Sony is bleeding money - business strategy discussion

[Silent_Buddha]

It's not a catch 22 at all...

It's what government should be doing in fact. They own the currency if they are a monetarily sovereign nation, they are the managers of it. It is literally their duty to manage it's value...

The only reason people think it's a catch 22 is because of the US paranoia.

USA is also a monetarily sovereign nation, but there is much fear mongering about the depreciating value of money and national debt, despite the fact that almost every Western nation has the same proportion of national debt per person and the same falling currency values.

Without thinking about these matters in relative terms will make everyone miss the point.... Western countries didn't get to where they are without printing bucket loads of money.

Japan's falling yen is absolutely necessary for their long term well being, there is not any question about it... the point is to balance the value to maximize domestic consumer spending and domestic investment at the same time as maximizing the potential of industry to export and sell products and even more at the same time to sustain Japan's ability to purchase products and invest outside.

Without lowering the yen, or for that matter the dollar, these countries will amass huge trade deficits, because a high yen/dollar means it's easier to import products into the country than to make them here (re: why everything is made in China).

The real catch 22 is that global and China's success and growth and financial prosperity will help USA if USA is able to export goods to them. It would reignite the American manufacturing industry, much like what Japan is doing "right now."

But it's not healthy. Especially in the US. By printing money in excessive amounts in order to attempt to manage the national debt as well as foreign currency exchange rates, we're also racking up extremely high inflation. Oh, but inflation in the US isn't bad as reported by the government? Well, that's also because the government has re-archtechted how they compute inflation multiple times now. Each time they exclude anything that is suffering from high inflation. Food and energy is no longer included in inflation numbers. So despite average food prices increasing between massively in the past 10 years due to currency deflation (as well as some misguided policies like mandating a certain amount of Corn ethanol) because the government is printing more and more money, it isn't being reflected in government released inflation numbers.

So yes, governmental manipulation of currency looks good when the government also manipulates the ways with which financially relevant information is calculated and presented. Oh, and it has had such a bad effect that the US government has also re-architected how it calculates national GDP such that it is no longer the same as how it is calculated for other countries in the world.

Protective tariffs are far more beneficial for a country's economy than currency manipulation. But there's potentially international backlash if you revert to that after preaching free trade.

Regards,
SB

 

[rockaman]

You injected the word excessive, I never used such a word...

All I said was balancing the value of the currency, nothing else. If the US government is irresponsible in other ways, that is another topic for discussion... it doesn't relieve governments of their duty to manage the currency value. They are the owners and distributors of it, they can't be relieved of that responsibility, and by living in or travelling to the country, the people of US of A accept it as their primary currency for wages and for purchasing...

Just because something is unhealthy for US of A, doesn't mean it applies everywhere else. And doesn't mean it even necessarily applies in US of A, considering how much people seem to find wrong with the whole government here... could be the cause of the many other mistakes they do lol

"Abenomics," as it is called in Japan today, is returning it to a better balance so Japan can maintain its status as a net exporter (which all countries would like to be really) and increase its domestic spending...

At least the Japanese can understand something between too much and too little... called "moderate"... so good for them. They will reap the rewards of being able to compromise, make a plan, and execute it.

 

[dobwal]

But it's not healthy. Especially in the US. By printing money in excessive amounts in order to attempt to manage the national debt as well as foreign currency exchange rates, we're also racking up extremely high inflation. Oh, but inflation in the US isn't bad as reported by the government? Well, that's also because the government has re-archtechted how they compute inflation multiple times now. Each time they exclude anything that is suffering from high inflation. Food and energy is no longer included in inflation numbers. So despite average food prices increasing between massively in the past 10 years due to currency deflation (as well as some misguided policies like mandating a certain amount of Corn ethanol) because the government is printing more and more money, it isn't being reflected in government released inflation numbers.

So yes, governmental manipulation of currency looks good when the government also manipulates the ways with which financially relevant information is calculated and presented. Oh, and it has had such a bad effect that the US government has also re-architected how it calculates national GDP such that it is no longer the same as how it is calculated for other countries in the world.

