The Australian operations of Sony Computer Entertainment have witnessed a $45.5 Million plunge in revenues and a 45% fall in profits despite the company having the advantage of a new low cost PS3 Slim console.
Documents filed with the Australian Securities and Investment Commission reveal that the 2009/2010 financial year was a disaster for the Sony gaming subsidiary with revenues falling from $287 Million in 2009 to $241 in 2010.
The Company, who prior to launching the Slim PS3 Console in Australia, had a reputation for price gouging, with several of their products selling at up to 50% higher in Australia than for the same product in Asia and the USA reported a sharp fall in profits from $8.62 Million in 2009 to $3.8 Million in 2010.
Last month we reported that Sony Australia had witnessed a $201 Million plunge in revenues with profits falling from $49 Million to losses of $6M for the same 12 month financial period ending in March 2010.
Between January 2009 and July 2010 SCE Australia spent approximately $5M advertising their products yet despite this and the introduction in September 2009 of their questionable “Make.Believe” marketing the Company has witnessed declining sales and falling profits.
The new slim PS3, which at one stage was selling at $132 dearer in Australia than in the USA was according to Michael Ephraim, Managing Director of Sony Computer Entertainment Australia and New Zealand the product that would deliver increased sales for the Australian operations.
Launched in August 2009 at the same time that Sony Australia was giving away tens of thousands of Sony PS3 consoles the device has failed to live up to its hype despite extensive marketing of the PS3’s Blu ray and TV dongle capabilities. It’s also being positioned as an IPTV device that can be used in connection with a Sony Bravia TV which has also slumped in popularity in Australia.
Sony Computer Entertainment is refusing to comment.
