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Forums - Sony - Sony To Post $2 Billion+ Loss

VXIII said:
DonFerrari said:
VXIII said:

Still better than Microsoft deal

At least it is 500M cheaper... and while MS blow the 2,5B in a game company and the 2B loss of Sony isn't related to game... on the gaming balance sheet Sony had a better deal =]... and I'm just joking as you were.

But... I wasn't joking, I only use "" so I wouldn't get banned.

 

x2


Ok then... let's celebrate that Sony spent 500M less than MS for basically the same effect in their gaming division.



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."

Around the Network
archer9234 said:
Aura7541 said:
AnthonyW86 said:
I don't get it how can you lose so much money in the mobile division? It's the same with HTC, they sell a reasonable amount of smartphones but somehow lose money on it.

Wait seriously?! HTC makes really good phones, too. The M8, especially, is really nice. I'm really surprised that both Sony and HTC are losing money despite the fact that their phones are top notch.

Quailty doesn't matter if majority just buy Samsung or Apple. It's like asking why the Zune failed.

Quite depressing, too. MS actually nailed it with the Zune, but alas... I was actually jealous when my parents got one while I was stuck with the 1st gen iPod Nano.



Aura7541 said:
VXIII said:
burninmylight said:
Dannyson97 said:
Sadly the only thing Sony has going for them is the PS4.
TVs, Music, Phones, Computers, Vita, even Movies are all dragging Sony down.


http://gamrconnect.vgchartz.com/post.php?id=6682693

That is very impressive considering the launch of new consol and R&D costs. Check previous data of each consol launch for more info. He is still wrong though, the division of finance services is the most profitable for Sony by far. Entertainment in general usually do great too.

I remember someone mentioning that Sony actually lost more money from the PS2 in the same respective time period and we all know how that went. I can't find the numbers though...

I think the Ps2 made pretty fast money (lets say after few years of release) but the thing people like to compare is that GameCube for nintendo made good money while that was considered a failure (ofcourse they always forget that GBA was the profit system that time and probably has lead Sony trying to create a handheld to make easy money)...



burninmylight said:
Dannyson97 said:
Sadly the only thing Sony has going for them is the PS4.
TVs, Music, Phones, Computers, Vita, even Movies are all dragging Sony down.


http://gamrconnect.vgchartz.com/post.php?id=6682693


You know why the post was made right? Just pretending there were no R&D...

But on their reports (billions of Yens)

Year            Revenue             Profit

2012 805 29.3

2013 707 1.7

2014 979 -8

http://www.sony.net/SonyInfo/IR/financial/ar/2013/shr/pdf/AnnualReport_E.pdf

We can't have a precise picture of MS (and thir loss on gaming due to R&D) because they merge the numbers with other products (like sony have done putting Vaio together with consoles).



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."

kowenicki said:
DonFerrari said:
Soundwave said:
I thought their smartphone division was doing good actually. All of the sudden this year they have massive losses, lol.

The gaming division really isn't doing that great either. It's just treading water.

The insurance division is the only division at Sony that's performing good/great.


Last report they had made acceptable money on gaming and had loss on financial/insurance.


Quarterly report... meaningless. 

Full year accounts are the only ones that count.  Quartlerly are merely mid term reports for market information.

For example, Sony as a whole made a profit last quarter... they will end the year with a $2bn loss.


Yes I know... was just saying that for the last quarter financial/insurance hadn't done great for once, but gaming had a nice figure... of course in the annual report made on march 2014 the results were good for financial and bad for gaming... altough I expect good results for gaming on March 2015.



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."

Around the Network
Aura7541 said:
VXIII said:
burninmylight said:
Dannyson97 said:
Sadly the only thing Sony has going for them is the PS4.
TVs, Music, Phones, Computers, Vita, even Movies are all dragging Sony down.


http://gamrconnect.vgchartz.com/post.php?id=6682693

That is very impressive considering the launch of new consol and R&D costs. Check previous data of each consol launch for more info. He is still wrong though, the division of finance services is the most profitable for Sony by far. Entertainment in general usually do great too.

I remember someone mentioning that Sony actually lost more money from the PS2 in the same respective time period and we all know how that went. I can't find the numbers though...

Seems to be right. What I know that Sony took a loss on each PS2 sold. Also, they are expecting the PS4 to be more profitable than the PS2.

 

http://www.techienews.co.uk/9712478/sony-ps4-overtake-ps2-profits/



kowenicki said:
DonFerrari said:
VXIII said:

But... I wasn't joking, I only use "" so I wouldn't get banned.

