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Forums - Sony - Sony's Q3 FY2013 Earnings (Stock UP 5%; Profit Beats Forecasts; 7.8m PS4+PS3; 2m Vita+PSP)

Transcript from the Conference Call.

http://seekingalpha.com/article/1998981-sony-management-discusses-q3-2013-results-earnings-call-transcript



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QA PS4 Part.

Next question, the person in the middle in the first row.

Hideki Yasuda - Ace Securities Co., Ltd., Research Division

Yasuda, Economic Institute. I'd like to be having this positive kind of a question about PS4. 5 million was your previous guidance, and you haven't reviewed that number for the year, so what about PS4? Has there been any change in your forecast or estimates? And also, the corporate strategy meeting before, you said that software support and marketing costs will be spent to the biggest launch of PS4. And I think the situation is much better than is expected. So next year, these costs related PS4 to be able more profitable, what about that? And also the next corporate strategy meeting, I'm sure, as I said, you're going to talk about more growth and strategies. But listening to Mr. Kato's comment, you have been going through the history of restructuring all this time, so I've never felt that there was a turnaround -- but next time around, like we used to experience when you came up with a Walkman or new products, impress us, wow us for some time, with a growth strategy and impressive product. As things stand now, can you promise me that?

Kazuo Hirai

Well, first of all, the game console, it's true that toward the end of December, we indicated 4.2 million or 4.5 million. But consistently, we're saying between PS3 and PS4, our target is to sell 50 million for the year. And that number, 50 million, remains unchanged in total PS3 and PS4. That's how we looking at the business now, where we stand now. PS4, by the way, is doing a lot better than our expectations. But PS3, because PS4 is doing so well, maybe PS3 is slightly behind anticipation, so there's pluses and minuses, but altogether, remain with the same target of 50 million. About the marketing expenses in the future, I think your second question, and again, the start will stay smooth, yes, but then again, our competitors are coming with a strong platform products. So PlayStation 4 and the PlayStation format, in general, we have to make sure that acceleration is fair and we need to do that with the marketing. And therefore, it's really to decide on reducing and cutting the cost for marketing. From my experience, however, I would say, it's not yet time for us to ease on the marketing spend. And if the opportunities, actually, we have to add to an increase maybe to the marketing spend, this is the time now to do so. I can say that from my experience. Now the third point, thank you for your comment. This time around, I've given you only the, shall I say, difficult discussions in my presentation today, but back in January, I had an opportunity to make a keynote speech at the Computer Electronics Show in Japan. I know how people accepted my speech. But my view, my dream, about the future of Sony, my vision, as it were, I gave all that in my speech and also lifestyle, the experience, particularly after I showed 4K and it as my presentation to make a product out of this, have a team working on this, and that's why we were able to demonstrate this at CES -- the actual product, though the setup wasn't perfect, the line was very long, about 3,500 people altogether were there to actually see this product. And in the corporate strategy meeting, we -- basically the repeat of that kind of exciting discussions, not just the product, but it's actually, today, however, was not the opportunity to do so. But at the CES, I had total freedom in sharing my dream with the audience there, and in all the absentees going forward, I will make sure to make my dreams and provisions known.

Hideki Yasuda - Ace Securities Co., Ltd., Research Division

So 1 year ago, for the PS4, you wanted to devote and invest people and money, and I think we've successfully done that. I hope you'll be able to talk about the Electronics in such a positive way, to be able to invest more money and people for the future success.

Kazuo Hirai

Again, today is an opportunity to talk about that, but personally, myself, I'm a stickler as far as Electronics business is concerned, as far as the product is concerned, our then installed cameras on PS4 are just examples. But it's our core business and our products in our core businesses, I think we now have a product line up which the customers accept and evaluate. But that's not enough, how would that translate to a bottom line, you may ask. But half of this equation, in terms of the product appeal, even though they are yet to be done, but I think my ideas are now being reflected in the products that we've launched in recent times. So as far as product appeal is concerned, individuals are there, but I'll continue to bring my passion to be able to introduce these products to our customers.

50m is a type... he meant 15m.



