PS4 to save Sony

[DirtyP2002]

RicardJulianti said:

KingHades said:
People have said since 2006 Sony would be in debt putting the PS3 out and they did SONY is STILL here 7 years later and they just basically started off next gen with shots fired at Microsoft I doubt they are in such a HUGE financial crisis where if the PS4 fails they go bankrupt.

Really? Sony is in some serious financial hot water right now, they only turned a profit recently because they sold several HQ buildings and shares in some companies in an attempt to not go bankrupt/fund R&D for PS4 but as far as I know, their credit status is still "Junk". If it had been upgraded, it would have been all over the news. They also merged their Japan and Asia branches into one in order to save money.

Their gaming division is their biggest source of income right now since they are finally turning a profit on the PS3, but overall it cost them billions. Selling the PS4 at $399 would be great for selling a lot of units, but there is no way they wouldn't be taking a large loss on that.  If the PS4 absolutely bombs, Sony will be in even more trouble than they are now. I really don't see that happening, but I really don't think the PS4 will "save" Sony either, not by itself and not in the short term.

Selling assets, merging branches, and selling a system for profit can only do so much when the majority of your divisions are bleeding money and you have another piece of hardware that is high-spec on the way that you need to fund, market, ship, and take a loss on for a year at least. They definitely need to be careful. Vita not perfoming abysmally in Japan helps a little, but it can't carry the company.

I really don't know how this got spread all over the internet. It is WRONG.

Here is the operating income for Sonys divisions for Q4 2012:

 

Imaging Products and Solutions
Operating loss: 33 million USD

Game
Operating Income: 54 million USD

Mobile Products and Communication
Operating loss: 245 million USD

Home Entertainment and Sound
Operating loss: 92 million USD

Devices
Operating Income: 111 Million USD

Pictures
Operating Income: 291 million USD

Music
Operating Income: 188 million USD

Financial Services
Operating Income: 394 million USD

 

So the ranking is:

1. Financial Services
2. Pictures (Thanks Skyfall! )
3. Music
4. Devices
5. Games
6. Imaging Products and Solutions
7. Home Entertainment and Sound
8. Mobile Products and Solutions

And that was during the holiday quarter, a time where Games usually do good and life insurances don't.

You can read it here:

http://www.sony.net/SonyInfo/IR/financial/fr/12q3_sony.pdf