The reason behind Microsoft’s temporary Xbox One price drop is looking clearer by the minute: Sony has now shipped 13.5 million PlayStation 4 consoles worldwide – and it hasn’t even been out a year yet. The company added 3.3 million units to the system’s total tally in the quarter spanning July to September, boosting game division revenue by a whopping 84 per cent year-over-year.
It’s worth remembering that the platform holder announced that it had sold 10 million units to consumers in early August, which suggests that stock isn’t simply sitting on store shelves. As such, you can pretty much bank on the abovementioned figure more or less reflecting the next-gen console’s install base right now. And the busiest months of the year are still to come.
This number actually puts the PS4 ahead of the Nintendo Wii, which shipped just over 13 million units in the same timeframe. It’s worth remembering that the motion controlled machine was heavily supply constrained for a long period of time, but let’s take nothing away from Sony here: if this momentum continues through the holidays, it will have the fastest selling format of all time to its name.
That success is evident in its financials, as Sony’s Game and Network division made ¥309.5 billion ($2.7 billion) in revenue for the quarter, and turned a ¥4.2 billion ($37 million) operating loss into a tidy ¥21.8 billion ($195 million) operating profit. Sadly, the PlayStation 3 and Vita didn’t contribute enormously to that, selling 1.5 million units cumulatively.
Also, despite the success of the PS4 as a whole, the Japanese giant is still in dire straits, as the company made a loss of ¥136 billion ($1.2 billion) overall, and it expects that to increase by the end of the financial year, all the way up to ¥230 billion ($2 billion). There’s good news and bad news for gaffer Kaz Hirai, then – but Andrew House and his SCE cohorts will understandably be over the moon.
[source sony.net, via eurogamer.net, neogaf.com]
Comments 49
So basically, the game and network division is currently recouping the loss they are having at the moment, with a few hundred million profit. Okay, so even at a $2 billion loss, the profit is still $700 million if those numbers stay the same. They need to cut that fat to make that $2 billion turn around.
Check dem Fifa stats yo
Shame that Sony Xperia isn't profitable.
Otherwise, it looks pretty good, most of the other divisions are break-even or profitable. Sony Xperia just needs to perform commercially much better. (and it's doable since the quality is there and is outstanding. Just needs to posistion itself in the market better)
@Cyrso
Xperia phones aren't profitable, I think other xperia branded stuff does o.k
Mind blown. It just amazes me that a $400 console that has ports and indies as its best games is selling so well. I can't imagine anybody would have taken Sony seriously if before PS4 launched they said 14m in it's first 12 months. That's nearly double the sales in half the time of the much cheaper and BC Wii U's 7.3m in 2 years. Crazy. Congrats to PS4.
Oh, and for those wondering, I'm thinking "no" on matching the X1 price cut. Why bother? Better to wait for Feb or March if it even needs it then.
@rjejr I (as well as others) have purchased the PS4 as an investment. Yes there are a lot of ports and indies, but there are still a few good ps4 exclusives or even next gen exclusives that I can't get on Wii U. And looking at the first half of 2015 shows even more exclusives. So people are confident that Sony can deliver.
@rjejr It's because, as I keep saying, exclusives don't matter like they used to. Unless you're Halo, Gran Turismo, or one of the many Nintendo franchises, it just doesn't matter. And even then, it's debatable. If exclusives were the be all and end all, the Wii U would be kicking everyone's ass right now.
@zeldagaymer93 - "as an investment"
I know why people are buying it, I'm just really surprised so many are buying it so soon. I bet even some at Sony are surprised how well it's doing. An investment is something that goes up in value, the PS4 will have a slim version (for better or worse, don't like the new slimmer slide cover and 12GB) and more importantly it will go down in price. I mean 14m and it hasn't really had any of it's big hitters - no Uncharted or God of War or Final Fantasy. inFamous and Killzone are nice but I see them as more AA than AAA (whatever that means). And between DriveClub issues, Destiny not being all it was meant to be, the Watch Dog delay, no Titanfall, all the PSN outages. It just casts all the negativity aside. Nothing short of amazing.
