Sony has checked in with its latest quarterly sales report, and it doesn’t paint a particularly positive picture for the Japanese manufacturer.
Sales in the games division – which is now reported under its own heading – plunged by a concerning 14.5 per cent year-on-year, contributing to an overall loss of ¥3.5 billion. Sony blamed the deficit on falling PS3 and PSP sales, which were “partially” offset by sales of the PlayStation Vita.
Sony, however, failed to provide numbers for its latest piece of hardware, opting to combine the sales of the handheld with its predecessor. Even then, the joint tally of 1.4 million units was slightly less than the 1.8 million units that the PSP achieved on its own a year ago. That’s a huge sign that Sony has managed the transition between platforms poorly.
To keep the report consistent, the platform holder also opted to combine PlayStation 3 and PlayStation 2 sales. Together the systems sold 2.8 million units, down from 3.2 million units the year before.
Software sales declined, too. Handheld software hit 5.8 million units, a significant decrease over the 6.6 million units reported the year prior. Meanwhile, home console software plunged from 27.6 million units to just 20.1 million units.
As a result of the poor performance, Sony lowered its expectations for the coming year. The company predicted that it will see “essentially flat” year-on-year figures, and that operating income will “decrease significantly”. Not good.
The company also warned that the Vita and PSP will sell significantly less than expected. The company had previously anticipated to ship 16 million units combined, but it now predicts just 12 million units. We’ll be amazed if it hits 10 million units to be honest.
Fortunately, the game division looks relatively stable compared to the rest of the company. Sony posted a loss of $312 million in total – the majority of which was attributed to its television and mobile divisions. Sigh.
[source sony.net]
Comments 23
I feel sorry for them. While bankruptcy is inevitable now, Sony could've avoided this. In PS1 and PS2 era, Sony ruled with cheap systems, easy to pirate and a good library (which is why Wii had success, along with gimmicks).
Now, they released a expensive hardware, few 1st party games and almost unhackable. Now, don't give me that bull that piracy hurt sales. It's the other way around: the Nintendo DS owned last gen because it was so easy to hack, but mainly because it had good games.
There are a few things they can do in a attempt to save themselves for further debts:
-Make better games. Uncharted GA was poorly and lazily developed.
-Stop with the proprietary hardware. Vita should have had Micro SD support or at least M2 support.
-Stop copying Nintendo. I know that all companies copy between themselves. Nintendo has a lot of MS and Sony original features (WiiU GamePad, Nintendo Network). But they can get away with that because they make more original stuff. Has the PS Move been nothing more than a blunder? Did the Move improve sales?
-Don't sell overpriced stuff.
With these 4 simple steps, Sony could lower their debts a lot. Do you guys know why Android had much more success than iOS in the past months? Because most of their devices have generic accessories, like Micro SD support, and because it's easy to hack and edit.
If anything, Sony should not imitate Nintendo but Samsung, which has been kicking Sony's ass on almost any electronic device, such as radios, tvs, etc. Even smartphones are way better with Galaxy S3.
Should Sony die, I will have to rely on Nintendo+Steam, which is something I do not want to do. So Please, Hirai, I hope you realize that the cheaper and simpler, the better for the masses.
@UnawareQuagsire It's not quite that bad. There's lots they can do before they cease to exist. Also, I'm not sure where you're coming from with the "few first-party games" comment — Sony consistently publishes high-quality first-party content. Significantly more than the other console manufacturers anyway.
@get2sammyb I know that Sony has more 1st party games...this gen. But they've focused a lot more on multi-platforms. They need to constantly create new characters they can exploit, while not forgetting on the current characters.
PS2 had 3 new Sly Cooper games. PS3 has none.
PS2 had 4 new Jak and Daxter games. PS3
They got cocky at the beginning of this console gen, and now it seems to be bite them in the *** now, hopefully they don't go the way of sega, but it seems like they might, if they keep this up
@UnawareQuagsire I'm still not sure what you're getting at? PS3 has three Uncharted games, but PS2 has none.
I'm also not convinced that your argument of having "easily hackable" hardware helps a company's bottom line. It might improve system sales, yes, but it kills software sales. Remember — these companies make the most money off the sales of games. Hardware usually loses money.
