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Forums - Sony Discussion - Breaking News: Sony to post massive $1.7 billion loss

Erik Aston on 22 January 2009

Its weird, but for the first time the old, early 2007 predictions of PS3 being discontinued within a few years actually have a whiff of plausibility. You guys are sort of guessing at how much of the total loss will come from SCE, but if its really $600M of $1.7B total, it has to be one of the first divisions to be "restructured."



"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."

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magik10 on 22 January 2009
BengaBenga said:
FishyJoe said:
BengaBenga said:

 

Fishy: I can't find the figures quick, but you're saying that the $300 million SCE lowered expectation comes ON TOP of the $300 million lowered estimate from October?

The expectation was likely to be profitable, even just barely, so we might be looking at a loss at SCE of $500 million or 30% of Sony total loss! Wow. I expect massive cuts at SCE if true.

 

 

Yes, that's exactly what I'm saying.

 

Damn. That would bring the total loss in 3 Years to 3.8 billion, just for SCE.

 

No worries. Sony will get 2nd job to pay for PS3.



Maynard_Tool on 22 January 2009
magik10 said:
BengaBenga said:
FishyJoe said:
BengaBenga said:

 

Fishy: I can't find the figures quick, but you're saying that the $300 million SCE lowered expectation comes ON TOP of the $300 million lowered estimate from October?

The expectation was likely to be profitable, even just barely, so we might be looking at a loss at SCE of $500 million or 30% of Sony total loss! Wow. I expect massive cuts at SCE if true.

 

 

Yes, that's exactly what I'm saying.

 

Damn. That would bring the total loss in 3 Years to 3.8 billion, just for SCE.

 

No worries. Sony will get 2nd job to pay for PS3.

2nd job?? selling newspapers or what? xD

 



03/10/09 HUGE day in my life:

http://www.vgchartz.com/forum/thread.php?id=63437&page=1

johnsobas on 22 January 2009
Erik Aston said:
Its weird, but for the first time the old, early 2007 predictions of PS3 being discontinued within a few years actually have a whiff of plausibility. You guys are sort of guessing at how much of the total loss will come from SCE, but if its really $600M of $1.7B total, it has to be one of the first divisions to be "restructured."

well it's of 2.23 billion, and around 300 million in losses have already been taken in this year by SCE, it was the other parts of Sony that kept them profitable the first 2 quarters.

 



currently playing: Skyward Sword, Mario Sunshine, Xenoblade Chronicles X

BengaBenga on 22 January 2009
Maynard_Tool said:
magik10 said:
BengaBenga said:
FishyJoe said:
BengaBenga said:

 

Fishy: I can't find the figures quick, but you're saying that the $300 million SCE lowered expectation comes ON TOP of the $300 million lowered estimate from October?

The expectation was likely to be profitable, even just barely, so we might be looking at a loss at SCE of $500 million or 30% of Sony total loss! Wow. I expect massive cuts at SCE if true.

 

 

Yes, that's exactly what I'm saying.

 

Damn. That would bring the total loss in 3 Years to 3.8 billion, just for SCE.

 

No worries. Sony will get 2nd job to pay for PS3.

2nd job?? selling newspapers or what? xD

 

Maybe they can help manufacture Wii's and Balance Boards! There seems to be quite some demand for those. Looks like good business to me.

 



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FishyJoe on 22 January 2009

It can get worse:

http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article5564794.ece

One analyst at Nikko Citi said that the huge losses predicted by Sony were “the real thing” portending worse misery ahead: he said that the full year loss in the coming financial year could amount to Y600 billion if nothing more drastic is done to restructure the company. Sony's cash flow, said analysts, could also plunge to below critical levels next year.



Maynard_Tool on 22 January 2009
BengaBenga said:
Maynard_Tool said:
magik10 said:
BengaBenga said:
FishyJoe said:
BengaBenga said:

 

Fishy: I can't find the figures quick, but you're saying that the $300 million SCE lowered expectation comes ON TOP of the $300 million lowered estimate from October?

The expectation was likely to be profitable, even just barely, so we might be looking at a loss at SCE of $500 million or 30% of Sony total loss! Wow. I expect massive cuts at SCE if true.

 

 

Yes, that's exactly what I'm saying.

 

Damn. That would bring the total loss in 3 Years to 3.8 billion, just for SCE.

 

No worries. Sony will get 2nd job to pay for PS3.

2nd job?? selling newspapers or what? xD

 

Maybe they can help manufacture Wii's and Balance Boards! There seems to be quite some demand for those. Looks like good business to me.

 

 

:O if they do that... hahahaha that would be the best. I would like to see that actually



03/10/09 HUGE day in my life:

http://www.vgchartz.com/forum/thread.php?id=63437&page=1

Disposition on 22 January 2009

seriously though what affect do people think this will have on the playstation brand?



theRepublic on 22 January 2009

Jaw-dropping

Major restructuring needs to happen fast. It will be interesting to see what happens and which divisions change first.



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FishyJoe on 22 January 2009
Disposition said:
seriously though what affect do people think this will have on the playstation brand?

 

You can kiss any price cuts goodbye.