Sony reports strong third quarter; Playstation posts 52% rise in profits, TV sales up

Discussion in 'Console Industry' started by Carl B, Jan 26, 2006.

  1. Carl B

    Carl B Friends call me xbd
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    It's not Microsoft levels of cash, that's for sure - but it is a sharp turn away from their predicted loss for the year, towards seemingly decent profits. More positive though, it seems that their electronics division may finally be turning around, led by their LCD TVs.

    Sony Third Quarter
     
    #1 Carl B, Jan 26, 2006
    Last edited by a moderator: Jan 26, 2006
  2. London-boy

    London-boy Shifty's daddy
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    Yep. Since before Christmas we saw that the Bravia's sold like crazy, which is good considering their price compared to same level tech panels...

    I'd love to see what the doom-and-gloom posters will say now. It seems lots of people were considering Sony "finished" for lack of money... Which in itself is rather amusing.
     
  3. joebloggs

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    Great ad campaign on the Bravia.
     
  4. dodo3

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    Good for Sony, I hope to see this company improve their electronics division and maintain healthy sales of PlayStation software and hardware. An amazing quarter for them. :grin:
     
  5. tema

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    Bravia has overtaken Aquos over here. :D
     
  6. Titanio

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    I'm sure Stringer is pleased. Although like he said, they can't afford to become complacent because of fast results..

    There were a couple of articles on the web in advance of this re. Sony's restructuring and the expected results today, which make for a decent read:

    "How turned around is Sony?"
    http://www.businessweek.com/bwdaily/dnflash/jan2006/nf20060125_2555_db039.htm

    "Back in the Game"
    http://www.smartmoney.com/barrons/index.cfm?story=20060123

    edit - Also, here are some hardware and software shipment numbers for the quarter, from their financial report:

    Hardware:
    PS2: 5.36 million units
    PSP: 6.22 million units

    Software:
    PS2: 93 million units
    PSP: 14.5 million units
     
    #6 Titanio, Jan 26, 2006
    Last edited by a moderator: Jan 26, 2006
  7. tema

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    Bravia are not expensive considering its a Sony. The picture quality is fucking gorgeous and with a great ad campaign, it was on everyone Christmas wishlist.

    Kutaragi-san hauling Sony back on track yet again. Awesome!
     
  8. War

    War
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    They had a lot of balls to put that ad campaign out. :grin:
     
  9. Nicked

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    A $700M positive turnaround in forecasts...must've had one hell of a holiday season.

    I wonder where the increased profit from the PlayStation division came from? PS2 performed worse (though it would have higher profit per unit I'd imagine), must mean that the PSP was (very) profitable?

    Oh and like always, the PlayStation division accounts for a staggering proportion of Sony's profits, compared to the revenue.
     
  10. sir doris

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    250,000 I think I read :)
     
  11. Titanio

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    It's a really really good campaign :) Apparently it may be the first in a line of "like.no.other" Sony ads for various products, part of a global rebranding exercise. The Walkman has one now too.

    Last time I went to the cinema, there were about 10 ads shown before the movie, and over half of them were Sony ads of one kind or another.
     
  12. Serenity Painted Death

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    Kutaragi just gets it done. Period. And everyone falls for his outrageous acts time and time again.
     
  13. pixelbox

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    Im back, and god am i happy to see this. Sony is too good tobe in second place. Now to get psp to sell like hotcakes!
     
  14. dukmahsik

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    id rather buy a bravia than aquos anyday... maybe except for that lovely 45in aquos :D
     
  15. eDoshin

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    I'd like to know what kind of financial analyst Sony employed that made an error in projections from a 90 million loss to a 600 million profit. Its a tough science, but I would imagine that you need to get at least roughly in the ballpark, not another stadium altogether. I can't imagine the repurcussions if the projections had gone the other way ie from a 600 million projected profit to a 90 million loss.
     
  16. Carl B

    Carl B Friends call me xbd
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    I don't think it's a matter of the analysts at all (they all suck anyway), it's simply the fact that Sony's TV situation clearly went 'best case' throughout the rest of the year from the time Stringer warned of a potential loss. This puts Sony on surprisingly good footing in the electronics department going into the next year, and expectations are for large spikes in operating income over the course of the next two years.

    Under-promise over-deliver is always the way to go anyway, so I think Strigner did right by taking control and setting expectations. I'm sure he more than anyone is thrilled at this result.
     
  17. Mr. Hanky

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    Perhaps the projection was based on a conservative, maybe even pessimistic, approach taking into account existing trends in the company. There was potential upside in certain new product lines, but that was still too much an unknown at the time to "depend" on its positive contribution. It's just fortunate the upside did arrive and seems to have had a pronounced contributive effect. That's my guess. ;)
     
  18. mckmas8808

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    So does this mean good for a $399 or lower PS3 price. I mean hell the way the PSP is supplying Sony with these profits (games, UMDs, and possibly hardware) hopefully Sony notices that a lower priced PS3 won't automatically mean losses for the year.
     
  19. wco81

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    I haven't really looked into LCDs that much. Are the Bravias like their XBR line, which carries a 2-year in-home warranty compared to 90-days labor on their standard line?

    I hear Sony is working on LED backlights, which yields better colors. Not to mention, LED should last a lot longer than other types of lamps as well as use much less power.

    At CES, they showed a 46-inch 1080p LCD which people at AVS are trying to find out more about, like price and release date.
     
  20. nelg

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    So the high end Sony and Samsung LCDs are equivalent?
     
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