Sony Profits to be Lower than Expected

Posted on Friday 24th October 2003 at 18:04 by SSJ_Cloud

Sony has announced that their profits for this quarter will be about 25% lower than initially projected.

There are two main reasons for this. The first is the relative strength of the Yen right now when compared to the currencies of other nations. Since Sony exports so many products, they do not receive as much of a profit as they should because of these nations' weaker currencies (This is just a quick and dirty explanation of it. I'm just a history major so I know almost nothing about global economics). The second reason is Playstation 2 sales are starting to slow. Europe is the only major market were sales are continuing to grow. Last year for this quarter, Sony's game division had sales of 250 billion Yen. For the quarter this year, the division has only had sales of 161 billion Yen. Sony contributes part of this to a dock worker strike on the US West Coast.

Source: Games_Are_Fun

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I wonder if PS3 news will start picking up because of this...

Posted in: Gaming Industry News

Written by

SSJ_Cloud

Former Data Collector

Member Since: 2001-09-17

News articles posted: 66

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Comments

Rangers51

Comment 1: 2003-10-24 18:22

Sony's models should have predicted the stagnation of PS2 sales based upon stagnation of the PS1 sales over a similar timeframe. That's kind of silly that they didn't come at least a little bit closer to estimates.

The big culprit probably is the fall of the Yen. It's taken a surprising tumble lately against most major currencies. I'm not sure that the strike really hurt them THAT much.

Your quick-and-dirty is pretty good, though.

karasuman

Comment 2: 2003-10-24 19:07

I just mentioned this to my father, and he gave me a long lecture about...
1) "Japs" being too dependent on the US economy;
2) a nation's economy being far more important than video games; and
3) this is just another reason why I should have bought an X-box, because he owns stock in Microsoft, and they're doing okay.

...

Yeah.

I agree with Josh, though. From the looks of it, they should have had a better idea of how long PS2 sales would last. I'm not incredibly well acquainted with Sony's fiscal status, however.

Is there something else of which I am not aware that the might have anticipated would make them more money? I can't think of much.

I bet this does spur more PS3 stuff, though. If they want to keep their shares up, they have to promise something.

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