Sony posted its Consolidated Financial Results for the second quarter which ended September 30, 2011, and the numbers look a little gloomy for the electronics and entertainment giant (full .pdf report). Sales compared to the same period last year declined. The company also saw an operating loss for the quarter versus income recorded last year. And, finally, forecasted sales and income for the fiscal year were revised downward.
Though the significant impact of the continued negative pressure the unfavorable exchange rate creates must not be overlooked, Sony cited other contributing factors as well. Falling LCD television sales shared the blame for the sales and income declines. The reduction in anticipated income, though, was attributed to lower projections for sales from the Consumer Products and Services division, among others. That's the umbrella under which PlayStation falls.
In reference to the downward revision, the report notes, "a decline in the game business, reflecting a strategic price reduction of PlayStation 3 hardware in advance of the year-end holiday season." The full impact of that gamble won't be known until after the end of the year, but initial signs at least point to it paying off in moving hardware. During the investor call follow-up (transcript, via NeoGAF), Sony corporate executive officer Masaru Kato revealed PS3 hardware sales hit 3.7M, a new Q2 high sales mark since launching in 2006.
The PlayStation Network also seems to be making a good comeback after the extended outage it suffered as a result of being hacked. Though no specifics were offered, Kato stated, "since restarting the service, customers are again utilizing the service and results are trending favorably, as customers are purchasing great deal of content, including new popular game titles."
Garnett Lee posted a new article, Sony posts operating loss in Q2 sales figures.
Sony reported sagging sales and an operating loss in its Q2 2011 financial reports. Exchange rate and the LCD TV business bore the brunt of the blame, but a reduction in anticipated income for the full year was partly attributed to the PS3 price cut.