Sony confirms Game division 'restructuring'
Lower than expected sales contribute to huge losses.
Sony has confirmed plans to reduce the headcount at its Games division and implement "restructuring measures".
The move comes after it revised its forecast for the financial year 2008, which ends on March 31, 2009, painting a bleak picture for the PlayStation brand.
In the Game segment, operating income (loss) is expected to be lower by approximately ¥30 billion (USD 337 million / EUR 258 million). Of this, approximately ¥15 billion is due to the impact of the appreciation of the yen and approximately ¥15 billion is due to "lower-than-expected sales".
Sony's revised game console forecast estimates sales of 10 million PS3 units worldwide by the end of its 2008 financial year (no change from its previous forecast), 15 million PSPs (down from a forecast of 16) and 8 million PS2s (down from a forecast of 9).
Sony forecasts 250 million software sales for the financial year.
Yesterday NPD data revealed that Sony's LittleBigPlanet had sold 611,000 units in the US, helped largely by a strong December which saw sales of 255,000 units. PS3 FPS Resistance 2 is also hovering around the same total, with 598,000 units shifted (Nov 385k, Dec 213k). Metal Gear Solid 4, released back in June, sold 775,000 units on its debut month and has now gone on to sell 1.076 million units.
As part of its restructuring and cost reduction initiatives, which aim to reduce losses by a whopping ¥250 billion for the financial year 2009, Sony announced that its pictures, music and game businesses will see a "headcount reduction and other restructuring measures". It is not clear at this time what this means, exactly, for the PlayStation brand.
Additionally, as part of "non-restructuring cost-reduction measures", Sony plans to implement "significant reduction in marketing, logistics and other general expenses".
Earlier in the month SCEE boss David Reeves revealed that first and foremost Sony as a company must begin making money and only then can the company move forward with the PlayStation.
"The most important thing for us as a company in the very short term is for us to start making money," said Reeves. "This is a pledge that was made last March and is something that we are still very much on target to achieve."
What do you think Sony's losses mean for PlayStation? Let us know in the comments section below.
User Comments
lost
dudester
In terms of Japan I saw the figures for 08 the other day ms was around 300k for the year where as ps3 was quite abit more.
CheekyLee
Wido
Sony need to start speaking reality then living in the dream lane, it clearly shows that current 'tactics' aren't working for them and there not doing anything about it. The whole recession crisis won't get rid of the PS3 but the years to come with demolish the playstation brand on how 'much' money they would of lost.
I would love to have XBL but I brought the PS3 for several reasons. The games I loved on the PS2 would hopefully re-appear on the PS3 and free online and the blu-ray. It took me ages whether to buy a PS3 as I currently had a Xbox 360 and a Wii at the time. I opted for a PS3 because of the free online gaming and the other reasons up above. I thought to myself why pay £50 quid a year where I can buy a PS3 (yes may cost more but with the 10 year cycle on what Sony want to do with it, its actually a money saver) were I can play my online games for free and I'm not missing out on anything.
You compare multiplatform games between the 360 and PS3 there is hardly no difference at all. All these framerate issues that you see and etc about multiplatform games is total nonsense in my opinion.
With all that said Sony need to start acting now like I have been saying for past couple posts on this article. Everybody is en-titled to there opinion and I respect everybodies opinion about the matter, but you have to see sense whether your a fanboy or not. (and no I'm not calling anybody a fanboy or anything like that, its just common sense.)
CheekyLee@ RecoN
I just thought I should let you know that I not only own a PS3, I am currently playing it more than my 360. What I am NOT doing is basing my opinions on the the state of the industry on "ZOMG I LOVE DAT GAEM!!!11", but instead looking at what is going on. Karlius, Wido, and pblive have all agreed with me that there is a fairly blatant reason as to why the PS3 is not selling, and no amount of talk of the future is going to fix the reality that most people are facing IN THEIR LIVES TODAY. Regardles sof what you or SONY would like people to base their purchases on, they can only look at what is actually in their wallet.
You will find me more than prepared to criticise MS when they do things wrong, as well. (For example, I am now starting to loathe the NXE, and wish I could go back to the old dashboard.) Fortunately, it just so happens that to the world at large they are making a lot less mistakes than SONY at the moment, and the sales figures back this up. Unsurprisingly, Nintendo seem to be getting everything right, and this is why their sales figures make SONY and MS cringe.
Hardcore gamers are in the minority, and yet we are the ones most likely to buy consoles. That SONY have yet to convince some of US to buy their machine is cause for concern. If gamers aren't buying it, the mass market definitely won't.