 

x2


Ok then... let's celebrate that Sony spent 500M less than MS for basically the same effect in their gaming division.

If I buy an asset for $2bn with free cash I have then I still have the $2bn in a different form.  It has zero impact on the value of the company.

If I markd down an asset to the value of $1.5bn then I lose 1.5bn from the value of the company...add that the to 500m operating loss and yes the company will be worth $2bn less.

There is a huge difference.

One is good or neutral, one is horrible.

 

There is no free cash, but I understand you are saying like money that have no cost (no interest), but that money could also be used for other things, but won't enter on this. And I know MS won't get a dump on their shares because of this investment.

And I know the loss of 2B for marking down+losses are bad. This is why I said I was joking for VXIII... but in my second post I was more serious on the effect that Sony lossing 2B (on parts not related to gaming) and MS investing 2.5B (that we know is less aimed to X1 as it's for general products like windowsphone and other things) will have the same general effect in gaming. Don't need to try and pick any further meaning from it.



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."

VXIII said:
Aura7541 said:

I remember someone mentioning that Sony actually lost more money from the PS2 in the same respective time period and we all know how that went. I can't find the numbers though...

Seems to be right. What I know that Sony took a loss on each PS2 sold. Also, they are expecting the PS4 to be more profitable than the PS2.

http://www.techienews.co.uk/9712478/sony-ps4-overtake-ps2-profits/

That's good, at least. The faster Sony expands the PS4 userbase, the better.



DonFerrari said:
burninmylight said:
Dannyson97 said:
Sadly the only thing Sony has going for them is the PS4.
TVs, Music, Phones, Computers, Vita, even Movies are all dragging Sony down.


http://gamrconnect.vgchartz.com/post.php?id=6682693


You know why the post was made right? Just pretending there were no R&D...

But on their reports (billions of Yens)

Year            Revenue             Profit

2012 805 29.3

2013 707 1.7

2014 979 -8

http://www.sony.net/SonyInfo/IR/financial/ar/2013/shr/pdf/AnnualReport_E.pdf

We can't have a precise picture of MS (and thir loss on gaming due to R&D) because they merge the numbers with other products (like sony have done putting Vaio together with consoles).

It would be a lot easier to get your point if you formatted those columns right. Try using a table. But like kowenicki said, what does MS have to do with this? The point is that gaming is not Sony's breadwinner, and never has been.



kowenicki said:
DonFerrari said:
burninmylight said:

http://gamrconnect.vgchartz.com/post.php?id=6682693


You know why the post was made right? Just pretending there were no R&D...

But on their reports (billions of Yens)

Year            Revenue             Profit

2012 805 29.3

2013 707 1.7

2014 979 -8

http://www.sony.net/SonyInfo/IR/financial/ar/2013/shr/pdf/AnnualReport_E.pdf

We can't have a precise picture of MS (and thir loss on gaming due to R&D) because they merge the numbers with other products (like sony have done putting Vaio together with consoles).

We dont need to look at the Xbox gaming to see if its propping up MS though do we?  they make 6bn a quarter in proits, so the point is moot. 

If MS choose to put their numbers in with other stuff so what?  Why is that relevant to the point being discussed here?    

The point being made elsewhere was gaming is a stalwart of Sony overall figures and the main profit maker.  It isnt.  Its 3rd at best, usually 4th.  No need to drag MS into this, it just makes it all look even worse.

 


So when we discuss if gaming division makes money or not for Sony it doesn't matter if we can know how gaming performs for MS just because they make massive money?? That is the same as I having an IQ of 200 and you a IQ of 100, or that I earn 100k a year and you 30k (not saying any of them is truth) but it doesn't matter because your country have a bigger GDP than mine...

The relevance is that in 2012 Sony with less revenue put 29B yen of profit in gaming (that aint small) but then put almost nill on 2013 and loss a little on 2014 (even though with higher revenue, and we now PS3 and PSV costed less to produce in mid 2013-mid 2014) so it is evident that R&D was the great cause (even more when console is being sold for small profit, all 1st party games sold more than 1M, PS+ double the base). But you want to say their gaming division is in bad shape by cherrypicking the numbers... So if we had specific numbers on Xbox profits (with X1/PS4 releasing around the same time, and for X360 had similar sales of HW and SW than PS3) we could see that they also would have a big drop. Not dragging MS on this, just comparing...



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."