Sony posts record $5.74 bil annual loss, PlayStation division reports $2.8 bil loss

sony posts record 5 74 bil annual loss playstation division reports 2 8

2011 was not kind to Sony. The company has been preparing its investors for just how bad for over a month. Sony finally reported its earnings for its fiscal year that ended in March, and it was not a pretty sight. The company reported a $5.74 billion loss for the year, less than the $6.4 billion loss it was previously expecting but still a record. The Consumer Products and Services division that includes the PlayStation business in particular was struck an absolutely crushing blow, a $2.8 billion loss for the year, down from a $135 million profit in fiscal 2011.

What happened? For the PlayStation brand, falling hardware sales were a plague. The PlayStation 3 saw only a slight dip, falling to 13.9 million consoles sold last year compared to 14.3 the year previous. Sony’s other surviving devices continued a steady decline into market irrelevance. PSP sales totaled 6.8 million handhelds, down from 8 million the year before, and the PlayStation 2 continued to slowly bow out of the electronics race it came to define for a decade, selling just 4.1 million consoles after moving 6.4 million the year before.

Software sales suffered as well. Even as the PlayStation 2 ceased being a hardware presence, it still moved games, but PS2 game sales were more than halved last year, falling to 7.9 million games from 16.4 million the year before. PSP game sales plummeted as well, down to 32.2 million from 46.6 million in fiscal 2011.

PlayStation 3 software was a bright spot though, growing to 156.6 million sold from 147.9 million the year before.

Sony is dead set on profitability for 2013, but its goals for the PlayStation line are modest to say the least. Expectations for the next year are 16 million combined PlayStation 3 and PlayStation 2 sales over the year, and 16 million combined PSP and PlayStation Vita sales. Software is expected to 196.7 million sales, fueled by upcoming titles like The Last of Us, God of War: Ascension, and The Last Guardian.

Sony’s future is bleak. The company’s empire, built across the ‘80s and ‘90s, was founded on the sales of physical media. Sony lived and died by the sales of devices like the Walkman, the PlayStation 2, and the cassettes, CDs, and DVDs that ran on those devices. The digital nature of media in 2012 means that, barring a profound transformation of its business, Sony will never reclaim its former dominance.

Business

Apple loses battle to use Intel modems in Germany in latest clash with Qualcomm

Apple is following the Federal Trade Commission's lead and has sued Qualcomm for a massive $1 billion in the U.S., $145 million in China, and also in the U.K., claiming the company charged onerous royalties for its patented tech.
Gaming

Your PlayStation 4 game library isn't complete without these games

Looking for the best PS4 games out there? Out of the massive crop of titles available, we selected the best you should buy. No matter what your genre of choice may be, there's something here for you.
Gaming

How do the revised Xbox One and PlayStation 4 consoles stack up?

Microsoft's new Xbox One S and Sony's PlayStation 4 "Slim" have bucked the generational gaming console trend. But which of these stopgap systems is worth spending your paycheck on?
Gaming

This list of PlayStation 4 exclusives puts its competitors to shame

The PlayStation 4's game library and incredible selection of exclusive games could make anyone with an Xbox One or Nintendo Switch think twice. Here's our list of the latest and greatest PS4 exclusives.
Gaming

Wage war on a budget with these fun and free first-person shooters

We all know about Halo and Call of Duty by now, but what about quality titles that won't cost you upward of $60? Check out our picks for the best free first-person shooter games from Paladins to Quake Champions.
Gaming

Get creative and collect 15 coins with our Fortnite overtime challenges guide

The first Fortnite overtime challenges are now available. Use our guide to help you collect the hidden coins in the featured Creative mode islands and get closer to that free season eight battle pass.
Gaming

I'm canceling my backlog for Apex Legends. Be back never

Live service games like Fortnite and Apex Legends are eating up everyone's time, leaving other games out in the cold. While my backlog continues to grow, it seems the gaming industry is struggling to keep up as well.
Virtual Reality

Getting into VR is spendy. Which headset is truly worth your hard-earned cash?

Virtual reality has finally gone mainstream, but how do you find the best VR headset for you? Check out a few of our favorites, whether you want the best of the best or a budget alternative for your mobile device.
Gaming

Become a champion with our beginner's guide to Apex Legends

Jumping into Apex Legends for the first time? Need help becoming a champion? Our Apex Legends beginner's guide has 15 tips and tricks that will hopefully help your team make it into the champion's circle.
Gaming

Buy a new Switch console and get a $35 eShop gift card at some retailers

Multiple retailers are currently offering the Neon Blue and Red Nintendo Switch console with a free $35 eShop gift card. The system still costs the standard $300 and includes Joy-Con controllers and the dock.
Gaming

Thrive in the nuclear apocalypse with our Metro Exodus survival guide

Metro Exodus is a difficult shooter, especially if you're new to the series' blend of stealth, action, and scavenging. Here is what you need to know to survive the nuclear apocalypse.
Gaming

Here's where Xur is and what he has for wares this week in Destiny 2: Forsaken

The weekly vendor in Destiny 2: Forsaken always brings Exotic weapons and armor, some of the toughest loot to find in the game. Here's everything you need to know to track down Xur: Where he is, when he shows up, and what he's stocking.
Gaming

Here's our Champion's guide to picking the best character in Apex Legends

Apex Legends' use of heroes with different abilities helps separate it from other battle royale games. To help you choose your legend, we've put together a legend guide detailing their abilities, strengths, and weaknesses.
Gaming

Transport your Nintendo Switch in style with these nifty cases

The Nintendo Switch, which boasts both wired and handheld modes, needs a good case to ensure it doesn't get beat up while you're on the go. We scoured through dozens of Switch cases to bring you the best ones.