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.


‘Kingdom Hearts III’ out in the wild, director asks for support to stop spoilers

Kingdom Hearts III has been leaked, with several copies of the game out in the wild. The game's director, Tetsuya Nomura, responded to the situation, calling for help from gamers to stop spoilers from spreading online.

Xbox One X vs. PS4 Pro: Which console is more powerful?

Far from cooling down, the console wars are only getting more intense. We compare Microsoft's Xbox One X to Sony's PlayStation 4 Pro to help you decide which premium console is right for you.

Hey, Sony! If you make a PS2 Classic, it needs these games

158 million PS2 consoles were sold worldwide during its lifecycle, making it the most successful video game console of all time. It was hard, but we narrowed down the PS2's vast library of games. Here are the best PS2 games of all time.

How do Nintendo Switch, Xbox One X compare to each other? We find out

The Nintendo Switch is innovative enough to stand apart from traditional consoles, but could it become your primary gaming system? How does the Switch stack up against the Xbox One?

The Galaxy S10 may be announced before MWC, sell for up to $1,750

While we still may be months away from an announcement, there's no doubt about it: Samsung is working hard on its successor to the Galaxy S9. Here's everything we know about the upcoming Samsung Galaxy S10.

The DualShock 4 is one of the best controllers ever, and you can use it with a PC

Sony's new DualShock 4 controller has become a fan favorite, and some people want to use it with a PC. Here's how to connect your DualShock 4 and start using it, either with an official adapter, or unofficial software.

The history of Battle Royale: From mod to worldwide phenomenon

Battle royale games like PlayerUnknown's Battlegrounds’ and Fortnite have become the biggest trend in video games. The genre is also pushing the envelope in streaming and eSports in a way that might hint at the future of the industry.

Project Stream testers get to keep a free copy of ‘Assassin’s Creed Odyssey’

Those who participated in Google's technical test of Project Stream won't be able to access the service to play Assassin's Creed Odyssey after January 15, but they'll get to keep the game on PC anyway.

Newest ‘Destiny 2’ raid already completed by two-person team

The latest raid in Destiny 2: Forsaken is Scourge of the Past, and a two-person team has already managed to complete it. The task took 15 hours of trial-and-error effort before the duo managed to take down the final boss.

The 25 best SNES games

The Super Nintendo Entertainment System might be the greatest game console ever made, but what are the best titles for the system? Here are our picks for the best SNES games, including A Link to the Past and Chrono Trigger.

Need a discounted Xbox bundle by Christmas? Walmart has you covered

Black Friday and Cyber Monday have both come and gone, but you can still save some cash on a new Xbox One bundle at Walmart. Both the Xbox One S and the Xbox One X are on sale now.

With our Steam guide, you can give the gift of gaming this holiday season

The holidays may have passed, but it's always a good time to give the gift of gaming (especially when there's a Steam sale)! Here's our quick guide on how to give a Steam game as a gift.

‘Fortnite’ update 7.10 brings a rotating selection of modes big and small

The latest update for Fortnite introduces 14 Days of Fortnite, an event that brings back large and small battle royale modes as well as brand new ones to enjoy during the holiday season.

New Xbox consoles are reportedly code-named ‘Anaconda’ and ‘Lockhart’

Microsoft's next-generation Xbox plans reportedly consist of two separate consoles. One, called "Lockhart," is a more affordable machine, while "Anaconda" is designed with more horsepower.