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Forums - Sony - Sony Forecasts $1.1 Billion Loss year ending 31 march - Will it be less after huge PS success?

 

How much loss?

1,1 Billion 122 45.69%
 
1 Billion 46 17.23%
 
0,9 Billion 27 10.11%
 
0,8 Billion 23 8.61%
 
0,7 BIllion 49 18.35%
 
Total:267
Fusioncode said:

The loss has nothing to do with Playstation, it's because of the massive restructuring going on within the company.


Its more like theyre restructuring because the losses, not the other way around.

@Op because sony is acting and selling building, laying off an unspecified number of people across numerous divisions, and PS being a success there is a possibility of them not losing as much as they thought they would.  Or at least im hoping that is the case




       

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The forecast was from early February, not sure if Sony didn't really know in February how many units they can sell in February and March. Their 5m till end of March forecast was from last year but if they expected the same in February it would be a little bit odd since they knew how many they already shipped, how many they can produce and that there is still the Japanese launch + many who could still not get their consoles in Europe/America

But even if their forecast was too low it won't change much as a whole since a few million more or less consoles sold in a quarter doesn't really change the numbers of that quarter much for a company who expects a loss of 1.1 billion. At least not if we can assume that the profit of every sold console is only marginal. 

But the revenue would change a lot if they would sell some million more consoles as believed. It obviously also increases the games sales, PS+ subscriptions and so on...



Business as usual I guess? Sony is the undisputed champion at loss-making.



ImmortalHelixFossil said:
Viper1 said:
ImmortalHelixFossil said:

Sony told us that we could expect an 1,1 billion dollar loss. It's a few months later and the PS4 is beating all Sony's expectations. Do you think it's possible that the loss will be less than  a billion? Or will it even be bigger?

 

http://www.bloomberg.com/news/2014-02-06/sony-forecasts-annual-loss-as-hirai-turnaround-stalls-on-tvs.html


It won't make enough of a difference.

Let's say they are 2 million units over their original PS4 shipment projections.  Let's also give them a $30 profit (hardware and software) per unit.   That's only $60 million. 

Granted my figures are for example only and should not be taken as exact figures but it does demonstrate how little the impact will be compared to the projected losses from Sony as a whole. 


Don't forget PS+ and the massive orders Sony is getting for new shipments.

Oh sure, but again you have to consider that they already projected a large portion of that into their financial data.  Only the parts that are above what they expected will go toward reducing the projected losses.   And that's actually not a lot compared to the overall whole.

Another factor to consider is that when they made those projections, the Yen was trending against the Dollar for 2 months.  They would have used that trend during their calculations.  But the Yen has actually since stabalized and even dropped a little.  That's going to harm their financials and possibly could offset the extra gains from the PS4.

http://ycharts.com/indicators/japanese_yen_exchange_rate

 

The PS4 has done damn good.  But it's actually not yet a huge money maker.  Margins are still narrow to negative and the software uptake is still nimor compared to PS3 for them.



The rEVOLution is not being televised

kowenicki said:
JayWood2010 said:

Its both

 

I suppose that is true, though they are restructuring because yearly losses including this year which is what i was trying to say.  




       

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JayWood2010 said:
Fusioncode said:

The loss has nothing to do with Playstation, it's because of the massive restructuring going on within the company.


Its more like theyre restructuring because the losses, not the other way around.

@Op because sony is acting and selling building, laying off an unspecified number of people across numerous divisions, and PS being a success there is a possibility of them not losing as much as they thought they would.  Or at least im hoping that is the case

The restructuring is happening beacuse of the losses, and more losses are happening because of the restructuring. I doubt Sony would have lost this much money for the year had they not made big chances to the PC and TV divisions. They did post a profit last quarter. 



Sigs are dumb. And so are you!

Fusioncode said:
JayWood2010 said:

The restructuring is happening beacuse of the losses, and more losses are happening because of the restructuring. I doubt Sony would have lost this much money for the year had they not made big chances to the PC and TV divisions. They did post a profit last quarter. 


All true, i mustve misunderstood what you were trying to say.

Hopefully after the restructure they will do much better.  Im curious to see what they do with their tv division 




       

If they make any more than they expected off of PS4, that realistically just means they'll simply spend that much more on restructuring costs within this FY to keep it from affecting the next.

Investors are already well prepared for that massive cost this FY, so it's better to get it out of the way now than push even more of the costs into the next.

I actually think they'll end up posting an even bigger loss than they forecasted because of this. Anywhere as high as 1.6 billion, but more likely around 1.3 billion.



Whatever it is I think It'll be rounded to 1.1 billion.



I hope for Sony, it will be less !