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Sony returns to black in Q3 on asset, product sales

Feb 7 (Reuters) - Sony Corp posted a third-quarter operating profit after a loss a year ago, supported by lower costs and proceeds from asset sales that are helping it offset weak demand for its TVs and other devices. In the three months to Dec. 31, Sony posted a 46.4 billion yen ($496 million) operating profit, compared with a 91.7 billion yen loss a year ago.

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majiebeast1264d ago (Edited 1264d ago )

Thats good news for Sony but they have a long way to go, but with Kaz at the wheel it is very much possible. Let 20th FEB roll in and show me those next gen ps4 games.

aceitman1264d ago

a start for them to continue to the road of ps2 era where they can be on top again .

Dante1121264d ago

Congrats Sony, keep it up. Lol, I was wonder why this Sony report was taking so long to get approved on here. This usually gets approved within the first five minutes but this has been in pending for about forty five minutes so far.

G20WLY1264d ago

From the article, "Since the start of the year Sony's shares have gained nearly 60 percent" - and this before the PS4 has been announced? That's pretty amazing!

Keep up the momentum, seems he shareholders are liking the changes that have been made...very much :)

Ezz20131264d ago

no one here said any thing about sony shares are up to 60%

edit: @g20wly
you beat me to it

Ezz20131264d ago (Edited 1264d ago )

ok i gone to neogaf and i saw that ps3/ps2 sold 6.8million
http://www.sony.net/SonyInf...

from my understanding...if i'm wrong some one correct me

IDC forecasted 77million ps3s,
this new report sony had what, 76 million ps3s? 1million less than the IDC report
(notice i took out 0.8million for ps2)

what MS xbox360 numbers ?! ..75.9million

ps3 76million
xbox360 75.9million

so they are tie or ps3 is indeed ahead

so i don't understand where did xbox guys come with ps3 is in 3rd place

again if i'm wrong on anything some one correct me

Muerte24941263d ago (Edited 1263d ago )

Sony is no longer tracking ps2 sales. Going from what we know from the IDC report and Sony's q2 + q3 reports last year, it's 77 million.

ps3 q2 report.
http://en.wikipedia.org/wik...
70.2 million (as of September 30th 2012)

70.2 + 6.8 = 77 Million

This falls exactly in line with the IDC prediction. Just like they were spot on with their Microsoft prediction 76 million (MS report 75.9). People made this same argument when Sony released their Q2 numbers. Then when the IDC report came out people said..."I didn't think it would happen that soon". IDC has been been accurate so far. I doubt they would risk their firms reputation stating "ps3 has overtaken xbox360" if they weren't 100% sure.

I think profits are down because of Vita sales and ps4 development. Vita is going to need a price cut. Guarantee you're going to be able to use your vita with your ps4 as a primary or secondary controller

starchild1263d ago

Sony has done an incredible job learning from their mistakes.

I have very high hopes for the PS4. Judging by all the rumors the PS4 should be easy to work with, powerful, and more affordable at launch than the PS3 was.

I think they are on the right track to dominate the home console industry again.

MaxXAttaxX1263d ago

At first it was games, then sales and now they're playing the "profit" game.
For every positive PlayStation related article, there's always someone turning it into a negative.

+ Show (5) more repliesLast reply 1263d ago
Good_Guy_Jamal1264d ago (Edited 1264d ago )

Finally. Just putting the facts in one place here so please mods, do not hurt me.
Q3 results for gaming divisions as per Microsoft, Nintendo and Sony reports:
Microsoft - $542.3 million in profit for Xbox business (Xbox 360)
Nintendo - $450 million in profit (DS, 3DS, Wii, WiiU)
SONY - $6 million in profit for the games business (PS2, PSP, PS3, PS VITA)
Profits all around. Yay.
Looks like whatever Microsoft is doing is working for them.

Footnote. I am well aware that EDD consists of more than just xbox business which is why I have deducted 9% off the total. Why 9% you ask? A report in 2012 showed that xbox business accounted for 99.1% of all EDD revenue in 2011. So I decided to be safe and make that 0.9% into 9%. The more accurate number would be $590.6 million but that would be unacceptable round these here parts so there you go.

