2009 Q3: Sony profits, 6.5 million PS3s SHIPPED

[FinalEvangelion]

http://www.sony.net/SonyInfo/IR/fina.../09q3_sony.pdf

Highlights:

- 6.5 million PS3s shipped to retailers from Oct. 2009 thorugh Dec. 2009.
- 33.5 million LTD since launch.
- $211 million operating profit in Network Products and Services
- $1.588 billion operating profit total for Cony Corp.
- $861 million profit total for Sony Corp.

All around, good job. I wonder if they could have shipped more. I don't know about the rest of world, but San Antonio, TX, it's still difficult to find stores with at least one PS3 on the shelf.

FYI the other console shipped 5.2 million compared to the 6.5 million PS3s in the same time period. Also, there instill base is 38.7 million over 4 years over PS3s 33.5 million over 3 years.

Good times ahead for Sony.

[STARSCREAM]

[Bageara]

So is the PS3 making a profit for sony yet?

[GLaDOS]

Nice!

[Maximus]

Operating profit is the important figure. Net profit is for accountants and the like, the amount of money Sony made during the three months is operating profit which was 147bn JPY, or around $1.6bn.

[FinalEvangelion]

Originally Posted by Bageara

So is the PS3 making a profit for sony yet?

Nobuyuki Oneda

This is Nick Oneda. I will answer the first question. Currently we are expecting the negative margin for the PS3 would be around 5 or 6%. So which is on target basis and then sometime in next year will be positive by, you know, the margin from the PS3 hardware. Because we are expecting that we are going to use the 45-nano LX, you know, the key devices and that will help to reduce the cost for another material. That is the main reason of the positive margins for the next year. So, this is the, you know, answer to the first question. I think that the PS3 unit sales - high ratio was is not so bad as we originally expected. The high ratio now is about for PS3 is 7.8 and the so far the PS2 is about 10.5 or 10.6, but considering the timeframe since we introduce the product, 7.6 high ratio is not so bad yet.

http://seekingalpha.com/article/1867...nscript?page=3

I guess 5-6% loss on each unit on hardware alone. Of course, there are many other factors.

[Simplayer]

Good stuff. Thought they were losing a bit more than that. 18 bucks or so per unit isn't that bad, especially if they can keep on knocking the price of hardware down.

[saprano]

Only 5 million behind the 360. easily surpassed this year.

Where ya been max!?

[AranhaHunter]

Originally Posted by saprano

Only 5 million behind the 360. easily surpassed this year.

Where ya been max!?

I wouldn't say easily, actually if I was a betting man I'd say that the PS3 will close the gap this year (barring some Natal explosion, major 360 price drop) but it still won't pass it before the end of FY 2011.

[Blu-ray Fanatic]

Originally Posted by FinalEvangelion

http://www.sony.net/SonyInfo/IR/fina.../09q3_sony.pdf

Highlights:

- 6.5 million PS3s shipped to retailers from Oct. 2009 thorugh Dec. 2009.
- 33.5 million LTD since launch.
- $211 million operating profit in Network Products and Services
- $1.588 billion operating profit total for Cony Corp.
- $861 million profit total for Sony Corp.

All around, good job. I wonder if they could have shipped more. I don't know about the rest of world, but San Antonio, TX, it's still difficult to find stores with at least one PS3 on the shelf.

FYI the other console shipped 5.2 million compared to the 6.5 million PS3s in the same time period. Also, there instill base is 38.7 million over 4 years over PS3s 33.5 million over 3 years.

Good times ahead for Sony.

What models are you talking about???? I see PS3's on the shelf all the time

[AranhaHunter]

Originally Posted by Blu-ray Fanatic

What models are you talking about???? I see PS3's on the shelf all the time

He's probably talking about the 120GBs and he'd be right, at least based on my anecdotal evidence.

[Blu-ray Fanatic]

Well he's wrong, I've seen a lot of 120GB models at Gamestops and other retailers

[Simplayer]

I haven't seen many 120 gigs around. Haven't really been looking around recently either...

[FinalEvangelion]

Originally Posted by Blu-ray Fanatic

What models are you talking about???? I see PS3's on the shelf all the time

In my area (which is why I said San Antonio specifically), I haven't seen any of the models when I go to Wal Mart, GS, BB, etc since around Christmas - except every once in a while. I was in Seattle not too long ago, and there were still some 250 GBs around. I'm sure it differs in every area. That's anecdotal evidence.

EDIT: You are from here. I've only been around the norhtwest side.

MS probably will cut the price this year. I get this gut feeling MS will release the Xbox 720 right when PS3 passes the 360 so they can say they sold more in the generation. At this point, MS will be pushing down the Arcade to the PS2 price range. They will be basically giving them away pretty soon.

It's nice to see that PlayStation has a worldwide market.

