Sony has released their Q3 Financial Report, which contains a bit of good news mixed in with the bad.
First, the bad. The report finds that Sony’s game division profits is down 86.4% on last year. This was caused by a drop in PS3 and PSP sales by 15.1% on last year. The PSP’s declining sales are attributed to the release of the PS Vita. PS3 sales decline is attributed to the extremely long 7th generation of consoles.
“Overall segment sales decreased significantly due to lower sales of hardware and software of the PS3 and PSP, partially offset by the sales of the PlayStation Vita introduced in December 2011,” reads the report. “Primarily due to the lowering of the annual unit sales forecast for portable hardware, sales and operating income are expected to be lower than the November forecast… Sales and operating income are expected to decrease significantly year-on-year.”
So, what’s the good news? Despite still not making a profit the company is beginning to turn around from is disastrous last couple of years. As of now, the company has an operating income of $954 million compared to last year’s operating loss of $730 million. This for sure means that Kaz Hirai’s reshuffling appears to be taking effect.
Expect Sony to attempt to turn this all around on February 20 where they are expected to reveal the PS4. Hopefully, a brand new console will drive even more sales. It is unknown what the company will do to stimulate PS Vita sales (Portable targets have been slashed from 10 million to 7 million).