Sony Game Division Earnings, Q3 FY06

[PiNkY]

I think PiNkY is talking about the U-Series Bravias, better known as the supermarket brand Bravias.

http://www.amazon.co.uk/Sony-Bravia-KDL32U2000U-Widescreen-Freeview/dp/B000HBNI6K

They're pretty price competitive with LG and Samsung.

[edit]That's not to say they are price competitive. You can usually find the alternative brands for £50-100 cheaper, but it's a damn sight better than their more premium models. (I still wouldn't recommend getting one since they're so barren feature-wise)

Exactly, you see heavy advertising for those in the big CE chains here (Saturn, MediaMarkt, etc.) and they are mostly cheaper than Samsung, Panasonic, Toshiba, etc.. The X-series hardly qualifies as entry level.

 

[Rolf N]

Did anyone else notice the 5.2 million number for PS3 software units in the quarter?
Wasn't the internet supposed to believe that PS3 attachment rates were complete garbage?

 

[PiNkY]

Did anyone else notice the 5.2 million number for PS3 software units in the quarter?
Wasn't the internet supposed to believe that PS3 attachment rates were complete garbage?

These are shipped numbers and might include the bundled BR-discs. Now suprises there I'd say.

 

[AntShaw]

Did anyone else notice the 5.2 million number for PS3 software units in the quarter?
Wasn't the internet supposed to believe that PS3 attachment rates were complete garbage?

If you look closely its not Software 'sales' but Software 'shipments.'

If you make 1 Million copies of Gundam, and sell 23k worldwide, it sure would make the production number look awfully pretty.

 

[Brimstone]

Well, Bravia is the #1 LCD TV brand in the US, so I don't think you can lump them all in together and say "Sonys not doing that well..."



Good catch One; maybe it'll be time to start looking for new hardware revisions of the console.

If you combine Samsungs Plasma (a flat panel technology) and LCD (a flat panel technology) Samsung beat Sony.

"In overall total digital television units, Samsung was the No. 1 unit market share leader in the United States. We were the No. 1 market share leader in total flat-panel [plasma and LCD combined] in both units and dollars, and we were No. 1 in LCD for units," said John Revie, Samsung visual display marketing senior VP. "In percentage terms, NPD retail-sales-tracking data shows that Samsung had 20 percent of all digital television technologies in units, for the No. 1 ranking.

http://sony.broadcastnewsroom.com/articles/viewarticle.jsp?id=100699


The Sony claims I'm not so sure about.

Meanwhile, Sony laid claim to the top spot as the "best selling big-screen TV manufacturer in screen sizes 32 inches and larger in 2006" behind its combined lines of BRAVIA flat-panel LCD TVs and its Grand WEGA microdisplay rear-projection TVs.

The Grand WEGA is their SXRD (LCOS) rear projection microdisplay HDTV's. The Sony claim seems to be combining sales of another technology. I'm just skeptical of what is being claimed. The claims seem highly selective and filtered regarding Sony branded TV's.

What happens if you combine Samsung Plasma, LCD, and DLP sets together? Every Plasma sold is pretty much 37" or bigger and every DLP is like 42 inches are larger. Samsung is the largest seller of DLP's in the world.

 

[expletive]

The game division loss is 443 million dollars.

Ouch...

MS 4Q loss (H&E) for comparison was $289m.

Does the MS loss also include the Zune development and launch?

 

[Carl B]

...post...

Brimstone I'm not talking about Sony 'claims,' I'm talking about NPD sales figures indicating Sony as #1 in the HDTV market in the US.

 

[Rolf N]

Does the MS loss also include the Zune development and launch?

Is that relevant?
Q4 CY2006 is the quarter with the immediate launch expenses factored in for Sony. If you want any comparison to Microsoft's performance, I'd rather suggest looking at Q4 CY2005.

 

[Brimstone]

Brimstone I'm not talking about Sony 'claims,' I'm talking about NPD sales figures indicating Sony as #1 in the HDTV market in the US.

