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...

UrbanJabroni6405d 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.

Deceased6405d ago

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

DC RID3R6405d 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!!!!!

Islandkiwi6405d 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.

TheMART6405d 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!

bilal6405d ago

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

Chronical6405d 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

Show all comments (22)
90°

10 Weirdest Video Games of All Time

Plenty of unforgettable games have completely messed up their players throughout the years, all the way back from the PS1 days to the dark recesses of the modern internet.

Read Full Story >>
culturedvultures.com
JonTheGod1d ago

Why are the Katamari games not on the list??

130°

70 percent of devs unsure of live-service games sustainability

With so many games fighting for players' attention and interest losing out over time, time sink games are at risk of eventually losing steam.

Read Full Story >>
gamedeveloper.com
thorstein1d 20h ago

It was worrisome to begin with.

It's a niche genre with only a handful of hits that can stand the test of time.

Cacabunga23h ago

I like the sound of that!! I will for sure never support these gaas games.
Sony must be shocked at gamer's reaction, making them cancel a few of these and hopefully go back to the good heavy hitters they had us used to..
now bring on that PSPro reveal and show us some SP 1st party awesomeness.

CrimsonWing691d 19h ago

What’s to be unsure of!? Look at the ratio of success to failure!

DarXyde1d 2h ago

It's pretty ridiculous.

Imagine having a breadth of data at your disposal to see the statistically low success rate of these games, only to be laser focused on the exceptional case studies.

shinoff21831d 18h ago

Yes. Stop all the live service bs.

jznrpg1d 18h ago

Only a few will catch on. You need a perfect storm to be successful in GaaS and a bit of luck on top of that. But a potential cash cow will keep them trying and some will go out of business because of it.

MIDGETonSTILTS171d 17h ago

Helldivers 2 manages just fine…

Keep production costs low… don’t just make custscenes until the mechanics and enemies are perfected first.

Make so much content that you can drip extra content for years, and the game already feels complete without them.

Most importantly: make weapons, enemies, levels, and mechanics that will stand the test of 1000 hours. This might require more devs embracing procedurally generated leveled, which I think separates Helldivers 2 from Destiny’s repetitiveness.

Show all comments (15)
60°

The Battle Pass Is The Worst Thing To Happen To Modern Gaming

Nameer from eXputer: "Some exceptions aside, I don't think the battle pass is a net positive for gaming with how they're implemented in most live service titles."

got_dam1d 22h ago

Battle passes AND meta gaming both.

DivineHand1251d 20h ago (Edited 1d 20h ago )

I like the way Helldivers 2 does battle passes. It allows you to make purchases on each level of the battle pass and gives you the option of choosing which item to unlock first. The more purchases you make using medals the further you progress. There is no timer and you can earn medals towards purchasing stuff via personal orders and Major orders.

I haven't played much live service games that have battle passes but I remember some games that have battle passes where you progress through it linearly using an exp system. What makes it really bad is that the battle pass will have like 50 or more levels with the cooler stuff being closer to the end. They also have an in-game shop that sells exp boosters so you can reach the end of the pass before it refreshes. Everyone ilse will have to grind their way through.

lucian2291d 19h ago

battle pass in fortnite is perfect; buy one and it buys the rest for every other season as it gives you more money than the first cost. so 8.50 and season ends with you getting 13.00, it pays for the next and you have some pocket change to save up for cash shop. All of which is optional