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Forums - Sales - Sony Games Division Loses To Increase by $337Million

Hyruken on 22 January 2009

http://www.gamesindustry.biz/articles/Sony-expects-games-division-losses-to-increase-by-$337-million

 

Sony Corporation has said that it expects to record a net loss of JPY 150 billion (USD 1.68 billion / EUR 1.29 billion) for the financial year ending March 2009.

The company's PlayStation games division is expected to increase losses by approximately JPY 30 billion (USD 337 million / EUR 258 million) in the financial year, half of which is due to lower than expected sales.

For the fiscal year ended March 2008, the company made a profit of JPY 369.4 billion.

The company has primarily been affected by the economic slowdown and the strength of the yen making exports expensive.

The new forecast contrasts sharply with the previous guidance set in October last year, when Sony said that it expected to make a profit for the fiscal year of JPY 150 billion.

The company's other business segments fared no better. Sony's electronics division is expected to see losses grow JPY 340 billion, while Sony Pictures is anticipating an increase in loss of JPY 13 billion.

Sony's financial services division, which includes Sony Life Assurance, is expected to lose JPY 65 billion compared to previous forecasts, and all other business a further JPY 11 billion.

Update: Sony has revealed plans to cut costs at the business by JPY 250 billion, including the closure of one of its manufacturing sites in Japan, further consolidation of divisions and cuts to bonuses and salaries.

Sorry if already posted



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irstupid on 22 January 2009

so? 337 million + ?????????

What was expected before?



RAZurrection on 22 January 2009

So around a $700 million since last April with one more quarter to go?



Hyruken on 22 January 2009

Nothing is ever straight forward is it :)



celine on 22 January 2009
RAZurrection said:
So around a $700 million since last April with one more quarter to go?

From what I understand 700-600$ million is Sony forecasted loss for the entire fiscal year for the SCE division.

 



 “In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.”  Hiroshi Yamauchi

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Pyramid Head on 22 January 2009

thats a couple killzone 2s



Last year's game of the year turned out to be Silent Hill : Shattered Memories (online GOTY was COD 6).  This year's GOTY leader to me is Heavy Rain.

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Grooski on 22 January 2009

It means that losses on the PS division are bigger than forecast by 30bill yen. Whatever they forecast in Oct, add another 30bill to it. Considering loss last quarter was 39.5 bill yen, it may very well mean they forecast another improvement on Q3 maybe to a 10-20 bill yen loss. So, this would mean a loss in the vicinity of 40 bill yen for the quarter.

It is interesting to see what has caused this drop in forecast. Looking at it, it seems that it is not the PS3 that has caused the problems (for once). Rather the lower than expected PSP and PS2 sales.

The new hardware forecasts since Oct show:

- PS3 remains at 10 million units for FY08. This means they expect to hit or exceed this target come March.

- PSP revised down 1 million to 15 mill units

- PS2 revised down 1 million to 8 mill units

- total software sales forecast is unchanged.

 

 



WiiStation360 on 22 January 2009

It looks like the games division at Sony is safe from the current round of cuts.  At least for now.

Sony job cuts unlikely to affect games division

...

A slide from Sony's corporate presentation this morning stated that there are planned headcount reductions for the games, movie and pictures divisions - without going into further detail - and prompting speculation that jobs were to go in videogame departments.

However, Sony Computer Entertainment Europe president David Reeves has informed staff internally that the JPY 250 billion (USD 2.8 billion / EUR 2.1 billion) cost-cutting measures will not include a reduction in games staff, as previously stated last month.

...



Noobie on 22 January 2009
WiiStation360 said:

It looks like the games division at Sony is safe from the current round of cuts.  At least for now.

Sony job cuts unlikely to affect games division

...

A slide from Sony's corporate presentation this morning stated that there are planned headcount reductions for the games, movie and pictures divisions - without going into further detail - and prompting speculation that jobs were to go in videogame departments.

However, Sony Computer Entertainment Europe president David Reeves has informed staff internally that the JPY 250 billion (USD 2.8 billion / EUR 2.1 billion) cost-cutting measures will not include a reduction in games staff, as previously stated last month.

...

Playstation division is becoming the corner stone of their bzness. not a bad idea..



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Smashed on 22 January 2009

Oh god.. I can't believe people still think the gaming division is going to get axed..