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Forums - Sony Discussion - Future of Sony? 1.1 Billion dollar loss.

Wagram on 07 February 2014
benji232 said:
Wagram said:
The 1.1b loss on paper looks bad (what you all are calling doom/gloom) but what they are doing is financially beneficial. If they don't cut their losses with Vaio now, or restructure the TV business they will lose MORE than the 1.1b. This is why Sonys shares have been raising, think of the long term rather than the short term.

It is very bad no matter HOW you want to spin it. Not only did they sell a few buildings THIS fiscal year which got them a couple B$, they are still posting a loss. This means that had they not sold those buildings, they would have lost another 3-4B$+!

I apologize, but you just can't spin a 1.1B$ loss into positive news. Especially when they sold a few of their buildings in FY2013.


Oh, in no way am I trying to spin a 1.1b loss into good news. A loss is a loss, and that's bad. However, at the same time you have to realize why the loss is occuring, and what the steps are being taken to fix it. Long term, selling the vaio business and incurring this loss is a step in the right direction.



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Normchacho on 07 February 2014
Imaginedvl said:
Normchacho said:
didn't they just get upgraded? Stock is going up, PS4 is selling better than expected. The outlook is actually better than it has been in a number of years. People just see one number and think that's the whole story.

I believe it is the opposite, you see their stock going up and you believe that's the whole story.

What about all the money they lost during the past few months/years and what about the next quarter? This one was bad even with the launch of the PS4, imagine the next one... The stock went up because they announced their intention of selling their PC division, not because of the PS4... And it is just another tentative from Sony to stop bleeding money; it is too early to say if things are going to be better.


I'm afraid the shareholders and financial analysts are on my side here. Stocks are up despite the bad numbers because shareholder confidence is up and like I said they were just upgraded to "buy" status by Jefferies. 

You're mistaking the $1.1 B loss for quarterly numbers. That numbers is the yearly forcast and it was changed to that due to the costs of getting rid of the PC division as well as restructuring the TV division. They posted a profit for Q3.



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0815user on 07 February 2014

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Goatseye on 07 February 2014

Here's a report on the situation:
There's even a SDF(Sony Defense Force) on the field(comment section).

http://www.bloomberg.com/news/2014-02-06/sony-ceo-credibility-takes-hit-with-1-1-billion-loss-forecast.html



eyeofcore on 07 February 2014
Rogerioandrade said:
$ 1,1 billion in losses.........5.000 employees fired....... Closing their PC division........wow.....
that´s A LOT. I means, it´s just too much......... It´s even waaay steeper than Nintendo losses.

Reengineering is urgent at Sony. Let´s just hope they do their reestructuring right and not harm the videogame division. Still I have the feeling that even the videogame division may suffer someway


How much Nintendo lost? 10-20 million US dollars? ... And people go doom and gloom...

Yet Sony is losing 1.1 billion US dollars which is 50-100 times more than Nintendo and it is not well reported as when Nintendo has some minor loss that is really a pocket change when you know that Nintendo has billions upon billions of US dollars in the bank. More than enough to make their own space station or buy entire North Korea while Sony on the other hand does not even have a beaten time and takes loans from loan sharks.

I am surprised Sony didn't sell VAIO PC business any sooner... Nobody buys their laptops/PC's.

They need to focus more smartphone/tablet, create an App that will only work on smartphones/tablets made by Sony in which you can play PlayStation, PlayStation 2 and PlayStation Portable games. Sony needs to belly up fast and cut as much as possible to survive and save up money. They need to improve efficiency on how they work and operate.

Sony still have a good chance in TV business, they just need to improve and stop focusing on high end TV's, make regular tv's for regular folks.

I don't want a freaking duopoly in console market.



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vaio on 07 February 2014

I just knew that bitch Sony would dump me one day :'(



Vaio - "Bury me at Milanello"      R.I.P AC Milan

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Zekkyou on 07 February 2014

Their future? Another 5 years of people on forums saying they are doomed and proclaiming the PS3 PS4 as their last console.



Vinniegambini on 07 February 2014
Normchacho said:
Imaginedvl said:
Normchacho said:
didn't they just get upgraded? Stock is going up, PS4 is selling better than expected. The outlook is actually better than it has been in a number of years. People just see one number and think that's the whole story.

I believe it is the opposite, you see their stock going up and you believe that's the whole story.

What about all the money they lost during the past few months/years and what about the next quarter? This one was bad even with the launch of the PS4, imagine the next one... The stock went up because they announced their intention of selling their PC division, not because of the PS4... And it is just another tentative from Sony to stop bleeding money; it is too early to say if things are going to be better.


I'm afraid the shareholders and financial analysts are on my side here. Stocks are up despite the bad numbers because shareholder confidence is up and like I said they were just upgraded to "buy" status by Jefferies. 

You're mistaking the $1.1 B loss for quarterly numbers. That numbers is the yearly forcast and it was changed to that due to the costs of getting rid of the PC division as well as restructuring the TV division. They posted a profit for Q3.

Definetely good news despite the 1.1 Billion loss - in the longterm, they will be a much stronger company than they are now.

However, Sony has been extremely fortunate in the last years in regards to selling their assets to cover-up their failing units (2 HQ Buildings sold, DENA shares sold, Vaio sold, etc.) - Selling assets in order to recoup losses and ''patch'' things up for now is not a sound strategy.

I'm much more worried about their debt. They have much more debt than cash at hand, still losing money in the short term, borrowing costs are to be more expensive due to junk status, and so on. I'm not seeing the light at the end of the tunnel as of now.



RenCutypoison on 07 February 2014

Shit happens. It was time for them to restructure their tv business and sell that useless pc division.

Still better than leaving things as they are right now. Investors seem to agree.



Imaginedvl on 07 February 2014
Normchacho said:
Imaginedvl said:
Normchacho said:
didn't they just get upgraded? Stock is going up, PS4 is selling better than expected. The outlook is actually better than it has been in a number of years. People just see one number and think that's the whole story.

I believe it is the opposite, you see their stock going up and you believe that's the whole story.

What about all the money they lost during the past few months/years and what about the next quarter? This one was bad even with the launch of the PS4, imagine the next one... The stock went up because they announced their intention of selling their PC division, not because of the PS4... And it is just another tentative from Sony to stop bleeding money; it is too early to say if things are going to be better.


I'm afraid the shareholders and financial analysts are on my side here. Stocks are up despite the bad numbers because shareholder confidence is up and like I said they were just upgraded to "buy" status by Jefferies. 

You're mistaking the $1.1 B loss for quarterly numbers. That numbers is the yearly forcast and it was changed to that due to the costs of getting rid of the PC division as well as restructuring the TV division. They posted a profit for Q3.

I do not believe you understand what we are talking about here... The shareholders and financial analysts are not on anyone's side, they believe that Sony is going to lose less money based on their plan to get ride of their TV divions (and not because of the PS4 sales like you said, nothing to do with that).

All that being said, the point is: how many money investors LOST during the past year (not the results). Just Google and look at Sony' stock history... I mean it is simple maths, you can twist those numbers in any way you want it will not change the reality. That's the "whole" picture. Go speak with all those people who lost money over Sony's mess...

Also, 1.1b loss IS 1.1b LOSS, no matter how you look at them, nothing is positive about that, nothing... Even without taking into consideration 5000 people losing their job, Sony's current debt, etc...