Sony on the brink of corporate upheaval, drastic changes

[NJ5]

makingmusic476 said:

Edit:

Really, outside of hardware (and most ps3s are made in China now anyway), most of SCE's workforce is housed outside of Japan.  They have far more development studios in North America and Europe than in Japan (though R&D on new hardware takes place mostly in Japan - but how much R&D would they be doing right now?).

As a result, the currency issues should effect SCE far less than other parts of Sony, as a larger portion of the division's expenses (salaries and the like) aren't being paid for in Yen.

The available data from Sony says otherwise.

Sony's CFO declarations:

As far as Game is concerned, while euro has a major impact on Game business, I would say 30 billion yen impact because of the exchange rate change, because we are assuming 140 yen per euro – so given present level. I think – and that is incorporated in this estimate. If that is the case, 90 billion yen impact on operating income, excluding hedging, then 70 billion, 80 billion red ink for TV and 50 billion for game, well, yes, if we take just the impact of exchange rate movement, that might be possible.

Source.

Here is their latest profit revision (when the currency situation was getting worse, but not yet as bad as it is today):

From my calculations, I'm expecting a $200 million + loss for the holiday quarter at SCE (although predicting the results of individual divisions is quite hard).