Sony's Game Division Losses Double Despite Increasing PS3 Sales

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Sony Corp.'s Game division made up by subsidiary Sony Computer Entertainment Inc. revealed operating losses today for the second fiscal quarter of 96.7 billion yen ($841 million). The amount more than doubles last year's losses of 43.5 billion yen for the period of July through September.

Sony attributed the losses, as usual, to selling PlayStation 3 hardware for a loss. But software sales for both PlayStation 2 and PSP titles had decreased as well, with PS2 titles selling 9.2 million units less than last year's second quarter at 38.0 million, and PSP titles down 600,000 units to 12.6 million.

Although PS3 hardware sales can't be compared year-over-year, it nearly doubled its paltry first quarter sales, with Sony selling a relatively high 1.31 million units of the console due most likely to pricing rearrangements. Sony recently cut the price of the 80GB PS3 SKU worldwide and introduced a new 40GB baseline barebones model in all territories, so increased sales reflecting these changes should be posted in the current quarter.

Despite the Game division's grim outlook, Sony Corp. overall came away with a remarkable 73.7 billion yen ($641 million) profit for the quarter, a huge increase over last year's second quarter profits of 1.7 billion yen.

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From The Chatty
  • reply
    October 25, 2007 12:18 PM

    Guess no one wanted to get that second job to buy their overpriced game machine.....

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      October 25, 2007 12:23 PM

      Actually what bothers me more is watching games run at 30fps when their 360 counterparts apparently do not. You pay more.....for less? Someone needs to explain this to me.

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        October 25, 2007 12:41 PM

        It's hard to develop for and it makes more business sense to spend more time developing for the 360 since the install base is larger. You pay more for blu-ray is all that I can come up with.

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          October 25, 2007 12:56 PM

          Well what was all that fuss about PS3 being better hardware-wise?

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            October 25, 2007 1:00 PM

            what fuss?

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            October 25, 2007 1:01 PM

            Its really not...

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            October 25, 2007 1:03 PM

            The cell processor is more powerful but more difficult to program for. So while technically the hardware is better, the games (at least right now) are inferior b/c programmers have a more difficult time making it run/look the same on PS3. Many games now come to 360/PC first and then later on PS3. Hopefully this extra time will allow them to make the PS3 version equal to the PC and 360 counterparts. I think in a year or two we will see the PS3 starting to outclass the 360.

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              October 25, 2007 1:13 PM

              The problem is that the cells are not that great for gaming to begin with.
              Add the fact that the GPU is inferior and that you have less RAM than on the 360

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              October 25, 2007 2:25 PM

              but the 360 has a better GPU and memory architecture that is easy to take advantage of while the Cell is not

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              October 25, 2007 3:02 PM

              "Many games now come to 360/PC first and then later on PS3. Hopefully this extra time will allow them to make the PS3 version equal to the PC and 360 counterparts."

              Let me tell you a secret. If a game is taking extra time to come to PS3 over PC/360 from the same developer, generally that means that the PS3 version is months behind the 360 version and probably they have given up on it coming out at the same time so they just have been giving 360 love because it is the release date hanging over their head that is closest, and when the 360 version ships, they are racing to get the PS3 version up to date and bring the poor framerate up over 20FPS and hopefully at 30, and then after that, they just want to GET IT OUT THE DOOR, because it was probably not supposed to come out on the same date as the 360, and now it is late.

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            October 25, 2007 2:08 PM

            But.. But... Fold @ home? I'm saving the world and a cheerleader?

            /Not dumb enough to actually own one

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            October 25, 2007 5:54 PM

            you pay more for better technology, blu-ray, swap-out hard drive, built in wi-fi, blue tooth, hdmi, everything works better, system menu is quicker to navigate, controllers connect faster...and cell processor which may or may not be a huge advantage if anyone ever decided to try to take advantage of it...of coarse all of this means nothing when theres no games, but to say the system itself is bad is just damn belligerent

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        October 25, 2007 12:54 PM

        [deleted]

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        October 25, 2007 1:45 PM

        The 360 has a year lead in programming experience, and multiple developers have noted that it's easier to program for.

        Correct me if I'm wrong, but that's pretty much everything in a nutshell.

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          October 25, 2007 11:48 PM

          That and it's already turning around. Ratchet and Clank is pretty much the best looking game I've seen to date on any system and it runs at a rock solid 60FPS.

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      October 25, 2007 2:30 PM

      my dad bought me one...YIPPIE for being spoiled. The problem after that is that there is NO games. Okay, mabey 2 at most that are worth buying. Other than that they are all crap or better on other systems.

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        October 25, 2007 3:13 PM

        you still got a god of war coming :D i hope they port if afterwards, because i'm not buying a PSP for sure.

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