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

VitroBahllee on 07 February 2014



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jacks81x on 07 February 2014
DonFerrari said:
jacks81x said:
Sony is not where they want to be financially for sure, but at the same time I don't think they're in any danger of declaring bankruptcy within the next 2 years either as Macroaxis suggested a couple months ago. They still have a positive EPS and their P/E is not terrible. Market cap sits at around 17 B. Getting rid of their unprofitable PC division was a good move and probably should've been done a few years earlier when the PC market space was already beginning to stagnate. It would be smart of them to continue to trim and decrease their presence in the consumer electronics space. There's just too much competition there right now and Sony doesn't have the pricing power that it once had. Instead, they should focus more on Entertainment, Content/Services, and their flourishing Financial businesses. Most people don't know that Sony's most profitable division is actually their Financial arm, accounting for 60+% of their operating profit the past few years. That's also why I don't think Sony is in any real danger to go bankrupt within the next couple years. If not for their Consumer Electronics division bleeding billions of dollars the last few years, Sony's financials would look a whole lot better. So if all else fails, they could sell off most of their Consumer Electronics assets, downsize and rebrand themselves as a financial institute.


Isn't it crazy that a company doing so good on financial service do so bad on their financial aspect? Maybe they should loan from themselves or hire themselves to administrate themselves.

That's true and the irony seems to run pretty prevalent as most of our own financial institutions in the US were down in the dumpster after the Crash and needed bailout money to survive.



DonFerrari on 07 February 2014
jacks81x said:
DonFerrari said:
jacks81x said:
Sony is not where they want to be financially for sure, but at the same time I don't think they're in any danger of declaring bankruptcy within the next 2 years either as Macroaxis suggested a couple months ago. They still have a positive EPS and their P/E is not terrible. Market cap sits at around 17 B. Getting rid of their unprofitable PC division was a good move and probably should've been done a few years earlier when the PC market space was already beginning to stagnate. It would be smart of them to continue to trim and decrease their presence in the consumer electronics space. There's just too much competition there right now and Sony doesn't have the pricing power that it once had. Instead, they should focus more on Entertainment, Content/Services, and their flourishing Financial businesses. Most people don't know that Sony's most profitable division is actually their Financial arm, accounting for 60+% of their operating profit the past few years. That's also why I don't think Sony is in any real danger to go bankrupt within the next couple years. If not for their Consumer Electronics division bleeding billions of dollars the last few years, Sony's financials would look a whole lot better. So if all else fails, they could sell off most of their Consumer Electronics assets, downsize and rebrand themselves as a financial institute.


Isn't it crazy that a company doing so good on financial service do so bad on their financial aspect? Maybe they should loan from themselves or hire themselves to administrate themselves.

That's true and the irony seems to run pretty prevalent as most of our own financial institutions in the US were down in the dumpster after the Crash and needed bailout money to survive.

But they surelly will give you investment advices for a fee while not taking responsability about the result.





duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

VitroBahllee on 07 February 2014
DonFerrari said:
VitroBahllee said:
DonFerrari said:
I didn't know we had this many administrators, CEO, CFO here that seems to know how to recover Sony... They should fire the board of directors and all higher ups to hire you folks. How many of you is a top manager? Most here are in debt and taking government aid. Complain about prices and how companies are greedy. Yes you sure are better qualified than Kaz Hirai.

Amazing how much one condascending assumption from an anonymous internet commentator tells us about them.

Yes..... I'm sure most here are on government aid, merely because you vote a certain way.

What a great way to ignore everything you can't arguee back and come to a conclusion on my party choice, this tells more about you then me dear offender.

I fail to see how your political affiliations being obvious based on your baselessly assuming everybody who disagrees with you is on government aid tells more about me than you.

I can't speak to your other points because I didn't hold any of the positions you were discussing. I was just flabbergasted by your assumption of your own superiority.



M.U.G.E.N 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.


facepalm..I wish people would actually think for a second before they post. They also bought a bunch of buildings you know? omgwhatwilltheydonow!

 

So many experts in this thread haven't even gone through the financial statement to read the actual numbers/breakdown of the loss. Read it. And you will see why the loss is happening and why it's actually good for the company in the long run. 