@rjejr
I disagree. Not on the part where you're surprised about the sales in what is probably the weakest game year in this decade, but on the pricecut part. I do feel Sony should match it, although things aren't looking too bright for Sony as a whole. The One has a pretty decent line up this holiday and has the better online service as well, this combined with the cheap price will make Xbox One a viable option again. If PS4 matches the price I think people will go for Playstation instinctively, because of all the bad PR surrounding the One, when the price is higher people will start to think about the decision more and are more likely to end up with a One. $50 for a mom who's shopping for Christmas makes a huge difference: it'll net you an extra game, some perfume or a nice tie for dad if you pick the cheaper one.
There is one thing btw how Sony fanboys could distract the possible One buyers: the pricecut on its own seems like a way to sell more units, but today has been announced by AMD that they rebuilt the One processor. It's smaller, more efficient ánd stronger now. This could in fact mean the pricedrop has got more to do with MS need to clear existing stock because a new model might be coming as early as 2015. I wouldnt be surprised. It would be a huge blow in the face of you buy one now and come next e3 there is a better version available: the Xbox One080P.
@get2sammyb - Just missed ya, see above
Is 13m in 11 months really what you expected? If so Wedbush should give you Pachters job;-)
@rjejr I don't know what I expected to be honest. I'm just glad we can put to rest all that nonsense about consoles going out of fashion that preceded the launch of these new machines.
@rjejr I've enjoyed about 20 games or so on ps4, that's not bad for the first year, no, none of them have blown me away, that probably won't happen until Witcher 3, so what?
@Boerewors - Kind of worn out but...
The X1 has had a better line-up since Titanfall. And it had a $100 price cut removing Kinect. And Halo MCC is coming. And Sunset Overdrive. And PS4 keeps kicking it's butt even w/ PSN issues and game delays. And while it's not exclusive LBP3 will be everywhere and Sony will smartly market it as if it's a PS4 exclusive and it will drive system sales - just like MS is doing right now w/ COD and it's 1TB bundle. So if Sony can keep selling as many as it can make, which it seems to be doing, then it doesn't matter what prices the other 2 consoles are. You only cut prices when sales slow down. Sony has a position of strength, not the time to show weakness.
The other thing that I think people that haven't upgraded overlook is that the overall experience of playing on the PS4 is so much better. Yes, technically I can play Destiny on the PS3 as well, but I'd much, much, much rather play it on the PS4.
@rjejr
I'm glad I dont have to be the one to decide this. In my opinion they could deliver the knock out punch if they manage to beat MS on their home turf this holiday season. The more people they can reel in now, the more friends and family will follow later. Online gaming is getting more and more important and fhe bigger the current installbase, the more people will be "forced" into buying your system because thats what their friends and family have.
But I totally see your perspective as well, and looking at Sony as a whole it might probably be the only real option.
So your telling me Sony and PlayStation Sony exist in a few years.
@rjejr "An investment is something that goes up in value"
I think in the instance of buying a console, the investment is payed off from the increase in value gained from new entertaining games and experiences over time, not a financial value...?
@get2sammyb - Yeah, I think that second videogame crash talk was a bit premature 1983 <> 2013.
Even Wii U should sell better this holiday and next year, should pass Dreamcast sales and maybe even catch Gamecube when its all done, and who didn't love that little purple lunchbox.
Has MS really not announced X1 sales since April, Google is drawing a blank? Here's some guesswork I thought you'ld like, all about the 2 console market (even though X1 and Wii U have same total global sales, I just don't get it.)
http://arstechnica.com/gaming/2014/10/analysis-worldwide-ps4-sales-at-least-40-percent-better-than-xbox-one/
@Bad-MuthaAdebis - "none of them have blown me away, ...,so what?"
So you were expecting 13m sold in 11 months w/o the system having any games that "blew you away"? I never said there weren't games, just not games, like Witcher 3 in your case, that would have it selling 2-3x the number of consoles as X1. Do you know what the PS3 sold it's 1st year? 5.5m. PS4 will triple that when it's 12 months are done. Triple is a big deal and a big surprise to me, that's all I said.
I am glad to read you enjoyed 20 games this year, you seemed less than satisfied w/ Destiny.
