Sony year-end financials, Fiscal 2007
- Thread starter JPT
- Start date
So $3.4 billion gaming division losses the last two fiscal years.
Except, accounting for the hugely profitable PS2+PSP business, I'd hazard a wild ass guess PS3 specific losses could be as much as double that. Easily at or far above Xbox 1 territory.
Sony must be hoping Blu Ray is worth it..
One interesting thing I caught from these figures, well there's a couple, PS2 shipments didn't decline that much year over year at all, and PSP software was utterly flat despite a ever growing install base.
Pretty weird, people do not seem to buy software for handhelds, especially PSP.
Except, accounting for the hugely profitable PS2+PSP business, I'd hazard a wild ass guess PS3 specific losses could be as much as double that. Easily at or far above Xbox 1 territory.
Sony must be hoping Blu Ray is worth it..
One interesting thing I caught from these figures, well there's a couple, PS2 shipments didn't decline that much year over year at all, and PSP software was utterly flat despite a ever growing install base.
Pretty weird, people do not seem to buy software for handhelds, especially PSP.
Last edited by a moderator:
Piracy?!?!?
Well that's been the case now for some time, ever since the end of Q2. Q3 was slightly profitable, and doing some math on it it would then turn out that Q4 losses would have been in the neighborhood of ~11.4 billion yen. (roughly $108 million at today's rates)
I think exchange rates on the console business have definitely been an annoyance lately in terms of loss on hardware, but the trend at least seems to be an overall positive one in terms of moving towards profitability in the division.
Yes, PS3 has been very costly to launch for them though. Whether or not it'll be worth it in monetary terms when it's all said and done I think will depend on the extent to which BD establishes itself in the coming years.
Here's my past Sony earnings tally incidentally prior to Q3 and Q4 of this fiscal year, for thread reference: http://forum.beyond3d.com/showpost.php?p=1081426&postcount=17
In Q3 it was a 12.9 billion yen profit.
upnorthsox
Veteran
Of course at the same time Sony's electronics/component manufacturing division has been doing a bang up job selling chips to.............Sony's playstation division for the ps3.
And then there's the writeoffs for all the discontinued ps3 and psp skus which is a nice accounting trick when you can do it. Of course, since they're not actually yanking these off the market they still have to show sales for them eventually but the writedown on inventory looks nice for Sony Corps tax liability
And then there's the writeoffs for all the discontinued ps3 and psp skus which is a nice accounting trick when you can do it. Of course, since they're not actually yanking these off the market they still have to show sales for them eventually but the writedown on inventory looks nice for Sony Corps tax liability
Saw a CNBC scroll this morning that Sony reported an unexpected loss but predicted better electronics sales the rest of the year.
They booked $3.76 billion profits despite the Playstation division losses?
From what? They've had to slash prices on HDTVs to compete.
Did the music and movie divisions have big hits or something?
They booked $3.76 billion profits despite the Playstation division losses?
From what? They've had to slash prices on HDTVs to compete.
Did the music and movie divisions have big hits or something?
Digital imaging has been Sony's big cash-cow of late; people need to forget about TVs and Playstation when thinking of Sony's modern-day profit drivers. Think CyberShot instead! Anyway I'll obviously listen to the conference call when it gets posted; all the finer points are always examined within that context.
Really?
Everyone must have digicams by now though and with cell phones encroaching on the low end, sales growth and margins must be squeezed.
Hell I got a Nikon Coolpix for my folks and it's got more megapixels than a Panasonic Lumix I picked up a couple of years ago for twice the price.
I could see digital imaging being big if Sony was selling a lot of printers and consumables (the drivers that makes HP so profitable are ink-jet cartridges and glossy paper, not their computers, not even their printers). But on cameras alone?
Everyone must have digicams by now though and with cell phones encroaching on the low end, sales growth and margins must be squeezed.
Hell I got a Nikon Coolpix for my folks and it's got more megapixels than a Panasonic Lumix I picked up a couple of years ago for twice the price.
I could see digital imaging being big if Sony was selling a lot of printers and consumables (the drivers that makes HP so profitable are ink-jet cartridges and glossy paper, not their computers, not even their printers). But on cameras alone?
People keep "upgrading" to get smaller cameras or more megapixels. Or rather than sharing one for the family, people are buying cameras for individual family members because of the low perceived cost. And in poorer countries I'm sure adoption has been slower and it would be starting to take off now that the prices are fairly low. There should be a lot of legs left in the camera business.
Not 'alone' of course, but it's a noteworthy part of it. Also there in imaging remember is Handycam and chip sales to other camera manufacturers, both brisk businesses in their own right for Sony. Sony is a huge supplier of sensors for the industry. And speaking of cell phones as you mentioned, keep in mind that Sony-Ericsson is a decent profit generator for Sony as well; Sony reported equity income of $795 million this year on S-E performance.
Electronic revenue jump 10% but income from that division jumped 121%.
Sony attributes this to increased sales of Bravia LCDs, Cyber-shot cams and Vaio PCs.
http://www.sony.net/SonyInfo/IR/financial/fr/viewer/07q4/
Sony has a great slide that shows how operating income went from 160 to 356 bln yen.
Slide 11.FY07 Electronics Operating Income
Sales attributed an additional 102.7 bln yen this year, foreign exchange rate impact (Euro ftw) attributed 80.4 bln yen (WOW) and 51.1 bln yen that they didn't have to spend this year due to the big write off for the replacement program for the battery fiasco in 06.
Last edited by a moderator:
How come we haven't got this info broken down quarterly yet? Do they not even bother for fiscal year end reports?
Sony shipped 2.24m PS3's in the Q (versus 1.3m 360's, although MS had supply issues) according to GAF.
As for the low PS3 sales forecast, this hints at either no price cut or a tardy one.
Sony shipped 2.24m PS3's in the Q (versus 1.3m 360's, although MS had supply issues) according to GAF.
As for the low PS3 sales forecast, this hints at either no price cut or a tardy one.
More like evidence for a small one if one at all, which is killing my hopes for a $299 PS3 this year. By the time I pick up a PS3, this generation will be like 4 years old.
Ya killing me, Sony. I guess all I can hope for is that MS starts cranking up the price drops and forces Sony to comes down to stay competitive.
Well PSP specifically has been attacked a lot by piracy. Almost everyone I know does not buy games on it. They download them
In that quote it sounds like they'll be looking at charging. They might not charge for home but I expect a major emphasis on micro transactions to get the full featureset. While they may claim "free online" they certainly do not want to miss out on a profitable platform such as Live.
If you mean "online service" in CFO's comment, I guess it's about their online movie/music store on PSN/PC/cellphone/etc. which will launch soon.
