View Full Version : Sony gaming division expects to break even by march

10-25-07, 02:01 PM

TOKYO, Oct 25 (Reuters) - Sony Corp (6758.T: Quote, Profile, Research) said on Thursday it would aim to break even or better in its game business in the second half of the business year to March.

Sony's game business posted an operating loss of 96.7 billion yen ($847.6 million) in the July-September quarter, which it attributed partly to selling its PlayStation 3 below what it cost to produce the video game console.

Is Sony just being hopeful, or are they betting on a few unannounced/unreleased titles to bring them ahead? In the least, we will know by the end of March 2008 if the PS3 is a comparative success or failure.

10-25-07, 03:22 PM
Weren't they going to sell 6 million units by the end of the year last year or something?

10-25-07, 04:42 PM


10-25-07, 05:55 PM

"During the quarter Sony sold 1.31 million PlayStation 3s and 10.3 million PS3 software units globally."

Should volume hold the same, which is unlikely going into the christmas season given that console sales typically rise over christmas and then drop significantly aftewards, then we can expect that by march for Sony to sell a additional 2.62million PS3's. This would give them a rough market penetration of ~8-9million consoles, in comparision to the projected ~15-17million 360's and Wii's (seperately).

IMO the PS3 will need to sell substantially better than it has in the last quarter to break even, unless they are betting on production cost reductions.

10-25-07, 10:42 PM
Those software sales numbers aren't bad at all for a single quarter.
The difference is they are up against competitors who demolish those numbers. Microsoft has a single game under it's belt that sold 4 million copies in less than a month- and they've already predicted that by the end of this year they will have over 7 software titles that have sold more than a million copies each. The PS3 can't even come close to these numbers because there simply aren't enough consoles being sold

Worldwide games that have sold over a million copies:

PS3 has only 2 games, accounting for 3 million total
X360 has 26, accounts for over 44 million

The Wii has done well too, but I honestly think that the actual hardware itself is what sells the Wii. For the PS3 and X360, software is what will sell the system. PS3 needs games, and before the holidays- or they are in deep debt that won't be gotton out of before 2009