78% of Sony's Q1 2016 Profits Came From Playstation Division (Gaming and Network Services)
16 replies, posted
[quote]The company reported the results of its first fiscal quarter today, and it revealed that it generated $3.2 billion in revenues from its game and network services division during the three-month period ending June 30. That is up 14.5 percent from the same period in 2015. This segment of Sony’s business also brought in $427 million in operating income, which is up a massive 126.3 percent year-over-year. That makes up 78 percent of the company’s $546 million in quarterly profits. Sony has the dominant console in the $99.6 billion worldwide gaming business, and the PlayStation 4 is turning into one of its most important money makers.
Sony points out that the increase in its sales is primarily due to games and not new hardware sales.
“This significant increase was primarily due to a significant increase in PS4 software sales including sales through the [PlayStation Network], partially offset by the impact of foreign exchange rates and decreases in PlayStation 3 hardware and software sales,” reads Sony’s fiscal report.
Overall, Sony’s financials are down year-over-year 10.8 percent to $15.7 billion. And its profits were down 42 percent to $546 million. And you can see that the PlayStation 4 is almost single-handedly responsible for the entirety of Sony’s income. In the company’s financial report, it points to the 2016 Kumamoto earthquake as well as declines in its smartphone, life insurance, and semiconductor businesses as dragging down its performance. The PS4, meanwhile, is the only things offsetting the retraction of the other business segments.[/quote]
[url=http://venturebeat.com/2016/07/28/sonys-playstation-division-accounted-for-78-of-its-q1-2016-profits/]Venture Beat[/url], via [url=http://www.sony.net/SonyInfo/IR/library/fr/16q1_sony.pdf]Sony's consolidated report[/url]
That's terrible, considering how big the movies and eletronics divisions are.
[QUOTE=Ragekipz;50795678]That's terrible, considering how big the movies and eletronics divisions are.[/QUOTE]
They only released 2 films in Q1 of 2016. (3 if you count Concussion which released December 25th.)
1.7billion from 3 films and DVD sales from films released in Q4 of 2015 isn't bad.
[QUOTE=Chains!;50795793]They only released 2 films in Q1 of 2016. (3 if you count Concussion which released December 25th.)
1.7billion from 3 films and DVD sales from films released in Q4 of 2015 isn't bad.[/QUOTE]
It's bad when you see other major companies make well over that in the ticket sales of just one movie.
Somy needs to downsize.
[QUOTE=LTJGPliskin;50796086]It's bad when you see other major companies make well over that in the ticket sales of just one movie.
Somy needs to downsize.[/QUOTE]
The only movies that made more than that from ticket sales are Titanic, Avatar and Star Wars 7.
In Q1 the movies they released made $200m, so they made 1.5bil from DVDs/Digital and other releases.
Their phones are soooo underrated.
The Z5 line is pretty awesome.
[QUOTE=Rocâ„¢;50796275]Their phones are soooo underrated.
The Z5 line is pretty awesome.[/QUOTE]
I've been rocking the Xperia Z Ultra, 6'2" phone and rocks my socks off. Great phone.
Why? The bigger the phone the better.
I wonder how long Sony can keep bleeding out cash
[editline]29th July 2016[/editline]
[QUOTE=Chains!;50796134]The only movies that made more than that from ticket sales are Titanic, Avatar and Star Wars 7.
In Q1 the movies they released made $200m, so they made 1.5bil from DVDs/Digital and other releases.[/QUOTE]
Their ticket sales are still mediocre, a lot of them lately have barley broke even. And Ghostbusters which was suppose to be there cash cow was a disappointment.
Crazy to think that somewhere around 5 years ago Playstation was one of the most unprofitable divisions.
[QUOTE=Saxon;50796500]I wonder how long Sony can keep bleeding out cash
[editline]29th July 2016[/editline]
Their ticket sales are still mediocre, a lot of them lately have barley broke even. And Ghostbusters which was suppose to be there cash cow was a disappointment.[/QUOTE]
Disappointment is putting it lightly.
Right now its sitting at a solid 180 mil loss barring a miracle.
[QUOTE=AaronM202;50796634]Disappointment is putting it lightly.
Right now its sitting at a solid 180 mil loss barring a miracle.[/QUOTE]
And it still hasn't made back its production budget alone.
Hopefully Feigbusters will be remembered as a prime example of how NOT to market a movie.
[QUOTE=Megalan;50796566]Crazy to think that somewhere around 5 years ago Playstation was one of the most unprofitable divisions.[/QUOTE]
The Vita section probably still is. But the PS4 took the world by storm like how the PS2 did, even if not to the same memorable success level due to the prevalence of multi-platform nowadays. At this point Sony's been downsizing almost everything not relating to Playstation because they've been bleeding their money on all these different things that just aren't working out.
