PS4 to save Sony

DirtyP2002

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DirtyP2002 on 04 April 2013

Gilgamesh said:

DirtyP2002 said:

RicardJulianti said:

KingHades said:
People have said since 2006 Sony would be in debt putting the PS3 out and they did SONY is STILL here 7 years later and they just basically started off next gen with shots fired at Microsoft I doubt they are in such a HUGE financial crisis where if the PS4 fails they go bankrupt.

Really? Sony is in some serious financial hot water right now, they only turned a profit recently because they sold several HQ buildings and shares in some companies in an attempt to not go bankrupt/fund R&D for PS4 but as far as I know, their credit status is still "Junk". If it had been upgraded, it would have been all over the news. They also merged their Japan and Asia branches into one in order to save money.

Their gaming division is their biggest source of income right now since they are finally turning a profit on the PS3, but overall it cost them billions. Selling the PS4 at $399 would be great for selling a lot of units, but there is no way they wouldn't be taking a large loss on that. If the PS4 absolutely bombs, Sony will be in even more trouble than they are now. I really don't see that happening, but I really don't think the PS4 will "save" Sony either, not by itself and not in the short term.

Selling assets, merging branches, and selling a system for profit can only do so much when the majority of your divisions are bleeding money and you have another piece of hardware that is high-spec on the way that you need to fund, market, ship, and take a loss on for a year at least. They definitely need to be careful. Vita not perfoming abysmally in Japan helps a little, but it can't carry the company.

I really don't know how this got spread all over the internet. It is WRONG.

Here is the operating income for Sonys divisions for Q4 2012:

Imaging Products and Solutions
Operating loss: 33 million USD

Game
Operating Income: 54 million USD

Mobile Products and Communication
Operating loss: 245 million USD

Home Entertainment and Sound
Operating loss: 92 million USD

Devices
Operating Income: 111 Million USD

Pictures
Operating Income: 291 million USD

Music
Operating Income: 188 million USD

Financial Services
Operating Income: 394 million USD

So the ranking is:

Financial Services
Pictures (Thanks Skyfall! )
Music
Devices
Games
Imaging Products and Solutions
Home Entertainment and Sound
Mobile Products and Solutions

And that was during the holiday quarter, a time where Games usually do good and life insurances don't.

You can read it here:

http://www.sony.net/SonyInfo/IR/financial/fr/12q3_sony.pdf

When it says games are they talking about strictly their games? or the consoles aswell. Because if not you would almost have to take a chunk out of Devices and add it to Games to get the Sony gaming total.

Games is everything gaming related. Hardware (PSP, PS2, PS3, PS Vita), Software and Services (PSN, PSN+)

Imagine not having GamePass on your console...

michael_stutzer

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michael_stutzer on 04 April 2013

There is going to be a big userbase loss overall. The only way I can see gaming surviving next-gen is every gamer goes back to Sony with the PS4. IF you like gaming you have to. We have to unite.

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KHlover on 04 April 2013

No it won't. The other divisions lose too much money for the PS4 to compensate.

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dahuman on 04 April 2013

I don't see the PS4 passing PS2 numbers but I do hope Sony will do well in the 8th gen for sure, their 1st party software is quiet decent, quiet so indeed.

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nanarchy on 04 April 2013

Neither the PS4 nor the Experia phones can save them. Gaming really isn't the financial burden that is pulling Sony down at the moment. They can definitely buy them time to turn around the truly troublesome parts of the business if it is a raging success. Conversely though a failed PS4 could almost certainly sink them.

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aikohualda on 04 April 2013

lumia 920 will save nokia
wii u will save nintendo
surface pro will save microsoft
jesus will save earth
charlie sheen will save lindsay lohan

yey!

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NeroPrototype on 05 April 2013

They need to play their cards right so they can outcome this situation.

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BluGamer23 on 05 April 2013

PS4 will do vita levels

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Dark_Lord_2008 on 05 April 2013

The PS4 will adopt a strategy more similar to the PS2 with a cheaper build system and be at an affordable/ competitive price point from launch. The PS4 expects to sell somewhere in between the PS3 and PS2 ltd sales, say 120 million+. PS4 will have a 10 year life plan as expected with a PlayStation console.