Sony Banking on Games Division to Help Return the Company to Profit - News

by William D'Angelo , posted on 20 September 2012 / 10,678 Views

Sony's CEO Kazuo Hirai has said that Sony's focus will be moving away from its TV division which has posted losses for many years. The company will focus on increasing sales for its games, digital cameras, smartphones, and tablets, in order to turn the company around.

"I think we will be profitable this year," said Andrew House speaking with Reuters. "We have a growing installed base, growing connectivity of the PS3."

Sony is also expecting an increase in PlayStation 3 sales due to the newly announced slimmer model, which will help offset the decrease in its handheld sales. Sony cut its forecast for the PSP and Vita for the current fiscal year which ends March 31, to 12 million combined from 16 million.

Sony's gaming division did profit $371 million for the last fiscal year. While Andrew House did not provide a forecast for the current fiscal year, he did reiterate that Sony forecasts the division to profit $1.02 billion in 2015.

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nnodley (on 20 September 2012)

And yet thye just announced their new $25,000 4K resolution TV. That's not exactly moving away from the television division.

Iveyboi (on 20 September 2012)

Hahaha good point!

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gottalovethis (on 21 September 2012)

Moving away doesn't mean abandoning an entire market.

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gottalovethis (on 23 September 2012)

Moving away doesn't mean abandoning an entire market.

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Alby_da_Wolf (on 26 September 2012)

High-end can stll be profitable for them, it's in the lower range that they're bleeding money.

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Gamerace (on 20 September 2012)

I guess they plan on selling PS4 at a profit ala Nintendo

usrevenge (on 20 September 2012)

apparently every ps3 super slim sold = profit on consoles sold, so that will help, every game or PSN+ bought will be pure profit for them.

Iveyboi (on 20 September 2012)

The new super slim will not give the boost they are hoping for as it is not a price reduction. They should have had a FIFA + new console for $199 bundle. That would have exploded Europe.

Ganoncrotch (on 20 September 2012)

i think if anything with the new slim you get less harddrive space for more money atm here in euro land :S insane.

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zumnupy10 (on 20 September 2012)

I think it will boost PS3 sales. But not nearly as much as the first slim model did in 2009. No price reduction doesn't me no boost.

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kowenicki (on 20 September 2012)

Watch any House interview, he is very PR focussed. Its his job. Remember when he said they were roughly on target just before the last financials. They then reduced their annual target significantly. Big pinch of salt.

Cthulhu (on 21 September 2012)

This means PS4 in 2014 the earliest?

axumblade (on 20 September 2012)

Sony are relying on gaming to pull them through despite having a lackluster lineup for the rest of the year. Q1 next year looks great for the Vita, PS3 and even PSP (considering a lot of games are still coming out on the PSP in Japan and it just got a price drop). But this year, not so much.

BradleyJ (on 20 September 2012)

$1.02 billion profit in 2015? How are they going to manage that with the PS4 coming out within the next year and a half (apparently)?

theprof00 (on 21 September 2012)

what the hell? 1B by 2015? That's 3 years away guys...

JazzB1987 (on 20 September 2012)

"Sony is also expecting an increase in PlayStation 3 sales due to the newly announced slimmer model" Is that so? Cheaper built quality console for the same or more money will increase sales? They either know alot of their fanatics are not smart and will buy it. Or Sony are the ones beind stupid.

cunger (on 20 September 2012)

Sounds like the PS4 will be sold at or near cost if they forecast profits for 2015. Expect an expensive console!

leo-j (on 20 September 2012)

I do suspect that the PS3 slim will be launched and sold through profit.. as I am assuming the previous PS3 model was selling for a profit at $249.. so at $269, and with a much cheaper exterior.. the ps3 slim should be racking in a lot more money.. for sony.. they could have easily cut it to $199 and gained significant market share.. but they didn't.. ps vita is probably another product that is racking in a lot of money for them.. especially with their over priced forced memory card system..