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Sony Reports Dropping PS3 Production Cost

 

Tokyo (Japan) - Sony’s Playstation 3 has gained significant traction in Sony’s FY2007 (April 1, 2007 to March 31, 2008): Surging sales and decreased production expenses improved the company’s balance sheet, which revealed that Sony shipped almost 37 million game consoles and more than 267 million games during the year.

Sony’s game unit reported $12.8 billion in revenue and an operating loss of about $1.2 billion for the year. Both numbers look much better than the $10.2 billion in revenue and a loss of about $2.3 billion the company recorded for its fiscal year 2006. According to Sony, the operating loss decreased significantly primarily due to a decrease in the operating losses of the PS3 business as a result of successful PS3 hardware cost reductions and increased sales of PS3 software.

For the year, Sony reported PS3 sales of 9.24 million units, up 5.63 million from FY2006 and bringing the total sold so far to 12.81 million units. The PS2 still outsold the PS3 by a far margin, checking in with 13.73 million units for FY2007 (down 0.98 million units) and a cumulative total of 172.95 million units so far. The PSP has become the most popular Sony game console during the year, selling 13.89 million devices. Sony has sold about 40.69 million PSPs to date. Total console shipments for FY2007 were 36.86 million.

For purposes of completeness, the first-generation Playstation, which was sold from 1994 until last year, has shipped 130.64 million units.

Increasing hardware sales did not translate into dramatically more software sales overall. Shipments for the PSP declined by 39.5 million to 154 million boxes, while the PSP showed only a slight gain of 0.8 million to 55.5 million units. However, PS3 software sales came in at 57.9 million, up 44.6 million from last year. Total game units were 267.4 million, compared to 261.5 million in FY2006.