Sony Game Division Earnings, Q3 FY06
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inefficient
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http://www.bloomberg.com/apps/news?pid=20601087&sid=al8liscZdz1c&refer=home
Oh those analysts wrong again. And by a big margin too. They did say -50.9 for the Games division. So they were not too far off on that. They just totally underestimated how many TVs Sony would sell.
But for the great popularity of Bravia HDTVs, who deserves the most thanks? The PS3 and Bluray or the Xbox360?
Bloomberg said:
Oh those analysts wrong again. And by a big margin too. They did say -50.9 for the Games division. So they were not too far off on that. They just totally underestimated how many TVs Sony would sell.
But for the great popularity of Bravia HDTVs, who deserves the most thanks? The PS3 and Bluray or the Xbox360?
quest55720
Regular
I don't think the PS3/blueray/hd-dvd/360 had much effect on HD-tv sales. I think lower prices along with people loving the thin form factor are most responsible for HD-tv sales.
inefficient
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The thing is the Sony Bravia line is not about low prices. There are lots of other lower priced TVs out there. Bravias are known as a premium line with better picture quaility. $2500-$6000 smackers is a lot for just a space saving solution. I think you need a reason content wise to drive it and thats why its ramping up now.
Whaaat? Definitely not in this part of Europe.
Of course, if you raise your definition of "brand" high enough to remove everything below Sony, you can prove anything, but around here Samsung, Philips and Panasonic are cheaper, not to mention LG...
MAYBE in your country but most definitly not in mine
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)
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)
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Popular compared to what? Sony has nothing to celebrate when you compare them to how other consumer electronic companies like Samsung are performing.
LCD panels are selling well in general regardless of brand.
inefficient
Veteran
Well we know now that Sony & Samsung are selling the majority of TVs >40 (were the good margins are at). And now we know that Sony's CE division division doubled it's revenue from last year.
We also know that Samsung's earnings reports for the last quarter showed that their profits actually declined 8% from the previous year. link So it would seem that Sony is capitalizing on the HD wave more effectively that other CE companies.
Well, I would say that Flat screen TVs, are still a bit on the high end when it comes on expensive consumer electronics and that it is people with a bit of "higher" income that buy them and hence maybe they will then go the full way and get the bit more expensive ones as they might as well get one that they perceive as being of high quality. Flat screen TVs are going mainstream steadely but is not really quite there yet...
Sony is writing off some of the R&D spendings. MS is posting operating loss, as they are well into the life of the console.
It sounds like a lot of money, but lets do some math: Sony has spent 350 mil $ R&D with PS2 (a huge amount by 1998/1999 console standards). If you divide this by 110 mil consoles (probably more, since they keep selling the damn thing) it's about 3,5$/console, which is negligeable. However, accountants tend to write off these R&D expenses as soon as possible.
As I recall, it was estimated that Sony spent 1,5 bil $ in preparation for PS3. If they sell 100 mil, that will be around 15$/console - still not that much. Of course, accountants will write it off as soon as possible, prefferably in the first year. I think this is the reason they started with such a big price on the PS3, to be able to deduct as much as possible from the get go.
MS has spent much less in preparation for the 360, as they outsource all the hardware. Thus, thier loss is more significant, since it reflects how much it actually costs them to get the 360 manufactured.
According to Q&A with the CFO, the mass production of 65nm Cell has already begun.
http://www.itmedia.co.jp/news/articles/0701/30/news092.html
http://www.itmedia.co.jp/news/articles/0701/30/news092.html
Wow! - much better than Bloomberg predicted.
$446million is understandable and acceptable for a launch period loss.
:smile:
top 83 titles year on year dec sales at vgcharts shows ps2 sales last year at 70% of the year prior. Putting this projected percentage with profits this quarter we see a ballpark of ~47billion yen profit for ps2 or ~$389million. So ps3 ate ~$835million of the divisions profits.
Not bad at all.
+$104 million software profit ($20/title est)
-$500est million advertising
-$368 million console losses ($200/ps3 est)
-$71est million airfreight/shipping, kiosks, etc
All loose numbers but they give us an idea how this number might have come about. - any corrections?
$446million is understandable and acceptable for a launch period loss.
:smile:
top 83 titles year on year dec sales at vgcharts shows ps2 sales last year at 70% of the year prior. Putting this projected percentage with profits this quarter we see a ballpark of ~47billion yen profit for ps2 or ~$389million. So ps3 ate ~$835million of the divisions profits.
Not bad at all.
+$104 million software profit ($20/title est)
-$500est million advertising
-$368 million console losses ($200/ps3 est)
-$71est million airfreight/shipping, kiosks, etc
All loose numbers but they give us an idea how this number might have come about. - any corrections?
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Yes, I'm skilled and loot and all, that's why they tend to actually ban, rather than looking for someone with like skills to battle me out. You can always call my girl(hope that provokes her enough
Dude, it's kinda hard to debate you when the stuff you're saying is so incoherant that no one can even be sure what subject you're talking about.
On the plus side, that rant did make the thread slightly more interesting, in a morbid fascination sort of way.
Now, on the thread topic, anyone have a handy link to previous profit/loss figures during the various console launch quarters of years gone by?
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.
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inefficient
Veteran
Maybe the 65nm Cell's will go into the PAL machines for the EU launch.
But is that even possible? It's a bit surprising he says it is in mass production already.
But is that even possible? It's a bit surprising he says it is in mass production already.
Well, 65nm at Nagasaki has been what they've been working towards forever now, and it was supposed to be online a year ago. So with East Fishkill beginning to ramp up in that regard, I wouldn't be surprised if Nagasaki was right there with them.
Of course that said, I'm just reading a terrible Google translation to begin with, so I'm not sure whether the way he says it could mean chips out of Fishkill to begin with anyway.
Of course that said, I'm just reading a terrible Google translation to begin with, so I'm not sure whether the way he says it could mean chips out of Fishkill to begin with anyway.
