PS3 Sales Targets Lowered as Games Division Turns a Profit
By Chris on Tuesday, February 5th, 2008 at 3:03 AM PST In Game Companies, Game Consoles, Game Platforms, Games Industry, Portable, Sony, Sony, Sony
Thanks to continued sales from the PlayStation 2, a resurgence of PlayStation Portable sales and a combination of price cuts and increased sales of the PlayStation 3 have helped Sony’s games division to turn a profit for the third fiscal quarter, which ended December 31. Profits were at $121 million, which is a huge increase over the previous year’s $509 million loss during the same period.
Sony announced that it had sold 4.9 million PlayStation 3 systems during the quarter (October – December), but also stated that it would be lowering sales projections for the PS3 for the full fiscal year from 11 million units to 9.5 million. The PSP, on the other hand, saw an increase in its projections, from 10 million to 13 million – definitely a good sign, and another slap in the face to those that said competing with Nintendo on the handheld market was impossible.
All in all, none of this is really unexpected. Sony will certainly be banking more on the upcoming year to help them turn more of a profit, but I think it’s safe to say that the games division will be seeing nothing but profits for the foreseeable future.
Actually, beings that they were losing money on the PS3, you could say it was the low sales of that console combined with great sales from the PSP and strong continued sales of PS2 that helped contribute to their profitable quarter.
@used cisco, that doesn’t make a lick of sense. Fanboy
asdfsad
I can’t stop gaming
@sk8tman,
Sorry if its over your head friend but its true. MS had a similar situation where they openly admitted that their quarterly losses were less than expected because they sold fewer consoles than they had anticipated. If you lose money on every unit, than lower sales give a better opportunity for profit, particularly if your other lines are profitable and selling well. It has nothing to do with fanboyism, its called simple math.