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Ouch damn! Sony Q3 profit down 50% b/c of PS3
BTP
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Registered User regular
Well, we looked at the coming profits of Nintendo in this thread, now here's Sony's version.
Other stuff seemingly non-gaming related in the rest of the article.
http://bloomberg.com/apps/news?pid=20601087&sid=aAQ16Hzzwzuc&refer=home
But really, when you have investors saying "Don't buy Sony stock", you know some really serious shit is happening.
Sony 3rd-Quarter Profit May Fall 50% on PlayStation 3 (Update1)
By Young-Sam Cho
Jan. 29 (Bloomberg) -- Sony Corp., the world's largest maker of video-game players, may report third-quarter profit fell 50 percent after its flagship PlayStation 3 lost market share to Nintendo Co.'s Wii.
Losses from games probably drove net income down to 84.1 billion yen ($691 million) in the three months ended Dec. 31, from a record 168.9 billion yen a year earlier, according to the median estimate of five analysts surveyed by Bloomberg. Sales at Tokyo-based Sony, which reports earnings tomorrow, probably rose 9.6 percent to 3 trillion yen.
The results may highlight Chief Executive Officer Howard Stringer's failure to fend off Nintendo, whose $250 Wii console outsells the PlayStation 3 by two-to-one. Sony may still exceed its full-year profit target because of a weaker yen, sales of Bravia televisions and growth at its movie unit.
``A drop in third-quarter results is largely expected on the games division. There's no surprise unless the company further reduces its profit forecasts,'' said Mitsushige Akino, who oversees $468 million in assets at Ichiyoshi Investment Management Co. in Tokyo. Akino doesn't recommend investors buy Sony stock ``until the company improves its earnings.''
Sony in October cut this fiscal year's profit forecast to a five-year low of 80 billion yen after delays in the new PlayStation's debut and a recall of defective laptop batteries, the largest in consumer electronics history.
Shares of Sony have risen 8.7 percent in the past six months, trailing the 60 percent gain by Nintendo and Xbox 360-maker Microsoft Corp.'s 27 percent increase.
Wii Wins
The game division, Sony's second-largest by revenue, probably lost 50.9 billion yen during the quarter, compared with a profit of 67.8 billion yen a year earlier, after sales fell 7 percent, according to the Bloomberg survey.
After botching the PS3's debut with production delays and cutting the price to compete against cheaper Wii and Xbox players, Sony will probably lose 191.9 billion yen from games this fiscal year, compared with profit of 8.7 billion yen the previous year, according to the Bloomberg survey.
Nintendo, the world's largest handheld game maker, last week reported profit in its latest quarter jumped 40 percent to 77.6 billion yen, fueled by demand for Wii consoles and portable DS game players.
In the U.S., Nintendo sold 1.1 million consoles in November and December, almost double the PlayStation 3 units shipped during the period, according to researcher NPD Group. In Japan, Nintendo sold 989,118 Wii units last year, more than double PlayStation 3 sales, according to researcher Enterbrain Inc.
Redmond, Washington-based Microsoft last week cut its Xbox 360 forecasts and now expects to sell 12 million units by June 30, instead of 13 million to 15 million. The company sold 10.4 million units of the console since its December 2005 debut, exceeding Microsoft's own 10 million target.
Other stuff seemingly non-gaming related in the rest of the article.
http://bloomberg.com/apps/news?pid=20601087&sid=aAQ16Hzzwzuc&refer=home
But really, when you have investors saying "Don't buy Sony stock", you know some really serious shit is happening.
Nintendo Wi-Fi Connection & DS High Scores Thread
I WILL NOT BE DOING 3DS FOR NWC THREAD. SOMEONE ELSE WILL HAVE TO TAKE OVER.
Spoiler contains Friend Codes. Won't you be my friend?
I WILL NOT BE DOING 3DS FOR NWC THREAD. SOMEONE ELSE WILL HAVE TO TAKE OVER.
Spoiler contains Friend Codes. Won't you be my friend?
My Friend Codes!
More Friend Codes!
Mario Kart Wii: 3136-6982-0286 Tetris Party: 2364 1569 4310
Guitar Hero: Metallica: 1032 7229 7191
TATSUNOKO VS CAPCOM: 1935-2070-9123
Nintendo DS:
Worms: Open Warfare 2: 1418-7870-1606 Space Bust-a-Move: 017398 403043
Scribblenauts: 1290-7509-5558
More Friend Codes!
Mario Kart Wii: 3136-6982-0286 Tetris Party: 2364 1569 4310
Guitar Hero: Metallica: 1032 7229 7191
TATSUNOKO VS CAPCOM: 1935-2070-9123
Nintendo DS:
Worms: Open Warfare 2: 1418-7870-1606 Space Bust-a-Move: 017398 403043
Scribblenauts: 1290-7509-5558
BTP on
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So...a price cut soon?
