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

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

 

Lack of price cuts, cut back funding on development projects, lower marketing and reduce staffing if necessary. It's one thing to let one sector bleed when other areas of the company are making money and masking the losses but when all sectors are bleeding, they will all be scrutinized by the investors. A lot of it is market psychology also. Investors are more keen to accept losses from one sector as long as there is a good ROI plan and more importantly, the other parts of the company are doing well to rake in profits.

Going forward, profitability will be the key goal for Sony.



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Wow. I can't wait to see how SONY spins this. I am planning to go back into PR ... their technique could give me the edge on my job interview.



I now feel a PS3 price cut is inadvisable...



Cypher1980 said:
I now feel a PS3 price cut is inadvisable...

 

Price cut or not, the Cell/Blue-Ray adventure will always be remembered has a commercial failure.

I would like to see the blinded PS3 fools put their money on Sony stocks right now...



 

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.

Not only is a price cut unlikely but any plans for a PS4 will need to be rethought. The current plan of losing money on the system and gaining market share and making on the licensing is not a reasonable model. If a PS4 is released they will likely follow the Wii model of a marginally better machine that is profitable from the beginning.





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

 

It really depends on Sony's strategy how bad the effects will be for PlayStation/SCE, but at least you can expect:

  • No pricecut
  • Cutting of game development/sale of studio's 
  • Less advertising
  • Less R&D budget for PS4

SCE is looking to make the 3rd loss in 3 consecutive years, making it Sony's worst performing division. It's very likely to be among the ones seeing the biggest cuts.



That is really really bad but meh, government will just bail Sony out if they really start going down the shitters. Sony employ a lot of people, all those employees losing there jobs is hurting more then just Sony. :(



 

Some interesting slides from the forecast revision:

 

 



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

"no way to sugarcoat it"

Relishing this, much? -.-



johnsobas said:
So in other words they are expecting a 2.23 billion dollar loss in the next 2 quarters?

It seems so. I wonder what will be the SCE losses ...

 



 “In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.”  Hiroshi Yamauchi

TAG:  Like a Yamauchi pimp slap delivered by Il Maelstrom; serving it up with style.