Feeds

Sony and the terrible, horrible, no good, very bad quarter

Profits feeling 90 per cent lighter

Top 5 reasons to deploy VMware with Tegile

Sony didn't have a terrific second quarter.

If the electronics/entertainment conglomerate ran a milk business, its cartons would read thusly: "Have you seen me? 90.1 per cent of our Q2 profits."

The cash abduction wasn't unexpected, however. Sony gave warning earlier this month that global economic woes were deflating stock, increasing price competition, and making the Yen stronger against the US dollar and the euro.

Total operating income for the July-September quarter was ¥11bn, compared to ¥111.6bn the same period last year. Sales and revenue decreased 0.5 per cent year-over-year to ¥2,072.3bn in 2008 from ¥2,083bn in 2007.

Games

Video games continue to be Sony's checkbook hero – that is, revenue actually increased by a fair amount. But if you're looking for actual, tangible cash here, the princess is in another castle.

Giant enemy hardware costs

Total revenue increased 10.3 per cent compared to same quarter last year, thanks to increased sales of Playstation 3 and PSP consoles. But Sony's game segment still operates at a loss thanks to – yes – increased sales of PS3 consoles.

Trouble is, Sony sells the PS3 at a loss. Nothing terribly unusual about it. That's really just the nature of the beast until later in a console's life cycle.

Sales and revenue was ¥268.5bn, compared to ¥243.4 year-over-year. Operating loss was ¥39.5bn, a fair improvement over losing ¥96.7bn during the same period last year.

Sony is already cutting PS3 hardware costs, which contributed significantly to the improvement in the game segment's (still negative) income. Sony also reports strong PS3 software sales and PSP hardware sales helped too.

PS3 units sold worldwide in Q2 was 2.43 million, an increase of 1.12 million units year-over-year. PSP units sold was 3.18 million, increasing by 0.6 million year-over-year. PS2 unit sales predictably continue to fall, this time by 0.78 million units compared to last year to 2.5 million units sold total.

PS3 software sales increased to 21.1 million, although Sony's total software sales dropped over last year due to decreased PSP and PS2 software sales.

Electronics

Revenue decreased by 0.6 per cent year-over-year to ¥1,653.3bn despite higher sales of BRAVIA LCD televisions, VAIO PCs, and cheaper consumer cameras. Sony blames the drop on a strong Yen against the US dollar.

Operating income decreased 40.5 per cent year-over-year to ¥75.6m. Profitability took its beating from "severe competition" and lower prices for VAIO PCs and decreased sales in Handycam video cameras and Cybershot digital cameras.

Pictures

Second quarter sales increased 3.4 per cent year-over-year to ¥196.1bn. Sony credits the boffo box office performance of Hancock. But let's be fair here, Sony didn't have a similar theatrical release in Q2 2007. Other notable releases for sales were Step Brothers and Pineapple Express.</p

Operating income was ¥11bn, up 199.9 per cent from just ¥3.7 in Q2 2007. Again, there weren't any big releases at the time.

Music

Sales at Sony BMG Music Entertainment dropped by 11 per cent to $762m in Q2 (it tracks music sales in US dollars). Sony claims it's largely due to the timing of new releases, combined with the growth in digital music sales not keeping up with declining sales of physical music.

Net income was a loss of $57m, compared to a loss of $8m in the same period last year. Sony says completing the deal of buying Bertelsmann's half of Sony BMG cost about $600m. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Be real, Apple: In-app goodie grab games AREN'T FREE – EU
Cupertino stands down after Euro legal threats
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?