@get2sammyb - "Destiny on the PS3 as well, but I'd much, much, much rather play it on the PS4."
Well Activion will be happy to read somebody would much, much, much rather play Destiny, regardless of the context
Man, I'm glad I just said I'm surprised by how well PS4 is selling, imagine if I actually would have said something bad about PS4. Now I know how you must feel whenever I go off topic
@get2sammyb Im going to have to completely disagree with you here.
I think exclusives are the ONLY thing relevant to Sony and Nintendo.
If third-partys are all that matter then I believe Sony is truly in trouble and will be dead before no time.
Lets take it to the extreme and remove all first party products (please pull me back from the extreme if you think im off point). This means that the only things differentiating the systems are the hardware, services and OS.
Do you really believe that Sony is better than Microsoft in these 3 areas?
My answer is a firm no. Maybe on hardware, due to design. But I would argue that hardware is the least important of those 3 categories moving into the future.
The only reason I choose Sony over MS at the moment is because I prefer their first party games (and because they chose to go with better specs).
Nintendo are protected from the industry because they continue to do their own thing. Console gaming is moving directly into MS strong points. DriveClub, PSN, anyone??
Wait for Apple, Google. Bye bye Sony. PSNow is what they need to be doubling down on. And even then, I doubt Sony's ability to compete with Apple, google, MS in cloud gaming.
My answer for why the Wii U isnt doing well... SPECS AND MOAR POWAH.
I didn't know the PS4 had a Beast Mode, what kind of animal does it turn into?
@rjejr I enjoyed destiny to a point, it was ultimately disappointing for what it was advertised to be though. You have to consider a lot of people are buying the ps4 that didn't own any of last gens consoles, vita isn't churning out a ton of great games and Sony had moved on from ps3 almost in whole apart from lbp3 and probably a couple of other titles I don't know about.
@HeroOfCybertron Adebayo Akinfenwa
If the PS4 is what is making money for Sony, it would be dumb for them to lower the price. Probably retail stores will have bundles and promos to help move more units without a MSRP slash.
@get2sammyb
I disagree. If exclusives are not that important, I could choose any of the two systems, but of course I will choose the one that is either cheaper or has games that the other one won't get. I would have taken a PS4 by default, but Scalebound, FH2 and SO have me leaning towards the One more and more.
@get2sammyb There's also another factor, because PS4 has a strong core of people who own the system, they will convince their friends to get a PS4 as well now. And to be brutally honest...what does X1 have in games that makes it hugely appealing? Halo MCC you can get on other system, same with Forza. And everyone knows CoD & Assassins are multiplatform. You only need to look at Ubisoft's numbers where all their games sold better on PS4 by 2 to 1 to see how much catching microsoft still has to do.
@rjejr Actually the Xbox One had the better lineup since launch. This is how yanno we are all graphics w**** because if we didn't know the PS4 was more powerful we would be gaming on the One. Xbox One has the better games available. But like Sammy said, exclusives don't even really matter anymore.
@Bad-MuthaAdebis Lol I enjoy Destiny until I got to level 20
@sinalefa @eLarkos Let me clarify: I think exclusives are important in terms of establishing an ethos for a system, but only a handful of exclusive franchises have the mass appeal required to move serious units. Whether you like the games or not, it's the likes of Call of Duty, Assassin's Creed, and Grand Theft Auto that motivate the majority of consumers to purchase consoles.
Ps+ is murdering games for gold. I know a few people that bought a ps4 over an Xbox just for this fact. All these little things add up.
@get2sammyb oh right, yea. So Sony's exclusives are important for Sony whereas GTA etc etc are important for the industry.
@get2sammyb what you just said, true as most humans are mindless automatons
Wow 13 million units and it's not even been an entire year yet.
Hopefully this means there will be a perma price drop down to $300 New and/or a slim model with more HDD space will be released soon.
@dire_distortion lol did you really say ps+ is murdering games with gold? Haha.. yeah I would argue both are pretty lame right now. At least you get to keep the 360 games though. And the fact that Sony started charging for online on ps4 and it hasn't improved in the slightest (could even go as far as saying it's been worse) doesn't bode well for ps+ either. I've actually stopped bothering with the free ps4 games even though I'm a ps+ member. I really only use it for vita games these days.
