Sony quarterly loss $391 mln, expects more red ink

Yahoo News

Sony said Thursday its net loss for the fiscal first quarter was 37.1 billion yen ($391 million) compared with a 35 billion yen ($368 million) profit in the April-June period a year earlier. Quarterly sales dropped 19.2 percent to 1.56 trillion yen ($16.4 billion).

If Sony is still struggling, then things must still be very bad, so much for pour supposed recovery.....

The results were better-than-expected because of cost cuts, an easing of the yen's appreciation and gains on the Tokyo stock market, according to Sony, which has music and movie divisions as well as making the Walkman portable music player and flat panel TVs. Analysts surveyed by Thomson Reuters were forecasting a 109 billion yen loss.

Yahoo News

As bad as it is, it's not as bad as they expected.....

I hope this means they will drop the price of the Playstation 3!

IRM :shk:

No, to worry Obama will bail them out and everything is going to be just fine.

reply to post by InfaRedMan


Actually, what it did was cause the ps3 to be redesigned (to be manufactured cheaper).

That said, they are keeping the profit and "NOT" passing it on to customers.

That said, it is one of the big reasons ps3's are not selling very well in the US, when you can get a 360 or wii for far less.......

IMO, the more they try to squeeze their customers for every penny they can, they will become less and less popular....

reply to post by InfaRedMan


I wouldn't hold your breath. PS3 sales have slumped, the PS2 is currently shipping more units that its replacement. And with the CBHD/CH-DVD format currently outselling Blu Ray in China ... with a possible backwards compatability with HD-DVD (which mugs like me invested in) ... the future of the PS3 is decidedly uncertain.

(And I'm an owner of a PS3 too before the format war starts again !)

Not that surprised when you look at how greedy they are being with prices lately if you look at something like the PSP!GO just as the next example its exactly the same specs as the normal PSP only with no UMD drive and 16mb of flash memory it also has a smaller screen and inferior battery life.

So basicly they are expecting customers to pay $249/EU249 which works out about £212 here not to mention they'll probably bump that up some like they ussually do in the UK. The normal PSP which plays exactly the same games has a bigger screen and the UMD drive is £99.

So what we have is Sony making the hardware slightly smaller expecting everyone to throw away all their purchased psp disc's which will be completely useless on the GO! rebuy the games and pay over double the price for the new console solely because it's new.

All I know is the Go! will be cheaper to make for sure in a lot of areas the components such as battery and screen are worse yet they give it a crazy price they pretty much did the same with the ps3 as well at launch.

MY advice is don't buy one at least until the price is equivalent besides they deserve to lose money after that rootkit stunt a few years back.

[edit on 30-7-2009 by Teknikal]

reply to post by Ulala


I have been a Sony man since the PS1... but I haven't been able to bring myself to purchasing a PS3 at their extortive prices. I have been considering a 360... I imagine I'm not alone in this. Sony needs to wake up... and quickly!

Until then, there are still so many awesome titles for PS2 that I'm more than happy to whittle away my hours on!

IRM

Cant jusstify the purchase of a PS3. I dont care about Blu-Ray and the console itself is too expensive for what you get. There are maybe 3 worthwhile "Sony exclusives" and everything else is cross platform.

Lets not forget the catastrophe of their hand held, PSP. Redesigned a hundred times but never given the single feature consumers wanted, dual analog sticks.

Along with the PSP comes the god awful proprietary UMD lead out by the utter failure of the Mini-Disc.

Sony took too many chances on too many stupid things and for that they're paying the price.

They deserve the loss after they ripped out the ability to play the older games on the ps3 and still continue to sell it for the marked up price. I have almost every older system but these new ones are complete garbage. The ps2 is still king and atlus is throwing out the best games for it now like that do every console cycle, Persona 4 and Devil Summoner 2.

"Now, this is just my unproven opinion".

It seems to me, that with the worlds economies in the dumster, as it were, it would be intelligent for Sony (most other major corporations) to reduce their pries on items.

Not only would it help the consumer to purchase their products, it would go a long way to showing they care about the consumer and not just their money.

