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Forums - Sales - Sony sees record $6.4 billion net loss, to take tax hit

legend92(3) on 10 April 2012
Kynes said:
legend92(3) said:
They are expecting a swing of 8.2 billion dollars for a 1.8 billion Profit next FY. They really are putting all their faith in Kaz to fix everything.


B_E_L_I_E_V_E

This also tell us one of two things, Sony aren't releasing a PS4 or They are and they wont be selling it at a loss. Also most likey we wont be seeing a Vita price cut, but probaly a PS3 one seeing as that wouldn't cause a loss. Or they expect spiderman to make Billions and save the company entirely.



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PullusPardus on 10 April 2012
VicViper said:
smbu2000 said:
VicViper said:
 

With Sony, I agree, it's incredible how the mighty have fallen. Everything was Sony. Now I give you 100 bucks if you manage to find someone holding a Sony tablet within 1 hour. Make it 10 hours!

My friend almost bought a Sony Tablet! He was looking at Tablets and seriously considering getting the Sony one just last week. I ended up selling him my gf's "old" iPad 2 (and showing him how to use it) and he couldn't be happier with it. I guess I cost Sony a tablet sale.

People like you are the reason Sony is doing this bad!!! :P

Lol, but I can believe you, unless you say this is the tablet your friend wanted to buy:

 

Does this even exist in real life? I mean, I never even seen it in stores, let alone at someone's hands.

I was actually looking forward to this one, I wanted a portable tablet, the idea is great, but then i tried it, the UI and the "Boxed" feel of it, oh goodness.

it felt like a giant ds, with no buttons and whats annoying too is most apps use just the upper screen and the lower screen for navigation, wtf?



legend92(3) on 10 April 2012
kowenicki said:
legend92(3) said:
They are expecting a swing of 8.2 billion dollars for a 1.8 billion Profit next FY. They really are putting all their faith in Kaz to fix everything.


it would need a swing of between 3 and 4.  3bn of the 6.2bn this time is a one time write off.


Didn't they do this last year or the year before as well?



sales2099 on 10 April 2012

Its amazing how bad it all went for them. They were doing so good 6 years ago.



Xbox: Best hardware, Game Pass best value, best BC, more 1st party genres and multiplayer titles. 

 

Hyruken on 10 April 2012
M.U.G.E.N said:
Hyruken said:
logic56 said:
lol at all these armchair analyst, Sony has 155 billion in total assets and a yearly revenue of 86 billion, they're aren't going anywhere any time soon, they just spend to much because of being to bloated, and with almost no communication between the divisions only adds to the problem. They problem was a lack of focus with too many arms spread all over the place, as soon as Kaz gets a handle on the TV business and get all their core divisions to communicate with each other they'll be back in the black in no time at all.


So your point is if you have assets and a revenue your alright? Maybe you need to look into companies that went bankrupt that were far bigger then Sony such as WaMu? They had over $300BN in assets and revenue of over $100BN but they went down. As did others like Enron.

What grates me more then anything is responses like this. The company has to be alright simply because it is ......... <----- enter your fav company here

Sony as a whole will not die but to quote Masaru Kato(Sony chief financial officer) "The situation is critical and we will carry out drastic reform. Nothing is sacred," Sony are going to have to appease the people they owe money to because if they don't they could pull the plug which has happened to thousands of companies and simply because it is .......<----- enter your fav company here. Doesn't mean it won't happen to them.

 


I'll just say this. I am not familiar with the wamu case but I can assure you Enron downfall is not even comparable to Sonys situation. Not even close. Bad example to use there

OT: really sucks big time. No one wonder such big job cuts happened and so much re-structuring is going on. Hope Kaz will be able to bring the company into profit soon


It isn't a bad example at all. The point he was making was that Sony is a big company which makes a lot of money and has huge revenues. And because of this is too big to fail. How the company fails is irelivent it is the fact that it can happen at anytime.  Enron was one of the biggest companies in the world. Was voted the most inovative company for 6 years running (Apple now have that title). It made over $101BN a year before the inflated finances scandal became known. When you put that into contrast with Sony Losing $6BN last year alone it shows you my point of how big a company it was. And it went bankrupt. Obviously you can argue the way they went bankrupt is totally different to Sony's situation and it would be right. Fraud is different to honest mismanagement. 

But no matter how you get to the "tipping point" the outcome will be the same. Increasing debt, less people to lend you money and weakening consumer faith in your product/service leading to your stock crashing and struggling to recover. That is the point Sony are at right now. If they don't turn it around within 12 months then they will probably reach that point of no return. At least not in the way people on here expect.



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Deoz on 10 April 2012
zero129 said:
Wow i know it would never happen, But imagine if Sony did sell the PlayStation brand to Apple or MS O_o. Imagine at E3 MS announced the PlayBox 720, or Apple to come out an announce the iStation O_O .

"IStation"

I lol'd, doesnt sound bad tough.