It depends on how you look at the NPD numbers.


Samsung sold more than Sony. Samsung has more marketshare.


Sony generated more revenue. Sony sells each display for a higher dollar amount than its competitors.

In overall total digital television units, Samsung was the No. 1 unit market share leader in the United States. We were the No. 1 market share leader in total flat-panel [plasma and LCD combined] in both units and dollars, and we were No. 1 in LCD for units," said John Revie, Samsung visual display marketing senior VP. "In percentage terms, NPD retail-sales-tracking data shows that Samsung had 20 percent of all digital television technologies in units, for the No. 1 ranking.

The Sony SXRD (LCOS) Grand Wega is propelling company forward in the display market.

In microdisplay, Sony topped the industry with a dollar share of more than 44 percent and a unit share of 42 percent of the entire category. Sony said those numbers were "nearly 80 percent greater in dollars and more than 50 percent greater in units than the nearest competitor."

They generate enormous revenue from SXRD sales. LCD Bravia isn't the story, SXRD doing well is.


SXRD should have big things happening over the next couple of years. Laser light sources will simplify the optics for LCOS sets, therefore lowering costs. That along with .65 nm manufacturing technology will lower costs even further.

 

[Carl B]

Bravia is high margin; so is SXRD.

Margins are just as important to the final sales figures as total units moved. Does the public consider Bravia to be "better" than Samsung LCD's? If so, that's what brand power is all about, and what will enable Sony to compete at higher price points on lower volumes.

 

[Zassk]

Does the public consider Bravia to be "better" than Samsung LCD's?

I was under the impression that the public considered Samsung (and its V shaped ergonomic) to be synonymous with "LCD TV".

Surely the Bravia brand name is too new to have a high rate of recognition among the unwashed masses.

 

[Carl B]

I don't think so - I think "Bravia" is viewed as the best among LCD TVs right now. And well it should be, because it is.

 

[Rolf N]

It depends on how you look at the NPD numbers.


Samsung sold more than Sony. Samsung has more marketshare.


Sony generated more revenue. Sony sells each display for a higher dollar amount than its competitors.

This thread is about money. Hence, if anything, revenue wins.

 

[mckmas8808]

Good thread. Very informational.

 

[Darkon]

I don't think so - I think "Bravia" is viewed as the best among LCD TVs right now. And well it should be, because it is.

Sharp LCD's TVs are just as good according to Dutch consumer guide

no surprise though that Bravia line is selling well it's a good product and it's being advertised non-stop.

 

[ZoinKs!]

Does the MS loss also include the Zune development and launch?

Yes, if these are the same figures I saw earlier it's for all of MS's entertainment division.

 

[Geo]

1). Congrats Sony on avoiding the worst predictions by a country mile.

2). Jaysus, somebody bitch-slap a financial analyst or 5 already, please? They were off by nearly 100%? How does that happen? Are the analysts that bad, or is the transparency of corporate finances in Japan that bad?

 

[Rangers]

Is that relevant?
Q4 CY2006 is the quarter with the immediate launch expenses factored in for Sony. If you want any comparison to Microsoft's performance, I'd rather suggest looking at Q4 CY2005.

That would be -$286m.

One thing's for sure, currently Sony (gaming) is putting microsoft's (gaming) losses to shame. I dont want that to get lost here.

 

[expletive]

Is that relevant?
Q4 CY2006 is the quarter with the immediate launch expenses factored in for Sony. If you want any comparison to Microsoft's performance, I'd rather suggest looking at Q4 CY2005.

If youve a problem with the comparison itself, your beef is with Brimstone. (sorry Brim )

 

[TheChefO]

That would be -$286m.

One thing's for sure, currently Sony (gaming) is putting microsoft's (gaming) losses to shame. I dont want that to get lost here.

Indeed - but the ps3 is much more expensive to make. It also has BR riding on it so if it takes off it could generate more profit in the long run for Sony.

Bigger risk for either bigger reward or bigger losses.