I also believe it would do a lot to incease the volume of sales of their products which would increase the add ons-games and accessories for ps3, movies for blueray players.......

I am not an eonomist and have never had any formal traing at all, just this seems logical to me.

Actually, Sony have been on the artificial respirator for several years now. They canned 80,000 workers last year (that's not a typo: 80,000 layoffs around the world). They're laying off more this year. They are going out of business, the question is when.

Personally, I think it won't be soon enough. They completely destroyed the music business. For those of you who remember the music business before Sony came into it in the mid-80's, it was a completely different world. Back then, bands would get development deals. Meaning the label would support them for up to five albums, explecting very little to no sales, while the band took this time to develop their style. Development deals don't exist anymore. It all works on a trimestrial scale; if you've cost them more in the last 3 months than what they made; you're out. For those who don't know, U2 had a development deal. In today's market, they would never be signed.

Sony was behind the switch from vinyl to CD (again, for those who have never listened to an analog sound system, although CD's are more practical, they don't sound anywhere as good as vinyls). At the time, vinyls sold for around 9.99$ while the CD came in at 19.99$ The CD was much more expensive to produce (4$ vs around 0.25$ for a vinyl). Until the following year when a new, cheaper process was invented to make them. The manufacturing price went down to about 1$. But CD prices never came down. When Sony saw this, they started buying out labels. In the mid 80's there were over 450 major labels, now there are only 3.

That's why you have no diversity in today's market. That's why talented artists get overlooked in favour of artists who can sell.

They're also doing the same thing in the film industry.

As for their audio and video components. The trinitron tube was the best on the market. But most manufacturers used it and sold their TVs, with that same tube, for hundreds less than Sony did. Along with the Beta-max camera, that's the only piece of equipment Sony ever made that was high-range. Everything else they've ever made has been mid-range at best.

Today it's even worse, I'm not convince they even make mid-range anymore. Their audio components sound pretty bad. They're made in China like all others, yet they sell for much more than everybody else's. They rely on their brand name.

Hopefully, when they go out of business, we'll see a return to better components, better sound and, especially, better artists.

I have a different take on this.

Could Sony have made more intelligent business decisions, yes.

Could they be a better, more caring company, yes.

But wishi8ng them to go belly up would mean puting hundeds of thousands if not millions out of work.

Not just employies of Sony, but their suppliers, the material suppleiers to them, the manufacturers, the shippers......

HAhaa sony sucks and so does the PS3...

Ive always thought sony products have been over priced...

Seriously over priced.

reply to post by open_eyeballs


I agree when you by a Sony product, you are paying a certain amount for the name and reputation.

This, however is not uncommon......

Poor Sony...this after how many profitable quarters?

Just sayin'

reply to post by Aggie Man


With all due respect.....

How many quarters have YOU worked......

Does it matter, no!

Would not working after 40 quarters of employment be hard on you???

You see my point?

Originally posted by mrmonsoon
reply to post by Aggie Man

 

With all due respect.....

How many quarters have YOU worked......

Does it matter, no!

Would not working after 40 quarters of employment be hard on you???

You see my point?

If I had already banked billions...no it wouldn't be hard on me.

Sony does not rely on the PS3 for the majority of it's revenue, just like it's obvious Microsoft does not rely on the Xbox.

Sony has seen slumps in consumer spending across the board, from electronics, it's PS3 and MOVIES. Which is a big part of their revenue. Gadgets are not selling like they used to.

But there is another problem.

Japan's currency in relation to the US Dollar means that they loose a portion of their profits as they exchange the currency. Being a Japanese corporation selling to an America with a weaker Dollar, is hurting all Japanese companies.

Japan is focusing sales on Europe and China, more and more corporations are coming to this realization.

Looks like there's little love for Standard Oil New York nowadays.

reply to post by eldard


I fully understand your responce and I am not so against it as......

Realize, they layed off 80,000 direcxt workers......

Another 80,00 out of work........

How many more this year????

How many support supplies will lose people without Sony to supply.....

People, these are the grave losses, not the fact Sony corp is losing money..