Sony FY2016: Revenue Down, Profit Up

Sony released their Full Year financials for the 2016 financial year today, and overall the results were quite good. Revenue decreased by 1.3% this year mainly due to a decrease in their mobile unit. Sony noted that the decision to decrease volume to achieve profitability is the reason for unit sales plummeting, but it seems like the massive losses they made with the mobile unit have been mitigated. Profitability were up and the company made a net profit of $1.3 Billion, a far cry from the billions in losses made thanks to their mobile unit a few years ago.

Full Year Results

When it comes to gaming, the Gaming and Network Services division recorded a huge 11.8% increase in revenue for the year, which with the popularity of the PlayStation 4 is not surprising. Sony noted that this was mainly due to an increase in game sales, and subscribers to their PlayStation Network. Sony also notes that the unit would have made more money, if it weren’t for the price of hardware being lowered. Currently the PlayStation 4 is available for $299 in some cases. Sony is also expected to reveal their upcoming Neo hardware refresh, which may increase the profitability of the unit, with higher priced models.

However in the last 3 months ending March 31st, total hardware income dropped by 14.9%, Network services increased by a massive 46% due to an increase like Sony noted in game sales.

Sony has sold just shy of 40 Million PlayStation 4 units, and since it’s that time of year again, we expect Sony to reveal the updated figures for their total hardware sold to date pretty soon. Sony however couldn’t forecast the 2017 revenue projections mainly due to the earthquake, however they did note that all hardware units will be affected in some way.

Full Financials Here

Share this article: