Sony to post $658 million loss for 4th quarter.
- Thread starter TEXAN
- Start date
Something to keep in mind is though Sony will post a loss this quarter, on the whole year the chances are overwhelmingly in favor of a profit. That being said, I believe it was for exactly this reason that Stringer was brought on at the time he was. With him being more or less in control at this point, after this announcement, it'll be the perfect opportunity for him to begin restructuring the whole of Sony so as to achieve better profitability.
Wait until you see a PSP in person before any hasty judgement of Sony. The thing is the future; now. Hold one in your hands and you can just feel the possibilities. I don't have a summer home on the moon, and I still drive around on four rubber wheels pushed by a big metal brick, but this device will create a wireless revolution.
Imagine if you will that one only one person in every 4 or 5 households manages to get one. Now realize the potential of the wireless network formed by such sweeping proliferation. The PSP is the true beginning of the wireless net.
Imagine if you will that one only one person in every 4 or 5 households manages to get one. Now realize the potential of the wireless network formed by such sweeping proliferation. The PSP is the true beginning of the wireless net.
Are you realy Vince in disguise? Wireless revoloution? wireless net? I think you don't understand quite how it's wireless features works. THe PSP isn't a wireless access point, it's a wireless device.
Ok I'm only kidding abotu the vince thing. he tended to talk like that whenever sony was invovled and, well it just bugged me.
Anyway, do you have PSP yourself?
Ok I'm only kidding abotu the vince thing. he tended to talk like that whenever sony was invovled and, well it just bugged me.
Anyway, do you have PSP yourself?
Wireless networking is already a major phenomenon done by millions in Tokyo with all of their keitai, devices like mobile phones and handhelds which are carried around and used to network and access the internet. This application is driving the demand for processing performance in the mobile sector and leading the way for the migration of high quality gaming and multimedia to handhelds.
DuckThor Evil
Legend
jvd said:
I don't think we can say that just yet, Let's wait and see, whose going to be on top.
I think there is a little tiny variable in Sony's accounts. A new platform. Handheld, not sure you heard about it, called PSP.
All companies make losses when launching new platforms, Sony is no different.
Plus all the R&D and manufacturing for their next big baby.
Sony are spending a lot of money these days. Let's just hope they dont go too far.
All companies make losses when launching new platforms, Sony is no different.
Plus all the R&D and manufacturing for their next big baby.
Sony are spending a lot of money these days. Let's just hope they dont go too far.
I certainly would. You can actually judge the departmental breakdown at that point. (Not that that can't get confusing itself. 
But at least it's more informational.)
Still, it's not precisely a figure to tout.
But at least it's more informational.)Still, it's not precisely a figure to tout.
Much better l-b!
This is a little troubling that Sony has posted this loss or will post it. I haven't looked at any of the details and wish some people could do a break down for us. What I am interested in is what divisions are profitable for Sony and which ones aren't. I understand if the gaming division isn't because of the launch of PSP. If the PSP launch cost Sony millions and the other divisions also posted losses then things don't look well for Sony at all.
Can anyone give us a break down of the details?
This is a little troubling that Sony has posted this loss or will post it. I haven't looked at any of the details and wish some people could do a break down for us. What I am interested in is what divisions are profitable for Sony and which ones aren't. I understand if the gaming division isn't because of the launch of PSP. If the PSP launch cost Sony millions and the other divisions also posted losses then things don't look well for Sony at all.
Can anyone give us a break down of the details?
People people, no need to get all concerned about this upcoming loss. It's true that the amount is large, but Sony lost hundreds of millions the same quarter last year also. The quarter ending March is just traditionally bad for them, but like I said before, the year should be profitable on the whole. No need for doom and gloom. Granted, this March loss will be greater than last years loss in the same quarter - and a lot of analysts will be reading into that - but the point I'm trying to make is just that losses during a quarter does not equal losses for the year.
This is not a big deal.
Sony has been brought down by their consumer electronics division for a while. Yet this division is also what gives Sony such great insight into their consoles, so even if these divisions themselves may lose money their overall contribution helps keep Sony in the black.
And while the PSP launch may be a small reason for this (dunno... my guess is the TV, electronics, and PC divisions are at fault) it is a future looking investment. Sony has great mind share at this point. The PSP is like the iPod--it is hot and wont be gone anytime soon. If Sony had to post millions in losses to get their foot in the door of the HUGELY profitable handheld market that Nintendo has hoarded to themselves then it is worth it. What is a couple hundred million here or there when they can up their yearly profits by even more?
That sad... for devil's advocate sake... Nintendo just launched a handheld and we don't see them losing over $600M. And Nintendo missed projections on game sales (where profit comes from) and yet sold more units of the NDS (where they could potentually lose money). And considering Sony is so much stronger in the home console market this only accents the point. So from an investor standpoint I want to know why Nintendo is able to launch a new handheld and make over 400M profit, yet Sony loses profit
On a serious note I would not be too worried. Sony has some debt, and as home electonics has become largely a commodity market I don't see typical home devices (DVDs, VCRs, TVs, etc...) every being the staple bread winner for Sony. That is why there is such a huge push for BR, HD TVs, etc... because they offer large profits.
But the losses do make for some serious intrigue. Could the Sony-Toshiba HD talks be motivated by future losses resulting from a format war?
Will these overall losses impact the features included in the PS3? How will this impact Sony's tolerance for losses next gen? The game division seems to be Sony's bread winner--will they skimp to get back in the black or will they continue the all out assault to keep their stranglehold on the home console market?
Again, not a big deal... but another quarter or two of this could really spice things up.
Sony has been brought down by their consumer electronics division for a while. Yet this division is also what gives Sony such great insight into their consoles, so even if these divisions themselves may lose money their overall contribution helps keep Sony in the black.
And while the PSP launch may be a small reason for this (dunno... my guess is the TV, electronics, and PC divisions are at fault) it is a future looking investment. Sony has great mind share at this point. The PSP is like the iPod--it is hot and wont be gone anytime soon. If Sony had to post millions in losses to get their foot in the door of the HUGELY profitable handheld market that Nintendo has hoarded to themselves then it is worth it. What is a couple hundred million here or there when they can up their yearly profits by even more?
That sad... for devil's advocate sake... Nintendo just launched a handheld and we don't see them losing over $600M. And Nintendo missed projections on game sales (where profit comes from) and yet sold more units of the NDS (where they could potentually lose money). And considering Sony is so much stronger in the home console market this only accents the point. So from an investor standpoint I want to know why Nintendo is able to launch a new handheld and make over 400M profit, yet Sony loses profit
On a serious note I would not be too worried. Sony has some debt, and as home electonics has become largely a commodity market I don't see typical home devices (DVDs, VCRs, TVs, etc...) every being the staple bread winner for Sony. That is why there is such a huge push for BR, HD TVs, etc... because they offer large profits.
But the losses do make for some serious intrigue. Could the Sony-Toshiba HD talks be motivated by future losses resulting from a format war?
Will these overall losses impact the features included in the PS3? How will this impact Sony's tolerance for losses next gen? The game division seems to be Sony's bread winner--will they skimp to get back in the black or will they continue the all out assault to keep their stranglehold on the home console market?
Again, not a big deal... but another quarter or two of this could really spice things up.
DuckThor Evil
Legend
Acert93 said:That sad... for devil's advocate sake... Nintendo just launched a handheld and we don't see them losing over $600M. And Nintendo missed projections on game sales (where profit comes from) and yet sold more units of the NDS (where they could potentually lose money). And considering Sony is so much stronger in the home console market this only accents the point. So from an investor standpoint I want to know why Nintendo is able to launch a new handheld and make over 400M profit, yet Sony loses profit
Well we don't know yet for sure whose to blaim on Sony's losses, but the fact that they are not making money straight out with PSP like Nintendo is doing with NDS, might be related to the fact that NDS is old cheap tech+ touch screen which probably doesn't cost Nintendo a lot, whereas PSP is new tech and cost's alot to make.
Dr Evil said:Acert93 said:That sad... for devil's advocate sake... Nintendo just launched a handheld and we don't see them losing over $600M. And Nintendo missed projections on game sales (where profit comes from) and yet sold more units of the NDS (where they could potentually lose money). And considering Sony is so much stronger in the home console market this only accents the point. So from an investor standpoint I want to know why Nintendo is able to launch a new handheld and make over 400M profit, yet Sony loses profit
Well we don't know yet for sure whose to blaim on Sony's losses, but the fact that they are not making money straight out with PSP like Nintendo is doing with NDS, might be related to the fact that NDS is old cheap tech+ touch screen which probably doesn't cost Nintendo a lot, whereas PSP is new tech and cost's alot to make.
Sure but Nintendo is also selling the DS at a lower price...
jvd said:
Obviously!! PS3 will be a huge black hole when they count all the money they will have spent from beginning of R&D to launch, until PS3 HW becomes profitable.
PCEngine, DS can sell at a lower price because it's cheaper to manufacture. Much cheaper than PSP. I don't expect Nintendo to post losses equal to Sony's simply because DS is not as expensive to manufacture as PSP, for obvious reasons.
pahcman said:
Profit minus spending doesn't exists. Profit is Revenue minus "spending". There's no spending after you get to the profits. Well, apart from future costs, but you can't count those in.
Similar threads
