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Sony Sony projects $1.27B loss

dDave

Well-Known Member
V.I.P.
Remember that time when Nintendo announced that they had projected a loss of $240M and everyone said the company was doomed?

What about SONY who is projecting a loss FIVE TIMES that size? They had projected a profit of $489M. In other words, they were off by a stunning $1.759B

Sony?s CEO, Executives Taking 50% Pay Cut, Losing Bonuses - IGN

The CEO and other executives are taking major pay and bonus cuts. This is the 4th year in 5 years that they have experienced a loss.

Now, a lot of this loss can be attributed to the Vaio brand and Sony needing to get out of the PC market. Still, not all of that can be attributed to the PC market. Sony is apparently 45% behind where they were last gen even though their console is apparently "winning" the war.

Thoughts on this?
 

sunrise

aka ginger warlock
V.I.P.
I am only going based on what is contained within the article in my offering of an opinion here however I do not feel the comparison between Nintendo and Sony is fair Dave. Now the reason I say that is not because I am a Sony Fanboi (if anything I have been more of an Xbox/PC Gamer over the last five years) but because what is not detailed in this article is where this loss is and if this is a loss overall.

Where is the loss coming from? Is it from the PS4? Is it from the Vaio community (though frankly Vaio have been a worthless laptop firm in my opinion for a long time having used them and said "really? SONY brought this out?!") Does this loss also include the TV, Film & Music part of SONY overall as a company is it is seen as a PS4 thing because it is on IGN?

I am not saying you are incorrect Dave, the proof is there plain to see but I would be interested in seeing more of a breakdown - this is not me having a go at your Dave I promise I am not, more sloppy reporting on behalf of IGN who do not seem to have any backup aside from a article they wrote themselves. This reminds me of the Edge article about the Xbox One where very little basis was put in place. Can we say axe to grind IGN :lol: ?
 

dDave

Well-Known Member
V.I.P.
Well, Sony themselves said that the Playstation 4 console would be selling at a loss so you can be sure it's at least in part due to the PS4. I'm not sure when they were planning to break even on that and start turning a profit.

Still. I recognize that Sony does a lot more than Nintendo with PS4, HDTV, speaker systems, blu ray players, Vaio, etc. Nintendo really only does hardware and development.

Another thought is that Sony has tried to champion UDTV (4K) and I'm pretty sure that hasn't been very successful so far, the market just isn't ready for crazy expensive televisions again so soon.
 

sunrise

aka ginger warlock
V.I.P.
To be honest UDTV is a new one on me. As much as I like to think I am techy and I am a geek when it comes to TV's I don't care, I just don't. I own a large screen TV but it's not one that cost over 600 GBP, it's a toshiba 40" TV and the only reason I got it was my old CRT TV was on it's way out and I simply couldn't find any CRT TVs doing the rounds any more. If anything the quality of my CRT wiped THE floor with my super-dooper HD tv in terms of quality and that tv lasted me for 15 years, 15 years! I cannot see a Flat Screen ever doing that :lol:

Also despite having a Blu-Ray player in my PS3 I still do not own any Blu-Ray DVDs, for me spending five or ten pounds more for slightly better quality (I wear glasses) is just pointless to me if I can get two DVD films which are still perfectly good quality for the price of on BR.

I am wondering if and when the PS4 will drop in price in the way the XBO did, if the PS4 came down to 299 GBP tomorrow or if they launched a Watch Dogs pack for say, 329 later this month I would most likely buy it but when my PS3 is still working and I am not I just do not see any good reason to buy.
 

dDave

Well-Known Member
V.I.P.
To be honest UDTV is a new one on me. As much as I like to think I am techy and I am a geek when it comes to TV's I don't care, I just don't. I own a large screen TV but it's not one that cost over 600 GBP, it's a toshiba 40" TV and the only reason I got it was my old CRT TV was on it's way out and I simply couldn't find any CRT TVs doing the rounds any more. If anything the quality of my CRT wiped THE floor with my super-dooper HD tv in terms of quality and that tv lasted me for 15 years, 15 years! I cannot see a Flat Screen ever doing that :lol:

Also despite having a Blu-Ray player in my PS3 I still do not own any Blu-Ray DVDs, for me spending five or ten pounds more for slightly better quality (I wear glasses) is just pointless to me if I can get two DVD films which are still perfectly good quality for the price of on BR.

I am wondering if and when the PS4 will drop in price in the way the XBO did, if the PS4 came down to 299 GBP tomorrow or if they launched a Watch Dogs pack for say, 329 later this month I would most likely buy it but when my PS3 is still working and I am not I just do not see any good reason to buy.
I have a 720p LCD DLP projector that's on it's 11th year and running right now. (it will probably have to be replaced eventually but it still works great with no hiccups at the moment) The thing gets pretty regular use and we haven't even had to replace the lamp thus far. I also know a few people that have Plasma and LCD panels that still work great and they've got to be going on 8-9 (or more) years at this point.

Blu-Ray vs DVD is a ridiculous comparison. Blu-Ray has more than 6 times as many pixels as DVD, it's not even close. On the right screen it's really obvious to me. I don't wear glasses though, I've got some near perfect eyesight.

I think that when Sony is able to bring the price of 4K down that we're going to see the whole industry revolutionized. It may very well be one of the final resolution (or at least DPI) jumps we see with television technology. They do some sort of fake 4K illusion at this point. Certainly, it looks better than 1080p but it's not true 4K and won't be for a while I think.
 

Major

4 legs good 2 legs bad
V.I.P.
Sony is such a large company that does so many different things. It's certainly a much different situation than Nintendo. Without seeing a detailed report on where the losses are coming from, there's no way to know how the PS4 is involved. For all we know, they could be profiting from the PS4.
 

dDave

Well-Known Member
V.I.P.
We'll see some financial reports from Sony soon.

The latest one that means anything that I could find would be the FY 2013 Q3 report posted on their website.

http://www.sony.net/SonyInfo/IR/financial/fr/13q3_sony.pdf

Ah. It brings me back to my accounting days. :)

What I gather from that is that there were major costs associated with the development of the PS4 and at the time of the report they definitely hadn't broken even on that (though I'm sure they will in the future.) It's also stated repeatedly that PC sales were miserable.
 

Merc

Problematic Shitlord
V.I.P.
Their PCs are absolute shite.

The PS4 selling at a loss was the same strategy the Xbox 360 had and they captured the market early and dominated. I expect the PS4 to be similar especially since the Xboner had a rocky start and lost some rep with gamers due to their apparent need to track everything you do and treat everyone like a potential criminal.
 

PretzelCorps

Registered Member
This is because the only product Sony pushes out these days that's actually got any real quality to it vs. price is the Playstation. There was once a time when Sony anything was top of the line, but now all their products (TVs, PCs, etc.) are low to mid-range quality for absolute top dollar. Why are they surprised people are wising up to it?
 
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