Sony Financial Results (FY07)

Sony Corp. today announced its consolidated results for the fiscal year ended March 31,2008 (FY07).

-New fiscal year records were achieved for consolidated sales and net income.
-Consolidated operating income for the current year was more than five times the prior year and the second highest in Sony´s history.
-Sony plans to increase its regular annual dividend by ¥15 to ¥40 and to issue a special cash dividend of ¥10 per share,which would result in a total annual dividend of ¥50 (FY08)

Sony Corp.-- Consolidated Financial Results (FY07)

Operating revenue rose 6.9% to $88.71 billion

Operating income rose 421.9% to $3.74 billion

Net income increased 192.4 % to $3.69 billion

Game-- Financial Results (FY07)

Operating revenue rose 26.3% to $12.84 billion

Operating loss decreased from $1.97 billion to $1.24 billion

The significant decrease in operating loss in the current fiscal year was due to a decrease in operating loss of the PS3 business as a result succesful PS3 hardware cost reductions and increase of sales of PS3 software as well as the strong performance of the PS3 business.According to Game, profit was recorded in the second half of FY07.

(FY06***FY07)
Worldwide hardware unit sales (Unit:Million)
PS2: 14.91***13.73
PS3: 3.57***9.24
PSP: 9.77***13.89

Worldwide software unit sales (Unit:Million)
PS2: 193.6***154
PS3: 13.4***57.9
PSP: 54.9***55.5

(Q4FY06***Q4FY07)
Worldwide hardware unit sales (Unit:Million)
PS2: 2.42***2.35
PS3: 1.91***2.32
PSP: 1.63***3.41

Worldwide software unit sales (Unit:Million)
PS2: 35.1***24
PS3: 8.1***16.9
PSP: 11.1***14.7

LTD :Hardware&Software (Unit:Million):
PS2: 131.62&1394
PS3: 12.81& 71.3
PSP: 39.28&157.04

Beggining with the quarter ended June 30,2007,the method of reporting hardware and software sales has been changed from production shipments to recorded sales.

[Brian5247]

Awesome increases from last year. Wtg Sony, keep it goin!

[shadow_hearts]

It was 612m last year

Now it is 3.7 Billion

ALSO NOTE :- Vgcrap is underreporting PS3's SW sales in europe.

EA's most revenues came from SW sales on PS3. X360 beats PS3 in SW sales in USA but PS3 beats it 10:1 in EUROPE. Otherwise you cant have PS3 selling that crazy amount of SW for EA/ACTIVSION

so VGCRAP is definitely underreporting EU PS3 SW and HW numbers

***Rumour suggests that France is now the biggest gaming market in EUROPE and latest GFK figures reveal that PS3 reached a million units in France in january, 2008 same time as UK.

VGCRAP is definitely undereporting PS3's HW and SW sales in europe

PS3 is over 6 m according to GFK . x360 is around 4.5m in europe

[Shaka2K6]

-6 billion.

Thanks RROD and fat losers working at gamespot,jokestiq ect.

[Condoleezza Rice]

The PsP is less than a million away from 40Million!?!?!?!?VGChartz have the PsP at 33.98M,LOL

Ps3 is doing great,with last months and this months sales boost(thanks to GTA 4),it should be well over 13 million.

[sonarus]

Yea by the end of may, they will probably be @approx 14mill worldwide

I didn't really believe sony when they said they had passed the 360 in EU but now i do.

[shadow_hearts]

EA's most revenues came from SW sales on PS3

This means that PS3 is moving a crazy amount of SW in EUROPE since PS3 doesnt move as much of SW as x360 in USA

so definitely VGCHARTZ is massively underreporting PS3 SW sales in europe. Otherwise how would you have EA/ACTIVISION garnering their MAJOR SHARES of revenues on Sofware sales from PS3

VGCHARTZ is definitely underreporting PS3's SW sales in europe. They are off on PS3's EU Hardware sales by atleast a million units

@taker

thats what i meant actually

I said the only way PS3 could sell more SW for EA is :-

It sold an astronomical amount of SW in europe that made up for the deficiency in US sales since in US x360 moves more SW for EA /other companies.

