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Forums - Sony - Sony's Q3 FY2011 Earnings (2 billion loss - 6.5m PS3 / 2.4m PSP / 0.9m PS2)

amaral_slb on 02 February 2012

First of all, these financial reports were expected considering Sony has a very hard time making money off of good hardware (PS2) being the main example. They will extend PS3 life cycle, and let the Vita do the damage, mainly in Europe (prediction). TVs are bleeding money and those are the main issue with Sony, I think they will be okay with their smartphones going forwards.

I think it was already a fact that the 360 was going to ship more then the PS3 this year, the main question was, did it sold more to consumers. If I am doing my math right we have 1.7M PS3s on the shelves, meaning we are not overtracking PS3 right? What is the normal difference between shipped and sold for the PS3 at the end of Q3?



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haxxiy on 02 February 2012
Joelcool7 said:
I am very concerned for Sony's long term survival it has been steadily losing money for years. With the yen so high and still rising with the US preparing to raise taxes on international corporations and give American products huge cuts and assistance.

I fear for all of Japan's companies including Nintendo and car companies.

Sony is going to take a massive hit if Vita doesn't succeed in Europe and America. Once WiiU launches in late 2012 I fully expect PS3 to be hit at least a little. I would say Sony's Playstatikn brand will be hit with massive losses. For many reasons Vita but also R&D for PS4 which is already in development but Sony will need to adapt it for the market. Sony will have a very hard few years ahead for its PlayStation brand, two new consoles (Vita/PS4) as well as other smart phones and tablet tech.

Sony will also face a harder time with all the other branches. Simply put things will only get worse as America introduces protectionist measures.

Sony will take heavy losses each year in the near future. PS4 will need to be a huge success Vita can't get a price cut if it fails Sony will need to drop it. Sony will likely need to sell some assets and outsource more production. The company needs to further restructure future products will need to sell at a profit, Sony cannot sustain losses on products like it did with PS3.

They still have plenty of money in their chest, and they could shut down or sell their TV/Cellphone/Laptop division in any case. Kaz needs to do some massive restructuring one way or another anyways, and fast. When you have revenues of $23 billion and still bleed money, then something is very very wrong.

By the way, I wonder why Japan isn't doing anything at all to protect their conglomerates and depreciate their currency. Brazil does it all the time to protect exporters from the falling dollar. Hundreds of thousands of people could lose their jobs if Sony, Panasonic, Toshiba etc. start closing some divisions.

But should Sony fail on bringing some massive changes this year... then I'll start accepting bets on which will declare bankruptcy first: AMD, RIMM or Sony =/

And as far as Playstation goes, I think they should slap a GTX 560 alongside a dual Cell processor and a few gigs of memory, call it a day  and release it as soon as possible. It could still do some money by release @ $400 according to my calculations, hope it butches the Wii-U launch like they did with the Dreamcast and builds an early advantage.



 

 

 

 

 

milkyjoe on 02 February 2012

Amazing how many people are almost nonchalantly suggesting Sony should just drop their TV division. That would have been unthinkable ~10 years ago.

It's a sign of the times though.



VGChartz

amaral_slb on 02 February 2012
kowenicki said:
amaral_slb said:
First of all, these financial reports were expected considering Sony has a very hard time making money off of good hardware (PS2) being the main example. They will extend PS3 life cycle, and let the Vita do the damage, mainly in Europe (prediction). TVs are bleeding money and those are the main issue with Sony, I think they will be okay with their smartphones going forwards.

I think it was already a fact that the 360 was going to ship more then the PS3 this year, the main question was, did it sold more to consumers. If I am doing my math right we have 1.7M PS3s on the shelves, meaning we are not overtracking PS3 right? What is the normal difference between shipped and sold for the PS3 at the end of Q3?

http://gamrconnect.vgchartz.com/thread.php?id=129135

Thanks

Almost guarantees that VGC is very acurate with the PS3 numbers, Gratz.

Question still remains how much are those 2M on the shelves for the 360 accurate or not, other then that console tracking was solid other then the US debacle.



Stefan.De.Machtige on 02 February 2012
haxxiy said:
Joelcool7 said:
I am very concerned for Sony's long term survival it has been steadily losing money for years. With the yen so high and still rising with the US preparing to raise taxes on international corporations and give American products huge cuts and assistance.

I fear for all of Japan's companies including Nintendo and car companies.

Sony is going to take a massive hit if Vita doesn't succeed in Europe and America. Once WiiU launches in late 2012 I fully expect PS3 to be hit at least a little. I would say Sony's Playstatikn brand will be hit with massive losses. For many reasons Vita but also R&D for PS4 which is already in development but Sony will need to adapt it for the market. Sony will have a very hard few years ahead for its PlayStation brand, two new consoles (Vita/PS4) as well as other smart phones and tablet tech.

Sony will also face a harder time with all the other branches. Simply put things will only get worse as America introduces protectionist measures.

Sony will take heavy losses each year in the near future. PS4 will need to be a huge success Vita can't get a price cut if it fails Sony will need to drop it. Sony will likely need to sell some assets and outsource more production. The company needs to further restructure future products will need to sell at a profit, Sony cannot sustain losses on products like it did with PS3.

They still have plenty of money in their chest, and they could shut down or sell their TV/Cellphone/Laptop division in any case. Kaz needs to do some massive restructuring one way or another anyways, and fast. When you have revenues of $23 billion and still bleed money, then something is very very wrong.

