Sony Cuts Its Annual Financial Projects By 40 Percent
Posted by Joseph Lee on 10.31.2013
Hoping for the PS4 to be a big hit...
Sony has released its results (via IGN for the latest financial quarter and cut its annual profit forecasts by 40%. This is due to some difficulty in TV, movie and smartphone markets. The games portion remains stable and Sony has increases its projection for console sales.
Even though year-on-year figures are up for games, it had a loss of $8 million in the three month period that ended on September 30. This is being blamed on a price drop for the PS Vita and a decrease in sales of console hardware.
The report reads: "Operating loss of 0.8 billion yen (8 million U.S. dollars) was recorded, compared to operating income of 2.3 billion yen in the same quarter of the previous fiscal year. This year-on-year decline was primarily due to the impact of a strategic price reduction for the PlayStation Vita and the unfavorable impact of foreign exchange rates, partially offset by the above-mentioned increase in software unit sales. The decrease in sales on a constant currency basis was primarily due to a decrease in unit sales of PlayStation 2, PlayStation 3 and PSP hardware, partially offset by increased PS3 software unit sales compared to the same quarter of the previous fiscal year."
The main reason for the profit projection being cut is the movies section. Sony was hurt by the poor performance of White House Down, especially compared to last year's The Amazing Spider-Man.
Sony is looking at the Playstation 4 to perform well even though it's been sold at a loss. Sony said it hopes it will "contribute to profitability from an early stage by diversifying its revenue streams through various network services centered on the PSN and by offering rich user experiences."