Sony Computer Entertainment has seen a 12.2% decline in sales as a result of falling purchases of PS3, PSP and PS Vita and the company is looking to the PS4 to reverse this negative trend.
The division's operating income declined by 27.6 billion yen to 1.7 billion yen ($18 million) year on year. However, Sony expects the PS4 to improve the situation with the arrival of the console expected to "increase significantly" SCE's sales. The company expects to launch the console by the end of the next financial year meaning sometime before April 1st, 2014.
When the PS4 was originally announced a 'Holiday 2013' release date was outed and there have been retailer speculation that the system will launch globally this calendar year.
Despite the expected rise in sales Sony's operating income is expected to remain "essentially flat year on year," this is largely because of increased research and development costs required for launching the PS4. If past console releases are anything to go by the PS4 will also be sold at a loss, at least initially.
Looking beyond SCE the broader Sony Corporation announced its first full year profit in five years as a result of an ongoing restructuring which has seen SCE Japan and Asia merge as well as a consolidation of Sony Mobile Communications. The company expects favourable exchange rates to see income double this year across the entire company.
Sony has sold their headquarters in New York and Tokyo raising $2.3 billion however analysts believe these asset sales should not be taken into account as they distort the true state of the company's finances.
Despite Sony's enthusiasm for the PS4 Activision Blizzard, which also released its financial results yesterday, expressed concern as to the impact of next generation consoles on the declining core game market.
