Forums - Politics Discussion - Good new for Sony?

Will the lower yen help Sony?

Yes, they will make more profits
No, their materials cost will be higher
It will even out and not matter
I have no idea
Other: See Post

The Japanese yen fell to a four-year low against the U.S. dollar on Thursday as investors continue to welcome moves by the Bank of Japan to boost the nation's economy.

The dollar rose above ¥100 for the first time since April 2009.

The move was driven by renewed optimism about the U.S. economy following strong readings on the nation's job market, said Kathy Lien, managing director at BK Asset Management.

The number of Americans filing for jobless benefits fell to a five-year low last week, the government said Thursday. That added to enthusiasm over last week's better than expected April payrolls report.

"We're seeing a broad based dollar rally," said Lien, adding that the yen was steady versus the euro. "You can attribute the overall trend to BOJ policies, but this immediate move is more about the dollar."

Lien said the dollar could hit ¥105 as a growing number of global central banks have cut interest rates recently.

South Korea announced a surprise interest rate cut Thursday. That came after the Reserve Bank of Australia cut rates to a record low Tuesday. The European Central Bank lowered its benchmark rate last week in an effort to prevent a deeper recession.

"All of this creates demand for dollars," said Lien.

The yen has plunged 14% against the dollar so far this year as Prime Minister Shinzo Abe has pushed the Bank of Japan to stimulate the nation's economy.

In an effort to fight deflation, the BOJ has pledged open-ended purchases of longer-term debt and more exotic securities like ETFs.

The new purchases -- made at an annual pace of 60 - 70 trillion yen -- will double the bank's monetary base over a two-year period.

Japan, the third largest economy in the world, has been mired in deflation for a decade. Abe wants the BOJ to do "everything possible" to achieve its target inflation rate of 2% as soon as possible.

Related: 7 big winners in the Japan's stock market surge

The move to devalue the yen, which makes Japanese exports more competitive on the global market, has raised concerns about a currency war. But officials in Japan say the yen's depreciation is a healthy correction from the record highs from 2008, when investors flocked to the currency for safety.

Japanese investors have welcomed the weaker yen as well. The Nikkei has surged more than 36% this year. Shares of leading Japanese companies such as Sony (SNE), Toyota (TM) and Kirin (KNBWY) have soared on hopes that a weaker yen will boost overseas sales and corporate profits. To top of page

http://money.cnn.com/2013/05/09/investing/japan-yen/index.html

NEW YORK (CNNMoney)


Kinect passes the original Xbox in sales!

Xbox 360 passes Wii in the North America! Number One console 7th gen in the UK and North America! 

Most anticipate new game in years launches 3-11-2014


Around the Network
With the yen lower against the dollar, at a 4.5 year low, will this help Sony keep the cost down on the PS4? Do you it will help them be more competitive against the Xbox∞?

Or since AMD is a USA company it will hurt them. Increase their material cost.

Or do you think it will not mater much?

Kinect passes the original Xbox in sales!

Xbox 360 passes Wii in the North America! Number One console 7th gen in the UK and North America! 

Most anticipate new game in years launches 3-11-2014


This FY is another year of big reforms, they forecast profit of $500m.


Zappykins said:
With the yen lower against the dollar, at a 4.5 year low, will this help Sony keep the cost down on the PS4? Do you it will help them be more competitive against the Xbox∞?

Or since AMD is a USA company it will hurt them. Increase their material cost.

Or do you think it will not mater much?

The vast majority of parts and assembly and hence cost for the PS4 is done in Taiwan/China/Japan, not the US. This is also true for the Xbox so will not favour one or the other on that front.

This mostly affects how much money Sony gets back when they sell a PS4 in the US.

I don't know where the PS4 APU is fabbed. It's either New York, Germany, or Taiwan. AMD is not involved in its manufacture though; they only get a fixed royalty rate.



Well now both Sony and Nintendo can see some bigger profits for the year.

Sony needs it, even this year their profit was more of a false one.
I want to see some more 34.99 3DS games. If Animal Crossing can do that then so can some of the Mario games.



 Nintendopie  Was obviously right and I was obviously wrong. I will forever be a lesser being than them. (6/16/13)

Around the Network
It's good but it will be a while before the Yen goes back to what it used to be. I remember 150 yen to a dollar, 230 yen to 1. Hopefully it's a long term thing so that Japan's economy can heal itself

PS3, Vita, 3DS and Wii U. 

PS4 eventually. 


the2real4mafol said:
It's good but it will be a while before the Yen goes back to what it used to be. I remember 150 yen to a dollar, 230 yen to £1. Hopefully it's a long term thing so that Japan's economy can heal itself

Oh, the Yen will go off a cliff in time, when Japan's retirees about match the number of workers and they start cashing in the bonds that fuel their debt feeding-frenzy.



Present life in a nutshell

The VGC home of furry pr0n

Otakumegane said:

Well now both Sony and Nintendo can see some bigger profits for the year.

Sony needs it, even this year their profit was more of a false one.
I want to see some more 34.99 3DS games. If Animal Crossing can do that then so can some of the Mario games.


I miss the days when handheld games cost $29.99 and console games $49.99, 3DS should be $29.99-34.99, Vita-39.99, PS360/Wii U-49.99, Ps4/Infinity-$59.99



When the herd loses its way, the shepard must kill the bull that leads them astray.

Mr Khan said:
the2real4mafol said:
It's good but it will be a while before the Yen goes back to what it used to be. I remember 150 yen to a dollar, 230 yen to £1. Hopefully it's a long term thing so that Japan's economy can heal itself

Oh, the Yen will go off a cliff in time, when Japan's retirees about match the number of workers and they start cashing in the bonds that fuel their debt feeding-frenzy.

Yeah the aging population is a big problem but so is the overcrowding in their cities. Might as well lower the population while they have the chance. Once their population stabilises in a few generations time, the economy should recover properly but for now they are inbetween a rock and a hard place



PS3, Vita, 3DS and Wii U. 

PS4 eventually. 


Around the Network

I really think they need to produce their stuff in the markets they plan to sell them so that whether there is a rise or fall of certain currency they remain unaffected.