Karlius
Also PB touched a nerve the PS1 was great and Sony did everything right. But the PR Spin and Bull crap started and worked with the PS2 the worst specked console sold last gen but has the most units sold and still sells. It's lies killed off the dreamcast and made the better GameCube and Xbox flounder at it's feet. Now the so called lesser consoles are killing off the PlayStation. The marketing spin has failed. Not failing but failed. As both other competitors have learned to deal with it. There needs to be a revamp of Sony's logistics as it looks like ps3 end up to the 360 as the Xbox did to the PS2. Debateably higher Spec but nobody cares.
pblive
- The PS3 needs a price cut in order to be viable. Any hit Sony takes now could be recouped a lot quicker by extra software sales, especially if they hurry and really sell their in-house titles like Killzone 2 and GOW3.
- Sony need to really establish Blu-ray even more, helping stockists by offering deals to them on the discs, which is what will ultimately sell the hardware. You can see it's taking off now, Tesco are particularly stubbon at stocking new technology but have just expanded their Blu-ray displays in-store. With fast enough internet for a decent HD download still a way off in most homes across US and Asia and with consumers often wanting physical products, they need to strike now.
- They need their PR to stop playing games(!) and get some serious stuff done. Don't just slag the competition off for a change and start producing PR to sell the brand instead. That's how PS1 became so popular in the first place.
RecoN
Follow this link:http://www.videogamer.com/news/23-01-2009-10467.html
I think you need to think about your favorite company before judging another!!!!!!!
Sont do talk about the future, hence the 10 year life cycle. There are more than enough exclusives, you just play too much of GOW, which imo is just boring. BASIC CONTROLS: Duck and take cover and shoot and duck some more. So talked about releasing Home in the future...errmm its around the 3rd year of the PS3 and Home is out, its got the EYEcam out as announced, its got MAG announced but not yet released, Killzone 2 was announced before the console was released, and its only around the corner. So im my bloody opinion Sony have every right to talk about the fututre.
Doesnt MS when they supposingly say we havent reached the potential of 360 yet? LMAO! How long has that box been out for?? Sorry Cheeky lee, your just not cheeky enough!
CheekyLee
Wido
Karlius
I have said it time and time again but nobody seems to listen. Sony PS3 needs a price cut. However the only reason it cannot have one is that Sony can't afford to lose the kind of money it did on the PS3 at launch. Especially when Software sales are barely covering marketing and day to day running. Meaning job cuts and marketing cuts. Meaning it's going to be harder to sell the damn consoles. its a catch 22 situation. I have also said that the only reason Sony are in this position is because of the economic downturn. Only way i see ou tof this is a cash injection to get consoles out there. And a mass price cut on all software under cutting MS on every game. Making the console more disireable.
CheekyLee
If you could take your SONY-branded rose-tinted spectacles off for just 3 seconds, you might see that as well. Seriously, who buys a console in the hopes that they get to use it next year? I won't buy one until I know there are at least 5 must-have exclusives on it, and I am about as hardcore a gamer as you are ever going to find. The rest of the country bases their decisions on the reality that is right in front of them, rather than the one SONY is telling them will be there on some vague unconfirmed future date.
Wido
With the line-up of the PS3 this year its going to be the biggest so far for the PS3. The capabilities of a blu-ray disc is better than a 360 disc, but so far I personally think that the blu-ray disc is no different than the 360 discs. I think which would be good for Sony during this year hopefully is starting to dig in the capabilities on the PS3 can do. Sony keep claiming that developers are only scratching the surface on what the PS3 can do and comparing the 360 and the PS3 there is hardly no difference at all.
So Sony need to start getting into PS3 as quick as possible and lower the price tag. With the whole recession crisis the only way that Sony are going to shift PS3 if they lower the price tag down. It comes down to the independant customer and making sure that the PS3 is good for value in times like these. Microsoft have brought there price tags down and the results are remarkable for Microsoft, so why haven't Sony caught on?
If Sony did the same thing then people may start to think that the PS3 is more at a suitable price for an entertainment system not the opposite. You can pick up a HD console now for £150 with 2 free games and thats very good at times like these. Seeing as Sony have different HDD spaces ranging from 40GB to 80GB. Why don't they bring down the price for a 40GB to £200 on its own plus one free game with it?
Its clear that Sony are the only people to do this and they got to act fast than rather later. If they don't act soon enough then its there pocket which will then start to decline even faster.
RecoN
CheekyLee
"In the future."
"On it's way."
"Soon."
"Later this year."
"Next year."
Know what? I just checked my calendar, and it is still the present.