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Forums - Sony Discussion - The Yen is Killing Sony - Is a PS3 Price Cut Even Possible for 2009??

Paul on 14 December 2008
FishyJoe said:
Paul said:
Kyros said:
In this case, both are dropping but revenue seems to be dropping faster (especially when you consider the PS2/PSP decline).


? The article was arguing that SONY has in effect made price cuts because of the rising yen, correct? This is a stupid argument when you consider that most PS3 are assembled in China (there is a japanese factory but it is much smaller), and the parts come from all over the world and most likely from the same locations as for the 360.

Nobody was arguing about the financial results of sony or of their problems due to sinking PS2 sales. The article made a statement and its simply wrong.

 

 Sony reports in yen, what do you not understand about that?

 

I dunno, it's pretty clear in Sony's revision:

http://www.sony.net/SonyInfo/IR/financial/fr/08revision_sony.pdf

And since this revision, things have only gotten worse.

1. Due to a change in our assumptions for foreign currency exchange rates in the second half of the

fiscal year, as noted above, to reflect the significant appreciation of the yen above the rates

assumed in July, we expect our results to be lower than the July forecast with operating income

decreasing by approximately ¥130 billion, mainly within the Electronics and the Game segments

(assumed foreign currency exchange rates in July were approximately ¥105 to the U.S. dollar and

approximately ¥165 to the euro for the quarter ended September 30, 2008 and approximately

¥105 to the U.S. dollar and approximately ¥160 to the euro for the second half of the fiscal year).

 

 

 



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FishyJoe on 14 December 2008

That was a 105 to 100 Yen/Dollar adjustment. Right now the ratio is at 91.25, so it's probably a lot worse by now.

For the Euro/Yen it was 160 adjusted to 140. Right now it's 122. They are getting KILLLED in Europe.



misterd on 14 December 2008
RPG said:
If the Yen is so strong, that pretty much confirms that Japan will be the first to see a price drop. With the games releasing in 2009 in Japan it would also be a very smart decision, solidify the PS3 as the HD console of choice.

 

 

Right, because when they're losing money everywhere else, they want to make sure they're losing money in the one place they have a chance of eeking out a profit.



Bboid on 14 December 2008

Sony is raising the price of consumer products in EU post xmas 08.  The Game divisionproducts are excluded from this.  This is to offset yen issues and to possibly open up their market in other divisions.  Full details have yet to be finalized/officially released.



twingo on 14 December 2008

Japanese gov will fix that soon enough kids, you all don't know how things work do yahh.



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FishyJoe on 14 December 2008
twingo said:
Japanese gov will fix that soon enough kids, you all don't know how things work do yahh.

 

You haven't been following the Japanese market for the last two decades, have you?



blackstar on 14 December 2008

not ur fault sony not ur fault :(



NJ5 on 14 December 2008
Bboid said:

Sony is raising the price of consumer products in EU post xmas 08.  The Game divisionproducts are excluded from this.  This is to offset yen issues and to possibly open up their market in other divisions.  Full details have yet to be finalized/officially released.

That will go over well. I'm sure Samsung will appreciate it.

Not that Sony has much choice. They're between a rock and a hard place.

 



My Mario Kart Wii friend code: 2707-1866-0957

Bboid on 14 December 2008
twingo said:
Japanese gov will fix that soon enough kids, you all don't know how things work do yahh.

I just started LOL'n so hard that I fell out of my chair and ROFL'd. 

 

 

Sorry.  Couldn't resist the childish urge.

 



Bboid on 14 December 2008
NJ5 said:
Bboid said:

Sony is raising the price of consumer products in EU post xmas 08.  The Game divisionproducts are excluded from this.  This is to offset yen issues and to possibly open up their market in other divisions.  Full details have yet to be finalized/officially released.

That will go over well. I'm sure Samsung will appreciate it.

Not that Sony has much choice. They're between a rock and a hard place.

 

 

I would venture so say Samsung would also possibly raise prices.  They are a joint venture(with sony) in LCD flat panel TV's (research and panel production) so they may have a obligation to raise as well (benefits reaped soed back into joint venture research and offset one sides lack of contribution), but honestly i'm not entirely sure how that partnership is worked out.  I know it is strongly believed panasonic and toshiba both will also be raising prices in the EU post Xmas 08.  Frankly, it sucks if you plan on buying foreign electronics in the EU next year.