Oh yeah, I think Wii shipped 10-11 million in the quarter, but someone will have to tell me for sure. While Nintendo has had the best sales generation ever, this is by far their worst generation quality-game wise. At least this year, there are 5 Wii games I want. The past 3 years, I've only picked up 3 games.

[ariakon]

There has not been a single 120 gig or 250 gig model in my area since Christmas. At least at Target, Wal-mart, K-mart and Best Buy. I only go to each every few weeks, though, so maybe they get a few during the week. And doesn't Sony only deal in Sold, not shipped? I thought they started doing the sell-through numbers instead.

[FinalEvangelion]

Originally Posted by ariakon

There has not been a single 120 gig or 250 gig model in my area since Christmas. At least at Target, Wal-mart, K-mart and Best Buy. I only go to each every few weeks, though, so maybe they get a few during the week. And doesn't Sony only deal in Sold, not shipped? I thought they started doing the sell-through numbers instead.

Sold to retailers - not end user customers. Retailers are their customers

If it's of interest, I checked a couple places around SA, TX with the online availability tools of retailers.

Best Buy 250 Gig. It won't let me do the 120 gig.

GS shows no stores with 120 gig within 100 miles, and 4 stores for 250 gig (one within the city limits). Zip 78256

Target has a couple stores with 120 gig. Don't know about 250 gig.

I think they get snatched up pretty quickly when units do arrive to retailers.

[Maximus]

Sony are saying that the channel was pretty dry in December and they had production shortages. They only had around 300k in stores WW around the turn of the year and they were filling up container ships early in December with new units for delivery around mid-Jan.

I heard without shortages Sony could have shipped around 7m, maybe even 7.5m because demand was so high.

On profitability, it takes one game and one controller per unit for PS3 to become a profit making venture. Since game attach rate is around 8 and accessory attach rate is about 2 it means Sony from these consoles sold in the last quarter will be making around $80-100 per PS3 sold in additional revenue.

[Maximus]

Oh yeah, and one final note, Sony are set to recoup the lost money in SCE for Blu-ray over the next 2/3 years in licensing fees in Blu-ray hardware and discs. They estimate $0.3bn in revenue from Blu-ray licensing for the coming year and around $0.7bn the year after, peaking at $0.9bn in FYE 2013 and then slowly dropping off as it is replaced.

The figures are pretty good though ~ $2bn in licensing fees over the next three years from Blu-ray. You can see why Sony were so gung-ho with it now and nearly sacrificed the whole gaming division to get the victory. DVD was the reason Toshiba were able to post massive profits over the last 10 years, and now Blu-ray will be the reason Sony can post profits over the next 5-7 years.

[FinalEvangelion]

Originally Posted by Maximus

They only had around 300k in stores WW around the turn of the year and they were filling up container ships early in December with new units for delivery around mid-Jan.

LOL. VGFailzzzz was saying that 3 million were on shelves at the turn of the year. That site amuses me.

Kevin Butler ads must have cost them a penny these last few months, but it was exactly what was needed.

[AranhaHunter]

Originally Posted by Maximus

On profitability, it takes one game and one controller per unit for PS3 to become a profit making venture. Since game attach rate is around 8 and accessory attach rate is about 2 it means Sony from these consoles sold in the last quarter will be making around $80-100 per PS3 sold in additional revenue.

If it's one 3rd party game then that's great, if it has to be a 1st party game then that's good but not great.

Originally Posted by Maximus

Oh yeah, and one final note, Sony are set to recoup the lost money in SCE for Blu-ray over the next 2/3 years in licensing fees in Blu-ray hardware and discs. They estimate $0.3bn in revenue from Blu-ray licensing for the coming year and around $0.7bn the year after, peaking at $0.9bn in FYE 2013 and then slowly dropping off as it is replaced.

The figures are pretty good though ~ $2bn in licensing fees over the next three years from Blu-ray. You can see why Sony were so gung-ho with it now and nearly sacrificed the whole gaming division to get the victory. DVD was the reason Toshiba were able to post massive profits over the last 10 years, and now Blu-ray will be the reason Sony can post profits over the next 5-7 years.

This is a little OT but I don't see another optical media replacing Blu Ray, the only thing I see replacing it would be DD but I'm not sold on that either. The way I see it in 2020 we will have Blu Ray (probably the higher storage capacity discs that's been talked about) AND digital download as mainstream forms for the movies/tv shows. Incredibly I still think there'll be some folks still using DVD at that time (I still know folks that use VHS and have VHS tapes today, in 2010). Of course I'm probably completely off, but that's just how I see it.

Originally Posted by FinalEvangelion

LOL. VGFailzzzz was saying that 3 million were on shelves at the turn of the year. That site amuses me.

Kevin Butler ads must have cost them a penny these last few months, but it was exactly what was needed.

That site is worthless, I can't believe some folks (Square Enix) use it. There's also the possibility that Peter Dille (from SCEA) used it as well, I know someone from GAF made a good argument that he might've gotten his 31 million figure from them (when he did the IGN interview)