Sony “Especially Pleased” by Network Sales; Sony Interactive Entertainment Merge Further Detailed
During Sony’s quarterly earnings call for overseas investors and analysts, Chief Financial Officer Kenichiro Yoshida talked about the performance of the PlayStation business in the latest quarter.
“This business has great momentum and it’s different from our branded products and devices business, because it is increasing its service-related revenue. The installed base of PS4 hardware is expanding faster than any of our previous consoles. Sales of the product during the holiday season were extremely strong, and network revenues for the third quarter increased approximately 50% year-on-year.
The PlayStation is steadily growing into a global network entertainment platform due to the power of the PlayStation 4 hardware console, and the ability of our team to bring content creators to the platform.”
Yoshida-san also provided more detail on top of what he mentioned during this morning’s conference call for Japanese investors, about the reasons for the merge between Sony Computer Entertainment and Sony Network Entertainment into Sony Interactive Entertainment.
“On Tuesday, we announced that we’ll be combining Sony Computer Entertainment and Sony Network Entertainment into a single company, known as Sony Interactive Entertainment. The headquarters of the new company will be based in the United States. Many of our key partners across the network services, content and technology are based in the United States, and major shifts in the digital content landscape are happening fast in the U.S. Locating our headquarters there will allow us to quickly respond to the rapidly changing business environment and continue to expand and strengthen the PlayStation business.”
Corporate Planning & Control and Accounting Senior Vice President Kazuhiko Takeda gave more color on the outlook for the full year for the game & network services segment, mentioning that the company is “extremely pleased” with the performance of network sales.
“In the Game & Network services segment we have upwardly revised our fiscal year operating income forecast by five billion yen to 85 billion yen, following the strong momentum of the PS4 platform. We have been especially pleased with the strong performance of network sales, which have been outperforming our expectations.”
Personally, I was rather amused by reading articles earlier this week alleging that Japan doesn’t matter anymore for PlayStation due relatively sluggish sales of PS4 in the country, and that factor would have dictated the move of the gaming headquarters to the west.
According to what we hear, the merge seems to be, unsurprisingly, more of a matter of tightening the business side of the two companies combining into Sony Interactive Entertainment.