Sony’s FY 2014 financial report shows strong PlayStation growth and very weak mobile sales..
It looks like Sony’s FY2014 earnings report has both good news and bad news as the company are celebrating an incredible windfall with the PlayStation 4 console which the company has revealed has so far sold 22.3 million units since launch, while at the same time are mourning an increasing loss from their handheld and mobile divisions.
Sony has now sold more than 22.3 million consoles worldwide since it’s launch in November 2013. That’s an incredible number which amounts to over 40,000 consoles sold every every day. Sony revealed that they’d sold 14.8 million consoles during the 2014 Fiscal Year, which began on April 1, 2014 and ended March 31 2015. Sony also expects to sell another 16 million consoles before the end of the 2015 Fiscal Year which ends March 31 2016.
The gaming division as a whole is currently earning Sony the most money in terms of revenue, up by a third year on eyear to $11.5 billion, which is roughly 7.4 billion. The only part of the division to let Sony down are its handheld devices, with combined sales of the PSP and PS Vita showing a drop of 0.8 million from 4.1 million sales to 3.3 million sales over the same 12 month period.
“This significant improvement was primarily due to the impact of the above-mentioned increase in (PS4) sales,” the report detailed. “(This was) partially offset by the impact of the decrease in PS3 software sales, the unfavourable impact of the appreciation of the US dollar reflecting the high ratio of US dollar-denominated costs, as well as the recording of an 11.2bn ($93m) write-down of PS Vita and PS TV components in the current fiscal year.”
Elsewhere, Sony have revealed pretty terrible results when it comes to its smartphone division announcing an operating loss of $1.81 billion, which is roughly £1.19 billion. This follows a $1.46 billion (£969 million) impairment charge from the smartphone and tablet business, and recurring costs from the company’s previous sale of the VAIO PC unit. Sony revealed that while next year won’t be as bad, the company is still expecting to lose big on mobile next year forecasting a 7.1 per cent drop in revenue and an operating loss of $324 million, which is roughly £214 million.
Overall Sony made an operating profit of $569 million, off $65.8 billion revenue in FY2014. In total it lost $1.05 billion overall due to recurring charges. Sony predicts a 3.8 per cent drop in revenue over the next year, and expect to make $2.66 billion in operating profit, and $1.16 billion in net profit.