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08-06-2013, 08:57 AM #1
Sony Shows A Profit, But Hardware Sales Are Soft
Today, Sony released its first quarter financial results for the period running from April 1, 2013 to June 30, 2013. Things continue to look up for the once-struggling company, as it again managed to post a quarterly profit, albeit a modest one.
During the quarter, Sony’s company-wide sales brought in $17.3 billion, which is a 13 percent increase from the same quarter last year. “This increase was primarily due to the favorable impact of foreign exchange rates,” however, as well as “an increase in financial services revenue, and an increase in unit sales of smartphones.” If currency exchange rates remained consistent over the last year, sales actually would have decreased three percent. Nonetheless, the company’s profit after taxes amounts to about $35 million.
ony’s operating income is also up. Interestingly, the PlayStation division’s operating cost ballooned into a loss “primarily due to an increase in research and development expenses related to the upcoming introduction of the PlayStation 4.”
The PlayStation division itself brought in $1.19 billion in sales during the quarter, which is flat year-over-year, but an actual 15 percent decrease from last year if currency values remained identical. “This was primarily due to a decrease in unit sales of PlayStation 3, PSP, and PlayStation 2 hardware, offset by the favorable impact of foreign exchange rates and increase software sales compared to the same quarter of the previous fiscal year.”
As mentioned earlier, PlayStation 4 contributed to a loss in operating income for the PlayStation division, costs Sony obviously hopes to recoup (and eventually make a profit on) once the company starts selling PlayStation 4 later in 2013.
PlayStation 2 and PlayStation 3 sold a combined 1.1 million units during the quarter, a significant decrease from the 2.8 million sold in the same quarter last year. The two systems combined sold 16.5 million units during the last fiscal year; Sony expects to sell 10 million total PS2s and PS3s by the end of this fiscal year, even with a soft start.
Sony continues to bundle PSP and PS Vita sales together, likely to hide Vita’s poor performance at retail. The two handhelds combined sold 600,000 units during the quarter, down from 1.4 million in the same quarter last year. Sony expects to sell five million total PSP and PS Vita units by the end of the fiscal year.
Software sales, on the other hand, are booming. Combined retail software sales during the quarter amounted to 64 million units sold, an increase of 21 million units from last year’s first quarter. Sony anticipates selling 319 million pieces of software by the end of the fiscal year, a bullish projection that would outpace fiscal year 2012’s software sales by some 53 million units.
Watch the videos: http://www.ign.com/articles/2013/08/...sales-are-soft