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Sony Reports $1 Billion Annual Loss
Sony Corporation has reported a 98.9 billion yen ($1 billion/£685 million) loss for the financial year ended March 31, 2009.
During the period, company sales fell 12.9 percent to 7,730 billion yen ($81 billion/£53.5).
“Sales decreased and losses were recorded due to factors including the slowdown of the global economy, the appreciation of the yen and the decline in the Japanese stock market," said the firm.
Game division sales were down 18 percent to 1053.1 billion yen ($11 billion/£7.3 billion), primarily due to “the impact of the appreciation of the yen and a decrease in unit sales of PS2.”
However, the segment’s operating losses more than halved from 124 billion yen to 58.5 billion yen ($612.4 million/£404.6 million), due largely to PS3 hardware cost reductions and increased sales of PS3 software.
10.06 million PS3 consoles were sold during the year, representing a ten percent increase. PSP sales increased from 13.81 million to 14.11 million, while PS2 sales decreased from 13.66 million units to 7.91 million.
PS3 software sales jumped by 45.8 million units to 103.7 million units. However, PSP software sales fell around ten percent to 50.3 million units, while PS2 software sales dropped from 154 million units to 83.5 million.
Sony isn't expecting a turnaround in the wider company's fortunes any time soon, as it said it expects to report a net loss of 120 billion yen ($1.25 billion/£830 million) for the current fiscal year ending March 31, 2010.
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Copyright 2006 - 2009 Future Publishing Limited, Beauford Court 30 Monmouth Street Bath, UK BA1 2BW
England and Wales company registration number 2008885
The currency thing is very simple, Indrema. The Yen is very strong at the moment, trading above the dollar when it is traditionally much lower. Sony build their stuff and do their business in Yen. Because the yen is currently worth more dollars than it traditionally is, they have to sell stuff for more dollarsto get their money back (as it effectively eats some of their profit margin).
Also, they didn't say that the decreased ps2 sales were unexpected. Of course they expected to sell less ps2s than previous years, so that part of the reduced sales would have been predicted.
I don't understand why there was so much gloom and doom when Nintendo released their statements and made billions, but the media (not necessarily Edge, just in general) is so encouraging toward Sony when they loss a truckload of cash.
The mind boggles...
Kind of a different tone then Nintendo's annual figures. I don't recall, has Microsoft released a full year report yet, not quarterly?
Sales decreased due to lower PS2 sales? This stupid system is 9!! Years old. What do they expect?
& depriciation of the yen? My Japanese must be rusty. I had forgotton that yen meant: " overall quality of software & competitive business sense".
Forgive me but if Sony is Japanese and reports it's financial results in Yen and most of it's business is done outside of Japan then surely you'd expect to see a negative impact upon those results if the Yen has dropped in value against other currencies?
First off - the Yen trades higher than the U.S. Dollar by less than 1 cent. More Sony products have, historically, been sold in the United States than any other country; so that statement is inaccurate.
What you just said is related to the ACTUAL problem Sony been having. According to Stringer himself, the company has been very "Japan-focused", but most of their sales are done outside of Japan. Previous Sony projects were worldwide efforts, but Sony Japan has taken the helm of all current technologies.
No company has ever been successful in a country where the local office doesn't have full support, communication, & decision making abilties.
whoops
I am not surpised
Why? Because Sony is an evil console company and is trying to destroy the heroic PC market with it's evil console business empire?
NO micro soft is alot more evil than sony is, If sony wants to make money in gaming! They would make OS to fight with micro soft. Micro soft has it's foot in so meny things the company could break. There is so much hate towards micro soft right now on the pc side people are willing to jump ship.