Or does that mean they were going to price it higher? Or am I reading this wrong?
Ah. Silly japan.
Oh wait, it's not bringing them success. Shitballs.
Let alone a 4...
I never asked for this!
EDIT: If Sony collapses, I do NOT want Microsoft filling it's void.
You know FF13 is gonna go to the 360 if the PS3 flounders... ACCEPT IT!
I personally dislike the company but they'll pull through and the PS3 will do well.
And I don't know why people think if MS "wins" the market, then they'll instantly seize our firstborns or something. Microsoft has a monopoly on the OS market and my town has yet to be pillaged and raped.
But the fact that Sony has a large stake in Squeenix leads me to believe that captain Final Fantasy is going down with the Play-Tanic.
THIS IS AN ATTACK ON SONY BECAUSE OF YOUR BIAS
STOP IT YOU POOPFACES
Seriously.
The article even mentions that Sony stock is still going up, just not at the rate that Nintendo and MS are seeing.
Aside from their games division, it looks like every other aspect of Sony's company is doing extremely well.
Isn't that the opposite from a few years ago?
Switch: 6200-8149-0919 / Wii U: maximumzero / 3DS: 0860-3352-3335 / eBay Shop
Oh wait.
Oh wait... we can't! (except eBay and such)
Switch: US 1651-2551-4335 JP 6310-4664-2624
MH3U Monster Cheat Sheet / MH3U Veggie Elder Ticket Guide
I hate to burst everyone's bubble, but Sony is a company worth billions of dollars. They're not going anywhere. I know all you harbingers of doom are dancing the revelry dance on their grave, but I'm sure they have a little bit of cash socked away for a rainy day.
Will they survive both the PS3 and Blu Ray failing?
I very much doubt that.
I'm not saying that either or both will come about. But...it's a definite possibility at this point, and I'm not sure they can just take either or both failures on the chin.
That said, 50% sounds...pretty goddamned bad.
Also, while I'm certainly not going to make any predictions, I don't see why Sony couldn't crash and burn. I mean, I doubt anybody ten years ago expected Ford to be in the dire straits it's in today.
If I remember correctly, Sony only has 2.6 billion dollars in cash reserves. Furthermore, they have already taken 2 billion dollars worth of loans and their credit rating has been lowered many times during last three years.
However... Losing money on the PS3 is the easy part of their plan. What I don't see right now, but maybe will in the future, are a lot of consumers salivating over the PS3 the way they did over the PS2. They are going to need people to want blue-ray as well, which might be the toughest part of their plan right now.
EDIT: After reading the linked article, it seems that investors are not necessarily confident either, though the rising shares reflect some confidence in spite of what one investment firm is recommending.
Mario Kart DS: 3320 6595 7026 5000
We know, and they know that in 2 years they will PROBABLY be able to make the PS3 hardware and sell it at least at break-even, but it has to do well in the mean time sales-wise and hold on to its huge market share %. They also tried to eat into nintendo's virtual monopoly on the hand-held market and that didn't seem to take.
If they lose a lot of the gaming market share to Nintendo or Microsoft AND Blu-ray is a failure then I can see them seriously closing down some divisions and cutting back in order to salvage their other electronics such as TVs and I guess dvd players or whatever else it is they make anymore that actually sells.
If both of those don't happen and nothing else bad happens then they will probably be no worse for the wear.
That's a ton of money. A staggering figure if you think about it.
Third quarter profit fell 50 percent. They're still making a profit, just a smaller profit than they made before.
I know it's not the best analogy, but I've lived near Detroit most of my life. We have a failing American auto industry. I don't remember the last time Ford Motor Company made a profit, and their stock has been in the shitter at least since I worked there in 2001. They're still up and running in Dearborn.
My grandmother works for Delphi. They declared bankruptcy last year. She recently got a raise.
I know my evidence is anecdotal at best, but massive corporations like Sony develop their own inertia. They are diversified beyond the console market, and other areas are making money for them. They're not going away.
Wasn't everyone predicting the death of Nintendo a while back? Sega failed miserably at consoles (I miss my Dreamcast) but they didn't fold, they just stopped making hardware.
>>
Losses from games probably drove net income down to 84.1 billion yen ($691 million) in the three months ended Dec. 31, from a record 168.9 billion yen a year earlier, according to the median estimate of five analysts surveyed by Bloomberg. Sales at Tokyo-based Sony, which reports earnings tomorrow, probably rose 9.6 percent to 3 trillion yen.
<<
Theres your other .6 billion :P
Blu-ray isn't happening at the moment. Theres not enough market pentration of High def material to justify an HDTV purchase for the most part.
