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Forums - Sony Discussion - sony cuts profit forecast

SlorgNet on 23 October 2008

It's called a global recession, and it's going to hammer every economy on the planet. That said, Sony is still hugely profitable and has very little long-term debt, so they'll be fine. Once the PS3 drops to $299/299EUR and sales really rocket, software and BluRay sales will carry the day.



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Thechalkblock on 23 October 2008

Poor Sony let Microsoft outdo them. Hopefully some kind of comeback is made.



Sardauk on 24 October 2008
SlorgNet said:
It's called a global recession, and it's going to hammer every economy on the planet. That said, Sony is still hugely profitable and has very little long-term debt, so they'll be fine. Once the PS3 drops to $299/299EUR and sales really rocket, software and BluRay sales will carry the day.

 

That is ... very optimistic ... but not realistic...



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.

Sardauk on 24 October 2008
Ail said:
kitler53 said:
...sony makes what i would consider "luxury" products which is a hard sale in a poor economy like this. the fact that they are making any profit (i'm assuming that since this is a forecast not a report) is probably good enough for them atm.

 

They are getting hit real hard by the exchange rate too.

So far they were holding steady thanks to the euro market as the yen and the euro while raisin against the dollar had kept on par with each others.

But for the last few months the yen has remained strong while the euro and the dollar dropped in value.

This can have a very very bad effect on profit ( less on sales).

If you make 20% profit on a item sold in Europe and suddenly the euro/yen conversion rate changes by 10%, half your profit is gone without you doing anything.....

 

 

 

 

Of course not ! This isn't luxury products you bunch of fanboys, it is mass retailing !

I own a Sony Bravia and even if it is very good quality, this is far from what I would call a luxury good (A pioneer plasma screen might be, or a Bang & Olufsen but not a Sony).

You can buy a home cinema kit for 500 Euros at Sony. But if you want a luxury system like a Bowers & Wilkins, you are in for a minimum of 5.000 Euros investment.

 

True about the conversion but this is a sign of miss-consolidated productions..



 

Evan Wells (Uncharted 2): I think the differences that you see between any two games has much more to do with the developer than whether it’s on the Xbox or PS3.