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Forums - Sony - Flash poll: What will happen to Sony/SCE in the financial trouble?

Riptide on 12 January 2009
Demotruk said:
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1237333820090112

I don't think I'll comment..

Hmm, that is actually alot better than I expected.  I don't think they have to do any significant cutbacks in specific regards to SCE.   The one thing that could have had catastrophic consequences was their exposure to their financial arm and only having to write down 450 million is pretty good in comparison to other international financial instituations so they weren't exposed to anything nefarious or was affected that greatly on making returns to pay its unit holders.  Would also like to know how their big bond issue went last month and well the market received it.  Anyway, this report should be taken with a grain of salt before the official report is released. 

 



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BengaBenga on 12 January 2009
Riptide said:
Demotruk said:
http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN1237333820090112

I don't think I'll comment..

Hmm, that is actually alot better than I expected.  I don't think they have to do any significant cutbacks in specific regards to SCE.   The one thing that could have had catastrophic consequences was their exposure to their financial arm and only having to write down 450 million is pretty good in comparison to other international financial instituations so they weren't exposed to anything nefarious or was affected that greatly on making returns to pay its unit holders.  Would also like to know how their big bond issue went last month and well the market received it.  Anyway, this report should be taken with a grain of salt before the official report is released. 

 

 

Ehm, did we read the same article?

Sony isn't a financial group, so you really can't compare it to American banks. Japanese companies didn't have a whole lot sub-prime morgage derivatives anyway.

Sony is an electronics company, with an outstanding debt and low capital. A loss like this would be devestating, especially since it's in mainly made the quarter that should be the highest.



outlawauron on 12 January 2009

I think Sony could downsize terrible studios, but most will remain due to Sony making lots of $ off of their games.

Sony Bend, BigBig Studios, Sony San Diego (the horribly selling NBA franchise), and maybe Millennium Kitchen.



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Squilliam on 12 January 2009

I would say Sony will downsize the Japanese studios, with the rise in Yen they will be the ones costing them the most per head compared to anywhere else.

Be positive guys! Any change which they effect will likely be a positive change for the future of SCE, and if you want that then you should welcome the measures they put in place.



Tease.

heruamon on 12 January 2009

Reality will hit SCE...which sony hasn't been living in, for the last year or so.



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outlawauron on 12 January 2009
Squilliam said:
I would say Sony will downsize the Japanese studios, with the rise in Yen they will be the ones costing them the most per head compared to anywhere else.

Be positive guys! Any change which they effect will likely be a positive change for the future of SCE, and if you want that then you should welcome the measures they put in place.

Well being that they have almost double the employess of MS, I think they could cut back a little on people.



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DMeisterJ on 12 January 2009
outlawauron said:
I think Sony could downsize terrible studios, but most will remain due to Sony making lots of $ off of their games.

Sony Bend, BigBig Studios, Sony San Diego (the horribly selling NBA franchise), and maybe Millennium Kitchen.

Great minds think alike!

I said the same exact thing, except I added Liverpool, which they did merge with Evolution, so I was kinda right.



myths_n_legends on 12 January 2009

i chose sce will be completely cut or sold off but only to mess with the sonyboys... i dont see why they would get rid of it right when its on the brink of righting itself and even if they did get rid of the playstation brand by selling it to someone i dont see why they either wouldnt remain part ownership or make a new brand to get back into the video game business once they got their finances in order



Alby_da_Wolf on 12 January 2009

They could sell PS brand to Google or Apple or Nokia just to piss MS off!



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Munkeh111 on 12 January 2009
BengaBenga said:
Munkeh111 said:
Demotruk said:
Munkeh111 said:
they should be making more money on PS3 and they should make up all the money

Are you kidding? Do you have any idea how much they've lost on the PS3 so far?

I thought it was a few billion

This could happen by the PS3's 6th year... with profit from games like Gran Turismo, as well as increased royalties from softaware sales due to more consoles, and of course they would need to make a profit on every console sold. It is unlikely thinking about it more, but they should certainly make much of it back

 

You make it sound like "a few billion" is just peanuts.

Those "few billion" is actually over 3 billion with a profitable PS2 and PSP included, so the actual losses on the PS3 is much higher.
Those "few billion" are MORE than the PS2 made in its whole lifetime.
Those "few billion" will NEVER be earned back by the PS3.

You clearly don't have an idea of what a game will earn. GT5, which is Sony's biggest game by far, will likely cost around $100 million to make. The return for Sony will likely be $40 per sold game. Even at 10 million copies (ridiculous amount) it will "only" be a $300 million profit on the game.

Okay, I thought it was less than that, and I thought the PS2 made more money than it did.

I know that they will only make that amount of money, but $100m is also a ridiculous figure, that would make it the most expensive game ever. You should also remember that they have already made quite a lot from Prologue, but that is only a minor point

Of course I am relying on great sales of the console at a decent profit.... though I agree, they will never make the money back just from the PS3, hopefully they can use the cell in other projects to try and get some money from it