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Forums - Sony - Sony Q3 FY2012 - $124m loss, PS3+PS2 6.8m, PSV+PSP 2.7m

Regarding the gaming division I think just about everyone in this thread has gotten it completely wrong. Everyone is blaming research and development, or the poor hardware sales of the Vita, but those don't adequately address the poor results. They are truly marginal players in the scheme of things. Research and Development is a persistent cost, and its effect should be fairly diluted by being spread across many quarters. While the Vita is effectively a small product line that probably sees small scale production. The fact that Sony continually cuts forecasts for the hardware tells us that they probably have curtailed their own production severely, and they don't have a mountain of unsold units in a warehouse anywhere locking up capitol.

The culprit is more then likely the software. Their own first party, and a decrease in the royalties paid out by third parties. This is actually a pretty straight forward conclusions. Sony's own software lets face it didn't fair too well in that three month period, and we know that the market is down overall. Given the companies profit margins on the hardware which isn't spectacular, and no I am not saying it is awful. It stands to reason that most of their green comes off of the software. In this case Sony likely spent more on software then the return justified.

That said the situation is probably fairly neutral. Obviously releasing games that garner a lukewarm reception from consumers isn't a ideal situation. It is a situation that can be rectified in future quarters through the release of games that consumers may respond more favorably to. Perhaps more importantly the focus should probably be on the console rather then on the Vita, and yeah it kind of needs to be said. The Vita isn't doing poorly. The device is effectively drawing dead, and if Sony doesn't kill it the market will do the job for them.

The Vita has moved beyond poor retail space allotment, and is actually disappearing from a number of retail locations altogether. This is going to continue to exacerbate the sales problem. Drive down third party development, and dash any chance of a real price cut, because high volume production that could drive the costs down just can't get any momentum. I honestly don't think that Sony is blind to this, and they have probably already written off the device. I am not saying the device itself is the problem, but the money being spent on games for it probably is a part of the problem.

That said I wasn't particularly shocked by the announcement. Consumer sentiment took a pretty hard hit last quarter, because of the political brinksmanship that took place in the United States. It directly impacted the sales of high end goods, and that is where Sony was most vulnerable, and they like most analysts probably expected a healthier holiday season then what we actually got. So it stands to reason that they probably over produced for a demand that didn't materialize. I can most definitely see stuffing in the channel in excess of the norm.



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Chark said:
Soooo, I should buy Sony shares at the next drop off point and hold on to them for a few years?

I think that would be a very poor investment. Nothing from their financial report show a positive outlook in the near future.

-10% in Tokyo, Investors reacted badly as should they. These are poor results



Is... is this supposed to be good?

I see that they've come to an Operating profit but not net profit.



Yay!!!

Wh1pL4shL1ve_007 said:
Is... is this supposed to be good?

I see that they've come to an Operating profit but not net profit.


Take your pick. It can be seen as good as they reduced losses for the FY. It can be seen as bad as they should have made a profit by now.



ethomaz said:

kowenicki said:

but they also predict a drop in hardware sales across the board from previous estimates.  the only reason that stays the same is due to the building sale.

thats bad.

The ~$600m is to be posted in Q4... I'm just saying what the news about Q3 are saying... the company go back to operation profit.

It's not bad... even stocks are up after hours (well I don't know what means after hours).

Edit - After Hours: 16.26 +0.44 (2.78%) 

Sony Corp. shares dropped the most in four years after reporting an eighth consecutive quarter of losses.


What did you say?



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kowenicki said:
Shares tanked almost 11% over night in Japan. Still healthily up from where I bought. But I might get rid and cash in I think. Thanks Sony, tidy little profit there.

Is it that simple to make profit off of stocks? Buy one week then sell a few months later? I am considering buying Sony stocks after PS4 announcement or FY report if the market is still low.



Farsala said:
kowenicki said:
Shares tanked almost 11% over night in Japan. Still healthily up from where I bought. But I might get rid and cash in I think. Thanks Sony, tidy little profit there.

Is it that simple to make profit off of stocks? Buy one week then sell a few months later? I am considering buying Sony stocks after PS4 announcement or FY report if the market is still low.


You should buy before the PS4 announcement



How does one actually buy shares?



Wlakiz said:
Farsala said:
kowenicki said:
Shares tanked almost 11% over night in Japan. Still healthily up from where I bought. But I might get rid and cash in I think. Thanks Sony, tidy little profit there.

Is it that simple to make profit off of stocks? Buy one week then sell a few months later? I am considering buying Sony stocks after PS4 announcement or FY report if the market is still low.


You should buy before the PS4 announcement


Too risky as we do not know when the actual PS4 announcement is.  After the announcement though it would be clear whether to invest or not.



Nsanity said:
How does one actually buy shares?


No one can take you seriously with that avatar LMAO



Yay!!!