The beginning of the PS3 life cycle was not good for the company coffers. The launch period resulted in significant losses for Sony. Q1 2008 for PlayStation resulted in a ¥29.2 billion loss (US$276 million). Look how quickly things have turned around, though. The first quarter of Sony's new fiscal year (April-June) has shown the games division posting a profit, albeit a small one. The games division was responsible for ¥5.4 billion in operating income (or US$51 million).
What's responsible for the startling change in profitability? Strong sales of the PS3 and PSP, of course. PS3 sold 1.56 million units this quarter, more than double that of Q1 2008. More importantly, 22.8 million units of PS3 software were sold during this time, an increase of 385% from the same period last year. PSP sold 3.72 million units that quarter as well.
This news will undoubtedly come as good news for investors. However, with so much money still lost on the PS3, Sony will need a few more quarters of strong earnings to recoup the costs of launching the PS3 into our homes.
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Good for you Sony Game Division.
wow, finally, MSG4 to the rescue i'm guessing as one of the contributing factors
Yeah, I'd say the fact that blu ray won the war and MGS4 are two huge factors. I bet many more people will be picking up PS3s this holiday season. It may be because the Wii will still be sold out or that they've got a brand new HDTV and want to get a blu ray player but I see them selling strong at that time.
Yea, will the PS3 price drop it's pretty much the cheapest Blu-Ray player out there, and Blu-Ray kicked HD DVD's a$$.
