Sony records loss despite good PS4 and smartphone sales

Sony ended its fiscal year 2013 with a loss of 910 million euros, despite an increase in revenue from gaming and smartphones of 38.5 and 29.6 percent respectively. The loss was mainly caused by the costs associated with a major reorganization.

Virtually all of Sony’s divisions, including gaming, telephones, music and home entertainment, booked more turnover in 2013 than in 2012. Only the camera branch saw turnover fall by 2 percent. In gaming, the good introduction of the PS4 is responsible for the increase in sales; Sony does not specify phone sales, but the clear strategy with Xperia smartphones seems to be paying off here. In home entertainment, according to Sony, it is the models in the higher segment that provide more turnover.

However, the Japanese technology group was unable to cash in on the good sales. Below the line, a loss of 128.4 billion yen was written, converted to 910 million euros. In particular, the costs of the massive reorganization and divestment of the Vaio division of PCs had a negative impact on the results. The costs for the exit from the PC market are estimated at EUR 416 million. Sony also mentions the costs for the introduction of the PS4 as one of the reasons.

For the coming year, expected Sony has seen an increase in sales for its gaming, mobile and home entertainment businesses, with the latter being boosted by rising demand for UHD TVs. Due to ongoing restructuring costs, Sony also expects to suffer a loss of 50 billion yen, converted 357 million euros, next year.