Official Sony Q1 (April-June) 2008 Financials Thread

[Carl B]

Sony reported their 1st quarter results today. For purposes of normalizing currency, use 106/yen to the dollar.

Net profit was down roughly 50% vs Q1 '07 to 34.7 billion yen for the quarter, stemming mainly from the large decrease in profitability over at affiliate Sony-Ericsson. Bravia sales are going well (seemingly), but Handycam and Cyber-Shot cameras are facing greater competition.

Gaming was profitable with 5.4 billion yen in operating income, vs a 29.2 billion yen loss in Q1 last year.

Although hardware sales increased, overall software sales decreased due to PS2.* Here's some hardware sales figures:

PS2 sold 1.51 million units, vs 2.66 in Q1 07.

PSP sold 3.72 million units, vs 2.13 in Q1 07.

PS3 sold 1.56 million units, vs 0.70 in Q1 07.

* Although the statement says software sales decreased overall, the numbers given seem to show an increase, so who knows where the error is.

Here are software sales:

PS2 sold 19.3 million units, vs 31.1 in Q1 07.

PSP sold 11.8 million units, vs 9.8 in Q1 07.

PS3 sold 22.8 million units, vs 4.7 in Q1 07.


For the fiscal year, Sony has revised full year group profit estimates downwards from 290 billion yen to 240 billion yen.


http://www.sony.net/SonyInfo/IR/financial/fr/08q1_sony.pdf

 

[Arwin]

Gaming was profitable with 5.4 billion yen in operating income, vs a 29.2 billion yen loss in Q1 last year.

That's good news for Sony. Looks like PS3 will be contributing positively from this year onwards.

 

[Carl B]

That's good news for Sony. Looks like PS3 will be contributing positively from this year onwards.

Well, gaming at least... I don't know about PS3 specifically just yet.

 

[Shifty Geezer]

The most noteworthy point is the software sales increase. After a very slow start PS3 is finally moving software which must be a welcome relief for developers!

 

[Arwin]

Well, gaming at least... I don't know about PS3 specifically just yet.

Obviously. Hardware is never the big money maker in console land. *glances towards Nintendo* Or at least, not the biggest.

 

[Carl B]

I just meant that PS3 is probably still a money-losing operation overall; I think PS2 and PSP are still the profit drivers, it's just PS3 loses less (and that's inclusive of software). I'm going to listen to their conference call in a little; hopefully something will be clarified in terms of the software units shipped, because either the numbers given or the statement that they are lower overall... one of those is off.

 

[eastmen]

we also haven't hit the holidays yet. Moving a few million units over a quarter in each territory could be alot diffrent in terms of finanices than moving 1.6m, that is if they are still taking large losses on hardware.

But its a very good sign for the ps3 over all

 

[Carl B]

we also haven't hit the holidays yet. Moving a few million units over a quarter in each territory could be alot diffrent in terms of finanices than moving 1.6m, that is if they are still taking large losses on hardware.

Selling a lot of units is definitely better than not... to say nothing of the software sales that accompany. Remember, the charges are booked on making the things, not on selling them. To that end also, it's worth noting that on-hand hardware inventory is much lower at the end of Q108 than it was Q107, so it seems Sony has found a comfortable groove in terms of production/shipment.

 

[eastmen]

yes but sony stil has to make those systems and ship them out when the holiday comes is what i'm saying. if they need to produce 5m consoles and loose say 10 bucks on each that is 50m losses . on 1.6m that is only 16m . So they would have to make another 34m by selling games or other things to make up that money.

So if they are still loosing money on each system making more of htem is going to cost them more and will take more to recoup.

So its interesting to see what it will look like later in the year .

 

[Nesh]

yes but sony stil has to make those systems and ship them out when the holiday comes is what i'm saying. if they need to produce 5m consoles and loose say 10 bucks on each that is 50m losses . on 1.6m that is only 16m . So they would have to make another 34m by selling games or other things to make up that money.