M.U.G.E.N on 10 April 2012
Hyruken said:
M.U.G.E.N said:
Hyruken said:
logic56 said:
lol at all these armchair analyst, Sony has 155 billion in total assets and a yearly revenue of 86 billion, they're aren't going anywhere any time soon, they just spend to much because of being to bloated, and with almost no communication between the divisions only adds to the problem. They problem was a lack of focus with too many arms spread all over the place, as soon as Kaz gets a handle on the TV business and get all their core divisions to communicate with each other they'll be back in the black in no time at all.


So your point is if you have assets and a revenue your alright? Maybe you need to look into companies that went bankrupt that were far bigger then Sony such as WaMu? They had over $300BN in assets and revenue of over $100BN but they went down. As did others like Enron.

What grates me more then anything is responses like this. The company has to be alright simply because it is ......... <----- enter your fav company here

Sony as a whole will not die but to quote Masaru Kato(Sony chief financial officer) "The situation is critical and we will carry out drastic reform. Nothing is sacred," Sony are going to have to appease the people they owe money to because if they don't they could pull the plug which has happened to thousands of companies and simply because it is .......<----- enter your fav company here. Doesn't mean it won't happen to them.

 


I'll just say this. I am not familiar with the wamu case but I can assure you Enron downfall is not even comparable to Sonys situation. Not even close. Bad example to use there

OT: really sucks big time. No one wonder such big job cuts happened and so much re-structuring is going on. Hope Kaz will be able to bring the company into profit soon


It isn't a bad example at all. The point he was making was that Sony is a big company which makes a lot of money and has huge revenues. And because of this is too big to fail. How the company fails is irelivent it is the fact that it can happen at anytime.  Enron was one of the biggest companies in the world. Was voted the most inovative company for 6 years running (Apple now have that title). It made over $101BN a year before the inflated finances scandal became known. When you put that into contrast with Sony Losing $6BN last year alone it shows you my point of how big a company it was. And it went bankrupt. Obviously you can argue the way they went bankrupt is totally different to Sony's situation and it would be right. Fraud is different to honest mismanagement. 

But no matter how you get to the "tipping point" the outcome will be the same. Increasing debt, less people to lend you money and weakening consumer faith in your product/service leading to your stock crashing and struggling to recover. That is the point Sony are at right now. If they don't turn it around within 12 months then they will probably reach that point of no return. At least not in the way people on here expect.


I think you are missing my point. Enron was a big company, yes. But the reasons for its downfall are much different that the situations and conditions surrounding sony now. Trust me, I had to do a research paper on the subject just a month or so back. All their profits, revenue, cash flows, contracts, all were filled with lies and misleading information. I'm not gonna get into the details here tho (the paper ended up being around 8 pages or so..that's after I cut down content to fit the word count requirements) I'm not disagreeing with you that big companies can and has fallen, which is absolutely true. No giant is invincible and Sony definitely have their work cut out for them. The main difference is unless the audit firm in charge is doing an absolute shoddy job, the situation is not comparable to Enrons. But I do agree with the underlining argument here, just not with that specific example



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Skeeuk on 10 April 2012

i guess they will have to axe more staff and get out of tv's. sony tv's are very nice but are on the top end of the price range and will never be competitive unless they make budget models lke samsung and lg do



...not much time to post anymore, used to be awesome on here really good fond memories from VGchartz...

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logic56 on 10 April 2012
Hyruken said:
logic56 said:
lol at all these armchair analyst, Sony has 155 billion in total assets and a yearly revenue of 86 billion, they're aren't going anywhere any time soon, they just spend to much because of being to bloated, and with almost no communication between the divisions only adds to the problem. They problem was a lack of focus with too many arms spread all over the place, as soon as Kaz gets a handle on the TV business and get all their core divisions to communicate with each other they'll be back in the black in no time at all.


So your point is if you have assets and a revenue your alright? Maybe you need to look into companies that went bankrupt that were far bigger then Sony such as WaMu? They had over $300BN in assets and revenue of over $100BN but they went down. As did others like Enron.

What grates me more then anything is responses like this. The company has to be alright simply because it is ......... <----- enter your fav company here

Sony as a whole will not die but to quote Masaru Kato(Sony chief financial officer) "The situation is critical and we will carry out drastic reform. Nothing is sacred," Sony are going to have to appease the people they owe money to because if they don't they could pull the plug which has happened to thousands of companies and simply because it is .......<----- enter your fav company here. Doesn't mean it won't happen to them.

 

really??

Enron was hit by a scandal, fraud, accounting irregularities basically, bullshit CEO's who screwed themselves, key being you can't change that

Wamu was a bank, do I have to reiterate what happened to them in the past 8 years and why??

Sony's problem is exchange rate and being to bloated, they have entire businesses that are doing fine right now, the whole of Sony is being brought down by poorly managing their TV business and exchange rate for the most part, my point these are things they can change, these are things that after reforming and restructuring can swing back

and as for the quote well fucking A, I fully agree, and in the coming years I expect to see a much smaller very different Sony than I see now and that's a good thing, it's a great thing in fact. It will allow them to be more focused and focused Sony is best Sony.

but to all the it's teh sinking ship people no no it's not...



Deoz on 10 April 2012

Whatver they do, i doubt they will be back on top. They will need the next big hit for that and they arent good at new ideas anymore, also their competition now is better. They wont dissapear but they wont go back to its glory days.