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Forums - Sony - Sony on the brink of corporate upheaval, drastic changes

SMcc1887 said:
So, theres now like 10% chance a PS3 price cut will hit 2009?

I'd say a < 5% chance in Q1-Q3 and a 10-25% chance in Q4. A lot depends on the exchange rates, if those get favorable it would help the gaming division a lot.

 



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NJ5 said:
SMcc1887 said:
So, theres now like 10% chance a PS3 price cut will hit 2009?

I'd say a < 5% chance in Q1-Q3 and a 10-25% chance in Q4. A lot depends on the exchange rates, if those get favorable it would help the gaming division a lot.

 

 

I assume you mean calanderyear Q1-3?
Without a pricecut PS3 is on track to sell about 3 million worldwide in the first 3 quarters if we extrapolate the November-December sales. An October pricecut could drastically increase sales, but I don't know if it will ever recover from such terribly low sales earlier in the year.  

This must be a prime example of "between a rock and a hard place"



NJ5 said:

Here is a list of Sony's major divisions:

Electronics
Sony Ericsson (Mobile phones)
Game
Pictures
Financial Services
Sony BMG Music Entertainment
All Others

Of those, the ones posting a loss in the last quarter were:

- Sony Ericsson ($18 million loss)
- Game ($429 million loss)
- Financial Services ($275 million loss)
- Sony BMG Music Entertainment ($45 million loss)

In the previous fiscal year as a whole, the Game division was the only one posting a loss ($1.35 billion at today's exchange rates).

If the article is right in claiming that major divisions will be abolished (a pretty bold claim), the Game division doesn't look safe at all in this context.

 

Funny how a lot of people are saying Sony Ericsson needs to get the axe when they are posting the samllest loss. If they should get the axe then someone tell me what should become of the gaming division?

 



Love the product, not the company. They love your money, not you.

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BengaBenga said:
NJ5 said:
SMcc1887 said:
So, theres now like 10% chance a PS3 price cut will hit 2009?

I'd say a < 5% chance in Q1-Q3 and a 10-25% chance in Q4. A lot depends on the exchange rates, if those get favorable it would help the gaming division a lot.

 

 

I assume you mean calanderyear Q1-3?
Without a pricecut PS3 is on track to sell about 3 million worldwide in the first 3 quarters if we extrapolate the November-December sales. An October pricecut could drastically increase sales, but I don't know if it will ever recover from such terribly low sales earlier in the year.  

This must be a prime example of "between a rock and a hard place"

Yes I'm talking calendar not fiscal quarters.

And yeah, PS3 sales are poised to be pretty bad without a price cut, which is why I predicted about 9 million PS3s sold during 2009 (at that time assuming a price cut at the end of the year).

Price cuts are very expensive, even a $50 price cut would mean losing half a billion in revenue, with only part of it recovered by additional game sales gained by the hardware sales boost... I expect loads of bundling, for example with KZ2 and GT5. They better get GT5 out this year to get cash flowing in.

 



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

@godbless

because of "legacy"

SONY Ericsson doesn't have as great legace as a once dominant Playstation brand.

however dunno if legacy matters in these tough times



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An article on 2009 forecasts for TV sales I just spotted at Yahoo Finance

http://seekingalpha.com/article/113214-lcd-revenues-to-fall-yoy-for-first-time-ever?source=yahoo

LCD TV revenues are forecast to fall 16% YoY, to $64 billion in 2009, and total TV revenues are forecast to fall 18% YoY, to $88 billion.

This is really terrible for Japanese electronics companies... I'm thinking Samsung will be the least hit since the Korean currency is in shitter (good for exporters).

 



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

I doubt SONY would kill bravia

all SONY products have such brand names associated to them....its really only their camera's that don;t.....Playstation, Bravia, Walkman, Vaio

but the camera's are profitable.



I-I just don't understand...How does a company of this magnitude get in this position?! I never thought I'd see another situation like Sega...



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senortaco said:
I-I just don't understand...How does a company of this magnitude get in this position?! I never thought I'd see another situation like Sega...

Well Sega ended up that way through arrogance. They thought because they did so well in the past that they could continue handling their business the same way. Then the bottom fell out and it was too late to fix it. Similar to what Sony is going through now but there may be time left for them.

 



Love the product, not the company. They love your money, not you.

-TheRealMafoo

senortaco said:
I-I just don't understand...How does a company of this magnitude get in this position?! I never thought I'd see another situation like Sega...

 

 My view is because they assumed everyone wanted Blu-Ray or would want it. If they went with a console that had standard dvd and let people decide what parts they want to buy for it i.e wireless etc.. then it would of been a lot cheaper for people to buy. They didnt give people that choice. If the PS3 was as cheap as the Wii and the 360 im sure things would have been very different but going in the Blu-Ray direction will probably bring them to near bankrupty. People in general could not give a monkies about Blu-Ray, the difference from DVD to Blu-Ray is barely noticable. After having over a year of no HD competitors Blu-Ray has not taken off like predicted. It is an alternative to dvd and honestly i think that is all it will be.