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Submitted by OutLaw 2904d ago | news

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... (Industry, PS3)

UrbanJabroni  +   2904d ago
It is going to get a LOT worse...
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.
Deceased  +   2904d ago
I agree
They deserve everything they get root kits, exploding batteries, PS3's frying like bacon in a george foreman.
DC RID3R  +   2904d ago
UrbanJabroni
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!!!!!
Islandkiwi  +   2904d ago
What happened?
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.
TheMART  +   2904d 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!
bilal  +   2904d ago
i think
soon someone would put you in a museum for taking fanboyism to such new heights....
Chronical  +   2904d ago
All I gotta say
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
Dante1  +   2904d ago
I fail to see how this affects the PS3!
Look at you MS fanboys, this just shows how desperate you are acting to try bash Sony, why, let me ask why? Is it because you are jealous of what PS3 has got over the 360, is it the fact you can't afford to buy a PS3 because you bought a Xbox 360, is it the case you are just ignorant fanboys who have giving there word to defend MS to the death, seriously you all call yourself's gamers, but your nothing more than a common fanboy punks, who obviously don't have any decent games to play right now, at least i can play my Ps2 while waiting for the PS3!
PS360WII  +   2904d ago
it affects the ps3
because if sony doesn't have anything left in the bank they can't really make anymore consoles now can they
BIadestarX  +   2904d ago
...
You obviously don't understand the impact of bad press. You remember a while back whe there was a big recall for tires (I'm not sure if it was goodyear) but it created a major impact on the brand even if not all tires were bad. If Sony keep getting bad rep the brand will feel it; and people will think 2 times before buying anythign that has Sony's name on it.
Mr Murda  +   2904d ago
Invoking Class Warfare Dante1?
The comment "you can't afford to buy a PS3 because you bought a Xbox 360" is absolutely the point why Sony is going to fail in the long run. Since when did I have to live an Uber Baller Lifestyle to afford a video game system? Sony is trying to cater to the high end market, but the high end products I've bought in the past haven't caught on fire. Sony is in financial trouble...FACT...and they're trying to cut production costs by using cheap materials. This is what companies do when they're desperate, trust me (this is 5 years of being a Business Major serving me well). Does this meant that Sony wont win this gen in the console wars? Not necessarily. Does this mean that Sony will have to win this gen in order to survive as a legitimate company? Apparently.

These articles aren't being written by some pimple faced fanboys, these are financial analysts that have put in more years of education and work than both me and you combined. It's not the official XBOX magazine, but rather the likes of the Wall Street Journal (an example). They could care less about the console wars, they're looking out for investors.

Let's wake up Fanboys!
malachi23  +   2904d ago
Only one thing i can say here
HAHAHAHAHAHAHAHAH!!!

WHAT GOES AROUND COMES AROUND SONY!
Funky Town_TX  +   2904d ago
OLD NEWS
I'm sure Sony has insurance for things like this. Eitherway, I will wait for a price drop , new hardware with bugs fixed, and for blu-ray to either win or loose to hd-dvd.
zonetrooper5  +   2904d ago
Well these sony batteries are in every major and some non major brand laptop so this could add up to more money loss. As well as the lawsuit from immersion. Its looking very bad for sony at the moment. But the PS3 can keep them afloat.
Mikey_Gee  +   2904d ago
Kind of makes me second guess ....
I was planning on buying my next HD TV from Sony
The SXRD 60" SXRD XBR2 (Lcos Set @ true 1080p)
This is a $5000 purchase.
If SONY is in bad shape (even outside the console world) it makes me wonder if this is a smart choice.
I man I have NO DESIRE to buy a $5000 TV to have no support if they go under.
I know MANY say "Go away you retard .... Sony will NEVER EVER go Under" .... but I have seen bigger companies fall into NOTHING.
Ever hear of "NORTEL" ???
They went from HUGE to pretty much nothing almost overnight !!
-- AND NO --
This IS NOT a knock at the PS3 for all you small minded 13 year olds, it is how big people think in the grown up world so don't start your flame posts .......... I have a PS3 on Pre-Order... but a $5000 (plus tax) TV is a bit more of a concern to me and future support.

