Sony reports quarterly net loss of $2.1 billion

Discussion in 'User Submitted News' started by heartgold, Feb 2, 2012.

  1. heartgold
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    heartgold GBAtemp Psycho!

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    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
     
  2. lostdwarf

    lostdwarf GBAtemp Maniac

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    Can anyone explain to me why they are not bankrupt?
    9 years of losses, logic dictates this is a bad thing.
     
  3. JonForever

    JonForever Member

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    Im not wishing any company bad sales but Sony should be glad they havent lose more than this. They are too greedy.
     
  4. Guild McCommunist

    Guild McCommunist (not on boat)

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    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:

    Move along Playstation haters.
     
  5. Valwin

    Valwin The Neautral Gamer

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    cuz the make other products i guess ?
     
  6. Foxi4

    Foxi4 On the hunt...

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    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.
     
  7. Erdnaxela

    Erdnaxela GBAtemp Fan

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    Ouch, news like that are never good, I hope all the Sony branch will do better this year.
     
  8. chris888222

    chris888222 GBAtemp's Flygon Fan

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    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?
     
  9. Foxi4

    Foxi4 On the hunt...

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    They bought the company entirely, before it was a bizzare joint venture of Sony and the remnants of Ericsson.
     
  10. VashTS

    VashTS Beat it, son

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    best news ever they deserve it
     
  11. Foxi4

    Foxi4 On the hunt...

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    *Sounds teh Fanboy Alert, hides in teh Anti-Fanboy Bunker*
     
    1 person likes this.
  12. Valwin

    Valwin The Neautral Gamer

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    Damage control engage
    talk about other consoles to get attention away from issue confirmed
     
  13. Foxi4

    Foxi4 On the hunt...

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    Dude, you can't read. Read again what I wrote, and this time make notes.
     
  14. dorayaki95

    dorayaki95 Advanced Member

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    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
     
  15. Langin

    Langin GBAtemp's kpop addict

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    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!
     
  16. DarkStriker

    DarkStriker GBAtemp's Kpop lover!

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    NIKU!
    I carry both my phone and PSP. Problem?
     
  17. KingVamp

    KingVamp Great... AETHER!

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    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.
     
  18. Foxi4

    Foxi4 On the hunt...

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    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.
     
  19. Hielkenator

    Hielkenator GBAtemp Psycho!

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    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.
     
  20. Valwin

    Valwin The Neautral Gamer

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    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