110°

Sony sees $ 560 million losses from burnt batteries and PS3 discounts

A quick estimate of Sony's losses will amount to US$ 560 million, out of its expected US$ 1.1 billion profits in half this year. That's US$ 340 million for a global recall of some 10 million lithium ion notebook PC batteries and US$ 220 million worth of price slash for the PS3. Unfortunately, the figure could rise further if the PC vendors or consumers take legal action against Sony. So put two and two together, and we're watching 560 million of 'em greenbacks slowly burn to ashes...

UrbanJabroni6409d ago

Unfortunately for Sony, this is really only going to get worse. This article failed to mention the biggest addition to the battery problem:

"Ars Technica reports that Sony is issuing a "worldwide recall of all of all Sony-manufactured lithium-ion batteries used in notebook computers." About time. This comes on the heels of Lenovo announcing a ThinkPad battery recall. Forbes reports Sony is working with the U.S. Consumer Products Safety Commission "on a worldwide recall program for certain battery models [that] may involve additional recalls.""

This means that _every_ Sony laptop battery, in addition to possible other battery models. Forbes hass estimated this is going to cost Sony well into the billions.

Also, while it isn't clear in this article, the estimate of a $220 million loss on PS3s is JUST from additional price cuts..."But in the meantime, Goldman Sachs projects, Sony will lose nearly $2 billion on the PS3 by the end of this fiscal year in March."

With all of this put together Sony is looking at a $3-$4 billion dollar loss, with $6 billion in the bank and profits of $1million. Sony is also banking the company on the PS3. ( http://www.wired.com/wired/...
If there are additional manufacturing delays or sales aren't what they are predicting, this is a company that could be in serious dire straights.

Note for fanboys: I am NOT talking about the quality of the PS3 AT ALL. This is solely about money loss from exploding batteries and PS3 losses.

Deceased6409d ago

They deserve everything they get root kits, exploding batteries, PS3's frying like bacon in a george foreman.

DC RID3R6409d ago

agreed, great points made!!

what a LOT of people DON'T realise is that sony are NO longer the no.1 electronics company in japan!!!
for the last 3 years or so, SHARP has emerged as japan's TOP DOG. because of this sony have literally had to beg SAMSUNG (if you check out japan's war history with korea you'll know what i mean), a korean company, to bail them out with plasma screen technology, which is hillarious to me, as japan practically scorns (looks down on) korea! heheh

now they have to eat their own sh*T to survive in their own backyard!!!

culminating with the laptop battery fiasco, sony's WHOLE image is now quickly becoming what Goodmans is........sh*t!!!

but i knew sony were frauds from WAY back with the ps1+2.

crap disk drives that blow after a few plays, suggest to me that either the company who made them were dumb(didn't know what they were doing) or smart (realising that if the disk drive breaks, chances are your gonna have to buy another).
I go with the latter, and that's why i dislike sony!!!

never try to PIMP a PIMP!!!!!

Islandkiwi6409d ago

Sony used to mean quality, but this battery fiasco is just awful...and what's worse, it's long and drawn out. Sony should have recalled themselves, as it is they're letting their names get further sullied every three-four with a new recall notice.

TheMART6409d ago

Whow whow whow again!

I knew Sony was doing bad, but this is even worse then I expected... Buy a PS3, because it might get worth money to sell it to a museum soon!

bilal6409d ago

soon someone would put you in a museum for taking fanboyism to such new heights....

Chronical6409d ago

Serves them right. F*** Sony. thats what happends in the end when you cut corner. It all comes back to you. Im not just talking about the batteries but everything Sony has

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80°

El Shaddai: Ascension of the Metatron - Coming Back for a New Generation

Originally launched in 2011, El Shaddai: Ascension of the Metatron is coming to Nintendo Switch, so It's time to look back at the original.

jznrpg6h ago

Still have my ps3 copies. Bought it at launch and another one when I found it cheap and in perfect condition about 10 years ago. I wouldn’t buy it on Switch but if they made a PS5 version I would. I still have one of my PS3 Fats hooked up so good to go either way.

darthv726h ago

Id play it again on the switch. I wished my 360 version was bc but this is still a good way to play.

140°

Fallout 3's Reveal Led To Death Threats And Bethesda's First Security Guard

The artist behind Fallout 4’s Deathclaw reveals just how bad things got back when Bethesda took over the series

anast7h ago

People are stupid I get it. No one should feel unsafe,

But I think they need to talk about why they cut so many corners during the development process and why none of their games ever look current. And why they think all of this is okay while they charge full price.

LucasRuinedChildhood7h ago

As much as Bethesda deserve criticism, that's not really relevant to the reveal of Fallout 3 in 2007.

VenomUK4h ago

The default angle Kotaku always go for is to highlight the worst in gaming.

I would’ve focused on the creative.

gold_drake3h ago

there is no "but". the hell lol
you dont send death threats, period.

60°

Chatting Shadows of the Damned: Hella Remastered with Suda51

CGM Writes: While we were over at PAX East, we were able to sit down with Goichi Suda (Suda51) and talk about the upcoming remaster of Shadows of the Damned

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