Sony Forecasts $1.1 Billion Loss year ending 31 march - Will it be less after huge PS success?

[Viper1]

ImmortalHelixFossil said:

Viper1 said:

ImmortalHelixFossil said:

Sony told us that we could expect an 1,1 billion dollar loss. It's a few months later and the PS4 is beating all Sony's expectations. Do you think it's possible that the loss will be less than  a billion? Or will it even be bigger?

 

http://www.bloomberg.com/news/2014-02-06/sony-forecasts-annual-loss-as-hirai-turnaround-stalls-on-tvs.html

It won't make enough of a difference.

Let's say they are 2 million units over their original PS4 shipment projections.  Let's also give them a $30 profit (hardware and software) per unit.   That's only $60 million. 

Granted my figures are for example only and should not be taken as exact figures but it does demonstrate how little the impact will be compared to the projected losses from Sony as a whole. 

Don't forget PS+ and the massive orders Sony is getting for new shipments.

Oh sure, but again you have to consider that they already projected a large portion of that into their financial data.  Only the parts that are above what they expected will go toward reducing the projected losses.   And that's actually not a lot compared to the overall whole.

Another factor to consider is that when they made those projections, the Yen was trending against the Dollar for 2 months.  They would have used that trend during their calculations.  But the Yen has actually since stabalized and even dropped a little.  That's going to harm their financials and possibly could offset the extra gains from the PS4.

http://ycharts.com/indicators/japanese_yen_exchange_rate

 

The PS4 has done damn good.  But it's actually not yet a huge money maker.  Margins are still narrow to negative and the software uptake is still nimor compared to PS3 for them.