PlayStation 4 Profits Pulled Down by Lackluster PS TV and Vita Sales
In the ongoing console war against Microsoft, Sony has been doing well in sales due to the PlayStation 4, but there are two things holding it back — the PlayStation TV and Vita.
Sony has released its third-quarter fiscal figures and they're looking pretty nice. Polygon reports that Sony's Game & Network Services division, which is responsible for its PlayStation businesses, has declared an increase in sales by 16.8 percent year-over-year, bringing it to $4.39 billion. The company's consolidated financial results for the third quarter that ended on Dec. 31, 2014 broke down where this increase comes from (here's a hint — it's the PS4):
"Sales are expected to be higher than the October forecast primarily due to an expected increase in unit sales of the PS4, an expected increase in network services revenue and the favorable impact of foreign exchange rates," the consolidated financial report states. "Operating income is expected to be above the October forecast primarily due to the above-mentioned increase in sales, partially offset by the unfavorable impact of the appreciation of the U.S. dollar, reflecting the high ratio of U.S. dollar-denominated costs in the segment."
However, we all know not everything under the Sony Game & Network Services department is making the company as much money as its PlayStation 4 console. In fact, there are two things in specific that are actually dragging the company down — the PlayStation Vita and the PlayStation TV. Although the departments income increased by a whopping $228 million, it was held back by a $93 million write-down for the PlayStation Vita and PlayStation TV's components. It seems that these two products may be the Achilles' heel for the company, similar to how the Kinect 2.0 is for the Xbox One.
You can check out the charts below to get a better grasp on Sony's Q3 2014 sales compared to its Q3 2013 sales and the breakdown of where all the money is coming from.