Given the development cycle is the worst for the latest generation. Who in their right mind is going to go though that hassle and risk investing in a platform that might not peform? Couple that with Blu-ray and HD-DVD being both still weak formats currently.
I will have a party if sony doesn't make consoles anymore. ( I need a shirt saying that)
Blu-Ray has gone from a 10 to 1 sales deficit to a 2:1 lead and growing in terms of disc sales versus HD-DVD in the last TWO months.
Sony's stock is up around 20-30% from where it was in November.
Guess what folks, licensing from blu-ray discs is AT LEAST as large as that from the video game industry. The industry can see the writing on the wall; blu-ray is beginning to win, and considering the exclusives for the system, Sony's PS3 trojan horse (which will still outsell all HD-DVD players by far), and the FCC's mandate that all signals be digital by 2009 (and thus most tv's be digital), Sony is poising itself for the long-term very well.
Blu-Ray is happening; its growing steadily; maybe not as fast as DVD but steadily. HD-DVD's only ace up its sleeve is to somehow get cheap players to the market and hope thats Blu-Ray doesn't get there for some time after they do that and sell enough to make a blu-ray exclusive studio switch.
As proof, the first gen Toshiba HD-DVD player released early in the year retailed at a 200-300 dollar loss to Toshiba. Those are PS3-type losses people for a player that can only provide HD-DVD licensing revenue, unliek the additional game licensing revenue and online revenue of the PS3. Because of these losses, Toshiba was unable to acquire much manfacturing support from several companies.
Nowhere does it say in the article Blu-Ray is failing, so the people who added that tidbit have officially been pwned.
For the games division losing money, wow, I am surprised they are sitll profitable at all after they lose 200-300 dollar per console on the PS3 and spent most of December overnighting them by air-freight to the US (Did somebody say expensive)?
Also, the article ignores Sony became Number 1 from 4 in the TV industry in terms of total sales and revenue.
For evidence I provide:
http://www.twice.com/article/CA6409002.html
http://www.eproductwars.com/dvd/
http://www.dvdempire.com/index.asp?...site_media_id=0
I post this info because the PS3 is no longer JUST a gaming system. It is a Blu-Ray Player/Game Console because Sony values both about the same (which is to say a LOT).
I post the links so as to give me more credibility than some of the people who will inevitably jump in this thread and go, "Nu-uh. Sony sux0rs! Nooen I know owns a TV and my gamecrazy and Bestbuy have lots of PS3's n00b."
Everybody wave!
Blue Ray doesn't have porn. And like hell I'm going to lay down several hundred for a player if I can't watch Art School Sluts on it in hi-def and surround sound.
Srlsy.
"LoL"? "Pwned"? Are you like 13?
I think those words nicely describe your post history, however.
My God. I shouldn't have clicked, but I had to be sure. That's all that guy does.
Staggering. I wonder if it pays well.
So, Dukhat, did you get "all you wanted for xmas"?
Consider this... analysts have estimated that each PS3 is sold with about 350 dollars loss when you count all components, shipments, marketing and all that stuff. Let's assume that Sony sells 6 million PS3's.
6 000 000 x 350 = 2 100 000 000 (2.1 billion dollars).
Of course Sony does get some of it money back from selling accessories and royalties from sold games. But it's still very slippery rope. Even Sony itself believes that PS3 starts to make profit after five years, and that assumption is based on scenario where they sell around 80 million PS3's, Blu-Ray takes off and so on.
oh wait, I rather not say their name, or why they don't want anything negative to be said.
Woo Bravia TVs! Those things are nice...
And the sales figures were in the links; for amazon and dvdempire. There is no official NPD numbers out yet; but the tide is turning.
Sales figures for HDTV's are geometric with around 17% household penetration today and around 60% penetration for 2010 for Japan and America. The content-providers themselves aren't doing so great right now due to the expense of HD.
Any analysis of Sony's costs for the PS3 will likely be wrong since Sony basically owns all the technology and IP inside the PS3 (aside from RSX). As a hardware company, they are likely to be able to drive costs down than say a certain software giant outsourcing production to the Taiwanese. Average cost goes down with additional volume, since they charge more for the PS3 than its marginal cost.
But thats a little different... I mean, the entire automotive industry is suffering from poor sales right now, not just Ford. In fact, I'm pretty sure (according to a Ford ad I saw in a newspaper) they had the highest sales in Canada last year.
The gaming industry, on the other hand, is thriving. More people are adopting consoles, it's just Sony thats fucked up their console royally. Sure, if they get some good games its very possible for them to come back, but it really seems like all their exclusives are ditching them for the 360, which means there wont really be any reason to buy a ps3 unless you're looking for a slow (from what I've heard, the blu ray player in the ps3 is slow and low quality) cheap Blu Ray player.