PS Move wasn't really a copy of the Wii-Mote http://www.youtube.com/watch?v=hxLGj4sgM6I and yes Nintendo do seem to get away with a lot of . Nintendo Land which is a knock off of Playstation Home and Wii-U Pro controller which is also a horrible rip-off of the 360 controller, even Microsoft themselves said it. Xbox controllers were more design for shooters, Nintendo is more of for platformers and while the Playstation controllers is more suit for fighters. I was very disappointed when I saw the pro controller, playing the up coming super smash bros. on that gonna feel uncomfortable, same goes for the platformers. Nothing beat the gamecube controller for those genre. All I want and hope that there is a gamecube like controller by the time the new smash bros. is release. I don't know what to say about this article, all I'm gonna say is they better do good next gen and drop the prices of those memory sticks and maybe drop down $50 off of vita making it a bit more affordable. How can they went from top to bottom? I really don't wanna see another dreamcast. Losing the dreamcast was terrible, but losing playstation will just be as bad.
@UnawareQuagsire: PS3 has a Sly game, too...it's releasing in just a few months, in case you hadn't noticed. But more importantly: When you have the same superb developers making new, DIFFERENT games (InFamous and Uncharted in the case of your examples), you can't really have them making MORE sequels at the same time (except for Insomniac...they must really live up to their name to pull that off). And you just complained that Uncharted: GA wasn't good (it had it problems, but I liked it)...a game that was developed by a different studio. So my point is that you need to MAKE UP YOUR MIND! You cannot have it both ways no matter how much you want to.
@MorriganFan: Okay...never heard someone compare Nintendo Land, which is a collection of minigames, to PlayStation Home, which is an absurd waste of time.
You know what's funny? The Vita isn't selling well, and there aren't that many great games out for it yet. This reminds me of...the first year of the PS3. Now that machine is kicking butt; only reason sales are down from last year is that people are buying less stuff in general...recession, you'll recall. Besides, the PS3 has been out so long, most people who would want one have one anyway. That's bound to happen eventually.
we at looking at samsung playstation soon maybe...
@Stuffgamer1 The comparisons to PS3 are very true, yes. At the time, people were saying Sony should just pull the plug on the console, and release the PS4 early. It's kind of funny to look back on that, because it was very prevalent in 2007/2008.
Doesn't make the Vita's situation any less desperate, though. It's still too early to say anything really, but you get the feeling something needs to change.
the vita is good but sony ruin it...they dun know how to sell products anymore...
@Stuffgamer1 I agree with you that the ps3 had a rough start but the difference between the ps3 and the vita is that the ps3 offer some exclusive games that you cant get on any other platforms. Games that most gamers want and willing to throw money down to buy a brand new console. as much as I like the ps vita most games that is released on it you can get for a ps3 which pretty much telling people you dont have to buy a vita to play this game, just spend $60 instead of $300. What the Vita need is triple A exclusives that you cant get anywhere else forcing people to buy the system in order to play the game and make it that you can remote play using the PS3, but the requirement is to get it for the vita. You dont see a lot of 3Ds games released for the Wii thats why the 3Ds is so successful. They will also need to drop the Vita price and at this point I dont think $50 price drop will work, you have to hit the market hard and fast. Do something dramatic that will cause consumers to buy without thinking about it. This also include dropping prices on memory cards as well.
Sony is so proud of their name that they are becoming very stubborn. They fail to see that at this point in time with the economy down people will not buy anything that they dont really need. Sony need to show their consumers why is it worth it to buy the vita.
1. Remote play with PS3
2. Exclusive games only on Vita
3. Backward compatibility with ps1 and ps2 games
4. Dedicated app store for Sony that provide cheap IOS like games
5. Cheaper Propriety cards
6. Lower the price on the Vita by a lot (Vita costing as much as a PS3 seems ridiculous to me). Take the lost hit but sooner or later you will make it back in software sales. After all it is software sales that keeps the console alive. Once Vita hardware are flying off the shelves, it will be easier to convince developers to make games for the ps vita and this include games like Kingdom hearts, monster hunter, and other exclusives that been selling like hot cakes.
Most of the stuff i've listed is what Sony promised but so far we havent seen most.