So if they are still loosing money on each system making more of htem is going to cost them more and will take more to recoup.

So its interesting to see what it will look like later in the year .

Ever heard of long term targets?

 

[Carl B]

Lose, not loose. I will flip out on that, believe me!

Yes though, you're right that production should ramp ahead of the holidays, and that will be a greater loss-generator on the hardware front, assuming a commensurate rise in component sourcing. I think the holidays though are exactly the kind of time when increased hardware sales have a chance to be rewarded with increased software sales. Anyway... two quarters away before we know the answer for this year, but point taken.

 

[liolio]

For this holydays could also the ps2 sales (soft & hard) collpase for good?
And thus cutting some revenues from Sony?

 

[Carl B]

For this holydays could also the ps2 sales (soft & hard) collpase for good?
And thus cutting some revenues from Sony?

Revenues probably will be readily offset by PS3, but profits, potentially. I don't think PS2 will 'collapse' though, just because Sony is increasingly pushing it in developing markets. Also, they've already gone on record as indicating they'll drop the price to $99 vs $129 before it sees twilight, so I think there's a good couple of years left for the system.

 

[Shifty Geezer]

Not if they are successful in establishing PS2 in emergent markets. There was a reason for another PS2 revision, which wouldn't make sense if the platform was on the out.

 

[Rangers]

Q end 6/30/08 cumulative WW shipments:

PS3=14.41 m
360=20.3 m

Q ended 6/30/08 quarterly WW shipments

PS3=1.56 m
360= 1.3 m

I pay close attention to these because they're the closest thing we have to reliable WW sales. Also, all companies now use "sold to retail" as shipped, so they're much closer to real sales than they used to be. There are still a lot of vagaries involved with ship vs sold however, and of course a good deal of lag time.

Previous Q PS3 gained nearly 1m units WW on 360 (2.24 vs 1.3) so I'm not sure why the relative decline. Either PS3 is performing weaker in Europe or PS3 had excess stock from prior.

 

[betan]

Q end 6/30/08 cumulative WW shipments:

PS3=14.41 m
360=20.3 m

Q ended 6/30/08 quarterly WW shipments

PS3=1.56 m
360= 1.3 m

Any software sales for 360?

 

[eastmen]

Lose, not loose. I will flip out on that, believe me!

Yes though, you're right that production should ramp ahead of the holidays, and that will be a greater loss-generator on the hardware front, assuming a commensurate rise in component sourcing. I think the holidays though are exactly the kind of time when increased hardware sales have a chance to be rewarded with increased software sales. Anyway... two quarters away before we know the answer for this year, but point taken.

yes the software should increase even more which is why its interesting ot me if they make or loose twisted) money this holiday season. It will show us how expensive the ps3 really is .

 

[deepbrown]

Q end 6/30/08 cumulative WW shipments:

PS3=14.41 m
360=20.3 m

Q ended 6/30/08 quarterly WW shipments

PS3=1.56 m
360= 1.3 m

I pay close attention to these because they're the closest thing we have to reliable WW sales. Also, all companies now use "sold to retail" as shipped, so they're much closer to real sales than they used to be. There are still a lot of vagaries involved with ship vs sold however, and of course a good deal of lag time.

Previous Q PS3 gained nearly 1m units WW on 360 (2.24 vs 1.3) so I'm not sure why the relative decline. Either PS3 is performing weaker in Europe or PS3 had excess stock from prior.

uh.where are your 360 numbers from? I don't believe both companies are counting the same. I was under the impression 360 numbers were under 1m.

 

[Nesh]

Previous Q PS3 gained nearly 1m units WW on 360 (2.24 vs 1.3) so I'm not sure why the relative decline. Either PS3 is performing weaker in Europe or PS3 had excess stock from prior.

I thinks thats what they always meant with shipped .

 

[Rangers]

http://www.microsoft.com/msft/earnings/FY08/earn_rel_q4_08.mspx