Sony Shares Tumble to 31 Year Low Amid Record Losses - BBC

HamburgerBandit

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Sony shares tumble to 31-year low amid record losses

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Newly appointed president Kazuo Hirai will have to tackle a host of issues at Sony

Sony shares have tumbled to a 31-year low, a day after the company reported a record annual loss of 456.7bn yen ($5.7bn; £3.5bn).
Sony shares fell as much as 6.7% to 1,132 yen on the Tokyo Stock Exchange.

The firm, which has been making a loss for each of the past four years, has forecast that it will return to profit in the current financial year.
However, analysts said that investors were not convinced the firm would be able to achieve that target.

"Sony is facing a lot of difficulties and the new president has not been able to produce a clear plan as to how he will turn around the company," Yuuki Sakurai of Fukoku Capital Management told the BBC. "Even the little that investors have heard, they are not very impressed with."

'Remains at risk'

The Japanese electronics maker has been hit by a spate of issues in recent times. Its TV business, one of its biggest growth drivers in the past, has been hit hard by increased competition and falling prices. The division has been making losses for eight years in a row.

The company has also lost ground to rivals in the gaming and mobile phone business.

Analysts say the firm has also been lagging behind in innovation and product development, which are key to growth in the consumer electronics sector.

To make matters worse, Sony has had to deal with rising costs and a strong Japanese currency which have also hurt its earnings.
Earlier this year, the newly elected president and chief executive, Kazuo Hirai, announced that the firm would cut 10,000 jobs as part of a major reorganisation.

However, analysts warned that despite the restructuring plan, a falling market share in key segments may continue to hurt Sony.
"On the whole, [Sony] remains at risk of ongoing losses in its cellular application and TV businesses, and we continue to see little prospect of a rise in valuations for the time being," Credit Suisse analysts Yuan Tian and Shunsuke Tsuchiya said in a client note.


More news at the source

http://www.bbc.co.uk...siness-18030939

So more bad news but this time with a silver lining. The company expects to return to profitablity this year after 4 long years of financial losses.

Everything rests on the sales of the PS3 and the Vita.
 

FAST6191

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Bugger I was doing nothing much for part of the earning statement day and I could have shorted them but didn't think to do so and just commented in the thread instead. Oh well guess it means I am not quite middle aged yet.
 

FluffyLunamoth

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If you think vita is going to save the sales of sony





4f9e11a46a18c.jpg

I love that ski instructor.

But seriously E3 is just a few weeks away. Lets see what happens.

Anything short of a massive price drop is not going to help the Vita. It's simply not worth the money. All 3 current gen consoles are cheaper than it, as well as every worthwhile portable.
 

Fibrizo

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I think this must also be part of some news that were around the net about the vita been outsold on the west by the DS and I think I also hear that Nintendo is now worth more that Sony.
 

Foxi4

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Anything short of a massive price drop is not going to help the Vita. It's simply not worth the money. All 3 current gen consoles are cheaper than it, as well as every worthwhile portable.
Except the Vita can't get any cheaper while remaining profitable at the same time - those quad core cpu's and gpu's cost quite a bit and considering the specs, the hardware is actually cheap.

Compare it to smartphones similar spec-wise - the Vita is half the price in comparison. Don't expect a massive price cut at least in a year's time, the chips have to get cheaper for the end product to do the same, and Sony factories were not the only ones that were hit by floods.

It's well-worth the money, it just hit the market though and requires software to back it up. Since that's on its way, I'd say that it won't be the underdog for long.
 

Rasas

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It might be half the price but I get more options with a smartphone compared to the Vita. Honestly if they made the Vita more like a smartphone like they did with the PS3 as a media center I would of bought one already and yes I know they added skype support.
 

Fibrizo

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Nintendo isn't even Sony's biggest competition. Panasonic, Samsung, Apple, LG, hell even fucking SHARP is just raping them in the electronics division, from televisions to music players, from headphones to cell phones.
 
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FluffyLunamoth

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Anything short of a massive price drop is not going to help the Vita. It's simply not worth the money. All 3 current gen consoles are cheaper than it, as well as every worthwhile portable.
Except the Vita can't get any cheaper while remaining profitable at the same time - those quad core cpu's and gpu's cost quite a bit and considering the specs, the hardware is actually cheap.

Compare it to smartphones similar spec-wise - the Vita is half the price in comparison. Don't expect a massive price cut at least in a year's time, the chips have to get cheaper for the end product to do the same, and Sony factories were not the only ones that were hit by floods.

It's well-worth the money, it just hit the market though and requires software to back it up. Since that's on its way, I'd say that it won't be the underdog for long.

Well, it's the same thing that happened with the PS3. Only in this case, the differences between a consolecomputer and portable are different. Portable technology, like phones and stuff, simply are not ready for this, mostly gaming portables. Software may give it a push, but because of the lack of any real software backing it up, I think it may just go the way of the Dreamcast and die. It doesn't have nearly enough to make it worth it.

Not to mention that, for the price, you can get something that can do so much more than it. $250-$300? I can get an ASUS Transformer for that, and have a fully-featured, fully-functional, non-locked tablet.

The only reason the 3DS starting price was at all justifiable was that it had the DS library to back it up. And even then, it still took a massive price drop before it picked up its steam. That's why I think that the Vita's just going to flouder around until it's price becomes justifiable.

EDIT: No price drop = no real profits. Price drop = still no profits. I think they're fucked. I could be wrong. I would hope so.
 
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The problem with Sony right now is that they charge way too much for their products.

For example, an amazing 600 dollar Panasonic HDTV will cost about half the price of a Sony TV with the same specs.
 

Fibrizo

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The problem with Sony right now is that they charge way too much for their products.

For example, an amazing 600 dollar Panasonic HDTV will cost about half the price of a Sony TV with the same specs.

I think Sony even just released some headphones that sell for over $800. No one's going to fucking buy them because it's too ridiculous of a price, regardless of how good they are. Sony just doesn't get it.
 
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ferofax

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If Sony and Ericsson's partnership didn't end so soon, they might have been able to make the Vita as a full-fledged gaming smartphone, kinda like how the Xperia Play does for the PSP. that would have been so much win, a smart phone with actual game buttons and dual analogs with monster specs.

also, they should start bundling their TVs with PS3s (or the other way around). this should help their ridiculously expensive TVs into actually churning out some sales. hell, they should release a TV with BUILT-IN PS2/PS3 capabilities. no other company has done that, nor thought of it. only Sony is currently in a position to actually try something crazy like that, and crazy might just be what they need. that could be their new Walkman. sure, it'd be expensive, but hey, built-in PS3? so much win.
 

gamefan5

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I'm pretty sure Sony has a few tricks up it's sleeve so I wouldn't count them out just yet.
Even with a few tricks up their sleeve they can't possible save every division at once.
And where did I say that they can? I never said that they wouuld bounce quickly. Hell I know their financial losses are really bad.
 

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