (relative power wise)



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