Sony Profits, Ships 3.5m PS3s in September 10' Quarter - News
by VGChartz Staff , posted on 29 October 2010 / 7,706 ViewsSony's financial results for the quarter ending September 2010 have just arrived. Revenues at Sony reached 1.733 trillion Yen, or $20.881 billion for three months ending September 2010. Profit from that revenue reached 31.1b Yen, or $375 million, essentially for every $100 Sony earned, $1.70 ended up as profit. Sony says it was damaged, as Nintendo and other Japanese companies are by the strong Yen but was able to rebound on the Networked Products & Services division (which houses the Playstation products, Vaio PCs and other devices). In the previous September quarter, Sony had revenues (using current Yen rates) 4% less than in the current year, and the company lost over $300 million (again at current Yen rates).
Sony's Networked Products & Services division swung to operating income of 6.9 billion Yen ($84 million) for the September 2010 quarter, from a loss of 59 billion Yen ($720 million loss) in the previous September quarter. This alone appears to be why Sony is profitable as the other divisions are not fluctuating nearly as much. Sony says total game business sales (PS2, PSP, PS3) decreased over the last September quarter but PS3 was up on Move, and production costs for PS3 are dropping alot.
For the quarter ending September 2010, Sony says it shipped 3.5m PS3s (compared to 2.8m X360s and 2m Wiis, even though our sell through data has X360 outselling PS3 by 1m units over that period and Wii at the same level as PS3). Last year Sony shipped about 1m more PS3s than it sold in the September quarter, but that was due to the Slim and Price Cut pushes...this year its a bit hard to figure how Sony was able to accomplish such a figure especially since Sony sold 2.4m PS3s during the September 2009 quarter and shipped only 3.2m systems then. Furthermore, shipping 2.2m normal PS3s and 500,000 - 1,000,000 Move bundles should have easily covered demand based on our figures, as some Move users are existing PS3 owners buying the necessary parts to enjoy motion gaming. It isn't like PS3 sky-rocketed to 400,000 per week when Move launched. Sony also shipped 1.5m PS2s and PSPs.
Lifetime to date hardware shipments for Sony's three platforms stand at the following levels:
PS2 - 1.5m / 147.6m (136.3m as of Q3 FY / Dec 2008 according to this however 138.8m as of June 2009 when Sony had supposedly shipped 3m between Jan-June 2009)
PSP - 1.5m / 64.2m
PS3 - 3.5m / 41.63m (less than 3m units shipped behind X360 through September 2010)
Over the first six months of the fiscal year, Sony has shipped 5.9m PS3s, 3.1m PS2s, and 2.7m PSPs. Sony's target for each platform remains unchanged for the fiscal year - 15m for PS3, 8m for PSP, and 6m for PSP. To meet the PS3 figure Sony probably doesn't just needs a flat Christmas quarter now - which is good as PS3 consistently sold 300,000 per week most of last fall and the GT5 release date is up in the air - as PS3 shipments are 1.6m units ahead of where they were in the first six months of the March 2010 fiscal year. Sony has to ship 9.1m systems over the next six months to meet the PS3 target for the fiscal year, which is comparable to the 8.7m PS3s shipped over the last six months of the March 2010 year.The PSP target looks doable as well, given the system is likely to see a 3.5m-4m Christmas quarter (up in Japan offset by declines in the West). PS2 is ahead of PSP in the fiscal year but will see far lower growth over the Christmas quarter, and so that figure is doable as well.
For software, Sony still expects software shipments to reach about 195m units - the level obtained last year. So far, Sony is about 10m units ahead of the pace it set to reach 195m - at 89m vs. 79m from April to September 2010. Nonetheless, Sony's three systems will probably have a weaker software performance over Oct-Dec than last year, as PSP and PS2 slow, particularly in the West and PS3 remains flat on a weaker lineup of big titles. Sony doesn't split the 195m forecast down, but with PS3 at 135m over the last year and PSP software slowly shrinking and PS2 rapidly shrinking, the split should be something like 135m-140m PS3 sw / 35-40m PSP SW / 15-20m PS2 sw.
During the September quarter, software shipments for its platforms were as follows. Totals are listed after the slash.
PS2 - 5.6m / 1521.8m
PS3 - 35.3m / 350.6m
PSP - 11m / 271.2m
These figures put the shipment attach rate at 10.31 games per user for PS2, 4.22 games per user for PSP, and 8.42 games per user for PS3.
I'll have an update on the big three shipment figures through September 2010 shortly.
