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Sony Reports Annual Profit, Not Planning to Incur a Major Loss With PS4 Launch

Posted on May 9, 2013 AT 05:24am

Sony managed to record an annual profit for the first time in five years and expects not to incur a major loss with the PlayStation 4′s launch, unlike with the PlayStation 3. So everything appears to be going well for once.

The company managed to record an annual profit of 43 billion yen ($458 million)–around what it expected. However in the game segment, sales were down 12.2 per cent and operating income down 94 per cent to $18 million–so not exactly brilliant.

“Sales are expected to increase significantly,” said Sony CFO Masaru Kato during today’s earnings call, “primarily due to the planned introduction of the PlayStation 4 in the fiscal year ending 31st March 2014.” However, ”operating income is expected to be essentially flat year-on-year primarily due to an increase in research and development expenses and marketing expenses related to the introduction of the PS4, offset by the impact of the above-mentioned increase in sales.”

Kato also added that the company isn’t planning on incurring a major loss with the launch of PlayStation 4, unlike with the PlayStation 3′s launch. ”Unlike PS3, we are not planning a major loss to be incurred with the launch of PS4,” he said.

“At the time we developed PS3, we made a lot of in-house investments to develop the chip, the Cell chip. Development of the chip saw the silicon processing and all the facilities invested by us ourselves. But this time, yes we have a team working on chip development, but we already have existing technology to incorporate and also product investment and all the facilities will now be invested by our partners, other foundries, so we don’t have to make all the investment in-house.”

Via: Eurogamer

Nick Baumfeld Editor-in-chief
Bio: Nick Baumfeld has been involved in the video game industry for a good 12 years. He has seen the industry from all view points and has a background in websites, website integration and social media. Nick pioneered the online video game rental business back in the day, moved forward into online video game trading and then moved viral with the well received Video Games Application on Facebook. Today, he has joined up with EGM founder Steve Harris to create something truly unique and special; EGMNOW, a community dedicated to all manner of gamers.

Gaming MO: Nick is a first person shooter type of gamer and enjoys heated bouts of Halo with friends and family (even while being schooled by his children).

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