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Sony posts dire results for 2011 holiday season

Sony's just posted financial results for the final calender quarter of last year, and things didn't go as well as the company may have hoped. Most departments, including the videogame-encompassing Consumer Products and Services Division, posted losses in the concluding quarter of a year that saw the company humbled by hack attacks, weak markets and the fury of nature herself.

Sony posted a company-wide $2.03 billion loss for the quarter, with revenue dropping 17.5% from the same period last year. CP&S alone reported $1.09 billion in quarterly losses – despite continuing to push out the PS3 hardware and software alike at ever-increasing rates and gearing up for the Vita's international launch. While the division had an uphill battle recovering from the depredations of Internet pranksters, it also attributed the loss to “higher marketing costs to promote network service platforms,“ and a “strategic price reduction” for PS3 hardware – allowing sales to increase even while revenue failed to rise accordingly.

Above: Sony's Tokyo HQ has now had to contend with four consecutive years of losses

The company further attributes much of the loss to poor exchange rates and the underperformance of affiliated companies. It also cited reduced LCD television sales due to the conclusion of a government-sponsored consumer subsidy program, and flooding in Taiwan, where Sony manufactures much of its hardware. The only bright spots in the report come from the company's Pictures and Financial Services divisions, which posted yearly revenue gains of 15% and 5% respectively.

Earlier this week, Sony replaced its first non-Japanese CEO, Howard Stringer, with longtime company stalwart and PlayStation mascot Kazuo Hirai (Stringer goes on to head the company's Board of Directors). Hirai pledged to refocus the company's attention on its “core electronic businesses.”

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7 comments

  • therawski - February 2, 2012 3:28 p.m.

    Oh yeah not to mention, their PlayStation 3D TV was overpriced mediocrity (at best). Future failures are StarHawk and the Vita launch, one could be good if it wasn't lackluster, the other could use an FPS. (basically the both could use an FPS) Sony needs to stop finding external things to blame their problems on, first it was software pirates and hackers, then natural disasters. These are unfortunate circumstances, but it's a shame to use them as financial scapegoats.
  • Defguru7777 - February 2, 2012 4:16 p.m.

    Considering the size of the hacking and the natural disaster, I think Sony is justified in listing them among the reasons for losses.
  • TheHowetzer - February 3, 2012 5:59 a.m.

    So software pirates and hackers are "unfortunate circumstances"? LOL Yeah so is 5 thugs breaking into your home, raping your sister, killing your Mother, and stealing all the valuables in your home.
  • An_Awesome_Guy - February 3, 2012 8:46 a.m.

    Wait, what?
  • Redeater - February 2, 2012 3:36 p.m.

    But....but.....but.....move was supposed to be revolutionary! Like nothing we have ever seen before. Are you telling me releasing a waggle controller years late to the party has not helped them turn their luck around??
  • talleyXIV - February 2, 2012 6:20 p.m.

    I have a Sony 3D TV and I actually like it a lot, I have had a PS3 for 5 years and still enjoy it, and I enjoyed a lot of the PS3 exclusives. The only things I can really attribute this to are: 1. Move was really bad... I have played Kinect and have to say it really killed Move. I still go back to my Wii though because it is the perfect balance of motion control and normal gameplay. 2. PS Vita looks like a boring handheld that has been done before, 3DS was really unique. 3. Haxors
  • bboyd - February 2, 2012 8:05 p.m.

    A big portion of this has got to be on the Move. A poorly advertised carbon copy of the Wiimote that requires a Playstation Eye? How could that ever fail!? With that being said, Sony is a massive company, so this obviously goes beyond just gaming.

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