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Forums - Sony Discussion - Sony's Q2 FY2013 Earnings (PS3 2m / PSPVita 800k / ~$200m Loss)

tbone51 said:
czecherychestnut said:
cbarroso09 said:
tbone51 said:
Why are they putting psp+psv numbers together? PSV selling much better now. So both nintendo+sony lost 200mil but funny thing is next quarter both will make a HUGE Profit lol


Well, Despite the operating loss Nintendo did make a profit of about 60 millions. 


And Sony made an operating profit but a net loss, so they really aren''t comparable results. 


How? Didn't they both lose 200mil? That sounds to me comparable results unless im missing something

*sigh*

Overall Nintendo made a small/insignificant profit for the quarter(~$6.2mil) while Sony lost an another $200 mil for the quarter!!!

In addition:

Operating Income
So what should you look for in the income statement other than the net income? You should consider the operating income as the better indicator of your company's earning power. The operating income is the income that the company realizes from its core business before other items are accounted, as computed below:

Sales – Cost of Sales = Gross Profit – Operating Expenses = Operating Income

Using the operating income margin as an indicator--computed by simply dividing operating income by total sales--will allow you to measure management’s efficiency in running the business. The higher the margin, the more efficient--this means that operating expenses are consciously guarded as sales grow.

The operating income margin also helps you to compare your position against your competitors in the same industry. For example, if you are in the food business, you may compare your margins with the industry average of 25 percent.

Net Income
While operating income captures only items that directly affect the core business operation, the net income captures everything. As an indicator, net income margin will not allow you to accurately compare your business with your competitors, since you may have different capital structures.

For example, you may be financing your business by borrowing money from the bank, while your competitor might be using its own money. Your net income would then be lower than your competitor’s because you are paying interest expense while your competitor has no such expense. Your net income margin will therefore differ greatly, making such comparison difficult. From operating income, the net income is computed as follows:

Operating Income + Other Income – Other Expenses = Pretax Income – Income Tax = Net Income

http://www.businesssense.com.ph/operating_income_vs_net_income

http://www.marketwatch.com/story/sony-cuts-full-year-outlook-quarterly-loss-widens-2013-10-31

http://news.cnet.com/8301-10797_3-57609971-235/nintendo-ekes-out-a-small-profit-despite-wii-us-drag/

hope this helps?



Around the Network
tbone51 said:
Hey guys is that 800k figure Sold? It has to be!

Shipped like everyone else, and since the PSP is still doing better than the vita in Europe I expect something like 500k Vita and 300k PSP



MANUELF said:
tbone51 said:
Hey guys is that 800k figure Sold? It has to be!

Shipped like everyone else, and since the PSP is still doing better than the vita in Europe I expect something like 500k Vita and 300k PSP


Sales here show 966k while Sony said 800k shipped. Thats all i kno



How does the 2 Million shipped compare to VGchartz Numbers?



Frank_kc said:
How does the 2 Million shipped compare to VGchartz Numbers?

If you mean how much VGC sold in the same period: ~1.7m



Around the Network
tbone51 said:
czecherychestnut said:
cbarroso09 said:
tbone51 said:
Why are they putting psp+psv numbers together? PSV selling much better now. So both nintendo+sony lost 200mil but funny thing is next quarter both will make a HUGE Profit lol


Well, Despite the operating loss Nintendo did make a profit of about 60 millions. 


And Sony made an operating profit but a net loss, so they really aren''t comparable results. 


How? Didn't they both lose 200mil? That sounds to me comparable results unless im missing something

Nintendo made an operating loss (which means that as a business their costs were higher than their revenue and excludes things like tax and interest earned/spent) but a net income (with is the final, post tax, post interest revenue minus cost). 

Sony on the other hand made an operating profit but a net loss, when happens when your operating profit isn't enough to cover your tax burden. That can happen when tax incurred in previous quarters is deferred resulting in a tax bill disproportionate to the operating income for the current quarter (that can happen due to differences in tax laws both within and between countries that affect when the tax liability is realised) . 

Long story short, from an operational perspective, Sony was profitable (just) and Nintendo was not this quarter. However, once the final numbers are crunched for this quarter, the overall (net) result is that Sony lost money, but Nintendo gained. This means that over the quarter Nintendo grew and Sony shrank. While that looks great for Nintendo, from a longer term assessment of how a company is going the operating income is a better measure, because in the long term the tax burden balances out between quarters. This leaves the operating income as the main measure  that a company is making more revenue than it cost to produce, which means in the longer term (if operating profit is sustained) then the company will grow. 

 



It seems both Xbox360 and PS3 had a great quarter according to the report. 1.2millions after 8 years for Xbox360 and 2.0millions after 7 years for PS3 showed how successful these 2 consoles are.

On the other side, Poor Wii U.........



Hmmm.. They cut down their forecast for the whole fiscal year.. Not good.. Great for the PS3, getting that exclusive gta5 bundle certainly worked out for the better



 

Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!) 

ethomaz said:
Frank_kc said:
How does the 2 Million shipped compare to VGchartz Numbers?

If you mean how much VGC sold in the same period: ~1.7m


Thanks. Does this mean that PS3 is understracked?



Hmm, slight over tracking possible for the PS3, more so for the Vita. Overall, not bad.



 

Here lies the dearly departed Nintendomination Thread.