Sony’s Q3 Results

Sony have just released their consolidated financial results for the period from October 1, 2010 to December 31, 2010. Though their operating income fell, which they attribute to “unfavourable foreign exchange” rates (i.e., a strong Yen or weak Dollar and Euro) their Networked Products and Services (NPS) segment significantly increased its operating income due to the contribution of Sony’s game business.

Their overall operating income fell 5.9% to ¥137.5 billion (£1.041bn, $1.698bn) compared to the same period in 2009.  Most of Sony’s business segments recorded a fall in operating income, particularly their Consumer, Professional and Devices segment which saw a fall of 47.2% to ¥26.8bn (£203m, $331m).  That segment which is where the sale and manufacture of all your Sony non-gaming gadgets live was impacted primarily by the fall in price of LCD TVs despite unit sales increasing.

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In contrast the NPS segment, the drawer of Sony’s filing cabinet that contains all things PlayStation, saw a massive 134.9% rise in operating income to ¥45.7bn (£346m, $564m) despite a 6.4% fall in the value of sales caused by the aforementioned exchange rates.  In Sony’s own words:

The game business benefited from significant cost reductions of PlayStation®3 (“PS3”) hardware and higher unit sales of PS3 software, which favorably impacted the change in segment operating results…

Hopefully Sony’s analyst conference call later today will hint at how much more cost they have managed to take out of the PS3 and we will take a listen and let you know anything interesting that we hear.  Of course the numbers you would like to know right now are unit sales figures for PlayStation hardware and software and we do not like to disappoint.

Source: Sony (PDF)

Exchange rates: ¥81 = $1 (Sony Q3 report), ¥132 = £1 (BBC, 2011-02-03, ¥132.8/£1 rounded down)

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17 Comments

  1. Nice table, some interesting reading, especially the increases in like for like. Amazing how many psp and ps2s are still selling. Would love to see ms table next to it for comparison.

    • If we haven’t already covered MS and Nintendo’s recent figures I’ll do a comparison over the weekend.

      • That’d be really nice. If you could draw up a quarter by quarter comparison table I’d love to see it

      • I’ll hunt around and see what data is available.

      • Cheers watchful, it something I’m keen in seeing too.

  2. Ps2 still selling Bloody hell!

    • Still a belter of a machine the PS2. Especially if you cant sleep, turn your ps2 on and dont put a game in and you are away!

      • Oh man, I love everything about the fat PS2. The front lights, subtle fan noise, the intro-logo when you turn it on. Reminds me of better times when an ‘ok’ game didn’t receive 9s and 10s across the board. They don’t make them like they used to (games AND consoles ;) ).

    • It’s only just been released in countries like Brazil. Although they do having a thriving pirated games market, it likely makes up a large chunk of the sales.

  3. Cheers, Watchful. Great top-level data which gives us a good appreciation of how their doing. Fingers crossed for an even better year this year (plus everyone else pulling their socks up a bit and rivalling the NPS division). :-)

    • I’m wondering how the games devision will do this year with the release of the PSP2, obviuosly their costs are going to go up but will revenue?

      • Revenue’s might go up but profits go down as a result of the rising costs.

        What tends to happen is it will be replacing profitable sales with (temporarily) unprofitable ones, like when the PS3 replaced sales of the PS2.

  4. 5 mill PS2 … wow!

  5. Sony are a huge co-operation so something like the PlayStation (or network products & services department) sticking out with such high earnings can only be a great thing for PlayStation 3 owners everywhere. More investors will (I assume) invest into the department, meaning better quality products and services for users.

  6. Still cannot believe the sale of Playstation2 consoles. Lol.

  7. Sony will have just about passed the 50m mark by now (the 47.9m was end of December), and it should therefore put Microsoft into last place in the console wars. (perhaps not quite in to-date sales numbers, Microsoft are about 2.5m ahead), but in ACTIVE console, Sony are easily in the lead, as many of Microsoft’s numbers are made up of replacements of broken consoles.

  8. Not bad for a console that launched 18months after the Xbox, and hundreds of pounds more, and for a while had the perception of having no games (and it was only a perception as the Xbox had the same game drought 18 months before it).

    It’s nice to see all the media clambering over themselves and backtracking yet again, reminds me of the gem: http://www.forbes.com/2001/01/25/0125disaster.html

    They call the PS2 a disaster!!!

    And this gem of wisdom from Mircosoft (who It sounds like funded the news) “Microsoft has proclaimed that it has learned from Sony’s PlayStation 2 glitches (for one thing, it is going to let outside companies make most of the components)”

    Like the way that turned out Microsoft!!!!

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