Protective tariffs are far more beneficial for a country's economy than currency manipulation. But there's potentially international backlash if you revert to that after preaching free trade.

Regards,
SB

Printing money would easily lead to inflation if everybody got easier access to money. The average american's salary has barely moved during the current crisis. And the inflation we have seen so far is probably from the loss in economic demand versus cheap money. When demand is low companies naturally restrict supply and charge more to counter balance the effect that lessening demand has on their bottomline. We even got cheaper gas in the middle of economic downturn due to oversupply.

The printing of cheap money has barely hurt us because big financial institutions are hoarding that cash. Its cheap to borrow right now and most are paying low interest rates to build and hold large reserves (companies are holding more money in reserve than ever). We probably wont see the effect of printing money on inflation until an economic upturn when those big financial institutions start to release that printed money into the market.

Nevermind that US borrowing costs are some of the lowest in history. Its way cheaper to service a billion borrowed over the last five years than the 25 years before that. The most expensive debt we have on the books are from the early 2000s, 90s and 80s.

Japan biggest problem is that its cheaper to manafacture in other parts of asia while quality has drastically improved in those countries. There were plenty of people willing to buy japanese products when the quality of chinese, korean and other countries were obviously lacking. Thats not the case anymore and the japanese manufacturer base is simply too expensive to be competitive. Cheapen japanese currency is a round about way of paying japanese workers less while extracting more yen from product sales in foreign countries.. Inflation of the yen is suppose to spur investment because deflation has allowed the wealth of japanese savings to grow simply by sitting on it. It also helps push out foriegn investors who have poured money into the yen to simply take advantage of its strengthening over the last 5-6 years, which has worsened deflation.

 

[tuna]

That will only be possible if the US suffers a massive reduction in its standard of living, further erosion of labour laws, environmental standards, etc. so they are able to compete with the likes of Bangladesh, Indonesia, etc.

Why? Germany can export to China, why can't the US?

 

[JPT]

Why? Germany can export to China, why can't the US?

Different products?

 

[tuna]

Different products?

Different excuses I would say.

 

[JPT]

Different excuses I would say.

Might be, what I am getting told by people in Taiwan is that, the gap of doing production in China vs Taiwan is so small that due to higher QC in Taiwan, many are looking at moving the production back from the mainland. In addition to the fact that an experienced senior engineer in China, can now commander a higher salary than an equal engineer in Germany. Then again I heard that engineers in Germany are not payed that well....

So, the prediction, might be true that by 2016, production in the USA might be as cheap as doing it in China.

way off topic, but I am not the only one

 

[Cjail]

Shuhei Yoshida: Expanding PlayStation Cloud Services to PC and Other Devices.

Sorry if this is the wrong thread.

 

[patsu]

Shuhei Yoshida: Expanding PlayStation Cloud Services to PC and Other Devices.

Sorry if this is the wrong thread.

Yap, like I said... ^_^
Bring Gaikai to iOS before someone else does.

 

[patsu]

Interesting read:
http://www.mcvuk.com/news/read/sony-we-don-t-do-mid-sized-games-any-more/0121195

The wider step-change in the industry, with the ‘middle’ of games crumbling away to form a swathe of smaller studios (almost all of them opting for open platforms and their big digital stores like iOS or Steam) has prompted deep changes at PlayStation. Concept approval is gone, plus it is actively inviting indies to port PC hits to its platforms (and footing the bill). Plus, even if Sony always did work with outside studios, it has been more prolific in terms of its portfolio and PR to prove it.

It’s all for a good reason: fact is those teams can easily go elsewhere (and have previously) if PlayStation isn’t open for them.

...

“Development has polarised now,” he says. “Our bigger teams are getting bigger and we are not doing many mid-sized games any more. So we are either working on larger projects, or very small ones – many of the latter. I think that trend will continue because people like the big budget, huge experiences. And I love them too. So maybe we may not be able to make more of these in terms of numbers but there is always a demand for the ‘wow factor’.