I hope that Stuffgamer is right, and the Vita is just mirroring the slow start of the PS3, but I think a significant part of the problem is the way Sony is yanking the chain of the early adopters and making false promises. If they delivered on all of their promises, then it would be easy to say that sales will pick up later when the games come out, but they're also dealing with bad publicity at the same time. I can't help but think that the Vita would be a much bigger success already if they would just listen to their fans' constructive criticism.
1) get the ps1 classics on there
2) open up the floodgates on all PSP games and minis, stop it with this crappy flagging for transfer crap. If a game proves to have a hacking exploit, take it off the store, fix it, and put it back.
3)unlock remote play. If hackers can do it, then it is technically possible and Sony should do it because they promised it.
4)let vita trophies be viewable on the PS3
@Stuffgamer1 That's because fanboys stay quiet. If it was the other way around, all hell would've broken loose all over the internet just like it had for PSASBR.
Something that would be awesome if nintendo , sony and microsoft made a deal to make a game that would cross play with ps3 and Xbox 320 or ps move and nintendo wii/wii u and Xbox kinect or a crossplay between psp or ps vita or nitendo ds/3DS/DSi/3DS XL.
This way the three companies will stand against mobile gaming
I was realy sad when the psp go failed sony didnt care about it anymore i always felt left out i hope sony doesnt do the same to vita because i am thinking of buying one
Might be they should stop focusing on Japan, and take good care about the western market, this is where Sony may look for salvation.
It's a shame because imo of all the 'big 3' Sony has best tried to take care of the 'core' gamers the last few years but has nothing to show for it, which is in particular stark contrast to MS which has been rewarded with the best sales its ever seen in the game industry despite completely giving up on the 'core' which is disgusting to see. Sony has introduced some great new first party IPs with more on the way and brought back some established ones as well. And the Vita is a great piece of hardware that should be seeing much better sales but unfortunately they have done a poor job of transitioning. The good thing is they've acknowledged they've made some mistakes in that regard so I'm holding out hope they can get things going in the right direction soon.
@MorriganFan - Oh dear...where to begin.
First - Yes, it's true that the Wii Remote wasn't a new technological creaton of Nintendo's (in fact, they operate their business on making new uses of off-the shelf tech), but the PS Move was definitely a reaction to the Wii - Sony themselves even admitted as much.
Second - How is Nintendo Land in any way like Playstation Home? The former is a quasi-minigame collection, the latter is an online space for PS3 users. Or, do you mean Miiverse? If that's the case, then a) there is still very little known about Nintendo's online community, and b) Miiverse looks NOTHING like PS Home.
Third - The Pro Controller is a rip-off of Xbox 360? Like how the Xbox controller is a rip-off of the Dual Shock, which in turn is a rip-off of the SNES controller? Nintendo created the D-Pad, Shoulder Buttons, AND the 'diamond' button layout - Sony and M$ are damn lucky that Nintendo don't ask for royalties. Oh, and by most accounts that I've read, the Wii U Pro Controller is in fact very comfortable.
@Gamer83 - I disagree. All three companies have done a great job of catering to the 'core' this gen. There have been a ton of great titles for all consoles, but most 'hardcore' gamers simply refuse to see the forest because of all those darn trees; Nintendo, Sony and Microsoft have ALL made concerted efforts to reel in the 'casual' gamers, which bunched everyone's panties in a wad.
@get2sammyb - You said that "Sony consistently publishes high-quality first-party content. Significantly more than the other console manufacturers anyway." Did you mean that Sony has published a higher percentage of critcally aclaimed titles? Or did you mean they simply published the most titles?
I'm not trying to start anything...I was just under the impression that the the Wii had the most 1st party published titles?
I would've thought that we'd be seeing more downloadable games land on Vita by now. This drought reminds me of the 3DS drought to a tee, as there's no way to spin it, it's just frustrating.
@Kage_88
We'll have to agree to disagree. At least as far as Nintendo is concerned, I give that company a pass because it isn't really that much different now than it was back in the day. The only reason people piss and moan more about Nintendo now is because the Wii is a far less powerful machine than what the competition has on offer and the company talked more about the casual market than in generations past. But the Marios, Metroids and Zeldas were still there. Smash Bros., Mario Kart, it brought back Punch-Out!! and Donkey Kong Country and even some of the 'casual' efforts such as Wii Sports and Wii Sports Resort were very fun, well made games. So I'd disagree with anybody who says Nintendo doesn't have something great on offer for all kinds of gamers but it is fair to say that with stuff like Wii Fit, Music, Play, Animal Crossing, etc that the main focus was more 'casual.'