In a sense the attach RATE for PS3s in europe is a MAMMOTH AMOUNT --much bigger than what it is in US

You have to understand that EUROPE is now the BIGGEST THING and the europeans have the highest purchasing power

Kuturagi was right --SONY could infact sell 100m PS3s in europe ALONE (based on europe's ever increasing purchasing power and flourishing economy)

[Taker_129]

ps2 sold the most software for EA but the ps3 sold the most for next gen consoles

[shine1396]

gee...that's some summary..

[Lumbo]

Interesting summary

[shadow_hearts]

also PLEASE NOTE :-

Under accounting terms a "recorded sales" is SALES made when a MERCHANDISE is SOLD TO CUSTOMERS

********so 12.8 Million PS3s were SOLD to customers as of March ,2008.

http://www.accountingcoach....

SONY is the only gaming company which reports RECORDED SALES / SALES to CUSTOMERS

@spartan

No nintendo reports FOT /FOB/Freight on transit ---shipment to retailers . Same goes to MS

Only SONY from june 2007 has been reporting recorded sales ---MERCHANDISE SOLD TO CUSTOMERS ( end users)

------GAAP / as well as under British accounting principles

[The gaming GOD]

it said 12.8 million as of march.

Which means they can mean the beginning or middle of march.

Sony just might be closing in on 14.4 million right now given that it's almost mid-may right now.

I guess this is why that MS guy said they had a five million unit lead. (Obvious I know)

Sony is making good progress then. Because in January the lead was six million for the 360

Edit- Spartan below me is right though, Nintendo reports sold to customers as well as Sony

[SPARTAAN]

even nintendo does that

[Lumbo]

Nintendo, as Sony report "sold to retail" numbers.

Sony's direct customer is the RETAIL, Sony does not sell directly to consumers.

Hence "sold to customer" = "sold to retail"

The change that was mentioned was from reporting "shipped from factory to storage" to reporting "storage to retail"

And because fanboys can't accept either we will now have another pointless debate over the topic if VGchartz numbers are right or wrong ...

[deeznuts]

Shadowhearts, it's sold to customers, who are Sony's customers? Retailers, distributors etc. Not consumers. How is sony going to know within one month how many consoles are sitting on the shelves at mom and pop shops across europe and asia? Where they may still use a handwritte receipt?

Funny you should bring up GAAP because you would then know the reason for the change from shipping to sold is because of accounting, it's only a matter of days or weeks between the two, but a very important difference.

The Gaming God, it's as of March 31, the end of Sony's fiscal year.

[DJ]

No wonder Microsoft reported a smaller lead last week. Taking into account 6 weeks of sales, it's probably around 14 million PS3s vs. 19 million 360s. Not bad for launching a year behind.

[wAtdaFck]

As long as Sony resists from making decisions solely from their pocket more than any other corporation, i'll continue to support them.

[Taker_129]

This is good news for Sony. All 3 playstation systems sold very well. And with game sells up for third parties like EA, Ubisoft and Take2 This is really good new for them

[PoSTedUP]

keep it up, another price cut for the *ps2* would defiantly raise the ps2s sales, i know i would buy another 1 just 4 the heck of it. we have so many games on the way, hopefully they dont all come out within the 2 years, that would be crazy, dont even get me started mon'

[wass007]

and the xbots were sayin sonys losin money lmao!! haha

[Snukadaman]

"Operating loss decreased from $1.97 billion to $1.24 billion"

they are still losing money..nice try anyways droid.

@nasim...usual spam....but it dont change the fact that they are still losing 1.24 billion.

"MS already reserved 3 billion $ for RROD and other problems related to HW"
looks like sony will be putting in some cash to fix their problems as well huh..and for the record it was 1 billion towards the rrod problem...quit with your nonsense you pukio.

[4D]

Game-- Financial Results (FY07)

Operating revenue rose 26.3% to $12.84 billion

Operating loss decreased from $1.97 billion to $1.24 billion

Learn how to read. "OPERATING LOSS". They are still losing money every year on the games division, just not as much. Also just so you guys know, Microsoft makes more net profit in 1 fiscal quarter than Sony makes in a whole fiscal year. Try to spin that.

[shadow_hearts]

SONY made profit of 3.7 billion $ for the fiscal

thats a rise of 600% from last year

MS's game division has lost them 9 billion $

MS already reserved 3 billion $ for RROD and other problems related to HW

Not to mention x360's launch saw MS lose 1.2 Billion .