Hingle_Mcringleberry1264d ago

Dude no way!! You're telling me Xbox 360 on its own made almost a hundred times more profit than the whole Playstation family? I don't know what to say to that. I want to cry and laugh so hard. You've put me in an emotional coma after that.
Wow, holiday season and SONY walk away with 6 million from their games department. What's the point??

StreetsofRage1264d ago TrollingShow
neoMAXMLC1264d ago

Can't imagine how different things would be if people ever smartened up and stopped paying for Xbox Live.

Highlife1263d ago

Well if you had owned an xbox360 from the begining and were paying for live the entire time you would be around $350. Damn what a shame. To think people would actually pay that much for live. I guess MS is smart people will pay for anyting.

GalacticEmpire1263d ago

Congratulations, you managed to turn a positive Sony article into...

"ner ner MS makes more profits!"

...without either using any backed up numbers or getting marked for stealth trolling, I tip my hat to you sir.

_FantasmA_1263d ago

Doesn't matter how much M$ profits. They don't give you anything anyways. They just take your money and ask you pay them some more. You'd think they would invest in some high quality studios to bring you something other than 11 Halo and Gears games. Instead they recycle their only 2 games, charge you to play online. Meanwhile Sony doesn't make much profit and yet they continue to innovate and bring what really matters in a console and that is GAMES!

SilentNegotiator1263d ago (Edited 1263d ago )

Thanks for the "facts"

Now how about a source/link?

+ Show (4) more repliesLast reply 1263d ago
UnholyLight1263d ago

Great for Sony! This coming from an Xbox guy haha. I hope Kaz can lead Sony into new paths. I actually really like the guy and want to see him succeed in bringing Sony some more glory.

Better for all us gamers.

omegaheat1263d ago

I don't give a shit about how good an offshore company is doing. I strongly support american products. When Microsoft created the Xbox360, it was a game changer. Before the console, I remember we would have to wait a year or more before consoles even touched our soil, and then another year before we could play the games that were enjoyed by japanese gamers. Microsoft changed the game by releasing the console worldwide within just a few months. Sony followed, and it's been great for gamers ever since.

DwightOwen1263d ago

True. I still remember the agonizing wait Americans had to endure before we could play the Dreamcast.

C-Thunder1263d ago

Who gives a $hit about an American company if they're manufacturing off shore any way? Not to mention the American attitude that comes with it; "oh let's just advertise the hell out of our system, we don't really need games"

otherZinc1263d ago (Edited 1263d ago )

@Ezz2013

I didnt see where SONY said they were leading the XBOX 360 in world wide sales.

See, in an article like that, it should state as such.

Again, SONY cant make a statement to its shareholders that is false!

I'll continue to wait for SONY to release such a comment!

@Good_Guy_Jamal,

Thank you for stating Shareholders Information.
Its hard to discount Financial Facts.

kenshiro1001263d ago

...What does this have to do with sales? Sony's back in the black. That's what the discussion is about.

Get off your horse.

clint9casle1263d ago SpamShowReplies(1)
showtimefolks1263d ago

sony is on right track just make the right decisions for future, PS brad is profitable and should be a bigger focus while the TV department needs to step their game up

+ Show (4) more repliesLast reply 1263d ago
MastaMold1264d ago (Edited 1264d ago )

Indeed and with Feb 20 coming up and whatever the announce on that day be it new software or hardware they might see more profit good way to start 2013

banjadude1264d ago

Looks like Kaz was the right man!

r211264d ago

Was gonna post a gif bout Kaz but its apparently spam. Anywys, Kaz is doing a great job so far :D

RememberThe3571264d ago

All you have to do is either rearrange your comment or attach it to the comment and it should work.

r211263d ago (Edited 1263d ago )

Here it goes

Edit: Nope, i give up!
Basically, just a gif of Kaz nodding and winking

Riderz13371264d ago (Edited 1264d ago )

Guys I hate to be the bearer of bad news but it seems as if the operating profit is in fact 496 million, however the net income is a $115 million LOSS. In comparison, Nintendo posted a $450 million profit. Their gaming division was a $6 million profit which is very bad news, especially since this is for the holiday season. 6.8m PS3/PS2 were sold, last year .9 PS2's were sold during the same time this year so I think it's safe to say 6m+ PS3's shipped. I'll link article to the 115m net loss.

http://abcnews.go.com/Techn...

