Sony reports quarterly net loss of $2.1 billion

heartgold

Well-Known Member
OP
Member
Joined
Sep 11, 2009
Messages
4,378
Trophies
0
Location
London
Website
Visit site
XP
2,085
Country

TOKYO—Sony Corp. said Thursday it veered into a fiscal third-quarter net loss of more than $2 billion and forecast a much wider full-year loss than previously expected, dragged down by losses in its television business and the impact of the strong yen on its European operations.

The Japanese entertainment and electronics conglomerate reported a net loss of ¥159 billion ($2.09 billion) for the quarter ended Dec. 31, compared with a net profit of ¥72.3 billion in the year-earlier period. Revenue fell 17% to ¥1.822 trillion during the quarter.

For the fiscal year through March, Sony said it now forecasts a net loss of ¥220 billion, compared with a forecast last November for a ¥90 billion net loss. It now expects revenue of ¥6.4 trillion, down from ¥6.5 trillion previously. It now expects revenue of ¥6.4 trillion, down from ¥6.5 trillion previously.

Sony's loss comes a day after the company announced plans to replace Chief Executive Howard Stringer in April with Kazuo Hirai, who oversees the company's videogame and consumer electronics divisions. A longtime veteran of the PlayStation business, Mr. Hirai will attempt to replicate his success with the videogame business at the electronics unit.

Thursday's revised-down earnings forecast stems largely from two joint ventures that Sony agreed to undo late last year.

In January, Sony sold its half of a joint venture to make liquid crystal display panels, called S-LCD, to partner Samsung Electronics Co. That resulted in an impairment loss of ¥63.4 billion.

Meantime it also reached an agreement to buy out its mobile-phone joint venture partner Ericsson to bring the smartphone business fully into the Sony fold. Sony incurred a ¥33 billion loss from that acquisition, expected to close in February, as Sony Ericsson incurred a charge to write down part of its deferred tax assets.

An unlucky mix of the March 11 disaster in Japan, the strong yen and the extreme flooding in Thailand that disrupted production last fall also played a major factor in the company's dour outlook.

"The impact of all these things is a very severe earnings report," said Sony Chief Financial Officer Masaru Kato, speaking at a news conference in the capital.

Atop incoming CEO Mr. Hirai's to-do list is finding a way to halt losses at the notoriously difficult television operations. Mr. Hirai has already scaled back the ambitions of the TV business, while pushing for new ways to lower parts procurement costs as well as rethinking the types of sets the company should make.

In November, Mr. Hirai said the TV business would lose ¥175 billion in this fiscal year ending in March, and then lose half as much in the next fiscal year, before turning a profit in the year ending March 2014. Two more years of losses at the TV division would result in nine straight years in the red.



http://online.wsj.co...1138813634.html
 

Guild McCommunist

(not on boat)
Member
Joined
May 6, 2009
Messages
18,148
Trophies
0
Age
31
Location
The Danger Zone
XP
10,323
Country
United States
Im not wishing any company bad sales but Sony should be glad they havent lose more than this. They are too greedy.

Because other companies aren't?

Mind you this is the company as a whole, not just their gaming sector. God knows how Sony Music or their electronics department is fairing, they've been doing rather alright in gaming minus the poor Vita sales currently.

EDIT:

Sony Corp. said Thursday it veered into a fiscal third-quarter net loss of more than $2 billion and forecast a much wider full-year loss than previously expected, dragged down by losses in its television business and the impact of the strong yen on its European operations.

Move along Playstation haters.
 

Foxi4

Endless Trash
Global Moderator
Joined
Sep 13, 2009
Messages
30,818
Trophies
3
Location
Gaming Grotto
XP
29,789
Country
Poland
Sony's one of those companies that are within an R&D process 24/7 365 days a year every year. The moment they release something they're already working on a slim edition of the same hardware.

Those costs are eating up the company's reserves - to be perfectly honest, I don't know why the hell they released any PSP after the 2000 models - the 3000 is not a large improvement, the Go was a flop from the start, the Street is... pathetic, at best, the PS3 Fat "should've been Slim from the start".

