We know the feeling

Sony has checked in with its latest quarterly sales report, and it doesn’t paint a particularly positive picture for the Japanese manufacturer.

Sales in the games division – which is now reported under its own heading – plunged by a concerning 14.5 per cent year-on-year, contributing to an overall loss of ¥3.5 billion. Sony blamed the deficit on falling PS3 and PSP sales, which were “partially” offset by sales of the PlayStation Vita.

Sony, however, failed to provide numbers for its latest piece of hardware, opting to combine the sales of the handheld with its predecessor. Even then, the joint tally of 1.4 million units was slightly less than the 1.8 million units that the PSP achieved on its own a year ago. That’s a huge sign that Sony has managed the transition between platforms poorly.

To keep the report consistent, the platform holder also opted to combine PlayStation 3 and PlayStation 2 sales. Together the systems sold 2.8 million units, down from 3.2 million units the year before.

Software sales declined, too. Handheld software hit 5.8 million units, a significant decrease over the 6.6 million units reported the year prior. Meanwhile, home console software plunged from 27.6 million units to just 20.1 million units.

As a result of the poor performance, Sony lowered its expectations for the coming year. The company predicted that it will see “essentially flat” year-on-year figures, and that operating income will “decrease significantly”. Not good.

The company also warned that the Vita and PSP will sell significantly less than expected. The company had previously anticipated to ship 16 million units combined, but it now predicts just 12 million units. We’ll be amazed if it hits 10 million units to be honest.

Fortunately, the game division looks relatively stable compared to the rest of the company. Sony posted a loss of $312 million in total – the majority of which was attributed to its television and mobile divisions. Sigh.

[source sony.net]