“That’s where there are some relations between the larger triple-A games and the indie boom because consumers are always wanting something new.”

But the real reason indie titles have become so important is not just for their sales potential, but their meaning, says Yoshida.

It’s without question that the indie games on the market today tackle areas that big box game publishers just won’t touch, be that a contentious topic or theme, or a genre considered too niche for a triple-A gamble.

Yoshida says that by promoting games like this – many of them are timed exclusives to PlayStation, with IP kept by the studios – elicits a different feeling from an audience spoon-fed Call of Duty and Assassin’s Creed.

...

 

[Persistantthug]

Sony need to do something about it's movie business, two big flops in a matter of weeks just shouldn't be happening.

From a financial perspective, After Earth was terrible, White House Down is even worse( it was always going to bomb overseas and yet it had $150mil+marketing budget).

You seem to be very mistaken

AFTER EARTH made well over $100 million in profit,
And WHITE HOUSE DOWN was also profitable.
http://en.wikipedia.org/wiki/After_Earth
http://en.wikipedia.org/wiki/White_House_Down


Critics may or may not have liked them, but there's a big difference between Critical Acclaim and being Financially successful. Both movies were in the latter catagory.

 

[Wynix]

You seem to not understand how the box office works.

Cinemas take ~50% cut from ticket sales(even more in countries such as china), marketing costs millions which is not included in the costs listed.
Hence movies need to make at least double their budget.

 

[Dominik D]

These numbers are estimates and don't include DVD/BR sales and syndication down the line. These movies are not hugely profitable, sure, but they'll (or already did) break even.

White House Down, by the way, was awesome. Great Die Hard vibe.

 

[patsu]

Andrew House talks about Brazilian markets (and a little on Chinese market):
http://www.dualshockers.com/2013/10...pansion-in-the-chinese-and-brazilian-markets/

 

[Deleted member 7537]

STOLEN FROM NEOGAF (all credit to Parmenides)


SONY - Consolidated Results for the Three Months Ended September 2013 (Millions of U.S. dollars)




HW Unit Sales (Unit: Million)

 Console    Ja-Mr'13    Ap-Jn'13    Jl-Sp'13    Oc-Dc'13      YTD     

  PS3       3.4 - PS2     1.1         2.0          -          6.5 - PS2 (Ja - Mr) '13 

  360         1.3         1.0         1.2          -          3.5        

  Wii         0.45        0.21        0.26         -          0.92       

  Wii U       0.39        0.16        0.30         -          0.85     


               PlayStation 2 discontinued (January 2013)

------------------------------------------------------------------------------------

Handheld    Ja-Mr'13    Ap-Jn'13    Jl-Sp'13    Oc-Dc'13      YTD     

  3DS         1.24        1.40        2.49         -          5.13         

PSP/PSV       1.3         0.6         0.8          -          2.7        

  NDS         0.20        0.06        0.04         -          0.30

HW Unit Sales (Unit: Million)

 Console    LTD Mr'12     (Ap'12 - Sp'13)        LTD Sp'13     

  PS2        155.1            FY12             (155.1 + FY12)     

  PS1        102.49            -                  102.49       

  Wii        95.85            4.45                100.30               

  PS3        63.9       (19.6 - FY12 PS2)      (83.5 - FY12 PS2)            

  360        67.2             12.2                79.4          

  Wii  U      -               3.91                3.91  (Nv'12 - Sp'13)
 

               PlayStation 2 discontinued (January 2013)

---------------------------------------------------------------------------

Handheld    LTD Mr'12     (Ap'12 - Sp'13)        LTD Sp'13     

  NDS        151.52            2.45               153.96  

  GB         118.69             -                 118.69 

  GBA        81.51              -                 81.51      

  PSP        76.3          (8.4 - PSV)        84.7 - PSV (Ap'12 - Sp'13)   

  3DS        17.13            17.84               34.98

PS3 Unit Sales (Unit: Million)

