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Forums - Sony Discussion - Why Do People Act Like Sony (Computer Entertainment) Doesn't Have Financial Problems?

Because it's not relevant, and has already been discussed to death. The PS3 lost Sony a lot of money, but it has been profitable for a few years now and Sony are financially stable enough to keep bringing us new consoles and games.

The PS3 wasn't doomed because it sold 80 million, WiiU will be lucky to reach half of that. Being "doomed" has nothing to do with profits. I'm not sure where you're trying to go with this.



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Jizz_Beard_thePirate said:
bouzane said:
Jizz_Beard_thePirate said:
bouzane said:


What year is this, 2008? Sony's television division is still losing money but their other divisions are doing well and the organization as a whole if profitable.

Great compared to Sony... Terriable compared to every other company that likes making money...

http://www.engadget.com/2013/10/31/sony-earnings-q2-2013/


You claimed that Sony is not profitable. You were wrong.

You claimed that Sony's divisions (Movie, TV, Music, PC, and mobile) "doesn't (sic) make them any profits for the past few years". You were wrong (except for the television division.

Of course Sony's profits are going to be down this year, they just paunched the PS4. This is patently obvious as Sony's profits always tumble upon launching a new console. If anything, the losses produced by the PS4's R&D and launch are tiny and will not noticably impact the operations of the company as a whole.

My point still stands.

Did you even click the link... Where is your link that says Sony is profitable? There are tons of sites that says it isn't... Don't just say people are wrong if you don't have any proof... Sony lost so much money in their Movie devision and has such low market share in the mobile market that its not even funny... And I said they are doing really great on their gaming devision... wtf are you on?

http://www.bloomberg.com/news/2013-11-01/sony-s-credit-rating-may-be-cut-to-junk-by-moody-s-after-loss.html


http://en.wikipedia.org/wiki/Sony

Net income = Increase US$ 458 million (2013)

Alright, so some of Sony's other divisions are losing money but the company as a whole is still profitable. Sony's movie division is losing money? You're the one making stuff up:

http://www.sony.net/SonyInfo/IR/financial/fr/12q4_sony.pdf

I can not comment on the current fiscal year but Bloomberg is projecting a massive increase in revenue:

http://investing.businessweek.com/research/stocks/earnings/earnings.asp?ticker=6758:JP

The question is not what am I on but what are you on? Actually no, the question is how does this relate to the OP? The OP is also wrong and they have failed to back up their claims.



brendude13 said:
Because it's not relevant, and has already been discussed to death. The PS3 lost Sony a lot of money, but it has been profitable for a few years now and Sony are financially stable enough to keep bringing us new consoles and games.

The PS3 wasn't doomed because it sold 80 million, WiiU will be lucky to reach half of that. Being "doomed" has nothing to do with profits. I'm not sure where you're trying to go with this.

Actually, being doomed is all about profits. If every Sony console starting with the PS5 was like PS3 (Sells a lot, looses a lot) and every Nintendo console from now on was like the N64 and Gamecube, (Sells little, but makes profit) Sony would go under first, making them the "doomed" one.



Jay520 said:
I'm pretty sure no one of credibility has ever said the PS3 was a huge financial success.

People predict that the Wii U is doomed because its not selling well.

It's that simple.


I should add: the question in your title refers to the current status of Sony, which is much better than a few years ago. That's why talk of "financial problems" is less common. Still though, no one denies circumstances of the entirety of the PS3's life. 



Nintentacle said:
bouzane said:
Nintentacle said:
Some people seem to think I'm against Sony. I'm not. All I'm saying is that I find it annoying it is when "journalist" say the Wii U is doing terrible, when the PS3 was doing much financially worse in 2007 than the Wii U is right now. They always act like Wii U will never have a turn around, yet when PS3 was a year old, they said Sony was doomed because of the PS3. 6 years later the PS3 has 80 million units sold and they almost never mention that the PS3 was doing bad.


Sony has more than ten times the assets of Nintendo, thus they were able to absorb a far bigger loss than Nintendo will ever be able to. Additionally, the PS3 sold about 8 million units in 2007 while the WiiU will struggle to sell 3 million this year. The WiiU is selling so badly that it may never gain traction in the market, much in the same way as the Vita. The WiiU is not in the same position as the PS3 circa 2007 and that's the reason why gaming journalists aren't making any such comparisons. I don't expect the WiiU to sell a third as many units as its predecessor.