Contact Vgchartz at jmazel@vgchartz.com
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@rf40928
Sony's margins have always been extremely poor, if they had 10% margins they'd be up there with Samsung, if they had 30% margins like Apple they'd be up there with Apple and MS. 30% margin is not feasible for a HW developer though, but Stringer is shooting for maybe 15% or so. I wish him luck.
Sony made close to 400 million in profits, I would say no bad. The PS3 is in its 4th year lots of great games coming and they will be making more and more profits on PS3, they have 5 years to really make some hugh amounts of cash. Just shows they know what they are doing compared to everybody and there opinion , the ones making minimum wage at Mc Donalds , think they know it all . So funny to me, give credit where its due, Good job Sony .
I warned PS3 sales were near 40m in some other article. Never hurts to listen I guess.
rf40928
0 minutes ago
@ Michael-5
I think Kinect will boost Xbox Slim sales in a similar way that Move has.. Consider this - Only a small percentage of the worlds population actually own gaming consoles when you say there are probably near 6 Billion on the planet & yet only around 200 Million actually own a CURRENT Generation console (and many of those current owners owned a previous Gen console)... Its pretty conceivable to see that alot of console buyers are in fact first time buyers..more then you'd think anyways.. Kids who are now just getting old enough to play video games each year buy their first console.. I think Nintendo, M$, and Sony are all seeing new buyers..
@huaxiong90
Agree with you..
Sony is supposedly no longer in the negative for each PS3 sold, but it must be in the plus by a very small amount because the PS3 division also obviosuly includes PC's and handhelds which have a much much higher profit margin and are impacting the NET PROFIT positively.. YET: Sony reached 1.733 trillion Yen, or ($20.881 billion dollars which again this includes laptops and PC's for Sony) for three months ending September 2010. Profit from that revenue reached 31.1b Yen, or ($375 million dollars) .. Thats only $375 Million Profit after paying all the BILLS ( when you're gross profit was 20.8 BILLION !? )
Converse to that ..In the EDD portion of Microsoft, which includes X360, Zune and other entertainment devices, Microsoft achieved revenues of $1.8 billion ( compared to 20 billion Sony ) up 27% from last year. On the $1.795b revenue from EDD, the division contributed $382 million in profit. ( Sony's end NET profit after paying bills was $7 million less then MS's when comparing the two divisions that house their gaming systems.. and thats even taking into account M$ pays much more to its share holders)
Sony's PC and GAMING DIVISION Grosses 20 BILLION dollars, only NETs 375 Million.. M$ Gaming Division Grosses 1.8 Billion and NETs 382 Million dollars.. To be FAIR If Sony didnt sell PC's and laptops its gross figure would be much closer to M$'s gross.. but to be FAIR without the income of the computers in Sony's Game & PC Division their NET income would be non-existant after paying the bills.. which is why the PS3 probably wont drop in price anytime soon in a significant manner..
Your PSP number is off, it's 60.2 million + 1.4 + 1.2 + 1.5 = 64.3 million
Not the greatest of profits, but they profited nevertheless.
Still, the markets outside of which are normally tracked really seem to play a big role in PS3 sales.
I wonder how PSN plays into this Sony equation?
Sony has a goal of 15M units to ship...even if they aren't selling as much...that goal has to be met...lol.
I'm curious where the lifetime to date hardware numbers come from, specifically for the PSP. Those numbers aren't in the linked pdf. I'd like to have a more accurate total for http://gamrconnect.vgchartz.com/thread.php?id=113854&page=1 which has a shipped+manufactured(with a note saying such) total of 67.13M
@ Michael-5 -> Because Sony, unlike Microsoft, decided to open its products to more markets, Asia, Middle East, Africa, South America etc. Those regions are really hard to track, hence the undertracking of the PS3 in EMEAA (not Europe but EMEAA, Europe is just a part of EMEAA kay).
So unless VGC decide to OVERTRACK the PS3 with their current datas (which will bring them closer to reality eventhough they'll have to speculate on these regions' sales based on previous datas and trends), the PS3 will still be undertracked.
Sony please kill your cell phone venture and put your money into playstation and film.
@gab, maybe you should rethink what you just said..... "It didn't "take" sony $100 to make $1.70, I don't think you understand economics."
If a company earns $100 but only clears $1.70 then yes it does take $100 to make $1.70... Sigh.... Its pretty easy to understand. While I did have an economics class in college, its not needed to understand the basics. If you want to live in denial go right ahead.
I don't understand how the PS3 is constantly getting sales adjustments, when the 360 should have been regaining some of its lead.
