PS3 has lost Sony $4.7 billion, may be profitable next year

Posted by Mister-X on October 30th, 2009 at 12:15pm

First the bad news: Sony's recently released FY Q2 2009 financial report included some pretty upsetting figures for investors to witness -- namely, that the company's "Networked Products and Services" division, which includes video game hardware and software sales, reported a ¥58.8 billion (or $654 million) operating loss during the quarter. The drop off was attributed to "a decrease in PS2 hardware and software unit sales, and the impact of the appreciation of the yen." Indeed, the PS2 took a hit this quarter to the tune of 600,000 units year-over year.

Now, the worse news: The financial report included enough data for various GAFers and VG247ers to slap a number on the amount of money that the PS3 has lost Sony: $4.695 billion. Sure, that number seems outrageously high -- because, well, it is -- but it's hardly an apocalyptic loss. Actually, it's reminiscent of losses incurred by Microsoft with the release of the original Xbox, which drained the company of $4.202 billion over a similar four-year period.

Finally, the good news: Shortly after the financial report was published, Sony CFO Nobuyuki Oneda claimed the PS3 was getting cheaper to produce, stating, "the difference between sales and materials cost has been reduced to between 10 and 20%. Within the year, it could be in the single digits." He later added, "we'll be able to reach profitability at some point in the next term." Considering PS3 sales jumped 800,000 year-over-year with the launch of the Slim, we've got a bit of advice to aid in this endeavor: Keep making it skinnier.

PS3 has lost Sony $4.7 billion, may be profitable next year originally appeared on Joystiq on Fri, 30 Oct 2009 11:15:00 EST. Please see our terms for use of feeds.