Don’t Shoot the Messenger – Bad News Aplenty

Some bad news came out last week. It seems that the downward spiral we find ourselves in is going to continue for a little while longer.

Here’s the ‘highlights’ of last weeks bad news.

Sony’s Losses

Although the recent bad news surrounding Sony didn’t seem to be as a result of the games division. The recent poor form of Sony had been put down to the poor TV sales and the many other sectors that Sony’s involved in. In fact Hirai claimed that Sony’s future depended on the continued success of its mobile, imaging and gaming divisions.

News has come out though showing that $2.8 billion has been lost this year in the PlayStation department. This had been put down to falling sales and a price drop on hardware, though this still continues a worrying trend of Sony losing money. Fingers crossed a new console generation on the horizon can generate some buzz and get them selling consoles again.

EA Shares

EA have seen their shares falling of late. This could be down to falling numbers in their Star Wars MMO in which so much was invested though the whole industry has seen sales falling, so this comes as no great surprise.

EA seem to have gone on the offensive and have stated that they’re keen on improving their digital sales.

Sega Restructure

Sega have also reported huge costs this past week, claiming that their re-structure process has been the main cause of this.

The main re-structuring for Sega has taken place in the US and Europe, though Sega are hopeful that the new divisions created in Japan (Sega Networks, focusing on online games, & Sega Corp, focusing on arcade machines and the like) will give them more revenue streams in the future. Overal, Sega Sammy Corporation made $170 million, though this figure is lower than last year’s.

Retail

It would appear that the malaise within the games retail sector is continuing. The biggest news being that US games sales have fallen 32% in the month of Arpil.

Analysts claim that this could be down to the lack of ‘AAA’ titles being released last month, though the NPD numbers only concern purchases of new physical releases. Digital downloads saw the release of Fez and Trials HD, both making quite the splash.

GAME Australia have gone into administration and as a result aren’t able to sell or refund any pre-order deposits. Dixons (in the UK) have seen their sales fall 3% this year, seemingly unable to gain the extra business from GAME (UK) having a major wobble earlier this year.

Still, it’s not all bad. Square-Enix have turned their situation around. Following last year’s losses (¥12 billion) they’ve returned to profitability with earnings of ¥6 billion.

You should also consider the new consoles that are bound to be with us in the next year or two. This will hopefully increase hardware and software sales within the games industry. Hopefully…

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