Lafiel said:
fmjasinski said:
Lafiel said:
fmjasinski said:
Handheld (PSP + PS Vita):

Sony Numbers (Shipped): 4,7
Vgchartz totals: 6,095,169

Overtracked by at least: 1,359,169

it doesn't work that way pal

we don't have information on stock levels at the start of Q4 2013 and at the end of Q3 2014 of Sony's fiscal year - your calculation is based on similar stock at both these times, but that is unlikely

for example retail might have had 1.2 million PSPs and 1.5 million PSVs in stock at the start of Q4 2013 and 0.5m PSPs and 0.8m PSVs at the end of Q3 2014, which means in this case 6.1 millon Sony handhelds were sold, although only 4.7 million were shipped


Yes, to say that the numbers are overtracked I relied in this scenario (similar stock) and I think thi scenario is close to the reality. Evident that the stock can vary, but I don`t think this will vary this big for this two system.

PSP is a product at the end of it's lifetime -> it makes sense for retailers to stock less

PSV is a product with low sales -> it makes sense for retailers to stock less


I agree with that, but this is not new (PSP is dying a long time ago and Vita never had good sales), the situation is almost identical from last year, as a result of this, I think the stock is almost the same.



Fanatismo não leva a nada, apenas a colecionar antipatias.

Collection: Telejogo Ford-Philco, Dactar, TV Game 2600, Master System (2x), Master System Portable, NES, Dynavision 3, Mega Drive 3 (2x - Tectoy and Show Do Milhao Edition), Genesis 3, Genesis Arcade Motion, MD Play, SNES (2x), Super Famicom, Neo Geo CD, 3DO, Saturn, Playstation, Nintendo 64 (2x), Dreamcast, Playstation 2, Game Cube, Xbox, Zeebo, Playstation 3, Xbox 360 (Kinect Bundle), Wii (2x - White and Red), Game Boy Pocket, Game Boy Color, Game Boy Advance, DS Lite, 3DS, Vita, Wii U, Playstation 4 and Xbox One. Around 800 games. Preferred Generation: 16 bits. 

The projected loss, the cutting of 5000 jobs, the selling of the PC division and the big restructuring of the TV business aren't the prettiest things to happen to Sony, but those things seem to be the necessary evil that Sony has to deal with if they want to get back on track. Looking at the stock market investor feel the same.

Well at least the gaming division is doing pretty good, if Sony finds a way to not lose any more money on the Vita (if they're still doing that, I have no idea) then Sony is going to have a healthy moneymaker in that division for the next couple years.



tiffac said:
fmjasinski said:
tiffac said:

So 14.3M is between PS4 + PS3 right? If those numbers are correct then 4-5M+ of that goes to the PS4. That would leave around 9-10M+ for the PS3.

We have the X1 with 3.9M shipped last year (if I'm not mistaken) that would leave around 8M for the 360 then.

4.32M between Wii and Wii U? :/

 

14,3M = PS2 + PS3 Q4 / PS3 Q1 / PS3 Q2/ PS3+PS4 Q4


Ah I failed to notice that the shipments included Q4 of 2012. Any ideas on how many PS2's were shipped that time?


My guess: At least 1 Million but less than 2 Million, because PS3 shipped 10 million consoles in the period of 03th november 2012 and 02th november 2013 (03th november of 2012 = 70 million announcement; 02th november 2013 = 80 million announcement).  



Fanatismo não leva a nada, apenas a colecionar antipatias.

Collection: Telejogo Ford-Philco, Dactar, TV Game 2600, Master System (2x), Master System Portable, NES, Dynavision 3, Mega Drive 3 (2x - Tectoy and Show Do Milhao Edition), Genesis 3, Genesis Arcade Motion, MD Play, SNES (2x), Super Famicom, Neo Geo CD, 3DO, Saturn, Playstation, Nintendo 64 (2x), Dreamcast, Playstation 2, Game Cube, Xbox, Zeebo, Playstation 3, Xbox 360 (Kinect Bundle), Wii (2x - White and Red), Game Boy Pocket, Game Boy Color, Game Boy Advance, DS Lite, 3DS, Vita, Wii U, Playstation 4 and Xbox One. Around 800 games. Preferred Generation: 16 bits. 

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With PS4 doing so well I thought Sony would split PS3 and PS4 shipments. *sigh*
Sony, you are horribly out of touch with us video game sales enthusiasts.



Interesting, some good and some bad and some ugly (PS3 and PS4 combined).



kowenicki said:
kowenicki said:
TV, cameras and PC - bad.

Movies - poor.

Mobile - not great.

Playstation - good hard numbers with acceptable financials.

Insurance and banking - Awesome.


Oh look.... I was spot on.

I have read ths thread in astonishment at the lack of understanding at the current situation at Sony...

Hilarious thread title now by the way.  Really, really funny.


camera... imaging made a healthy profit...not spot on.