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Sony Takes Recession Kicking

Sony Takes Recession Kicking


Sony has revealed its quarterly financial records and it isn’t all very positive reading. Game business revnue for instance was own by 18 per cent from last year. PS3 sold 1.1 million in Q1 2009 as opposed to the 1.6 million that were shifted in the same time last year. PSP was also hit by the economic downturn dropping by 2.4 million units compared to last year, down to 1.3 million.

The PS2 however continues to hold its own selling 1.6 million consoles, which is up by around 100,000 on last year’s same period. The other good news is that Sony isn’t losing as much money on all this despite the lower sales. While Sony’s operating loss was still ¥58.5 billion (around £372 million by our estimation) that’s around ¥66.1 billion (£421 million) less than Sony lost last year. The key money saver there was a reduction in the cost of producing PS3s.

Despite all this Sony remain defiant. “It is a privilege to fight for a great company like Sony, and with the seriousness of purpose that this management team possesses, I know we can succeed in making Sony greater than ever,” said Sony CEO and president Howard Stringer. Sony will at least take some comfort from the fact that everyone is in the same boat.

With revenues down but losses improving we feel this puts Sony in a really good place for a price cut or maybe even a new SKU of the PS3. With production costs down, but sales dropping the market needs the stimulation of a cheaper console to get people interested and it wouldn’t hit Sony as hard as it may have before.

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