What they need to focus on is releasing hardware that does not need revisions. Rather then half-finishing a product and immediatelly releasing it, they ought to thoroughly test it and put longer "distances" between revisions.

Look at the Wii - from the start the revisions of the hardware were cosmetic at best, with its only major overhaul being the non-hackable drive chips.

Microsoft is suffering from the same problem - perhaps from the outside all XBoxes look identical, but on the inside there are more revisions of the 360 that are VASTLY different from eachother that it's not even worth to start a discussion about it.


Their next issue is marketing - they need to forget about their typical strategies, forget about targeting their products typically at the late 20' demografic and start being more open. Honestly? The only ad's I've seen on TV in Poland were Killzone ads repeated over and over again and the odd Little Big Planet. If you don't market your product as a wonder-machine that does everything you'd want it to plus blowjobs and the washing-up then you're not going to sell it. Focus on only one aspect and you're gonna lose.

Thank goodness the PS3's actually started selling nicely - I'm pretty sure that with the vast library available the console's sales will not fall anytime soon.

That said, Sony should completely postpond any works on a slim Vita model because one is not needed at this time - they need to pull their belts as tight as it gets and play the waiting game until they bounce from the ground and actually start getting profits.


On the otherhand... I'm not entirely sure if Sony "cares". I'll elaborate on that - It's a company that deals with numerous buisnesses and even if one of them is generating financial losses due to the, well, undoubtly great quality of the merchandise and constant improvements to it, it basically builds a "good name" for all the other services. This is sort of a marketing mechanism, really. The sheer power of the PS3 makes the average Joe convinced that other Sony products are of equal quality, which may not always be the case. Losses in one sector may generate profits in another.
 

chris888222

GBAtemp's Flygon Fan
Member
Joined
Oct 11, 2010
Messages
5,532
Trophies
0
Age
34
XP
874
Country
Senegal
Well, Sony doesn't just sell games, they sell TVs, cams and other electronic gadgets...

Off topic but does Sony Ericsson belong to Sony or is it just a 50% / whatever?
 

Foxi4

Endless Trash
Global Moderator
Joined
Sep 13, 2009
Messages
30,818
Trophies
3
Location
Gaming Grotto
XP
29,789
Country
Poland
Well, Sony doesn't just sell games, they sell TVs, cams and other electronic gadgets...

Off topic but does Sony Ericsson belong to Sony or is it just a 50% / whatever?
They bought the company entirely, before it was a bizzare joint venture of Sony and the remnants of Ericsson.
 

Valwin

The Neautral Gamer
Banned
Joined
May 11, 2011
Messages
2,084
Trophies
0
Age
34
Location
Puertorico
XP
1,020
Country
United States
Sony's one of those companies that are within an R&D process 24/7 365 days a year every year. The moment they release something they're already working on a slim edition of the same hardware.

Those costs are eating up the company's reserves - to be perfectly honest, I don't know why the hell they released any PSP after the 2000 models - the 3000 is not a large improvement, the Go was a flop from the start, the Street is... pathetic, at best, the PS3 Fat "should've been Slim from the start".

What they need to focus on is releasing hardware that does not need revisions. Rather then half-finishing a product and immediatelly releasing it, they ought to thoroughly test it and put longer "distances" between revisions.

Look at the Wii - from the start the revisions of the hardware were cosmetic at best, with its only major overhaul being the non-hackable drive chips.

Microsoft is suffering from the same problem - perhaps from the outside all XBoxes look identical, but on the inside there are more revisions of the 360 that are VASTLY different from eachother that it's not even worth to start a discussion about it.


Their next issue is marketing - they need to forget about their typical strategies, forget about targeting their products typically at the late 20' demografic and start being more open. Honestly? The only ad's I've seen on TV in Poland were Killzone ads repeated over and over again and the odd Little Big Planet. If you don't market your product as a wonder-machine that does everything you'd want it to plus blowjobs and the washing-up then you're not going to sell it. Focus on only one aspect and you're gonna lose.

Thank goodness the PS3's actually started selling nicely - I'm pretty sure that with the vast library available the console's sales will not fall anytime soon.

