Sony's Q2 earnings show impact of PS4's falling price
PS4 shipments now top 47 million, but price reductions prompt decline in revenue and profit
Sony's PlayStation business slipped in the second fiscal quarter, with both revenue and operating profit falling in tandem with the price of the PlayStation 4.
In the three-month period ended September 30, Sony Corp.'s Game & Network Services segment earned ¥319.9 billion ($3.17 billion / €2.9 billion), down 11% year-on-year, while operating profit for the segment fell 20% to ¥19 billion ($188 million / €171 million). As is common with Sony's results, foreign exchange rates had a part to play in the decline, but a larger factor was the falling price of the PlayStation 4. The benefit of more affordable hardware was felt in other areas, though, as combined physical and digital software revenue increased.
The PS4 shipped 3.9 million units during the quarter, down 100,000 compared to the same quarter last year. The market-leading console has now shipped more than 47 million units in its lifetime.
In truth, the second quarter was defined by anticipation. PlayStation VR launched two weeks after the reporting period ended, and PlayStation 4 Pro will go on sale later this month. Sony did note higher marketing costs in Q2, but we'll have to wait to gauge the success of its new hardware.
Sony Corp. earned ¥1.69 trillion in Q2 ($16.7 billion / €15.2 billion), down 10.8% year-on-year. The company's net profit suffered a much steeper decline, falling 85% year-on-year to ¥4.8 billion ($48 million / €43.8 million).
