Corporate Health of Sony, Nintendo and MS

[Teeqoz]

SpokenTruth said:

Teeqoz said:

Sony is back in the black if that was what you mean by recovered from those losses.

No, that's not what recovering from losses means.  Let's look at a fictional company and I'll show you what I mean.

2011 - $500 million losses
2012 - $2 bilion losses
2013 - $2 billion losses
2014 - $100 million profit
2015 - $200 million profit

As you can see, this company is making profit again but has not yet recovered from the losses.  They would still be down $4.2 billion over the past 5 fiscal years.  A full recovery would bring that up to a positive overall figure. 

 

That's a pretty weird definition of recovery though. The damage of those 4 billion losses will be just as big regardless of how much money you make later. The most reasonable way to talk about recovery is if they've recovered their ability to make an (equal sized) profit as before their financial troubles, and in that sense, Sony has pretty much recovered.