5 Reasons Sony's Financials May Mean The End Of the PlayStation

By: 05.10.12

As you may or may not know, Sony has been taking a beating over the last year. Some of it is temporary: the Japanese earthquake and tsunami, the floods in Thailand, the ongoing strengthening of the yen (which has also dinged Nintendo) and even the biggest Sony hater acknowledges that, hey, next year they’ll probably return to a profit.

And at least their sales are going up! The problems, though, are multiple: they’ve been losing money for nearly a decade now on televisions as Samsung and other rivals run rings around them. Apple has replaced them with personal MP3 players. The company itself is so dysfunctional that they’re releasing an “Ultrabook” with an outdated processor that’s thicker and heavier than their laptops.

So why would the PlayStation brand be on the chopping block? Well…

#5) Of That $5.7 Billion Loss, The PlayStation Division Accounts for Half

If a division of any company loses $2.8 billion in a year, even the dumbest CEO is going to take a close look at that division and its long term prospects. Basically they’ve got to hope that the Vita is a big hit and the PlayStation 3 continues to sell. Unfortunately…

#4) This is The First Year Their Games Division Was a Liability

Over the last few years, pretty much the brightest spot on Sony’s financials was the PlayStation division. System sales overall have dropped, although software sales were up. Going from helping keep the company profitable to becoming an anchor around its neck in a year is not good news for any brand.

#3) It’s Becoming Clear, and Rapidly, That The PS Vita Is Struggling

It’s sold 1.4 million, according to some estimates, but Sony refuses to release any detailed sales data. A lot of people think E3 will either save the Vita or be its last stand.

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