[QUOTE=LTJGPliskin;50796756]And it still hasn't made back its production budget alone.
Hopefully Feigbusters will be remembered as a prime example of how NOT to market a movie.[/QUOTE]
Uh... Yeah.
Thats what i said. The movie is a net loss of 180 million dollars so far.
[QUOTE=Saxon;50796500]I wonder how long Sony can keep bleeding out cash
[editline]29th July 2016[/editline]
Their ticket sales are still mediocre, a lot of them lately have barley broke even. And Ghostbusters which was suppose to be there cash cow was a disappointment.[/QUOTE]
The hole with Ghostbusters is deeper. They wanted to do a shared universe franchise. From what I could gather, they want to make a sequel, a male Ghostbusters spinoff and slimer spinoff. I don't think any of that is going to get made if this tank.
[QUOTE=Megalan;50796566]Crazy to think that somewhere around 5 years ago Playstation was one of the most unprofitable divisions.[/QUOTE]
I still see Microsoft as that "Window" company and not really as the Xbox company
I can't get over the fact that the xbox is a gaming console
Are you sure it's not .. a multimedia box?
I also see them as "That company who saw the success of sony and wanted to do the same thing as them to profit"
I can't get the "For the gamers" of microsoft compared to Sony
Is it nostalgia (because PS1 which was a turning point for gaming?) ?
Also, Sony really nailed it on the PS4. They got a really good lineup and they didn't made the errors of microsoft (which is good for me) in the business market : Opening your games on PC. That totally destroyed Xbox as a console IMO. I don't have any reasons to buy an Xbox.
Whereas on PS4 there is many games find able only there. Uncharted 4 and Bloodborn being an example of this. I have reason to buy a PS4.
[QUOTE=ApertureXS200;50797280]I still see Microsoft as that "Window" company and not really as the Xbox company
I can't get over the fact that the xbox is a gaming console
Are you sure it's not .. a multimedia box?
I also see them as "That company who saw the success of sony and wanted to do the same thing as them to profit"
I can't get the "For the gamers" of microsoft compared to Sony
Is it nostalgia (because PS1 which was a turning point for gaming?) ?
Also, Sony really nailed it on the PS4. They got a really good lineup and they didn't made the errors of microsoft (which is good for me) in the business market : Opening your games on PC. That totally destroyed Xbox as a console IMO. I don't have any reasons to buy an Xbox.
Whereas on PS4 there is many games find able only there. Uncharted 4 and Bloodborn being an example of this. I have reason to buy a PS4.[/QUOTE]
In the grand scheme of things there isn't a big reason to buy most game consoles. A short list of platform exclusives is often pointed at as the sole reason to buy one, but the reality is the best selling games in the broader market are almost always cross platform. Plenty of people simply enjoy using a console, whether or not the games are available elsewhere, be it steam, gog, windows store etc. Xbox as a brand isn't a zero sum "game" if you will, them offering titles on more platforms doesn't mean that a static number of customers will be spread over two ways to play. The witcher 3 being sold on GoG/steam doesn't make the other one irrelevant. It's all about choice from a customer standpoint, and offering people that might not otherwise buy something at all another avenue.
Exclusives can attract attention to a brand, but what if that branding is now available over multiple platforms? Multi-platform games are always the biggest earners for a reason, most people aren't willing to buy into multiple systems to play video games.
[QUOTE=ApertureXS200;50797280]I still see Microsoft as that "Window" company and not really as the Xbox company
[/QUOTE]
And you see Sony as the Playstation company? I guess they have been moving towards that lately, which is a bit sad since they used to be known for their other quality products.
[QUOTE=ApertureXS200;50797280]
Also, Sony really nailed it on the PS4. They got a really good lineup and they didn't made the errors of microsoft (which is good for me) in the business market : Opening your games on PC. That totally destroyed Xbox as a console IMO. I don't have any reasons to buy an Xbox.
Whereas on PS4 there is many games find able only there. Uncharted 4 and Bloodborn being an example of this. I have reason to buy a PS4.[/QUOTE]
You like Sony for forcing you to buy a PS4. I can play Microsoft games without having to buy a console with poor specs. I like that.
If I wanted to play games on my TV, I could easily plug my computer into my TV and play games on the big screen.
I really can't understand how it is good for you that you HAVE to play Sony games on a console. Microsoft is giving you the choice of buying their console to play their games, or just buying them on your PC.
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