XBOX division of MS lost 8 billion for MS

SONY would be profiting from this year

[Bathyj]

"The significant decrease in operating loss in the current fiscal year was due to a decrease in operating loss of the PS3 business as a result succesful PS3 hardware cost reductions and increase of sales of PS3 software as well as the strong performance of the PS3 business.According to Game, profit was recorded in the second half of FY07."

Read that last sentence REAL carefully Bots. If you dont understand ask you parents or an older kid what it means.

Here I'll help, it means yes they are still down for the year, Der only been out a year and a half, but they have been making money for the last 6 months of the year. Its fact now, and arguing about it is like saying the sky isn't blue and would leave you looking pretty dumb.

[I_Is_Nasim]

Sony droids > xbot so you lose!

[Snukadaman]

and thats exactly what we said you moron....maybe you should learn reading comprehension...dummy.

[Bathyj]

No, "they are still losing money..nice try anyways droid." is exactly what you said, but..

"According to Game, profit was recorded in the second half of FY07."
So they are not STILL losing money are they? Whose the dummy? with zero comprehension skills. Go back to sucking your mates thumb. Yes, that one.

[The Wood]

tortoise on e

There once was a speedy hare who bragged about how fast he could run. Tired of hearing him boast, Slow and Steady, the tortoise, challenged him to a race. All the animals in the forest gathered to watch.

Hare ran down the road for a while and then and paused to rest. He looked back at Slow and Steady and cried out, “How do you expect to win this race when you are walking along at your slow, slow pace?”

Hare stretched himself out alongside the road and fell asleep, thinking, “There is plenty of time to relax.”

Slow and Steady walked and walked. He never, ever stopped until he came to the finish line.

The animals who were watching cheered so loudly for Tortoise, they woke up Hare.

Hare stretched and yawned and began to run again, but it was too late. Tortoise was over the line.

After that, Hare always reminded himself, “Don’t brag about your lightning pace (units sold+ attach rates), for Slow and Steady won the race!”

I read that and ponder which direction I should go. I’ve been racing the last few years with great results and bitter loses. When racing, you don’t worry about things people who take it one step at a time worry about (Having enough money, security, etc). You also lose focus of other things that can be important (enjoying the moment, not thinking as much about the downsides: loss of time, health(hardware), balance(variety).

[Bathyj]

Didnt a bear (the Public) wipe its arse with the rabbit (M$) at the end of that story?

Interesting you bring up momentum because I said long before Sony was even close to catching up, once you have it, its hard to slow it down, and once you're losing it or sliding backwards, its just as hard to stop that. A car doing 50 MPH and another doing the same heading toward it aren't going that fast, but the gap is CLOSING at 100MPH.

[The Wood]

we've seen a dozen times but still enjoy. Im enjoying this movie. Its not often that people can feel comfortable in 'last place'. This turnaround will probably make it into business journals and text books. We'll see anyway

[KillaManiac]

PS3 is doing very strong considering not one of is SUPER (MGS4,GT,FF,ect) titles besides just a few heavy hitters not SUPER ones are out yet.

[Vojkan]

Destroyed!haha vgchartz crap

[Vojkan]

Cant wait to see how biased sites like 1UP, gamespot, craptaku(kotaku) will spin this. I bet you some of them wont even report this.

[Bathyj]

Wow Sony. Just Wow. What a difference a year makes ay?

Lets get a couple things straight while we're here.

"Beggining with the quarter ended June 30,2007,the method of reporting hardware and software sales has been changed from production shipments to recorded sales." Now lets agree we can take that as fact and dont need to hear it again. And no, M$ DOES NOT do this. Their 19M includes every XB ever shipped out their doors including stock on shelves, still in transit and broken RROD's.

"The significant decrease in operating loss in the current fiscal year was due to a decrease in operating loss of the PS3 business as a result succesful PS3 hardware cost reductions and increase of sales of PS3 software as well as the strong performance of the PS3 business.According to Game, profit was recorded in the second half of FY07." Sony are making profit right now. The rest of this generation is profit. Price cut, when ever they want.

Finally its pretty obvious people aren't just buying PS3 for BR.
Its pretty obvious PS3 is more than just a movie player.
Its pretty obvious there are heaps of good games on PS3 and PS3 owners are buying then at a good rate. Anyone disputing what I just said is just displaying either there ignorance, their fanboyism, denial or all 3.