No point having a 5 year warranty if nobody is there to back it. And if you cannot get replacment bulbs .... well the egg will then be on my face if my $5000 TV becomes a paper weight.
#10 (Edited 2904d ago ) | Agree(0) | Disagree(0) | Report | Reply
Marriot VP  +   2904d ago
dang son, 5000 for a HDTV. My recommendation is go with samsung, get their new DLP models using 5 color wheels instead of 3.

Trust me those things are the absolute best for gaming.
Mikey_Gee  +   2904d ago
Nope
DLP is not even on my list. My eye is very trained (use to work in the media field) and I see barn doors and rainbow effect even to a SLIGHT degree.

Color wheels and wobulation are NOT my friend.

My dad just bought a Sammy DLP and I see rainbow EVERYWHERE !!!

LCOS is what I want in a RP TV.

Still reading on the LED set

But JVC makes some nice LCOS sets as well running at 1080p

I don't mind paying the money if the TV is worth it.

The Sony SXRD are very high rated and WHAT I WANT .... but the state of the company is a worry of mine.

If I now they will be here at least till my warranty runs out ..... I WILL BUY the SXRD XBR2

THEY LOOK UNREAL and with a 2.5ms rise and fall time they look fantastic under the FASTEST scenes.
#10.2 (Edited 2904d ago ) | Agree(0) | Disagree(0) | Report | Reply
GRUNT  +   2904d ago
:/ I don't have any PS2 games that I own that intrests me the only game I want to keep my PS2 active
is "STAR TREK: ENCOUNTERS" DA**** ONLY for the PS2
#11 (Edited 2904d ago ) | Agree(0) | Disagree(0) | Report | Reply
DJ  +   2903d ago
?
Even when crap happens to Sony they still act angry and talk smack about the company, haha. Talk about an amazing amount of hate against the PS3.

To MikeyGee. My step-dad has a 60" SXRD, and it is GORGEOUS! 1080p is awesome. We've had it for about 2 and a half months and it was so worth it. Only thing missing is HD movies, but the PS3 will solve that.

It's original sticker price was over 4 grand, but our neighbor found it at a small asian store in Corona for 3300...and Best Buy had a "We'll match anyone's price" policy going on. The guy gave them hell when the BB representative said "oh, that price doesn't count", and we ended up using his receipt as leverage to get it at the same price.

If you're wondering why he took the advertisement to Best Buy instead of buying it straight from the asian store, it's 'cause they charged WAY too much for delivery. Best Buy was cheaper in that department.
#12 (Edited 2903d ago ) | Agree(0) | Disagree(0) | Report | Reply
Mikey_Gee  +   2903d ago
NICE TO KNOW
Yeah, this TV is the only one that really gave me the "WOW" factor. ANd actually the one I am looking at is the Step Up from your Dads ... it is the 60" XBR2 (coming out within the week) .. not the 60" A2000. The 70" XBR2 is out already and getting RAVE reviews.

REGARDLESS .... both a stellar.

And yes, $5000 is the sticker price ... I will FOR SURE wheel and deel. I am buying from my local SONY STORE and know the manager pretty well. (I just hate BB and the warranty hidden crap they have) ... delivery from the Sony Store is free with a bunch of extra stuff (HDMI cable, etc etc)

CAN'T WAIT ....

My XBOX 360 (which as much as the fanboys hate to say is a KILLER CONSOLE) and PS3 will look AWSOME ON IT !!! Glad I do not have to CHOOSE and have the luxury of having both.

Might actually bite the bullet a bit more in price and buy the 70" XBR2

DRC 2.5, full 1080p HD and VGA support of 1920 x 1080

March is to far away ... might talk the wife into a early Christmas gift (but will not hold my breath)

BTW ... seem the 60" A2000 running a HD-DVD at 1080p using the HDMI cable ........... WOW !!!
#12.1 (Edited 2903d ago ) | Agree(0) | Disagree(0) | Report | Reply
Lex Luthor  +   2903d ago
Ouch!!!
that sum of money is far more than i had expected, serves sony right for failing to make quality grade products and neglecting peoples safety.
Madmax1281980  +   2903d ago
i remember a while back when sony fans where saying that 360s are gonna burn ppls houses down lol well i think the ps3 will burn a few down but im safe im not getting one so my house is ok from that disaster. lol lol lol lol

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