advertisement
advertisement

Sony’s Success and the PlayStation 3 Liability

Sony posted its financials today. And despite a $583 million loss last quarter–the worst in four years–it has a net profit of $1.1 billion for the last year. This profit comes from the strength of their film division and electronics division. The video games division had a $1.9 billion loss for the last year.

Sony posted its financials today. And despite a $583 million loss last quarter–the worst in four years–it has a net profit of $1.1 billion for the last year. This profit comes from the strength of their film division and electronics division. The video games division had a $1.9 billion loss for the last year. As many have said, including myself, the Sony PlayStation 3 looked doomed from the start. Each PS3 is sold at a loss, with sales numbers consistently below sales of Nintendo’s Wii and Microsoft’s Xbox 360.

advertisement

Despite such poor performance, Sony has forecasted that this coming year will result in a record net profit of $2.8 billion. I suspect this forecast is the product of Spider-Man 3’s record-breaking performance and the growing demand for high-definition televisions. I will be surprised if the video game division has a turnaround this year. This fall will find Sony’s competitors at the top of their game–with Halo 3 being released September 25th for the Xbox 360 and Super Mario Galaxy for the Wii expected this holiday. And the high price of the PlayStation 3, at $599, remains a problem.

I believe PlayStation 3 can make a comeback. With a price cut on the console and the delivery of a few major titles, such as Final Fantasy XIII and Metal Gear Solid 4, they can begin a difficult reversal. But I think it will also take Nintendo and Microsoft both stumbling for Sony to regain the #1 spot they had for the last 10 years. If the competition doesn’t falter, I think Sony will be in third place for years to come.

Do you think Sony’s videogame business can make a turnaround? What do they need to do to succeed?

advertisement
advertisement

About the author

His work has also been published by Kill Screen, Tom's Guide, Tech Times, MTV Geek, GameSpot, Gamasutra, Laptop Mag, Co.Create, and Co.Labs. Focusing on the creativity and business of gaming, he is always up for a good interview or an intriguing feature.

More