[The Wood]

we all knew/believed this. we just get told otherwise by some who I shall not name. blu ray player this, attach rate that, no games this. Its enough hate to break the strong but these numbers dont lie. Bubbles for us all

[Lumbo]

Still Sony does NOT report "units sold to CONSUMER" but units sold to their customers = retail chains.

Nintendo reports "sold to customer" = "shipped to retail"
Sony reports "sold to customer" = "shipped to retail"
Microsoft reports "shipped to retail"

So at the end of the day all three report units SHIPPED TO RETAIL.
Just drop the fanboy spin, its only adding to misconceptions blabbered around the forums. Microsoft does NOT count refurbished units send from the repair center as "shipped to retail" only the early units that users re-bought them self cause of Microsoft's 90 day warranty in the launch year (RRoD was named a myth and lie by MS representatives then, so if you RRoD in the launch year AFTER the 90 days you had to buy a new unit...)

(ps: i only have a PS3, but still the constant repetition of spun out of reality concepts is annoying.)

[shine1396]

@lumbo...okay so what your saying is that when sony where talking about shipping a year ago when they were talking about product shipment, they were talking about the products made? i.e. regardless of whether they were shipped?...ere go they have now move on to shipping to retail...?

jeez...I'm a cynic and all, and I don't see the incentive for all retailers around the world to be telling sony about exactly how much inventary they have left untill they have run out...but..even so, I can't see companies 'lieing' to their stockholders like that...stockholders can take sony to court you know...there are some pretty powerful *money wise* stockholders, and don't think they'll be to happy to hear that factory inventory was being counted as being bought by retail...in short, I think your wrong...I reckon sony changed the way they do things for the benefit of stockholders, because with consoles, how many consumers are buying, needed to to be tracked...
Microsoft don't exactly have huge amounts of inventory as well, so their number must be fairly close to be sold to customer...

[dude_uk]

how do you know???
are you working in sony's HQ?

it isn't impossible to calculate how many PS3's have been sold to costumers, you know!
seen as NPD and others seem to do it very well and sony also has a direct connection to retailers to gather this sort of information; Either way sony has always shown figures sold to COSTUMERS not to retail.

So what your saying is null, as many others here would agree with me.

[rawg]

Sony reports sales to retailers because that's when they book the revenue. From a financial perspective, Sony investors don't really care if/when the retailers sell it to their customers because that revenue goes on the retailer's books.

In the past, Sony was forecasting revenue based on units manufactured under the assumption that they would all eventually be sold, which is a fair assumption to make as long as it is disclosed in their financial statements. It's not "lying" to investors.

All consumer products companies track sales in the same way. The only shenanigans that you have to be careful about is when manufacturers "stuff" the channel with inventory to meet quarterly sales numbers, like MS did last december which is probably the reason why they had "shortages" earlier this year.

BTW - I'm a long time investor in Sony and I do read all their financial statements.

[Lumbo]

@shine1396: YES, Sony counted units shipped from factory to warehouse in the past, as someone above stated simply implying that the stock will be sold anyways. It was clearly stated in the financial report that they did it that way, the way is ALLOWED by accounting laws, hence no one lied to anyone.

Last year Sony switched from the old "shipped to warehouse" counting to "sold to customer" as that would provide a more accurate financial representation. As said before Sony's customers are the RETAIL chains, not consumers. Sony like any other manufacturer has no way of exactly measuring units sold to consumers. Sony does not have 1000000000 inspectors that run around the world checking store shelves and store warehouses and count every unit remaining. NO ONE knows the exact number of units sold to consumer. Ok except for maybe Nintendo during the worse of the low shipping numbers times, as then every single unit shipped was a unit sold a day later.

So Sony reports to their investors the EXACT number of units sold to their customers (retail) and hence can forecast the exact money value from that. Like rawg posted Sony investors care ZERO about the money WalMart makes from sold PS3's, or Target, or Gamestop. They only care about the number of units Sony sold. When you buy a PS3 from WalMart, do you honestly believe that WalMart afterwards splits the profit from that bill and sends a part of the money to Sony? Have you ever worked in any retail store? Wares have to be bought from the gross market supply BEFORE you sell them to Joe Average.

@Dude_UK: actually your baseless blabber does not deserve an answer, but i am in a generous mood.

