Nov 3, 2011

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PS3 Price Cut Key to Sony Losses

PS3 Price Cut Key to Sony Losses

Sony’s revenue for the second fiscal quarter, $20.2 billion, dollars is down from the same quarter last year when Sony saw revenues total $22.2 billion.  Sony’s net loss, $346.2 million dollars, is down from the net profit of $398.7 million last year.    The division that houses the PlayStation brand, the Consumer Products & Services division, had operating revenue of $10 billion for the quarter, which is down over 12 percent year over year.  Operating losses came to a total of $443.6 million, down from an operational profit of $12.8 million last year.

While Sony cited lower-than-expected LCD and digital camera sales, as well as unfavorable exchange rates, it also referenced the price cut of the PlayStation 3.  3.7 million PlayStation 3s were sold during the quarter, down 200,000 to 300,000 from the same quarter last year.  During the same period, 1.7 million PlayStation Portables were sold and 1.2 million PS2s.

Along with hardware sales, the PlayStation 3′s software sales were down 2.1 million to 37.4 million units.  The PSP and PS2′s software sales were also down to 8.1 million and 2.8 million units.

Amid the news, Sony has lowered its expected total sales to $83.3 billion for the fiscal year ending March 31, 2012, and stated, “forecasted consolidated sales and income for the fiscal year were both revised downward, primarily due to the impact of Sony’s updated foreign exchange rate assumptions to account for the further appreciation of the yen, the impact of the floods in Thailand, and the impact of lower sales expected primarily in the Consumer Products & Services and Professional, Device & Solutions segments, mainly in Europe and the U.S.”

[Source: Sony Financial Report, IndustryGamers]