Sony’s Q2 losses less than expected thanks to strong PS4 performance

31 Oct 2014

Sony has reported a less than expected loss for this year’s second quarter due to strong sales of the PlayStation 4 console.

As reported by Reuters, the electronic manufacturing giant has revealed operating losses of 85.6bn yen (€610m) overall in the July-September period. Analysts had estimated the firm would suffer a 164.3bn yen (€1.17bn) loss.

The better than predicted results were in part due to the sale of 3.3 million PlayStation 4 consoles in the second quarter. However, Sony’s mobile division struggled, posting a loss of €1.25bn.

Chief Financial Officer Kenichiro Yoshida has said the company will reduce its smartphone business in China, where it has suffered at the hands of local rivals like Xiaomi.

Just last month, Sony revised its annual earnings forecast because of increased mobile phone competition. The company now expects to post losses of 230bn yen (€1.65bn), up from its previous estimate of 50bn yen (€410m), which the company attributes to the investments it made in the smartphone market.

Sony’s range of phones, including its most recent flagship model, the Xperia Z2, have struggled to fight the success of other major smartphone brands, including Apple, Samsung and HTC.

A breakdown of the quarter two figures is available to read online via Sony’s website.

Playstation 4 image via Shutterstock

Dean Van Nguyen was a contributor to Silicon Republic