Saturday, August 30, 2014
Sony Swings To Profit On Success Of PlayStation 4, PC Division To Be Sold

Sony Swings To Profit On Success Of PlayStation 4, PC Division To Be Sold

Sony has swung to a rather encouraging profit on the back of its PlayStation brand, more pointedly the success story that’s been PlayStation 4, selling 4.2 million consoles in just six weeks, setting a record for the games industry.Sony’s game division saw an impressive 64.6 percent rise in sales year-on-year to $4.2bn because of PS4′s launch in the U.S., U.K., other parts of Europe, Latin America and other countries. The console has launched in over 53 territories thus far. In all, total profit equated to $172 million for the games business.

PlayStation helped the overall company to a respectable profit of $257 million for the quarter off of $22bn in revenue — a jump of 23.9 percent in sales. Smartphones also helped, with Sony reporting a “significant” increase in sales.

That’s the good news, however Sony also announced sweeping changes to its TV and PC businesses, with the latter being completely sold off to Japanese firm Japan Industrial Partners. Sony will retain only 5 percent of the business. This means after the Vaio’s spring PC lineup is released, there will be no more of said brand in stores anywhere but Japan. So say goodbye to Sony computers.

As for its TV business, that arm has been spun off, although Sony still retains 100 percent of the branch, and will dedicate its efforts on high-end 4K displays, leaving lower end models to other competitors in the TV manufacturing business. Sony hopes this decision will help its ailing TV brand retain profitability this year.

All these big moves have lead to Sony cutting 5,000 jobs by the end of this year, with 1,500 being slashed in Japan and the remaining 3,500 elsewhere. It seems as if PlayStation has escaped the latest job-cutting efforts.

As a result of all the cost-cutting measures, the spinning off of its TV branch and the complete sell off of its PC business, Sony expects an operating loss for the full year, which is somewhat startling. The ship is stable now, but Sony has a lot of work to do.

 

 

About Ernice Gilbert

Ernice Gilbert here. Founder and Editor-In-Chief of Gamesthirst. Thanks for stopping by, make yourself at home!