On another note.. wow. I am blown away at these sales. I'm really psyched for Sony I hope they continue this run to show the world console gaming ain't going nowhere now we just need the xbox one to really make a big push to get upto 10 mill at least. The closer the race, the better it is for all of us! Even if you don't own an xbox one... but if you're able, you most definitely should! Sunset overdrive is amazing. God I can't wait til next year tho when Sony starts releasing some big hitter exclusives.
Dear god!
At PS4 sales and Sony still in the red (that's the term for bad right?)
@DualWielding That's what I said.
@Punished_Boss_84
Problem is, they're not selling as many smartphones, TVs, and robotic dogs as PS4s.
Such negativity here.
I for one disagree with all of you and am currently jumping back on my PS4 for probably the 2000th hour since I bought it at launch. No other console or PC I've owned has gotten this much use, and I'm a serious gamer. I'm loving the exclusives, I'm loving the remasters (yeah, TLoU was "just a port" pfft) and loving most of the indies. I love the controller and even the bloody gimmicks like the controller speaker and light in Transistor. Also, share play is such an amazing idea. I love these things so much I'm pretty much overlooking the PSN and FW issues, as I'm sure they'll stabilise.
If I'm this happy this early into the life of the console, and it's clearly a success, the so-called investment has already paid off; I'm profiting at the moment and the future is bright for me on the PS4 once the big boys really start utilising the capabilities of it.
I'll let you all get back to your grumpy party now. Happy Halloween!
@Gnoll - Yeah those robotic Aibo dogs didnt go over very well. Maybe Nintendo should rethink the amiibo name?
@get2sammyb
exclusives is the only thing Sony has going for it now that Xbone is cheaper, have better O.S and Sony cannot tout free online anymore..... and even on exclusives Xbox is winning at the moment... the only reason I'm still on PS4 camp is because I still hope that PS4 will eventually get the kind of awesome exclusives the PS3 got (not only the first party stuff but also the third party Japanese stuff like Tales, Neptunia, Atelier ect)
@DualWielding
The good news on the exclusive front is that it can only get better. Hell even sequels to Knack and DriveClub couldn't be worse than the original releases.
The PS4s sales continues to be great news, I really enjoy having it along with my WiiU, gaming has been great with these two. That possible $2billion loss is not good though, Sony might need to trim more sections of their failing tech and continue giving PS4 wide berth because this thing it the gaming/tv device to own right now.
I wonder if the Vita is just sitting neutral or if it's part of Sony's loss....or even their gains. Havent used my Vita in an entire month and nothing seems to be on the horizon, other than smaller digital games.
@HeroOfCybertron It turns into a Psfourasaurus
Im waiting for Bloodborne and the new Batman Arkham game. As Im not that fussed for online games or better graphics, PS3 is good enough at the moment. Plus, thats more time to save up!
@get2sammyb I know I read rumors leading up to launch last year(I think some may have been on this site) saying sony expected to ship 15 million ps4s the first year. At the time everyone thought it was some sort of error like they moved a decimal point. Kudos Sony! This is only good news and it will propel devs to take advantage of the new hardware.
I think the fact that there was a 7 year wait between console this generation created a huge market full of consumers ready to jump to something bigger and better. Sony came out on top as the gamer friendly console, Microsoft had some really bad PR, and online player groups made group purchasing desicions. I personally persuaded about a dozen friends who primarily gamed on 360 to buy ps4s. I think this has a snowball effect- you want to play with as many of your friends as possible. For every ps4 sold, that person probably has a dozen or so real life friends who maybe hasn't bought into next gen yet that will check which console their friends already bought before committing to an Xbox one or a ps4. It was very good that Sony established an early lead, I think that will pay of exponentially in the coming years.
@rjejr The PS4 is just that 'dude bro' console to the casual market, I respect the many gamers on here for there love of Sony and the console but most sales are in the reputation of the brand.
@Hero-of-WiiU - "but most sales are in the reputation of the brand."
Yeah, but that counts too.
https://www.youtube.com/watch?v=oI4Tf2iPens
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