×
You will be redirected back to your article in seconds

Sony vidgame profits in nosedive

Mass prod'n could turn unit's fortunes

TOKYO — Hit by high costs for getting its PlayStation 2 unit to the market, the cash cow division that makes videogames for Sony Corp. is stuck in an earnings slump, a Japanese financial daily reported on Thursday.

Sony is projecting a profit of about 20 billion yen ($187 million) for its videogame biz in the fiscal year that ends March 31, 2001. The profit figure is about one-fourth of the tally registered in the previous year, the Nihon Keizai Shimbun’s Financial Daily reported.

In the April-June quarter, Sony Computer Entertainment logged a $150 million operating loss, which was cut to $92 million the following quarter, it said.

Mass prod’n key

The paper cited financial analysts as saying that the game unit will be able to break even on an operating basis when Sony starts mass producing PlayStation 2 consoles.

The current PlayStation, which has racked up global sales of over 70 million units, is the most profitable product produced by Sony.

Sony Computer Entertainment accounted for about 40% of Sony’s overall profit in the last fiscal year while the movie division tallied about 12% of the electronics giant’s profits.

PlayStation 2 hit the Japanese market in April and is scheduled for release in the U.S. and Europe in the next few months.

More Biz

  • Here’s How Much Money 10 Artists

    Here’s How Much Money 10 Artists Are Owed by PledgeMusic

    For eight years, PledgeMusic was a success story: A direct-to-fan platform where artists worked directly with their audiences to fund their albums, tours and all stripes of merchandise, with fans able to purchase everything from custom guitar picks to private concerts. Yet last June, Variety broke the news that the company is struggling to pay [...]

  • Korea's CJ CGV Switches Turkey CEOs

    Korea's CJ CGV Switches Turkey CEOs as It Battles With Local Industry

    Yeun Seung-ro has been appointed as CEO of CGV Mars Entertainment, the Korean-owned company that operates Turkey’s largest cinema chain. He replaces Kwak Dong Won, another veteran of the CJ-CGV group. The change of personnel may reflect two ongoing battles within the Turkish film industry. CJ-CGV, which bought Mars for some $650 million in 2016. [...]

  • China Video Streaming Giant iQIYI Loses

    Chinese Video Giant iQIYI Loses $1.3 Billion in 2018

    Chinese video streaming firm iQIYI lost over $1.3 billion in 2018, as revenues and subscriber numbers ballooned. The deepening losses reflected ever higher spending on original content production. Announcing its first full-year financials since a March IPO that launched it onto the NASDAQ, iQIYI said that it lost $1.3 billion (RMB9.1 billion) last compared with [...]

  • Lisa Borders Time's Up

    Time's Up CEO Resigned After Son Was Accused of Sexual Assault

    Time’s Up has announced in a statement posted to Instagram that its former president and CEO Lisa Borders, who resigned Feb. 18, did so after her son was accused of sexual assault in a “private forum.” “Within 24 hours, Lisa made the decision to resign as President and CEO of Time’s Up and we agreed [...]

  • Louis Tomlinson Signs With Arista (EXCLUSIVE)

    Louis Tomlinson Signs With Arista (EXCLUSIVE)

    One Direction’s Louis Tomlinson has signed with Arista, sources tell Variety. While the singer was formerly linked with Epic Records in 2017, he is signed directly to Simon Cowell’s Syco label and will move within the Sony Music family to Arista. Tomlinson teased a new single on Feb. 2, posting on Twitter, “Just heard the [...]

  • Jussie Smollett

    Jussie Smollett's Bail Set at $100,000, Must Surrender Passport

    UPDATED: A Chicago judge set a $100,000 bond for Jussie Smollett on Thursday, as the “Empire” actor made his first court appearance. Smollett faces one felony count of filing a false police report. Police allege that Smollett staged a Jan. 29 attack, telling detectives that he was accosted by two men who used racial and [...]

More From Our Brands

Access exclusive content