That said, Sony should completely postpond any works on a slim Vita model because one is not needed at this time - they need to pull their belts as tight as it gets and play the waiting game until they bounce from the ground and actually start getting profits.


On the otherhand... I'm not entirely sure if Sony "cares". I'll elaborate on that - It's a company that deals with numerous buisnesses and even if one of them is generating financial losses due to the, well, undoubtly great quality of the merchandise and constant improvements to it, it basically builds a "good name" for all the other services. This is sort of a marketing mechanism, really. The sheer power of the PS3 makes the average Joe convinced that other Sony products are of equal quality, which may not always be the case. Losses in one sector may generate profits in another.

Damage control engage
talk about other consoles to get attention away from issue confirmed
 

dorayaki95

Well-Known Member
Newcomer
Joined
Dec 19, 2010
Messages
50
Trophies
0
XP
138
Country
Malaysia
Sony should streamline their products, ranging from their TVs to playstation to entertainment markets.
Sony is releasing ps vita, at the same time teasing us with their new phone called xperia ion. They are making a specific OS for ps vita, at the same time making playstation certified phones for its own android phones. It is only confusing us the consumers. Some of you might say 1 is a phone, 1 is a game console, it is giving us choices, but seriously, who wants to carry 2 devices at the same time nowadays? But nintendo 3DS is an exception :D
 

Langin

Well-Known Member
Member
Joined
Jul 29, 2008
Messages
4,743
Trophies
0
Location
The internet
XP
2,469
Country
Netherlands
I do not intent to bash into Sony, but I barely see any adds! Sometimes I hear *ping* Sony logo but I never knew what it was. I've once seen an inFamous add I believe, that's it!

But when I hear the *tang* from Nintendo I watch from my whatever system I am playing on and I am watching the add... Yes you may know what I gonna say but try to advertise more Sony! I SAW A FREAKING MARIO KART BUS DRIVING AROUND!
 

DarkStriker

GBAtemp's Kpop lover!
Member
Joined
Mar 15, 2009
Messages
1,959
Trophies
0
Age
17
Location
NIKU!
Website
Visit site
XP
541
Country
Norway
Sony should streamline their products, ranging from their TVs to playstation to entertainment markets.
Sony is releasing ps vita, at the same time teasing us with their new phone called xperia ion. They are making a specific OS for ps vita, at the same time making playstation certified phones for its own android phones. It is only confusing us the consumers. Some of you might say 1 is a phone, 1 is a game console, it is giving us choices, but seriously, who wants to carry 2 devices at the same time nowadays? But nintendo 3DS is an exception :D
I carry both my phone and PSP. Problem?
 

KingVamp

Haaah-hahahaha!
Member
Joined
Sep 13, 2009
Messages
13,474
Trophies
2
Location
Netherworld
XP
7,887
Country
United States
So, where the "In other words, Sony is Doom!" comment?

You know, if Valwin post the exact same article, there would have been rage...

Seriously though, if they need to, they would just make the company smaller to survive.
They wouldn't go out that easily.
 

Hielkenator

Well-Known Member
Member
Joined
Feb 7, 2010
Messages
4,210
Trophies
0
XP
679
Country
Netherlands
Samsung rules! errr....

I have only one SONY product in our home, the PS3.
the rest is Sammy!
I think SONY has had it's best time.
 

Valwin

The Neautral Gamer
Banned
Joined
May 11, 2011
Messages
2,084
Trophies
0
Age
34
Location
Puertorico
XP
1,020
Country
United States
You know, if Valwin post the exact same article, there would have been rage...

Valwin wouldn't go so low as to post appropriet articles when it comes to Sony. His field of experience is posting conjuncture and fairy tales.


right now tell me witch news i have posted that you think are lies link me now to offer gbatemp am apologie if this is true
 

Site & Scene News

Popular threads in this forum

General chit-chat
Help Users
  • No one is chatting at the moment.
    LeoTCK @ LeoTCK: yes for nearly a month i was officially a wanted fugitive, until yesterday when it ended