Sony Corp (ADR) (NYSE:SNE) saw earnings for its fiscal second quarter of 2016 hurt by a price cut for the PlayStation 4.
According to Sony Corp ADR, its revenue from its Game & Network Services division was down 11.3% in its fiscal second quarter of 2016. This had it reporting revenue of $3.17 billion from that division in the quarter.
Sony Corp ADR blamed the decrease in Game & Network Services revenue on its PS4 price cut. It also said that revenue was hurt by foreign exchange rates. However, the company notes that an increase in PlayStation 4 software sales helped offset some of the costs.
Operating income from Sony Corp ADR’s Game & Network Services was $188 million, which is down from the same time last year. The company attributed this to the PS4 price cut and a decline in PlayStation 3 software sales. It claims these negatives were slightly offset by hardware cost reductions for the PS4 and increased PlayStation 4 software sales.
Revenue reported by Sony Corp ADR for its fiscal second quarter of 2016 was $16.72 billion. This is almost an 11% drop from the same time last year. Wall Street was expecting revenue for the quarter to be $16.9 billion.
Earnings per share for Sony Corp ADR’s fiscal second quarter of 2016 was 4 cents. This comes in above the losses per share of 7 cents that analysts were expecting from the company in its fiscal second quarter of 2016.
SNE stock was down 2% as of Noon Tuesday.
