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Forums - Sony Discussion - Playstation Doing Great, but it's a different story for Sony - Losses 18% greater than forecast at $1.3 billion for year

Conegamer said:
So Sony PlayStation is doing better than expected; but Sony as a whole is doing worse? It's really not looking all that good for Sony, unfortunately...gonna have to trim more fat I think.

but do they still have fat left to trim?



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Haha, this thread is amazingly entertaining.



It's not surprising that most of the losses will be from selling the PC business and outsourcing the TV division, but still, that's a s***ton of money. Seriously, Sony, just be done with PC and TV right now. They're two of the company's worst performing divisions, so getting rid of those two will substantially decrease losses. We won't get a more accurate picture until Sony's next quarterly earnings where they have already sold/outsourced their PC and TV businesses. If Sony is still losing money at that point, then....



Here is my predictions of Sony's future after they will cut Vaio and Spin off their TV division.

Music/TV/Movies: Strong profit maker, Sony is #1 in music, entertainment division usually nets sony $1 billion a year in profit.

Financials: Sony's strongest profit maker at around $1.5-2 billion a year.

Digital Imaging: Professional and Consumer products developed. Its sensors are used by other smartphone companies including apple. Its revolutionary alpha and nex line are hurting canon and nikon. Money to be made with new investment in pro medical grade equipment. I can say maybe a healthy $100-200 million a year

Games: Need I say more :p New Gen profits should be from $500 million to $1 billion a year.

Phone: It's a 60/40 sony is #3 in smartphone revenue though after apple and samsung and their xperia line are making some big gains. The z1 compact is the best compact android phone period and the Z2 has gained a lot of mind and marketshare after samsung came out with a heap of crap with the s5. They are putting a lot of risk into it but i think smartphones will help sony's bottom line quite a bit. Its gonna be anywhere from a couple of $100 million in loss to $1 billion+ in profit depending on success/failure.

Overall Sony with all of its profitable divisions come out to making $3-5 billion in profits a year. That's a healthy company so Sony isn't going anywhere. Now all they need to do is capitalize on this opportunity.
*profit estimation are from Sony's past financials and potential future market.



Zero999 said:
Conegamer said:
So Sony PlayStation is doing better than expected; but Sony as a whole is doing worse? It's really not looking all that good for Sony, unfortunately...gonna have to trim more fat I think.

but do they still have fat left to trim?

Yeah, until they're left as just a shell of a company with nothing else left to sell then there's always more which they could sacrifice.



 

Here lies the dearly departed Nintendomination Thread.

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And the Titanic sank further into the deep dark water......



 

kowenicki said:
DarkWraith said:

you dont have a clue what you're talking about either lol. either you don't realize that when a company is bought out, it can be listed privately again, or you don't realize that government bailouts exist. maybe both? lol

I know full well, having taken a company to AIM and them back to private.

Whats your experience?

I know that it can be bought out.  It doesnt alter the fact that it isnt as easy as that guy makes out or as desirable in this day and age.

Abe is trying to rescue the Japanese economy, not rescure badly run companies.

This notion of honourable business practices in japan is a myth along with the sacred nature of employment there.  How many people have been let go from the tech giants of Japan so far?  100,000 plus.

 


So finaly without any further intervention, I'm making more sens than earlier ? Good. 

You're speaking about experience but you just read your way into numbers you found on site like Ycharts or Yahoo eco charts. Do not try to make people believe you have some economic background, because I HAVE and I can tell everyone here that you have nothing. Not even a college graduation to help you read those numbers. 

From far away, even a teenagers could have seen that Sony is still a pretty valuable company. You think all that matters is net income ? Seriousely mate, and you speak about economics and metrics experience ? You think a billion dollars loss in net income department is that important when we're speaking about a company that is worth 30 billion dollars ? Seriousely people, stop taking yourself for what you are not. 

Net income is of least importance. A company like Sony is not Nintendo, Sony has hands in a lot of tech department, even classified ones. A little change in conjecture and it could make + billions net income next day. That is why this company is still here despite being in the red for such a long time (Almost since 2005, just in case you did not know). You have so many exemple about what I'm speaking about, where was Apple prior to 2004 ? Where are they now ? Same goes for Samsung, what were their numbers prior to 2004 ? You want me to give them to you ? 

Sony needed a restructuration and now it's almost done. They take themselve too much lightly, they were dick. Xperia Z2 is now on the level of S5 and Iphone 5S, the Playstation 4 is a clear win, and they understand that Blu Ray is dead and that streaming service is the future for mainstream. They got rid of SEnix SOp, they got rid of Vaio, they got rid of useless building, they have now the smartest guy available in the gaming industry as their CEO, they did promote some of the most valuable US guys they had.    

Every members of this forum hate me, but no one can argue I'm very very often right about what I speak about. They'll never be Samsung or Google, but I can insure you that Sony will still be here in the business in the next 15 years, and that by then Playstation will still be a fucking institution in the world. You'll be a fool to think the contrary. 

Really, you're lucky I'm French and English is not my first language, you would have suffer like no one else here if I could explain eco things to you in french. 



It really is a good thing that Sony managed to hit all the right notes on the PS4 while both Nintendo and Microsoft dropped the ball. Can you imagine if they had another PS3 situation on top of this?



Zekkyou said:
true_fan said:
This is exactly why I shake my head when people think playstation 4 will have a ton of AAA exclusives. You can't use playstations past performance because sony was never in this bad of a financial situation. There is a reason sony is pushing so hard for indie games a rehashes/hd remakes of 10 month old games, smaller budget.

So now that the PS4 is almost immediately profitable, rather than losing several billion like the PS3, they are going to suddenly cut development of AAA titles? Seems legit.

Your comment seems especially odd considering they have already announced multiple AAA titles (one of which just released a couple of weeks ago), as well as numerous of their 1st party studios having been confirmed to be working on PS4 titles. 

I should also note that Sony's financial aren't the worst they have been. Things are still pretty grim, but a $1.3 billion loss inflated by a restructuring is an awful lot better than those $3 billion to $6 billion yearly losses they were making (dat 2011).

Yeah his orginal comment made no sense to me either. They are still in a much better position than they were years ago and were still shelling out exclusives left and right. So the logic now that they are not taking as huge of losses as they were that they won't be able to produce games like that any more? So they are still bad yet better than they were but will do worse? Nah that doesn't soud right....like you said why cut from divisions that ARE making them profits when they can cut from where they are bleeding TV/PC....

Don't get me wrong everything is not all good in Sony Land but they are getting better compared to where they were. And are still WAY far off from going under like some people sem to think considering how big they are and how many assests they have. I just hope things get better for them soon.



The absence of evidence is NOT the evidence of absence...

PSN: StlUzumaki23

VitroBahllee said:
celador said:

It seems like common sense to expect that yes, but Sony's projections are all over the place it seems,  expecting to make a profit less than half a year ago and now releasing these results

Yet their financial services division is doing best of all the company!


That is the CRAZIEST part in my eyes lol!



The absence of evidence is NOT the evidence of absence...

PSN: StlUzumaki23