Bottom line is they are cutting the extra fat and restructuring. It's bad but it's something that is needed for the company to get into a much healthier position next financial year. Most of their divisions are actually profitable. Lots of expenses are allocated to the sell off/spin off of PC/tv divisions. Also write offs and impairment costs for shit they don't need in the future. Give the notes in the financials a read and learn a bit more. This is not a black and white situation by any means.



In-Kat-We-Trust Brigade!

"This world is Merciless, and it's also very beautiful"

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Ajax on 07 February 2014
Jizz_Beard_thePirate said:

If only the invested more on saving the vita so that they would have had tons of money coming in from both the ps4 and the vita... That 1.1 billion loss still would be rough but least they would be getting more money coming in but instead, most of their money will be coming from the ps4 and mobile which is too bad... I know the vita is still making them money, specially with the new over-priced LCD version at Europe but they would have made more if they didn't abandon it

 

This must be one of the best posts I have ever read here.



''Hadouken!''

DonFerrari on 07 February 2014
VitroBahllee said:
DonFerrari said:
VitroBahllee said:
DonFerrari said:
I didn't know we had this many administrators, CEO, CFO here that seems to know how to recover Sony... They should fire the board of directors and all higher ups to hire you folks. How many of you is a top manager? Most here are in debt and taking government aid. Complain about prices and how companies are greedy. Yes you sure are better qualified than Kaz Hirai.

Amazing how much one condascending assumption from an anonymous internet commentator tells us about them.

Yes..... I'm sure most here are on government aid, merely because you vote a certain way.

What a great way to ignore everything you can't arguee back and come to a conclusion on my party choice, this tells more about you then me dear offender.

I fail to see how your political affiliations being obvious based on your baselessly assuming everybody who disagrees with you is on government aid tells more about me than you.

I can't speak to your other points because I didn't hold any of the positions you were discussing. I was just flabbergasted by your assumption of your own superiority.

So I said they take aid because they disagree with me on the first post not even having being disagreed? Wouldn't I say that because of the volume of people on aid in a lot of countries but they think they know how to run a company and what they should do. We see this for the 3 companies, people criticizing their decisions as if they were supper CEOs not kids and salary men.

 

Didn't know there was a party about superior beings.





duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Scoobes on 07 February 2014

The future of Sony actually looks fairly positive with the news they're selling the PC business and spinning off the TV division. I don't really get where all the negativity is coming from. The changes they're making are exactly what they need and if anything, should have been initiated a few years ago (especially considering the 10 straight years of TV losses). The $1.1 billion loss is simply the cost of restructuring, the rest of the divisions seem to be picking up.




Get your Portable ID!

DonFerrari on 07 February 2014
M.U.G.E.N said:
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.


facepalm..I wish people would actually think for a second before they post. They also bought a bunch of buildings you know? omgwhatwilltheydonow!

 

So many experts in this thread haven't even gone through the financial statement to read the actual numbers/breakdown of the loss. Read it. And you will see why the loss is happening and why it's actually good for the company in the long run. 

Bottom line is they are cutting the extra fat and restructuring. It's bad but it's something that is needed for the company to get into a much healthier position next financial year. Most of their divisions are actually profitable. Lots of expenses are allocated to the sell off/spin off of PC/tv divisions. Also write offs and impairment costs for shit they don't need in the future. Give the notes in the financials a read and learn a bit more. This is not a black and white situation by any means.

People who want to spell doom doesn't care about facts or logic they just want to bash while being on topic so they aren't called trolls... But you know, sony bad news is always covered and good news exposed and spread, so this is certainly a good new.





duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"

http://gamrconnect.vgchartz.com/post.php?id=8808363

Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"

http://gamrconnect.vgchartz.com/post.php?id=9008994

Azzanation: "PS5 wouldn't sold out at launch without scalpers."

Roma on 07 February 2014

who was it that said they would be bankrupt in two years (yes some % stuff that I don't remember but it was a high number)


btw guys Sony loses billions all the time so they are used to it and they will be fine. is tis even thread worthy?



    R.I.P Mr Iwata :'(