Sony's financial report is up

[tuoyo]

Spankey said:

johnsobas said:

Spankey said:

johnsobas said:
doesn't sound like good news to me. PS3 has been out for 2 years and they are still digging a whole for themselves. What's the total at now? -3.5 billion or so? It was like half a year ago everyone was claiming they were breaking even because sony wade a profit in the games division, now it's pretty clear that PS2 sales had made huge profits last holiday season that balanced things out. With that said they will probably get a profit again in the holiday quarter and go back to a small tiny loss after that.

That price drop everyone isn't looking like it will come soon. Luckily they are getting healthy sales without it.

 

@bolded: Please read the financial report at page 4 of the PDF.

http://www.sony.net/SonyInfo/IR/financial/fr/08q2_sony.pdf

Elsewhere in the report you will find the explanations you require.

Also, read this extract from FishyJoe:

An operating loss of ¥39.5 billion ($379 million) was reported, an improvement of ¥57.2 billion year-on-year.  
The decrease in operating loss in the current quarter was primarily due to PS3 hardware cost reductions and increased sales of PS3 software, as well as strong sales of PSP hardware.

Sony are not out of the hole yet, but they're certainly improving in the Games division.

Sony play the long game

 

I quoted the total loss with the PS3 since launch and you come at me that they reduced the amount lost for the quarter year over year.  Even if they start making a profit they still have to dig out of a 3.5 billion dollar hole they dug themselves into with the PS3.  Even if the PS3 started making money like the PS2 in its prime for the next 4 years (which it won't) it wouldn't even make back half that money.

They are still losing 379 million even at a $400 pricepoint 2 years into the generation, that is not good.  I don't know what kind of world we have slipped into where that is a good thing even considering all the trouble Sony has gotten themself into this generation. 

If there was a way i could spin it i would, it's just bad.  Like it i said the main thing Sony has going for them is that the PS3 is actually selling pretty well at $400 because they can't afford the pressure to lower it right now.

 

 

 

so you're saying a $500 million improvement over last year is a bad thing?

OK. From now on, when anyone improves by half a Billion dollars, I'll take your advice and say it's bad.

Shame on Sony for doing better.

It's an improvement from terrible to bad.  You can look at it as a good thing but fact remains they made a significant loss despite having the profitable PSP and PS2.  It is quite different from going from profit of let's say half a billion to profits of a billion.  The PS3 right now looks like it was a very very bad idea for Sony.