Looking at this data, hte PS3 console sales seem to boom with the launch of move. Halo still keeps 360 at #1 for one last week, but then Move sales seem to hold PS3 sales at above 200k a week. This is confusing because Move sales are only 500k or so, but they seem to contribute 60-80k weekly gains in PS3 consol sales. This suggests that over half of Move sales are to new gamers.
This is plausible, just very unexpected, how did VGchartz analysts miss this massive console boost for the last month and a half?
Also on an interesting note, if Move did this to the PS3 (put it's weekly sales above the DS), what will Kinect do for the 360??
And how can I do my 10 week forcast now with soo many PS3 adjustments comming in?
Personally I feel these values are over-inflated. Overall sales are still 5.1 million, if this adjustment is true, then it effectivly cancels out the past adjustment. Maybe VGChartz only knows the difference is 5.1 million, and they don't actually know how PS3 is doing weekly to of have caused this.
bu but sony but sony liez(QQ)
Cmon fanboys PS3 just got adjusted again UP, time to make new excuses....
Seriously snap out of the 360 lalaland and stop crying "overshipps" you guys are sad and embarasing.
@Darth Tigris
They just have to realize they're getting it for free. If I was paying, I'd be annoyed. But I'm not, so it's no big deal. It's just obvious that Sony is capitalizing on markets that this site can't track perfectly or at all in some cases. They (fans) just need better perspective.
@reidlosdog
It does seem rather ungrateful, doesn't it? I honestly have often wondered why they constantly come to the site and complain about the numbers or accounting when there are plenty of other gaming communities out there that aren't centered around numbers that these analysts track.
Counting to 20 would serve him better.
Man, what's up with this guy below me? Someone needs to take a deep breath and count to 10.
You know what I don't get? how every time any legit analyst posts something remotely bad (and this isn't at all remotely bad, it's better news than sony has had at all in the past 5 years of existence for the ps3) sony lovers hate them for it?
the math become "fuzzy" and too complicated for PS3 lovers minds. Then the analysts repost and say exactly what they just said, in laymens terms. then we never hear from these complaining little boys ever again, because they realize they didn't go to college for this stuff, or pass high school algerbra, because they were on their PS3.
VGChartz.com is seen as one of the best analysts out there. If you have a problem with their numbers, go to sony and i promise you they will lie to you so you don't feel like your product is doing bad.
VGChartz.com, I hope all of you get a big Christmas gift, cause these people don't know logic when they see in.
Yeah yeah yeah Sony. Yous make 1.70 dollars on every 100 dollars but how much do you make from the euro
@damndl0ser/
It didn't "take" sony $100 to make $1.70, I don't think you understand economics. Out of $100, Sony got to keep $1.70. That's not horrid, not great perhaps but far better than in quite a few years where Sony lost money.
playstation is one of the worlds most powerful brands
good to see Sony making a profit, they have been stuggling
why cant they just get rid of Sony Ericsson its pulling them down
They stufd teh chanelz!!!! Oh come on, how was this not written already? :-P Good to see that the PS3 is doing good. PSP2/Phone should be out soonish, so no worries in the portable segment :-D
@Jlmadyson As Binary Solo points out PS2 is getting the VAST majority of it's sales from Africa, Asia, the Middle East, and South America and is likely even crushing current gen consoles in those regions as well. You don't think some of that success is transferring to the PS3 as well? We already know that PS3 has an iron grip on the Middle East, It makes up half of the software economy over there.
Omfg.
@Jlmadyson -> maybe it was the number one selling console in EUROPE, but not in EMEAA as VGC sees it, EMEAA is more than Europe dude and we know that this is where VGC has many problems tracking the PS3 because Sony ships to more countries, so more markets = more sales etc
And for the America part I don't think that NPD is tracking South America... just saying.
@Jlmadyson: Xbox's game division should make more...they have huge amounts of profit coming in via xbox live accounts.
Man this is some serious fuzzy math. How in the world could have Sony outshipped MS by 700k in this last quarter when 1 we know MS was way ahead in the US at least 500k, 2 in Japan the difference was maybe 250k and 3 we know from MS PR it was the number one selling system in EMEA for the quarter(based off real sales data). So this tells me there is a difference here of at least 1 million shipped by Sony and sold through by MS in real actual sales WW(if not much more) so that number would be even larger with Sony actual sale through. One cannot also use last quarter either because sale through wasn't that much different though some, but yet there was already a huge chunk in the shipment numbers already going into the last quarter from the March-June quarter.
@Darth, yes that is correct MS gaming division made more of a profit then the entire company of Sony this quarter.
