Sony Profitable, Expects Its PlayStation 4 Launch to Keep It That Way
Subject: General Tech | May 13, 2013 - 11:37 AM | Tim Verry
Tagged: sony, semi-custom business unit, ps4, gaming, financial report, amd
Sony, a company with an annual profit of 436 billion Yen ($458 million USD) in its fiscal year ending March 31, 2013 saw PS3 and PS2 sales decline and a slight bump up in PSP and PS Vita sales. In a recent earnings call covered by Euro Gamer, Chief Financial Officer (CFO) Masaru Kato stated that the company expects this year to be even better with the launch of its upcoming PlayStation 4 console. Sony does not believe it will incur any significant losses with the PS4 and that sales will "increase significantly." Unlike the PS3 which used a Cell chip that was expensive to develop, the PlayStation 4 uses mostly-traditional PC hardware. With the upcoming console, AMD did the majority of the development legwork which saved Sony money. As a result, Sony believes that the PS4 will turn a profit much faster than it took the PS3.
Looking into Sony's next fiscal year ending March 2014, the company is putting a renewed focus on smartphones and smart TVs. In the previous year, Sony saw combined PS3 and PS2 sales decline to $16.5 million from $18 million the prior year. Sony expects to sell approximately $10 million worth of PS3s in the upcoming fiscal year. While the company's PS2 console had a wild ride, it is no longer included in the company's sales forecast. Sales of Sony's mobile PSP and PS Vita gaming consoles are expected to decrease to a mere $5 million as well. Basically, Sony has a lot riding on its PlayStation 4 console. It expects to see its next-generation console make up for the decreased sales of its existing hardware.
Either way, a profitable Sony is a good thing, and I hope that the upcoming console is priced to sell while also resulting in a tidy profit for the company. I expect the Xbox-PS3-PC gamer flame-war to be especially entertaining this year, as the consoles are essentially using lower-end PC hardware (heh) and the two consoles specs are more-similar than ever.
Get notified when we go live!