Edit - It is still somewhat good news though, considering last year they had a 158 billion Yen loss. Only 10.7 billion Yen loss this year and it doesn't include the 1.1B NY headquarters they sold.

Edit 2 - I believe the gaming division only had a $6 million profit because of the R&D for the PS4.

Gr811264d ago

Its best to keep comments like this to yourself. Here on N4G there is no such thing as objectivity..or reality; Especially when it comes to Sony. You'd be better off at VGChartz ; )

pixelsword1263d ago

Yeah, because VGChartz is the paragon of objectivity and accuracy.

shikamaroooo1264d ago

Are you serious ...... Sony is on track to make Profit next quarter, and here you're "bearing bad news"

Riderz13371264d ago

Yes I realize they are on track to make a profit, but I'm talking about what's happening now not what will happen in the future. Not to mention the fact that they will most likely post a profit due to the sale of some of their headquarters such as the one in NYC which sold for 1.1 billion dollars. I understand they are on track to making profits but I don't think we should be celebrating yet. Expect Sony stock to plummet tomorrow.

G20WLY1264d ago

^Riderz1337, you said "I'm talking about what's happening now not what will happen in the future"

No, you're not; you're talking about what HAS happened already, which is of less interest to any company than what is about to happen, based on past experience and current trend/trajectory. Forecast is far more important, especially to shareholders.

This article is about operating income and shareprice, not net income which is veering offtopic. In any company financials you can find figures that look good and figures that look bad, but mate, if you look a little closer, the glass is definitely half full! ;)

RememberThe3571264d ago (Edited 1264d ago )

Thats weird. The source article states completely different numbers than your article.

ABCNews: "Sony on Thursday reported a 10.7 billion yen ($115 million) loss for the October-December quarter compared with a 158 billion yen loss a year earlier." (corroborated with other sources)

Reuters: "In the three months to Dec. 31, Sony posted a 46.4 billion yen ($496 million) operating profit, compared with a 91.7 billion yen loss a year ago."

Where the hell did Reuters get their numbers? Something is off here. Either there is some semantics going on that I don't recognize or someone has some false info.

Either way Sony is getting back to the black as they are much closer than they were a year ago. It looks like Kaz and his people are making the right moves even if they are the hard ones.

=====

EDIT: According to Sony's report ( http://www.sony.net/SonyInf... ) Reuters is reporting the Operating Income (46.4 billion yen) witch is what they made before taxes and interest. The other sources are reporting Net Loss (10.7 billion yen) and that is the real number after taxes and interest.

So operationally they are in the black ( where they want to be), but they need to increase that margin to make up for the taxes and other fees.

insomnium21264d ago (Edited 1264d ago )

I was just going to tell you that operating profits are not the same as profits but it seems you got it already.

Yen plays a big part in all this. In essance they would have to hike the prices with every console shipped outside Japan but I bet that would stop the shipments entirely so they sell their consoles with MUCH less profit outside Japan. I bet they get next to no profit at all outside Japan because of the strong Yen. It counts for tens of millions of lost profits in dollars.

I think the new super slim brings in much more profits but I forgot when it was launched so I'm not sure how much it affected this period.

edit: Just so people know the upcoming profits next quarter that is due to sold HQ or something has nothing to do with operational profits. That gets taken off the balance sheet and is counted as random income or something along the lines. It gets added into income statement in the very end for the sole reason that it is clearly separated from operational numbers. I just thought to clear this up if someone was thinking about it.

Operational income is always a good news. All that is left is to axe the excess stuff from the balance sheet that keep the total income low or in the red. Pay off some of your debts Sony.

It seems Kaz knows what he is doing so I'm glad.

Saigon1263d ago

Remember that the company is also a Financial institution.

http://www.sony.net/SonyInf...

Meaning that they are going to always operate at a loss.

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