Sony Slashes Financial Projections Due To Disappointing Box Office Returns

Sony had a very rough second quarter of this Fiscal Year and have been forced to slash their financial projections by 40%.  This was mostly caused by poor performances in the TV, movies and smartphone markets.  Once again the game’s section did very well and only lost a teensy bit of money due to one little thing.

The Sony Game Division ended up losing $8 million for the second quarter that ended September 30.  This was largely because of the price cut Sony made to the PS Vita and the memory cards.  If you remember, Sony was losing money on every PS Vita sold and now that they’re being sold at a cheaper price Sony is losing even more money.

“Operating loss of 0.8 billion yen (8 million U.S. dollars) was recorded, compared to operating income of 2.3 billion yen in the same quarter of the previous fiscal year. This year-on-year decline was primarily due to the impact of a strategic price reduction for the PlayStation Vita and the unfavorable impact of foreign exchange rates, partially offset by the above-mentioned increase in software unit sales,” reads Sony’s report.

“The decrease in sales on a constant currency basis was primarily due to a decrease in unit sales of PlayStation 2, PlayStation 3 and PSP hardware, partially offset by increased PS3 software unit sales compared to the same quarter of the previous fiscal year.”

The real culprit for Sony’s woes this quarter was the box office bomb ‘White House Down.’  The would-be blockbuster starring Channing Tatum and Jamie Foxx earned a poor reception from critics and no one rushed out to see it.  The film only barely made its $150 million budget back.

Sony is hoping that strong consumer interest in the PS4 will help offset such box office bombs.  Though the hardware is being sold at a loss, Sony is optimistic that they can make a killing through services like PSN and digital goods.  Seeing as Microsoft has made millions from Xbox Live there is strong reason to believe that PSN could make Sony millions as well.