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Forums - Sales Discussion - Sony's gaming unit lost $443 mil 3Q

Hello, earth to larry. Sony's Jan 07 estimate for losses in the gaming division was around 250 billion yen for the fiscal year. And that's way up from it's April 06 estimate of 100 billion yen and their Oct 06 estimate which was 200 billion yen. Notice the trend? And when I say Sony, that is from the mouth of Sony itself, not some Wall Street Analyst.



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ps2 has always beaten the xbox 360 too in NA. ps3 has done significantly better in March in NA although it may trail x360 but that would change within a couple of months.

 



larry said:

ps2 has always beaten the xbox 360 too in NA. ps3 has done significantly better in March in NA although it may trail x360 but that would change within a couple of months.

 


 NPD March numbers aren't even out yet. What is your source for the PS3 doing better in NA?



FishyJoe said:
Hello, earth to larry. Sony's Jan 07 estimate for losses in the gaming division was around 250 billion yen for the fiscal year. And that's way up from it's April 06 estimate of 100 billion yen and their Oct 06 estimate which was 200 billion yen. Notice the trend? And when I say Sony, that is from the mouth of Sony itself, not some Wall Street Analyst.

there was never an estimate of 100 billion yen.

it was 200billion....that has been expanded to 250 billion.

dont forget Sony made profit of 1.7 billion $ last quater beating the analysts as well as their own projections. (sony themselves projected to end up in the red zone during that quarter)

Sony never expected themselves to sell 800k ps3s during the launch period in Europe .

The exclusion of EE +shrinking of CELL would narrow the loss margin no doubt



larry said:

ps2 has always beaten the xbox 360 too in NA. ps3 has done significantly better in March in NA although it may trail x360 but that would change within a couple of months.

 


rankings in order in NA.

nov06 DS,GBA,PS2,360,WII,PSP,PS3,GC,XB,PS

dec06 DS,PS2,360,GBA,PSP,WII,PS3,GC,XB,PS

jan07 WII,PS2,360,DS,PSP,PS3,GBA,GC,XB,PS

feb07 DS,WII,PS2,360,PSP,GBA,PS3,GC,XB

Well, technically you are right as the PS2 has consistently outsold the 360. But it has also consistently outsold the PS3, which has also been consistantly outsold by the Wii and 360. Hell, the PS3 has been ranked 6th once and 7th 3 times.

I can't wait for March numbers to see this 'significant' improvement in PS3's sales.



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larry said:
FishyJoe said:
Hello, earth to larry. Sony's Jan 07 estimate for losses in the gaming division was around 250 billion yen for the fiscal year. And that's way up from it's April 06 estimate of 100 billion yen and their Oct 06 estimate which was 200 billion yen. Notice the trend? And when I say Sony, that is from the mouth of Sony itself, not some Wall Street Analyst.

there was never an estimate of 100 billion yen.

it was 200billion....that has been expanded to 250 billion.

dont forget Sony made profit of 1.7 billion $ last quater beating the analysts as well as their own projections. (sony themselves projected to end up in the red zone during that quarter)

Sony never expected themselves to sell 800k ps3s during the launch period in Europe .

The exclusion of EE +shrinking of CELL would narrow the loss margin no doubt


Still waiting to see your source for NA March numbers.

http://www.businessweek.com/innovate/content/may2006/id20060501_525587.htm?chan=innovation_game+room_top+stories

The results for Sony's game division during the current fiscal year will not be good however, as the company ramps up investments for the PlayStation 3, which launches worldwide this November. Sony expects the segment to hemorrhage 100 billion yen ($871.6 million) in operating losses during the business year as it prepares the PS3 for launch.

 



larry said:
 

have you been actually following anything??????

initially analysts predicted that SONY would not any profit at all .

They went on to beat that prediction and made 1.7 billion dollars as profit.

1.1 actually which is the net income.

MS doesnot have a bigger shareholder's equity than Sony.

SONY's stocks are at an all time high at 52.17

http://www.investorguide.com/stock-charts.cgi?ticker=SNE

Casino Royale alone earned Sony 400 + million dollars.

http://www.boxofficemojo.com/movies/?id=jamesbond21.htm

 

Sony's film division has yet to produce a flop since late 2005.

Ghostrider and Pursuit of Happiness have also earned around 300million for Sony.

http://www.boxofficemojo.com/movies/?id=pursuitofhappyness.htm

http://www.boxofficemojo.com/movies/?id=ghostrider.htm

Bravia is the no1 selling HD tv in the World

http://www.sony.co.id/news.htm,152

Spiderman 3 alone would earn Sony atleast 500 million dollars.

ps3 beats x360 6:1 in Japan.

In Europe it beats even the Wii.

The only console which is a failure is xbox 360. It has yet to reach the 10 million mark.

It sells 4k in England and 3k in Japan per week ..lol.

ps3 did quite well in March in NA because of Motorstorm , and God of war 2 might have already surpassed the 2m mark.

With games like Lair, Heavenly Sword, Ratchet and clank, MGS 4, devil may cry 4 ps3 would take total control by the end of 2007.

 

 

 


you shouldn't RUSH to judgment.  more important, you're missing my point.  i'm not even saying that sony is losing money, sheesh.

-- 1.1 bln is for 2006.  last quarter was considerably better--thanks to electronics.

i did say that sony's bottom line is improving thanks to electronics, which was unexpected.  with the booming flat panel market, sony should continue to see strong performance from that division.

stock-wise, sony's stock has seen MUCH better days.  besides, it's market cap that counts, not the share price.  if $52 is the all time high for its share price, so what.  there's been splits.

i'm not even arguing against ps3--i'm merely arguing that should things not align in sony's way in the other divisions, which i said is unlikely, though more likely than microsoft, bad things can happen to ps3.

  nintendo has obviously the largest risk, but that's another issue.

please, get the other person's point before you post.  don't just post because you see a couple of points you feel like attacking and ignore the big picture. 



the Wii is an epidemic.

@Lingyis & larry

Nobody is denying the comeback of Sony Electronics or the good numbers of the company as a whole. What's in doubt is if the PS3 can become a profitable business. In 2001, SCE made a loss of ¥51 billion due to PS2 investments. In 2007, they will make a loss of around ¥200 billion due to PS3 investments. Notice how that is 4 times bigger?

And compare 2000 with 2006, the pre-launch years. In 2000, the PS1 harvested big profits of ¥77 billion, while 2006 was already burdened with PS3 development cost at profits of just ¥9 billion.

And seriously, why is BluRay so vital for Sony as a whole? How much royalties can you make on a standard that you're not even the exclusive owner of? How much would Sony Pictures lose if they had to start selling HDDVDs instead of BDs? Zero. And Sony Electronics? Maybe $250 million if they move fast.


Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.

reverie said:

ofits of ¥77 billion, while 2006 was already burdened with PS3 development cost at profits of just ¥9 billion.

And seriously, why is BluRay so vital for Sony as a whole? How much royalties can you make on a standard that you're not even the exclusive owner of? How much would Sony Pictures lose if they had to start selling HDDVDs instead of BDs? Zero. And Sony Electronics? Maybe $250 million if they move fast.

 those numbers are a JOKE!

 

 



Sony's approaching a 5 year high. Excluding the insane run in 2000 approaching the PS2 launch (something we're currently seeing with Nintendo), this is also an all-time high.