My point is that Nintendo is in a much better situation right than Sony was in 2007. Sales don't matter at ALL for that. Wii U right now is in a much better situation since It's loosing less money than PS3 was in 2007. I'll make a quick explanation.

Wii U is loosing less than PS3 was in 2007, making Nintendo in a better financial situation than Sony was in 2007. The end.


It's like you can't even follow simple conversation.

"Whenever I see articles about how the Wii U is doomed, lots of the writers talk about Sony like they never loose money and are perfect. It's like they're completely ignoring how much money the PS3 lost. Does anyone here know why people do this?"

The aforementioned writers are not bringing up the PS3's losses because they are not relevant. Why is this so hard to understand? Sony has far more assets than Nintendo and a far more diverse range of products, therefore we can not directly compare Nintendo's current situation to Sony's circa 2007.



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Nintentacle said:

My point is that Nintendo is in a much better situation right than Sony was in 2007. Sales don't matter at ALL for that. Wii U right now is in a much better situation since It's loosing less money than PS3 was in 2007. I'll make a quick explanation.

Wii U is loosing less than PS3 was in 2007, making Nintendo in a better financial situation than Sony was in 2007. The end.

You're moving the goalposts now.

The bottom line is, if you can't gain a respectable marketshare, you're still doomed, regardless of how big your bank balance is.

If you want to talk about which company's financial situation is worse, go ahead.



Nintentacle said:
brendude13 said:
Because it's not relevant, and has already been discussed to death. The PS3 lost Sony a lot of money, but it has been profitable for a few years now and Sony are financially stable enough to keep bringing us new consoles and games.

The PS3 wasn't doomed because it sold 80 million, WiiU will be lucky to reach half of that. Being "doomed" has nothing to do with profits. I'm not sure where you're trying to go with this.

Actually, being doomed is all about profits. If every Sony console starting with the PS5 was like PS3 (Sells a lot, looses a lot) and every Nintendo console from now on was like the N64 and Gamecube, (Sells little, but makes profit) Sony would go under first, making them the "doomed" one.


My, aren't we grasping at straws.



Nintentacle said:
brendude13 said:
Because it's not relevant, and has already been discussed to death. The PS3 lost Sony a lot of money, but it has been profitable for a few years now and Sony are financially stable enough to keep bringing us new consoles and games.

The PS3 wasn't doomed because it sold 80 million, WiiU will be lucky to reach half of that. Being "doomed" has nothing to do with profits. I'm not sure where you're trying to go with this.

Actually, being doomed is all about profits. If every Sony console starting with the PS5 was like PS3 (Sells a lot, looses a lot) and every Nintendo console from now on was like the N64 and Gamecube, (Sells little, but makes profit) Sony would go under first, making them the "doomed" one.

Are we talking about the WiiU and PS3 or Nintendo and Sony here?

You seem to be clinging onto the idea that Nintendo being an overall more profitable company makes the WiiU a successful console. Believe what you will, but you'll be in for a nasty shock if worst come to worst and the WiiU dissapears off of European shelves within the next year or so.



from what i understand isnt Ninty just breaking even with Wii U?



Nintentacle said:

My point is that Nintendo is in a much better situation right than Sony was in 2007. Sales don't matter at ALL for that. Wii U right now is in a much better situation since It's loosing less money than PS3 was in 2007. I'll make a quick explanation.

Wii U is loosing less than PS3 was in 2007, making Nintendo in a better financial situation than Sony was in 2007. The end.

If you look solely at current profits, then sure, it would seem obvious that the Wii U is in a better position than the PS3. But such an analysis would be quite shallow; a thorough analysis of the two consoles would include not only current profits, but also potential for future profit, since that’s what’s ultimately going to determine doomage. For example, an unprofitable console with high likelihood for future profit is probably less likely to be doomed than a marginally profitable console with high likelihood for diminishing profits/sales.

It just so happens that the PS3, while highly unprofitable, wasn’t likely to be doomed. The PS3 had sustainable hardware sales, but its manufacturing cost was too high. With the Wii U, its problem isn’t manufacturing cost, but its hardware sales. It’s easier to predict that the PS3’s problem would be solved since manufacturing cost will inevitably wither away, and Sony would be able to absorb the losses until then. As for the Wii U, there isn’t a similar inevitability that hardware sales will increase to respectable levels, unless sub-Gamecube sales are considered respectable. 

Keep in mind, this has nothing to do with your claim that people say the PS3 was a huge financial success (which no one says), or with the current financial status of Sony (which is better these days).