Forums - Sony Discussion - Sony making a turnaround - aiming at $4.20bn profit by end of FY 2017

kowenicki said:

This shouldnt be a shock to people, operating profit is already there in most of their sectors.

Looks like at last the final vanity project of mobile will likely be sidelined and probably ultimately sold off. Thats the final piece as far as I am concerend and was inevitable months ago after sales numbers didnt move up, hence my personal decision to buy in.

As I say, they are aready posting an op profit in most sectors so this isnt a stretch. For too long they have been a dinosaur operating on tiny tiny margins. This is how it should have been heading for the last 20 years. Took a financial crisis to wake them up and the realisation that their domestic market is dying rapidly.

The Sony of now is exactly the Sony I have been banging on about for years and getting grief here for. "Sony isnt going anywhere"... well it has. Sony now isnt the Sony it was. It is smaller, leaner. It isnt trying to return to what it was, its shifting itself to a smaller more focussed business and profits simply follow.

Now if the Yen holds its weak stance this could all potentially happen fairly swiftly. If it doesnt, then its a different story.



When you say smaller but focused, could this potentially be synonymous with "less important" as a company?



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They should quit smartphone business



PS4 - over 100 millions let's say 120m
Xbox One - 70m
Wii U - 25m

Vita - 15m if it will not get Final Fantasy Kingdoms Heart and Monster Hunter 20m otherwise
3DS - 80m

rolltide101x said:
Lawlight said:

Think about 5 years ago. I don't think the infrastructure changed all that much.

The next Playstation will not be a cloudbox, anyone who thinks so is insane. The PS5 will not have an optical drive though it will be download only


I don't think Sony want to kill ps5



PS4 - over 100 millions let's say 120m
Xbox One - 70m
Wii U - 25m

Vita - 15m if it will not get Final Fantasy Kingdoms Heart and Monster Hunter 20m otherwise
3DS - 80m

2017? a 2 year plan is kind of a long one to predict how things will sway, anticipation in a calendar year alone can be quite difficult



true_fan said:
This is too high of a goal, they so be shooting themselves in the foot when they miss the target.


they will not come close to the target they have mentioned here. it's just astronomically high when considering how every sector of theirs practically is doing poor except for Playstation/video gaming

 

it's a ludicrous announcement with the hope of attracking positive PR and confidence in their brand especially in the stock market (not that it will work). too much of the explanation for turning around the company is based on talking in the air without anything solid. Playstation alone cannot save Sony as Sony currently has many sectors and owes many debts FROM those other sectors



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mountaindewslave said:
true_fan said:
This is too high of a goal, they so be shooting themselves in the foot when they miss the target.


they will not come close to the target they have mentioned here. it's just astronomically high when considering how every sector of theirs practically is doing poor except for Playstation/video gaming

 

it's a ludicrous announcement with the hope of attracking positive PR and confidence in their brand especially in the stock market (not that it will work). too much of the explanation for turning around the company is based on talking in the air without anything solid. Playstation alone cannot save Sony as Sony currently has many sectors and owes many debts FROM those other sectors

Yup exactly my point, they are setting themselves for several earnings misses, which will kill all future confidence. How many times have they slashed projections in the last few years, I know it has been more than a few times.



NYANKS said:
kowenicki said:

This shouldnt be a shock to people, operating profit is already there in most of their sectors.

Looks like at last the final vanity project of mobile will likely be sidelined and probably ultimately sold off. Thats the final piece as far as I am concerend and was inevitable months ago after sales numbers didnt move up, hence my personal decision to buy in.

As I say, they are aready posting an op profit in most sectors so this isnt a stretch. For too long they have been a dinosaur operating on tiny tiny margins. This is how it should have been heading for the last 20 years. Took a financial crisis to wake them up and the realisation that their domestic market is dying rapidly.

The Sony of now is exactly the Sony I have been banging on about for years and getting grief here for. "Sony isnt going anywhere"... well it has. Sony now isnt the Sony it was. It is smaller, leaner. It isnt trying to return to what it was, its shifting itself to a smaller more focussed business and profits simply follow.

Now if the Yen holds its weak stance this could all potentially happen fairly swiftly. If it doesnt, then its a different story.



When you say smaller but focused, could this potentially be synonymous with "less important" as a company?

Not at all.  Why would they be less important?  By focussing they will be more important in the markets they stay in.  Obviously.



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mountaindewslave said:
true_fan said:
This is too high of a goal, they so be shooting themselves in the foot when they miss the target.


they will not come close to the target they have mentioned here. it's just astronomically high when considering how every sector of theirs practically is doing poor except for Playstation/video gaming

 

it's a ludicrous announcement with the hope of attracking positive PR and confidence in their brand especially in the stock market (not that it will work). too much of the explanation for turning around the company is based on talking in the air without anything solid. Playstation alone cannot save Sony as Sony currently has many sectors and owes many debts FROM those other sectors


Wrong.  How many times do we have to go over this.

There are effectively 8 divisions.

Gaming was the 4th most profitable division last quarter (by far its strongest quarter each year) and is usually lower than that at 5th or 6th in profit terms.

 



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Burek said:

The divisions Sony will spin off are its audio and video businesses. I'm not sure what that is exactly...hardware components like bluray players and such?

http://m.bbc.com/news/business-31523511

Home entertainment and sound is the division I presume.

Thats audio and video hardware.  So av receivers, blu ray players etc.  They basically may as well not bother selling those items anyway... the margin is currently 1%.  which is a waste of capital and time.



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kowenicki said:
Burek said:

The divisions Sony will spin off are its audio and video businesses. I'm not sure what that is exactly...hardware components like bluray players and such?

http://m.bbc.com/news/business-31523511

Home entertainment and sound is the division I presume.

Thats audio and video hardware.  So av receivers, blu ray players etc.  They basically may as well not bother selling those items anyway... the margin is currently 1%.  which is a waste of capital and time.

Yeah. Just another piece of nostalgia.