So the PS3 has 3 million units sitting in warehouses, while the 360 has 500k. Something is majorly wrong with these numbers. PS3 probably under tracked by 2 millionish.
So am I reading this wrong or did the Wii only gain 400k on the PS2 in the last six months? O_o that thing REFUSES to die.
I wish Sony released a software report like Nintendo.
Don't understimate the power of PlayStation
Thats a lot of PS3's shipped! Great numbers for Sony. But I have to admit there are a few things that are troubling.
1) It took Sony $100 to make $1.70? Thats friggin horrid. I know the old saying it takes money to make money but this tops the charts. The poor exchange rate with the Yen has a little to do with this but that still seems like a horrid number.
2) Microsofts EDD (Xbox division) profits more than the entire Sony Corporation does? How the hell? I guess even with all of the cost cutting measures for the PS3, it seems it might still be losing money on every sale in the USA because of the Yen/Dollar exchange rate.
As long as the PS3 keeps up its current pace things will eventually get better. The cost to make every PS3 continues to go down and the exchange rate will get better, some day. So thats a good sign. All in all things are looking up. But I think Sony will have to do something to curb that $100 to make $1.70. If it means selling or killing off some of its non profitable divisions so be it.
ps3 is under-tracked -- confirmed
Sony must be cutting PS3 production costs significantly if they can still profit with the strong state of the yen. These are truly amazing shipment numbers, particularly PS2 hardware and software. The Brazilian launch must have really helped. And as Binary says, overall PS2 SW is completely and totally BEAST.
PS2's biggest selling sales region BY FAR is Middle East, Africa and Asia. It routinely accounts for about 50% of PS2's global weekly sales. I bet those regions are about the hardest for VGC to track. So I'm not surprised that VGC has a fairly wide discrepancy between PS2 shipped and PS2 sold. But I'm expecting to see adjustments for PS2 LTD sold soon. PS2 WILL top out over 150 million shipped lifetime. Which means eventually it will get close to 150 million sold. I might just re-buy a PS2 in it's final month's as long as they have a fire sale and sell it for a ridiculously low price. I still have some PS2 games on the shelf that I haven't finished.
PS3, hmmm what to say. A > 3 million discrepancy between shipped and sold is a big margin. I do think there are a lot of PS3s on shop shelves, but I have my doubts about 3 million. I think PS3 LTD sold to consumers might be somewhere at or above 39.5 million. The issue for VGC adjustments though isn't just to bump up the LTD by another 700K or so, but in which sales regions to put that 700K, and in when were these extra consoles sold. Not in USA/Americas I'd say because NPD helps VGC to keep its LTD sales on track.
Love seeing that 1.5 billion SW shipped for PS2. That's BEAST.
I think its clear from these numbers Sony has a far bigger presence in the emerging markets outside of what VGChartz is currently capable of tracking
I think that the PS3 is still undertracked WW, and the 360 is a little overtracked @EMEAA
@hiroko: Major difference between shipped and sold.
VGC cant deny it anymore they have don something realy realy wrong witg ps3 sales... 41shipped and only 38sold? right......soo sony is shippin more and more but is actual selling less and less? that cant be right...also ps2 shipped 147 but sold 138? soo thee are soo many ps2 on shelves? i dont see any.
i think...usa and japan is on track but EU and other are soo soo off with ps3
Awesome shipment numbers!! I didnt expect that!
Some here really undermestimate the effect of the high yen. It really eats your profit margins if you are Japanese company that relies heavily on exports. For example at the start of this gen Sony made more money from PS3 sold in USA than in Japan. Now they get a lot less from console sold in USA than Japan. PS3 costs 24k yen in USA compared to 30k yen in Japan(and 33.5k yen in Europe). They are probably selling PS3 with loss in USA again thanks to high yen.
Do I hear a new excuse????
so...
No gamez X
to
low sales X
to
Not profiting X
to
not as much profit as (inster name) company???
ROFL!
Those are extremely low profits... Considering the initial forecast was planning on profits too how can this improved "result" be so low ?
So Sony Corp as a whole profited less than just the EDD division of Microsoft by itself?
Well ... at least they profited ...
Very nice numbers. With Assassin's Creed: Brotherhood, Call of Duty: Black Ops, Need For Speed: Hot Pursuit, Gran Turismo 5, LittleBigPlanet 2, KillZone 3 and inFAMOUS 2 all still to come for the Fiscal Year, Sony has a chance to exceed their PS3 forcast. In my opinion.
Impressive by SONY, and with the gap a mere 2.9million between PS3 and 360 it looks like the two consoles are going to remain neck-and-neck in overall sales for a while.







