Sony losses: 94% loss in profit [Q2] by ps3's delays and batteries problem*
- Thread starter MasterDisaster
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Please don't post Inq nonsense. As for on it's knees, according to that article Sony made a profit!
Boy, if they keep on making money like this, it won't be long until they're bankrupt! Oh, hang on...
MasterDisaster
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http://biz.yahoo.com/ap/061026/japan_sony.html?.v=6
http://biz.yahoo.com/ap/061026/japan_sony.html?.v=6
http://biz.yahoo.com/ap/061026/japan_sony.html?.v=6
- 94% is this a number that you can downplay so easly?
Hehe anyone thinking that a company would do well when launching a new platform must have been dreaming. Besides, they're still making a profit, it's just not much. They've been spending lots of money on PS3, and still haven't sold one unit so of course profit is down.
It hardly means that "they're on their knees".
Sony are doing mighty fine, whatever some people like to believe.
It hardly means that "they're on their knees".
Sony are doing mighty fine, whatever some people like to believe.
I dont understand how the PS3 being delayed increases losses, i would think that the less PS3's they sell at this point in the console's life the less money they lose. The problem with the delays would be that they get to the point of profitability (via software sales), later than they would have...
Master, your choice of title is a little too 'gleeful' imo, might want to tone it down...
Master, your choice of title is a little too 'gleeful' imo, might want to tone it down...
94% of a profit is still a profit. You don't care about percentages, just the money (e.g. I don't care if I am up $1 or $2, I'm still up) - shareholders are the ones who care about profit because it affects dividends.
BusinessWeek has a better article (from a week ago when this was first announced):
They're not in trouble at all. They still intend to sell the same amounts (that would be the key to 'trouble', falling sales) just make less returns on it due to the circumstances this year.
MasterDisaster
Regular
the other two, Microsoft and Nintendo are in a different situation (Ms have smaller loss per machine and 10x overall profit on sony, Nintendo maybe have no loss at all)
this is a trend, in this quarter they faced a 94% loss (almost all the overall profit of the whole sony)
but if it will continue in the next quarters, do you think that the situation is si quiet and 'sony is doing mighty fine'?
You can't make this comparison, the companies are wildy different. Analysts who pass comment are trained to make sensible comparisions based on industry (MS is a software company first, Nintendo is purely an entertainment company) when analysing profit/loss. You won't see them saying MS has 10x revenue and trying to tie that to machine cost because it's ludicrous - MS make that 10x revenue from software.
It is not a trend, it is a one off due to batteries and partially due to launching a new product (not huge but watch how Microsoft takes a hit from launching Vista).
Edit: Do the maths.. $14 million is their actual profit which is 6% of the previous years results of $240 million. If you take a hit of $427 million over batteries it isn't suprising the dip is so massive.
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MasterDisaster
Regular
really Ms is a software company first?
and .. joysticks, xbox (2001), xbox360, Zune etc are not microsoft products?
and who care, when they have an huge profit as company, they can fill the loss on xbox section without problems
yes the profit of microsoft was 10x of the whole sony last 4 years
yes it's a trend, sony have to continue to give money for the batteries problem, and the loss will be bigger and bigger when they will sell the ps3 (loss per machine)
until the software profit willl match the loss for the hardware, they will need 5-6 years
Well, how do they make money with all the shit going down on them..
No, they really won't.
What was the motive behind this thread anyway? Companies make losses in one quarter and the next quarter they could make a profit. It's very cyclic.
Of course Sony would post huge losses, they have been producing PS3's without selling one unit! Plus all the marketing, plus all sorts of crap that has happened to them.
They still have profits from the other businesses they have to compensate, much like MS uses the profits they make on Windows to pay for Xbox losses.
It's normal, and the air of this thread makes it look like the usual "Sony iz doomed" bi-monthly thread.
inefficient
Veteran
Sony pictures did very well this year and their consumer AV products are very strong right now.
Anyway I don't think the stock is going to be badly affected by this news. Most investors knew it was going to be bad well before the quarterly report. If anything people are optimistic that their problems are behind them now.
The black art of accounting makes what nAo does with numbers look like child's play.
If you believe Steve Balmer...
MS is a software company (in the process of) transiting into a media powerhouse.
http://blogs.zdnet.com/web2explorer/?p=172
It's certainly great for MS, but it does not necessarily translate into positive outcome for everything MS did/does. Why is MS in this thread anyway ?
Is the battery problem a continuous thing even after the recall ?
We all know about the game console business model... but where did you get the supporting numbers for your 5-6 years break even projection ?
They would have posted higher profits if they'd only been smart enough to rechannel their losses.
I mean, the battery recall is a fiasco, but why didn't they immediately resell them to countries in wartorn regions as slightly less-dependable but MUCH cheaper landmines?
They might have even been able to turn it back around into a profit GAIN!
I mean, the battery recall is a fiasco, but why didn't they immediately resell them to countries in wartorn regions as slightly less-dependable but MUCH cheaper landmines?
They might have even been able to turn it back around into a profit GAIN!
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