Sony warned us that its end-of-year finances were not looking good and were expected to worsen, and its financial reports now confirm that projection.
Xbox One Now Being Sold Without Kinect For $399
Despite very strong PlayStation 4 sales, the company as a whole suffered major losses for the fiscal year ending March 31, posting a loss of $1.29 billion.
Sales actually rose during last year, increasing 14.3 percent to $75.4 billion. The majority of the loss, as explained at the start of this month, is attributed to the sale of Sony's PC division. You may think the sale of a division would bring in revenue, but costs associated with the move ended up negatively impacting Sony.
Sony Boasts Strong PS4 Sales, But Warns Of Overall Losses
Components and parts ordered for the spring PC Vaio line were left over due to slower than anticipated sales, and Sony was required to pay these off before moving its PC division. Despite also spinning off its TV business and selling its shares in Square Enix, Sony was unable to attain a net gain.
Launching the PS4 was expensive, and resulted in an operating loss for the gaming division, but strong PS4 sales will help the company stabilize moving forward. Console sales rose by 1 million over the past year (PS2 was included in that cycle), and a slight Q4 increase was posted as well.
The company does expect more losses ahead of up to $487 million as it continues to restructure, but should then be better positioned to make a profit in the future.