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

NiKKoM on 02 February 2012
kowenicki said

Sony Corp. (6758) more than doubled its annual loss forecast to 220 billion yen ($2.9 billion), underscoring the challenge for incoming Chief Executive Officer Kazuo Hirai in reviving Japan’s biggest consumer-electronics exporter.

The impact from Thailand’s worst floods in 70 years is estimated at 45 billion yen, while the appreciating yen will hurt profit by as much as 20 billion yen, Kato said. An appreciating yen damps the repatriated value of Sony’s overseas sales, while a weakening won inflates Samsung and LG’s.

Ouch... even without the floods and strong yen they would still be in the loss with big numbers....



 

Face the future.. Gamecenter ID: nikkom_nl (oh no he didn't!!) 

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Troll_Whisperer on 02 February 2012

2b loss and PS3 forecast lowered. Not a good time for Sony...

Could this 2b be due to R&D for PS4?



No troll is too much for me to handle. I rehabilitate trolls, I train people. I am the Troll Whisperer.

Kynes on 02 February 2012
Shinobi-san said:
Seece said:
Kynes said:
This is why the 50 $/€ cut was a bad move. Almost 400 million $ lost in revenue and profit, when Sony needs it most.

They're going to have to do the same 'strategic' move in September this year again to face WIiU, Possible $99 Wii but most certaintly a cheaper 360.

But then they didn't have anything to spur on growth like MS has with Kinect so I guess it was their last option. I don't get this need for companies to be shipping a certaint level of products, when you're in this sttae surely profitability should be your sole focus on every decision?!


Well i think it was a lose lose situation for Sony, if they hadnt dropped the price and sales performed considerably worse than what they are, then we would be hearing about all the doom and gloom about how sony is being dominated by MS and losing the market to competitors.

Atleast with these sales they have a chance of being up YOY and highlighting the strenth of the brand and its continued growth (although i think they will ship below 14m), into its 6th year. Its not always about raw profits, sometimes a good outlook on a certain product/brand name can be more beneficial imo.


A product/brand name isn't that useful to a bankrupt company.



Turkish on 02 February 2012

Sony's TV division will be state funded under the Japan Display program, just like Samsung has been state funded for years. Sad to see the innovators do so poorly. Hope Kaz Hiray can turn things around as the new generation approaches.



Hyruken on 02 February 2012

As bad as it get's really. I imagine shares will tank further today too when the Tokyo stock problem is sorted out (convenient it goes down for the first time in six years soon as Sony announce numbers isn't it?).

The main problem for Sony though is that they don't have an endless pit of money. People on here seem to think you can post 4 years of heavy losses and be alright, maybe post losses for the rest of your life etc. Which isn't the case. Sony has gone from losing $1m a day now into losing over $3m a day. In financial terms that is "bleeding money". The question is how do they stop that?

The answer to that is near impossible to answer because if it was simple they would of done it by now. But what is clear is they have to dump their toxic divisions and move away from certain areas. The thing is we also don't know what impact Vita will have. They have increased their forecast losses so you have to assume it will be a negative impact.

The company is in deep deep shit. To put it into some kind of perspective Microsoft make more profit in 1 second then Sony has made for the past 4 years. That gives you an idea of the uphill battle Sony is trying to fight. Right now they are easy pickings in regards to a takeover and it has surprised me someone like Apple has not gone for them. But maybe thats because they know another two quarters like this will see their capital most likely wiped out.



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Kynes on 02 February 2012
Hyruken said:
As bad as it get's really. I imagine shares will tank further today too when the Tokyo stock problem is sorted out (convenient it goes down for the first time in six years soon as Sony announce numbers isn't it?).

The main problem for Sony though is that they don't have an endless pit of money. People on here seem to think you can post 4 years of heavy losses and be alright, maybe post losses for the rest of your life etc. Which isn't the case. Sony has gone from losing $1m a day now into losing over $3m a day. In financial terms that is "bleeding money". The question is how do they stop that?

The answer to that is near impossible to answer because if it was simple they would of done it by now. But what is clear is they have to dump their toxic divisions and move away from certain areas. The thing is we also don't know what impact Vita will have. They have increased their forecast losses so you have to assume it will be a negative impact.

The company is in deep deep shit. To put it into some kind of perspective Microsoft make more profit in 1 second then Sony has made for the past 4 years. That gives you an idea of the uphill battle Sony is trying to fight. Right now they are easy pickings in regards to a takeover and it has surprised me someone like Apple has not gone for them. But maybe thats because they know another two quarters like this will see their capital most likely wiped out.

Apple is a "new age era" company. They profited last year 400K US$ per each employee, so I don't think they want to buy a heavy losses company with one hundred thousand workers. They want low number of workers, high number of patents and/or profits companies.



NotStan on 02 February 2012

Shit numbers for consoles all around it seems, looks like the market has stagnated. Also would the acquisition of Ericsson for 900-something mil fall into this loss? Can't read the whole report, too early for me



Disconnect and self destruct, one bullet a time.

Kynes on 02 February 2012
NotStan said:
Shit numbers for consoles all around it seems, looks like the market has stagnated. Also would the acquisition of Ericsson for 900-something mil fall into this loss? Can't read the whole report, too early for me

AFAIK a buy doesn't count as a loss, at least while you don't sell it again or make a write off due to lower value. It's probable that the write off of the TV joint venture with Samsung is included in this quarter.



Barozi on 02 February 2012

certainly more losses than I expected.



Argh_College on 02 February 2012

Thats horrible numbers in Losses... Holly shit. with this i cant see a new Playstation coming out anytime soon, not with Vita coming right now...

Wich leaves Microsoft in the best situation they could ask for, launch Xbox 3 this year, tons of marketing in Europe and with shitloads of Japanese Exclusives, exclusive FIFA, get the Rest of the European Market and lead the way.

So what will happen if Vita Fails here?