NPD has an SELF proclaimed error margin of max 10% total. To illustrate: if NPD reports 1,000,000 units, they actually report a number between 900,000 and 1,100,000. So you claim people can EXACTLY measure the number sold to consumer when the most precise institute for the US market themself vary at around 200000 units for every million? Are you kidding me? If you have come up with a magical solution to measure the sold to consumer number why are you still sitting on the Internet posting garbage? You would be outselling NPD with their 20 years of experience. NPD has a market coverage of 60% of the US market and take key probes in all mayor chains, except the biggest chain: WalMart. And still they have no 100% numbers, far from it.

If you had a reading comprehension of more than a 6 year old you could have easily read that in the financial report released by Sony. Sony even explained it several times last year when they switched the reporting. But then you want your fanboy fantasy's to remain, welcome to the mighty ignore list.

[Bathyj]

Its not that hard to calculate for Sony stock sold. If they send a shop 100 units then the next order they say only sent 50, we still have 25 left, then they sold 75. Its not rocket surgery. The difference between Sony and say NPD is that Sony are in contact with everyone they supply to. NPD doesn't cover everyone as you said. Thats why i dont know why people take them as absolute gospel when only the manufacturers numbers are right, well probably 98% right, they must be pretty close.

Sorry Lumbo, you're a good guy, and I like your post, you're a level head in a sea of crazy FKR's and I may be wrong, I admit that, but Sony have gone out of their way to make it clear they are reporting sold to customers now, so I am gonna have to respectfully disagree with you this time. Please dont ignore me. ;)

[sak500]

Time for ken, nasim/shmee/tanod/shadow/alexM dumbultra,kaz, $hane and rest of droids to stand in line and fap fap..

[I_Is_Nasim]

First in line and you're a loser!

[twoface]

i guess that's better than nothing

[SL1M DADDY]

Is no farce whatsoever. They have definitely got some steam behind them now. This only proves that brand loyalty still exists and that the Sony name is a giant in terms of worldwide sales. Kudos Sony for taking the punches and coming out strong.

[Qbanboi]

Man, i don't care who sell more HW or SW. But it makes me happy that Sony is selling good. Because then those Exclusive, will come to the Ps3 too.

[Meus Renaissance]

I could care less about sales figures when I still dont have in-game XMB. Disagree all you may, I'm sure you're getting your slice of the income reported by Sony here - oh wait, you're not. Damn ain't that a bitc.... There is nothing to praise here when titles are getting delayed and in-game XMB is MIA

[rawg]

I'm getting a little sick of the delays for in-game XMB, Home and LBP but on the flip side I hope they are using the time well.

I was pretty impressed with the PSN store update. It actually exceeded my expectations. Now if they deliver as good a product with the other features I'm waiting for, I'll forget my irritation at the delays pretty quickly. But hurry the hell up Sony!

[rawg]

It's worth noting that the PS2 lifetime attach rate based on Sony's official numbers is 10.5 (1.39B/132M).

I think there was an article a few weeks ago saying that the 360 attach ratio was the highest ever for a console at 7.5. They must not have included the PS2 in their comparison.

[DJ]

"We have the highest attach rate of any Next-gen console" at trade shows, but condenses that statement to "Highest attach rate" during interviews and whatnot.

It's pretty dumb, considering they launched a year ahead of everyone, so Of Course they've sold more software and hardware. Well, maybe not hardware (i.e. Wii).

[AngryXbot]

What were you expecting?

Did you honestly believed MS (and their fanboys's) lies?
If you had done your math, you would have known that PS3 attach rate was HIGHER than 360 attach rate, which could only mean that PS3 sells more software.

There is no other conclusion. The PS3 attach rate HAS ALWAYS been higher than 360 and this would have meant that it was only a matter of time before the absolute sales would surpass the 360s software sales aswell.

As the install base of the PS3 increases, which it did (outsold 360 every month since October 2007), the software sales numbers will increase faster than 360s because of a higher attach rate.

[AngryXbot]

Their last argument "360 software sales are better"
is fastly becoming empty and dust as PS3 software sales are tremendous and dwarves 360s software sales (which were never a lot to begin with but you know xbots! Always twisting and spinning facts in their favor).

PS3 software sales MURDERS 360s software sales.

Xbots cry us a river. Haha and the bartender! Fk you xbot bartender! It was hilarious!