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Forums - Sony Discussion - PS4 to save Sony

Dark_Lord_2008 on 04 April 2013

$100 loss per console for the first year or two before the costs of manufacturing systems become cheaper, is a good investment. Accessories, games and DLC make huge profits at minimal cost. Sony is highly profitable in its other business activities and does not solely rely upon its video game industry sector.



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maverick40 on 04 April 2013

Sony doesn't need saving.



DirtyP2002 on 04 April 2013
RicardJulianti said:
KingHades said:
People have said since 2006 Sony would be in debt putting the PS3 out and they did SONY is STILL here 7 years later and they just basically started off next gen with shots fired at Microsoft I doubt they are in such a HUGE financial crisis where if the PS4 fails they go bankrupt.

Really? Sony is in some serious financial hot water right now, they only turned a profit recently because they sold several HQ buildings and shares in some companies in an attempt to not go bankrupt/fund R&D for PS4 but as far as I know, their credit status is still "Junk". If it had been upgraded, it would have been all over the news. They also merged their Japan and Asia branches into one in order to save money.

Their gaming division is their biggest source of income right now since they are finally turning a profit on the PS3, but overall it cost them billions. Selling the PS4 at $399 would be great for selling a lot of units, but there is no way they wouldn't be taking a large loss on that.  If the PS4 absolutely bombs, Sony will be in even more trouble than they are now. I really don't see that happening, but I really don't think the PS4 will "save" Sony either, not by itself and not in the short term.

Selling assets, merging branches, and selling a system for profit can only do so much when the majority of your divisions are bleeding money and you have another piece of hardware that is high-spec on the way that you need to fund, market, ship, and take a loss on for a year at least. They definitely need to be careful. Vita not perfoming abysmally in Japan helps a little, but it can't carry the company.


I really don't know how this got spread all over the internet. It is WRONG.

Here is the operating income for Sonys divisions for Q4 2012:

 

Imaging Products and Solutions
Operating loss: 33 million USD

Game
Operating Income: 54 million USD

Mobile Products and Communication
Operating loss: 245 million USD

Home Entertainment and Sound
Operating loss: 92 million USD

Devices
Operating Income: 111 Million USD

Pictures
Operating Income: 291 million USD

Music
Operating Income: 188 million USD

Financial Services
Operating Income: 394 million USD

 

So the ranking is:

  1. Financial Services
  2. Pictures (Thanks Skyfall! )
  3. Music
  4. Devices
  5. Games
  6. Imaging Products and Solutions
  7. Home Entertainment and Sound
  8. Mobile Products and Solutions

And that was during the holiday quarter, a time where Games usually do good and life insurances don't.

You can read it here:

http://www.sony.net/SonyInfo/IR/financial/fr/12q3_sony.pdf



Imagine not having GamePass on your console...

Conegamer on 04 April 2013

We shall see, but you may be a bit optimistic. Did you not learn from your 'Vita will beat the 3DS" thread?

Of course, it could be different this time...only time will tell.



 

Here lies the dearly departed Nintendomination Thread.

Rogerioandrade on 04 April 2013

Saving Sony ? From what ? Sony is not doomed. the PS4 won´t be a huge success like its predecessors, but no home console will from this point. We should be worried about what would come after the end of Ps4 commercial life.



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Xenobot on 04 April 2013

IMO - optimistic scenario is 2,5 bln lost at launch:

There is no way that they can balance costs this year.
12 mln units would generate 1200 mln USD lost, but to manufacture them they need 7200 mln USD( 12 * 600 USD) or even 8400 (12 * 700)

1 game generates about 12 USD income for SONY
1 PS Plus subscription is 49 USD

Including marketing and operating cost lets say that PS4 launch will cost 8000 mln USD (8 bln $$$).

In optimistic scenario they can sell about:
10 mln PS4 units (5000 mln income)
20 mln Games (240 mln income)
4 mln PS Plus (196 mln income)

5436 - 8000 = - 2,5 bln lost.

And this is optimistic



enditall727 on 04 April 2013
c0rd said:
enditall727 said:
Mr Khan said:
You're quite overconfident. No-one next run is going to beat 80 million, i'd say. The wildcard being Microsoft, who could pull out a real crossover device

I think the PS4 will reach 100 mill if it launches at $399

 

The PS4 is definitely NOT going to sell worse than the PS3 ESPECIALLY if it launches at $399

I'm pretty sure the PS4 will be taking massive losses if it does launch at $399, though. Not sure if Sony is willing to do that.

Really gotta wait until more details come out.


The loss they take should be no higher than $100

 

$399 baby!



RicardJulianti on 04 April 2013
DirtyP2002 said:
RicardJulianti said:
KingHades said:
People have said since 2006 Sony would be in debt putting the PS3 out and they did SONY is STILL here 7 years later and they just basically started off next gen with shots fired at Microsoft I doubt they are in such a HUGE financial crisis where if the PS4 fails they go bankrupt.

Really? Sony is in some serious financial hot water right now, they only turned a profit recently because they sold several HQ buildings and shares in some companies in an attempt to not go bankrupt/fund R&D for PS4 but as far as I know, their credit status is still "Junk". If it had been upgraded, it would have been all over the news. They also merged their Japan and Asia branches into one in order to save money.

