Sony reports annual losses amid strong PS4 sales

Overall hardware sales drop while software sales are on the rise.

Sony have posted a net loss in profits of £746m ($1.25b) against a net profit of £241m ($406m) in the last fiscal year, making this the fourth reported annual loss in a row.

Annual sales rose 14.3% which Sony state is, "primarily due to the favourable impact of foreign exchange rates, the launch of the PlayStation 4, as well as a significant increase in sales of smartphones". Sony reported earlier that PS4 sales have passed the 7 million mark surpassing its nearest competitor Xbox One by a clear 3 million units.

Sony’s games division have seen a rise in software sales year on year of 38.5% totaling £5.7b ($9.6b) but this follows an operating loss of £47m ($79m) against an operating income of £9.9m ($16.6m) in the previous year.

According to Sony an increase in costs surrounding the PS4 launch and a £36m ($61m) mass write-off of some of Sony Online Entertainment’s PC titles are to blame for the deterioration.

The total sales of software have risen from 266 million to 374 million units.

On the last quarter combined home console sales are on the up with 3.7 million units this quarter against 3.4 million units from the same quarter last year. Totals over the whole year have dipped with 14.6 million units versus 16.5 million from the previous year.

Sales of Sony’s portable Vita, Vita TV and PSP devices are also down from 7 million units to 4.1 million.

Sony are expected to announce their long term strategy with CEO Kaz Hirai addressing the company on May 22nd. It is likely Sony will focus on their electronics divisions, building on games, mobile and imaging technology.

As a result of the sombre news for Sony Hirai and other Sony Execs will take a pay-cut by forgoing their bonuses.

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