By the way, I wonder why Japan isn't doing anything at all to protect their conglomerates and depreciate their currency. Brazil does it all the time to protect exporters from the falling dollar. Hundreds of thousands of people could lose their jobs if Sony, Panasonic, Toshiba etc. start closing some divisions.

But should Sony fail on bringing some massive changes this year... then I'll start accepting bets on which will declare bankruptcy first: AMD, RIMM or Sony =/

And as far as Playstation goes, I think they should slap a GTX 560 alongside a dual Cell processor and a few gigs of memory, call it a day  and release it as soon as possible. It could still do some money by release @ $400 according to my calculations, hope it butches the Wii-U launch like they did with the Dreamcast and builds an early advantage.

Japan has been trying that for a couple years now. It's still not working.



In the wilderness we go alone with our new knowledge and strength.

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haxxiy on 02 February 2012
Stefan.De.Machtige said:
haxxiy said:
Joelcool7 said:
I am very concerned for Sony's long term survival it has been steadily losing money for years. With the yen so high and still rising with the US preparing to raise taxes on international corporations and give American products huge cuts and assistance.

I fear for all of Japan's companies including Nintendo and car companies.

Sony is going to take a massive hit if Vita doesn't succeed in Europe and America. Once WiiU launches in late 2012 I fully expect PS3 to be hit at least a little. I would say Sony's Playstatikn brand will be hit with massive losses. For many reasons Vita but also R&D for PS4 which is already in development but Sony will need to adapt it for the market. Sony will have a very hard few years ahead for its PlayStation brand, two new consoles (Vita/PS4) as well as other smart phones and tablet tech.

Sony will also face a harder time with all the other branches. Simply put things will only get worse as America introduces protectionist measures.

Sony will take heavy losses each year in the near future. PS4 will need to be a huge success Vita can't get a price cut if it fails Sony will need to drop it. Sony will likely need to sell some assets and outsource more production. The company needs to further restructure future products will need to sell at a profit, Sony cannot sustain losses on products like it did with PS3.

They still have plenty of money in their chest, and they could shut down or sell their TV/Cellphone/Laptop division in any case. Kaz needs to do some massive restructuring one way or another anyways, and fast. When you have revenues of $23 billion and still bleed money, then something is very very wrong.

By the way, I wonder why Japan isn't doing anything at all to protect their conglomerates and depreciate their currency. Brazil does it all the time to protect exporters from the falling dollar. Hundreds of thousands of people could lose their jobs if Sony, Panasonic, Toshiba etc. start closing some divisions.

But should Sony fail on bringing some massive changes this year... then I'll start accepting bets on which will declare bankruptcy first: AMD, RIMM or Sony =/

And as far as Playstation goes, I think they should slap a GTX 560 alongside a dual Cell processor and a few gigs of memory, call it a day  and release it as soon as possible. It could still do some money by release @ $400 according to my calculations, hope it butches the Wii-U launch like they did with the Dreamcast and builds an early advantage.

Japan has been trying that for a couple years now. It's still not working.

Time to evacuate Japan then. Can they even do that?



 

 

 

 

 

Seece on 02 February 2012

We've learnt a lot of valuable lessons this past Q.

When a company says they've hit XX.XX, they're not necessarily telling the truth.
When a company says they're on track to meet their targets, they can be horribly off a few weeks later.
When a company says they've won something, they've possibly bent the truth to their favour.



 

Zlejedi on 02 February 2012
pezus said:
Seece said:

We've learnt a lot of valuable lessons this past Q.

When a company says they've hit XX.XX, they're not necessarily telling the truth.
When a company says they're on track to meet their targets, they can be horribly off a few weeks later.
When a company says they've won something, they've possibly bent the truth to their favour.

Overall: Never trust companies?

Yep. As long as it isn't written in report for stock markets where lies are punished with dire financial consequences.



PROUD MEMBER OF THE PSP RPG FAN CLUB

dark_gh0st_b0y on 02 February 2012

too bad : (

imagine if Ps3 coudln't sell that much in 2011 what could have happened



don't mind my username, that was more than 10 years ago, I'm a different person now, amazing how people change ^_^

Train wreck on 02 February 2012

Ill comment on Sony first then on my concern for the gaming industry second.

I knew this quarter was going to be bad with the strong yen, weakness in their TV, phone and pc business but for SCE I though they would have a better showing. The month of December threw the gaming industry on its head.

The bulk of the losses are contributed to the exit of the LCD business and the environmental disasters from the earthquake and flooding Thailand (~140 billion Y), both were pretty much one time events, so Sony will have easy comparisons this time next year. I still see multiple challenges as the Yen will still remain strong against Sony biggest trading partners, the secular downturn I see in gaming wont help, competition from their Korean counterparts is only going to get worse, new iphone coming out this year all are going to hamper Sony ability to gain traction for their products. They lowered pretty much everything across their product lines (except TVs which I find funny), cameras, phones, PS3s, computers, this isn't indicative of a Sony only problem but a problem for all Japanese manufacturers.

As for gaming itself, there is no doubt in my mind that the current era we are in is a Microsoft dominated one, they have been the most consistent video game company for the past three years or so and will be able to dictate gaming on their terms.

After looking more closely at December for multiple electronic retailers, amazon, bestbuy, Nintendo, Microsoft and Sony it appears that, at least for gaming, has been some kind of downward shift, almost a secular decline that the gaming industry will be far from getting out of. Even with the Vita, 3DS and Wii U coming online, from a sales standpoint it will be down next year (lower price points and not enough units sold), and most likely for the next couple years. I hope I'm wrong though. Crazy times.