MS is the company that disgusts me beyond on belief though, I will never agree that its done a great job on catering to the 'core' market because since 2009 it absolutely has not. Just look at the last 4 E3 conferences, Kinect this, Kinect that, Kinect every damn frickin' thing that exists, enough with this useless bs already. Ever since the corporate dbags like Phil Spencer and Steve Ballmer took over to appease the share holders and forced out real gaming people like Peter Moore and Shane Kim the Xbox brand has become a total pile of dog crap (to put it mildly) and this is from somebody who was a staunch supporter of the Xbox brand. Literally the only thing MS has on offer for the 'core' is Halo and even that is in danger of being run into the ground. No decent exclusives outside of that game what so ever. Xbox Live Arcade used to be another plus for the brand but Sony has rapidly caught up to and is well on its way to surpassing MS on the digital distribution front so XBLA isn't really worth a damn anymore either. As soon as Epic gets smart and realizes it can make more money by branching out to other brands, there will be nothing that third parties provide for the Xbox that can't be found elsewhere.
Sony may have tried with Move to get some of the casual pie and that's absolutely fine. I have no problem with them pimping out this Wonderbook stuff because for people like me there's still The Last of Us on the way and I'm sure many are interested in Beyond. What new 'core' IP does MS have and that doesn't involve the steaming pile of junk known as Kinect? It doesn't have one, Xbox from here on out will strictly be a casual app device that really shouldn't exist, but sadly the clueless North American consumers will keep it afloat. I however will not be buying the next console from MS unless I see a massive change in direction from the company. I don't mind more of the focus going to casual gaming, Nintendo does that but I still buy its systems because I know it will have games for the 'core' as well. MS seems to think the only thing that market needs is Halo and well simply put one game is not enough and if that thinking doesn't change, MS really doesn't deserve to be a big player in the game industry.
there are various reasons for poor sales of the ps vita and games,like both are way too costly ,a lot of games are the same price to download from the playstation store as they are to buy in physical form in a shop and thats not right,memory cards the same ,i must admit i do have a ps vita as its a fantastic bit of kit ,also unless im watching the wrong telly in the uk,ive never seen any advertising on telly for the ps vita unlike nintendo which is on most days but at the end of the day all consoles are about the games,all this cross play with the ps3 is fine but not everyone has a ps3 believe it or not so a lot of great games dedicated just to the ps vita need to come soon and yes i do know that its still early days for the ps vita and i really do hope it survives not just for sony but for all the gamers who use the ps vita and playstion in general,i certainly dont want it to go the way of the ps go
@Gamer83 - Yeah, I see your point.
And to be honest, I'm not the biggest Xbox fan in the world. Aside from Halo, I cannot think of any M$-exclusive games I'm interested in. In addition, the whole 'Red Ring of Death' debacle - along with being forced to pay a monthly fee for online gaming - has really soured me on the entire brand. Doing despicable things such as nabbing exclusive rights to DLC (for games such as CoD and Skyrim) also isn't something they should be boasting about, either.
Great point about the DLC, it's really gotten out of control. Sony does it too but I give Sony a pass because the company also pumps out a lot of AAA first-party content both at retail and on PSN. Sadly though, MS must be having great success with the timed-exclusive DLC otherwise it's a practice that probably would've stopped by now. Again, being rewarded by people for something that is useless in the long run.
I also wish XBL was free but that's one service MS has that I can't complain about because I actually do pay for it. Most of my friends game on Xbox 360 because at the start of this gen it was a better deal (in the short term) than the PS3, so they all went with MS and the only way I could continue to game with them (we all live in different parts of the country) was through XBL. It is a good online setup but $60 a year just to play online and not get any other bonuses- such as the hundreds of dollars a PS plus subscription will save you- is ridiculous and another thing that will drive me far away from Xbox in the next gen especially if PS4 comes out around the same time and has a comparable price tag. I'm hopeful Sony has learned some lessons from the early days of PS3 and is prepared to do better next time otherwise it will either have to adapt and follow many of MS' practices or we may lose the PS brand all together and to be brutally honest, a game industry without Playstation would just completely suck.
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