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Forums - Sony - Sony makes wrong bet (financially) with PS4

http://www.bloomberg.com/news/2013-08-09/sony-s-playstation-hedge-backfires-as-dollar-costs-surge.html

So apparently Sony was betting that the Yen would remain strong as it planned its PS4.  Unlike most Japan based companies, it arranged contracts with parts suppliers to be paid in US dollars.  This means that when PS4's start shipping, a weak Yen will make PS4's more expensive to produce than expected when the contracts were signed.  Experts are predicting that they Yen will continue to fall in the coming year, making the situation worse.  Could this spell disaster for Sony and Playstation?



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TheLastStarFighter said:

http://www.bloomberg.com/news/2013-08-09/sony-s-playstation-hedge-backfires-as-dollar-costs-surge.html

So apparently Sony was betting that the Yen would remain strong as it planned its PS4.  Unlike most Japan based companies, it arranged contracts with parts suppliers to be paid in US dollars.  This means that when PS4's start shipping, a weak Yen will make PS4's more expensive to produce than expected when the contracts were signed.  Experts are predicting that they Yen will continue to fall in the coming year, making the situation worse.  Could this spell disaster for Sony and Playstation?

Except in the last 2 months the yen has been gaining, from 102 down to 96. If you can buy a dollar with fewer yen that means it's getting stronger.



No, it won't influence a lot since Sony bought the parts to use them and not to speculate on the market. It's just that they could have been potentially better off however you never can predict the future. Don't make it sound worse than this is.



Stories unfolded with my home made rap songs. Feel free to listen here with lyrics: https://youtu.be/vyT9PbK5_T0

This was already posted and discussed this morning.

 

http://gamrconnect.vgchartz.com/thread.php?id=165961&page=3#8



 

Playstation = The Beast from the East

Sony + Nintendo = WIN! PS3 + PSV + PS4 + Wii U + 3DS


I hope that the PS4 will be financially viable.



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hmm, that's not good for Sony's profits.



    

NNID: FrequentFlyer54

elazz said:
No, it won't influence a lot since Sony bought the parts to use them and not to speculate on the market. It's just that they could have been potentially better off however you never can predict the future. Don't make it sound worse than this is.

Well said. I know what the OP is saying but as you said in an ever changing global economy disaster or success is just around the corner for everyone.

The US economy could slide in the next few months. Does this spell disaster for the xbone?

These are uncertain times and everything is a gamble. These so called experts didn't see the recession coming and they all ( or most ) said we will be out of it long ago.  They are as clueless as most people are.

Come to think of it a lot of these so called experts claimed Sony would be dead and buried a few years back.



This is being sensationalized, and no it does not spell disaster for Sony.