Their gaming division is their biggest source of income right now since they are finally turning a profit on the PS3, but overall it cost them billions. Selling the PS4 at $399 would be great for selling a lot of units, but there is no way they wouldn't be taking a large loss on that.  If the PS4 absolutely bombs, Sony will be in even more trouble than they are now. I really don't see that happening, but I really don't think the PS4 will "save" Sony either, not by itself and not in the short term.

Selling assets, merging branches, and selling a system for profit can only do so much when the majority of your divisions are bleeding money and you have another piece of hardware that is high-spec on the way that you need to fund, market, ship, and take a loss on for a year at least. They definitely need to be careful. Vita not perfoming abysmally in Japan helps a little, but it can't carry the company.


I really don't know how this got spread all over the internet. It is WRONG.

Here is the operating income for Sonys divisions for Q4 2012:

 

Imaging Products and Solutions
Operating loss: 33 million USD

Game
Operating Income: 54 million USD

Mobile Products and Communication
Operating loss: 245 million USD

Home Entertainment and Sound
Operating loss: 92 million USD

Devices
Operating Income: 111 Million USD

Pictures
Operating Income: 291 million USD

Music
Operating Income: 188 million USD

Financial Services
Operating Income: 394 million USD

 

So the ranking is:

  1. Financial Services
  2. Pictures (Thanks Skyfall! )
  3. Music
  4. Devices
  5. Games
  6. Imaging Products and Solutions
  7. Home Entertainment and Sound
  8. Mobile Products and Solutions

And that was during the holiday quarter, a time where Games usually do good and life insurances don't.

You can read it here:

http://www.sony.net/SonyInfo/IR/financial/fr/12q3_sony.pdf

Oh....well then. *chomps on crow*

Doesn't change the fact that Sony is hurting and the PS3 cost them billions. It's a shame really. Even though games are starting to become derivative of each other, one of the big 3 leaving would make it worse. Same reason EA hasn't really done much with their sports games....no competition, minimal need to innovate. PS4 alone won't save them, but they can definitely turn things around if they try. 



DieAppleDie on 04 April 2013
Dark_Lord_2008 said:
$100 loss per console for the first year or two before the costs of manufacturing systems become cheaper, is a good investment. Accessories, games and DLC make huge profits at minimal cost. Sony is highly profitable in its other business activities and does not solely rely upon its video game industry sector.



This post is full of wrong, Sony needs its gaming division back to green ASAP. Plus its other arms, execpt for maybe phones, are really in trouble.



Gilgamesh on 04 April 2013
DirtyP2002 said:
RicardJulianti said:
KingHades said:
People have said since 2006 Sony would be in debt putting the PS3 out and they did SONY is STILL here 7 years later and they just basically started off next gen with shots fired at Microsoft I doubt they are in such a HUGE financial crisis where if the PS4 fails they go bankrupt.

Really? Sony is in some serious financial hot water right now, they only turned a profit recently because they sold several HQ buildings and shares in some companies in an attempt to not go bankrupt/fund R&D for PS4 but as far as I know, their credit status is still "Junk". If it had been upgraded, it would have been all over the news. They also merged their Japan and Asia branches into one in order to save money.

Their gaming division is their biggest source of income right now since they are finally turning a profit on the PS3, but overall it cost them billions. Selling the PS4 at $399 would be great for selling a lot of units, but there is no way they wouldn't be taking a large loss on that.  If the PS4 absolutely bombs, Sony will be in even more trouble than they are now. I really don't see that happening, but I really don't think the PS4 will "save" Sony either, not by itself and not in the short term.

Selling assets, merging branches, and selling a system for profit can only do so much when the majority of your divisions are bleeding money and you have another piece of hardware that is high-spec on the way that you need to fund, market, ship, and take a loss on for a year at least. They definitely need to be careful. Vita not perfoming abysmally in Japan helps a little, but it can't carry the company.


I really don't know how this got spread all over the internet. It is WRONG.

Here is the operating income for Sonys divisions for Q4 2012:

 

Imaging Products and Solutions
Operating loss: 33 million USD

Game
Operating Income: 54 million USD

Mobile Products and Communication
Operating loss: 245 million USD

Home Entertainment and Sound
Operating loss: 92 million USD

Devices
Operating Income: 111 Million USD

Pictures
Operating Income: 291 million USD

Music
Operating Income: 188 million USD

Financial Services
Operating Income: 394 million USD

 

So the ranking is:

  1. Financial Services
  2. Pictures (Thanks Skyfall! )
  3. Music
  4. Devices
  5. Games
  6. Imaging Products and Solutions
  7. Home Entertainment and Sound
  8. Mobile Products and Solutions

And that was during the holiday quarter, a time where Games usually do good and life insurances don't.

You can read it here:

http://www.sony.net/SonyInfo/IR/financial/fr/12q3_sony.pdf

When it says games are they talking about strictly their games? or the consoles aswell. Because if not you would almost have to take a chunk out of Devices and add it to Games to get the Sony gaming total.