BengaBenga said:
NJ5 said:
Because the loss of revenue due to exchange rates (around 15-20%) is much larger than their profit margins. I'd be surprised if Sony's losses were less than $1.5 billion in this quarter, and I'd say "wow" if they manage to lose less than a billion. Only some massive hedging could do that, and nothing I've seen points in that direction.
I have posted the calculations elsewhere but it's getting tiring so I won't do it again. Just wait two months for the financial report.
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You mean Sony right? Not SCE.
I agree that Sony will have a bad Quarter, but not as bad as you say. The exchange rate only affects part of their busienss, since they have business all over the world.
Don't expect a loss for Sony, but if things continue we might see a loss for SCE, which is devestating in the most important Q of the year. LBP, Motorstorm and Resistance didn't sell amazing and are not the profit makers SCE needs. Another negative financial year will seriously affect SCE I'm afraid. Sony was very unhappy last year, but this year they won't have the means to carry the SCE burden anymore, because the whole company is performing bad.
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I mean Sony as a whole. 80% of their sales are done overseas (which I took into account), and the numbers I put in my post are actually less than half of the losses which would happen if all their business was concentrated in Japan.
The same analysis correctly predicted their drop in profits in the second quarter, but hedging might also interfere with it which is why I said $1.5 billion instead of the $3 billion which would happen under normal conditions.
I'll bet anyone that Sony will be in the red this quarter.