 HW      Ap-Jn     Jl-Sp     Oc-Dc     Ja-Mr      FY        LTD

FY06       -         -        1.7       1.8       3.5       3.5

FY07      0.7       1.3       4.9       2.2       9.1       12.6 

FY08      1.6       2.4       4.5       1.6       10.1      22.7 

FY09      1.1       3.2       6.5       2.2       13.0      35.7

FY10      2.4       3.5       6.3       2.1       14.3      50.0

FY11      1.8       3.7       6.5       1.9       13.9      63.9

FY12                   (PS2 + PS3) = 16.5 M

FY13      1.1       2.0        -         -        3.1

PS2 Unit Sales (Unit: Million)

 HW      Ap-Jn     Jl-Sp     Oc-Dc     Ja-Mr      FY        LTD

FY09      1.6       1.9       2.1       1.7       7.3       144.5

FY10      1.6       1.5       2.1       1.2       6.4       150.9

FY11      1.4       1.2       0.9       0.6       4.1       155.1

FY12                   (PS2 + PS3) = 16.5 M 

            PlayStation 2 discontinued (January 2013)

PSP Unit Sales (Unit: Million)

 HW      Ap-Jn     Jl-Sp     Oc-Dc     Ja-Mr      FY        LTD

FY09      1.3       3.0       4.2       1.4       9.9       61.5

FY10      1.2       1.5       3.6       1.7       8.0       69.5

FY11      1.8       1.7       2.4       0.9       6.8       76.3

FY12                   (PSP + PSV) = 7.0 M

FY13                   (PSP + PSV) = 1.4 M

Sony: PS2 142.8 M; PSP 60.2 M; PS3 33.4 (Q3 FY09)

[URL="http://scei.co.jp/corporate/release/pdf/100520ae.pdf"]Sony: PS2 144.5 M; PSP 61.5 M; PS3 35.7 M (Q4 FY09)

Sony: PS2 146.1 M; PSP 62.7 M; PS3 38.0 M (Q1 FY10)
[/URL]
Sony: PS2 147.6 M (Q2 FY10)

Sony: PS2 150 M (Jan 31, 2011)

[URL="http://www.scei.co.jp/corporate/release/pdf/110607c_e.pdf"]Sony: PSP 70 M (Apr 27, 2011)

Sony: PS3 50 M (Q4 FY10)
[/URL]
Sony: PS2 153.6 M; PSP 73.0 M; PS3 55.5 M (Q2 FY11)

Sony: PS3 70 M (Nov 4, 2012)

PlayStation 2 discontinued worldwide (Jan 2013)

Sony Pictures completly killed the results

http://www.bbc.co.uk/news/business-24753856

Sony slashes full-year profit forecast by 40%

It now expects to make a net profit of 30bn yen ($305; £190m) in the financial year to 31 March 2014, down from its earlier projection of 50 bn yen.

The cut came as Sony said its loss in the July-to-September quarter widened 25% from a year ago to 19.3bn yen.

One of the big drags on its earnings was its Pictures division which made a loss due to some high profile flops.

The division, which also includes production of movies as well as TV shows, recorded an operating loss of 17.8bn yen during the period, compared to an operating profit of 7.9bn a year earlier.

 

[liolio]

There are parts in the forecast I would question if I were an investor namely the forecasts for :
TV sales
Handheld sales
Consoles sales (that one is a bit more disputable thanks to the ps4 launch, still by their own accounting they need to sell ~12 millions units till the end of the fiscal year, it is quite a lot, not impossible but quite a lot).

 

[Shifty Geezer]

Why have they grouped PSP and PSV sales? They're different products. That's like grouping NDS and 3DS. As an investor or developer, I wanted to know HW sales of the latest product line to see if it's any good or not.

 

[Wynix]

They also grouped PS2/PS3 sales, it is extremely annoying.

 

[Gitaroo]

PS2 has producted ended a while back, going by the weekly sales of it in JP, can't be that much at all.

 

[Shifty Geezer]

PS2 are virtually nil, so we can almost ignore them I think. But PSP+PSV could be 90%/10% or 50/50 or 20/80 - we've got no idea. There's no way to determine how many PSVs have been sold since last official numbers.