Sony games division records $889m loss
Update: PlayStation 3 hardware sales up to 13 million in fiscal 2010, but PSP and PS2 sales continue to decline
Sony has said that sales in its Network Product and Services division, which includes the PlayStation business, were down 10.2 per cent for the full fiscal year ended March 2010, due to a decrease in PlayStation 2 and PSP sales.
However, sales of the PlayStation 3 hardware were up during the year from 10.3 million units to 13 million, due to the launch of the new slim model.
PSP sales were down from 14.1 million to 9.9 million, while 7.3 million PlayStation 2 units were sold in 2010, compared to 7.9 million the previous year.
The division recorded an operating loss of ¥83.1 billion ($889.1m / £597.3m), down ¥4.4 billion compared to last year. While PSP and PS3 hardware sales were down, this was offset by cost reductions on the PS3 hardware, increased software sales and improved profitability from Walkman digital music players.
Sales of PlayStation 3 software increased to 115.3 million units during the year, up from 103.7 million the previous year.
PSP titles were down to 44.4 million units, compared to 50.3 million last year, and PS2 game sales down to 35.7 million units, compared to 83.5 million.
Noticeably, Sony expects software sales across all formats to remain the same in the next financial year ended 2011, despite an expected increase in PlayStation 3 sales.
Sales for the division were ¥1,578.8 billion ($16.8bn / £11.3bn) during the full year, but despite the performance of the Network Product and Services division, results for the entire group were more positive.
Sony Corporation recorded an operating income of ¥31.8 billion ($339.7m / £228.1m) in 2010, compared to a loss of ¥227.8 billion the prior year, and a net loss of ¥40.8 billion ($438.4m / £296.7m), an improvement over last year's ¥98.9 billion, with the Financial Services division and sales of LCD TVs in Consumer Products & Services as highlights.
For the full year ended March 2011, Sony expects an operating income of ¥160 billion, with an improvement in operating loss of the Network Product and Services division due to better game sales and VAIO PC sales.