Sony's Consumer Products Division Posts Q2 Losses

Gamasutra reported that Sony’s Consumer Products & Services division – which includes everything from the Sony Computer Entertainment Inc. to the LCD TV manufacturing- has reported a ¥34.6 billion loss ($449 million) loss for the second quarter of 2012 despite increased sales of both the Playstation 3 and Playstation Portable systems compared to the last fiscal year (3.7 million PS3s and 1.7 million PSPs) and increased software sales for the PS3 (the PSP dropped in software sales during the same period). Sony blamed the PS3 price cut, unfavourable foreign exchange rates, and decline in the sales of LCD TVs for the operating loss.

This result from the Consumer division resulted in the company posting a Net loss of ¥27.0 billion ($350 million) for this quarter.

Analysis: While Sony isn’t doing as as badly as Nintendo, the results are still pretty bad. Whenever the yen strengthens, it’s always bad news for Japanese companies, but since Sony’s Playstation brand is part of the consumer electronics division, it is almost impossible to find out how good or bad that brand is doing. PS3s and PSPs both increased in sales and software for the PS3 was up, so it is possible that the reported slow sales of LCD TVs could have resulted in this loss and not anything to do with Playstation.

This really should serve as an example of why Sony Computer Entertainment Inc. should be its own division rather than a part of Sony Consumer Products.

Mohamed Al Saadoon

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