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Submitted by Ksar 273d ago | news

Sony's wider problems heap pressure on PS4

The pressure on PlayStation 4 to perform this Christmas is high, as a bad quarter scythed Sony's annual profit forecasts by 40 per cent.

Sony hopes PS4 will "contribute to profitability from an early stage by diversifying its revenue streams through various network services centred on the PSN and by offering rich user experiences". (PS4, Sony)

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Sayai jin  +   273d ago
It'll sell well...no doubt about it.

edited: spelling
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slimeybrainboy  +   273d ago
I honestly don't know anyone IRL whos getting an XB1 (UK), every one of my friends is going PS4 even if they had 360's only last gen. despite that Ms will sell out so will Sony.
Lalanana  +   273d ago
By not including DLNA and MP3 playback in an attempt to force users to subscribe to Music Unlimited and their other streaming services is one of the ways sony will profit.
decrypt  +   273d ago
@Lalanana

Sony is a corporation after all and is in it for the money. Any device backed by a corporation looking to make profit obviously wont come cheap. For cheaper alternatives there are open platforms such as the PC.
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onyoursistersback  +   273d ago
I think it's better then holding app's you pay for monthly, behind a pay wall....
shoddy  +   273d ago
Sony might loose money but they still deliver great gaming service
stevehyphen  +   273d ago | Well said
I'm desperately waiting for more news regarding the mp3/DLNA availability. I need to know now.
This could very well be a deal breaker for me. I'm sure I'll get disagrees, but this functionality is extremely important to me.

I've been living without a solid PC (just an old netbook) for a while now, so a next gen console must have a lot of media features for me. This is a step backwards because it means that ps3 has more capability in this regard.

Don't bother suggesting Xbox One to me. I live in Canada, and many of Xbox One's media features are already a write-off because of copyright and publishing. (Edit: this is because of Canadian law, and not the fault of Microsoft)

I'm not being a hater. I pre-ordered and paid for a ps4 in full back in June or July, and I've been anxious since then, but yesterday was like a kick in the guts.

I like to think that I'm fair and objective about next gen competition. Just look at my comment history.

To some people out there, even if only a few, this is a real issue. I'm not trolling.
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sincitysir1  +   273d ago
I'm so glad I could care less about music not on the radio! I do think the music thing sucks tho.

On topic: the ps4 will do wonders for Sony as a whole. Spoke to yosp and asked for the good word. He said were golden. Golden.
badkolo  +   273d ago
maybe people who want actual games, cause as of now knack is for kids and killzone is the only exclusive for the ps4, so not much to play except indie and multi plat games. so trust me, the xbox will sell well becuase people want actual games
Hellsvacancy  +   273d ago
decrypt

Wtf, don't defend Sony on this one, Sony fu<ked up, it's bs, I will never sign up to Music Unlimited, half of the music I listen to won't even be available on the service I bet

Anyone here got access to Music Unlimited? do a search for me please

- Flugufrelsarinn by The Kronos Quartet (NOT Sigur Ros)

So much for custom background music
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decrypt  +   273d ago
@hellsvancy

Lol why would i be defending blood sucking corporate. Open platform ftw PC.
gaffyh  +   273d ago | Well said
"decrypt

@hellsvancy

Lol why would i be defending blood sucking corporate. Open platform ftw PC."

Open Platform = PC
Most games on PC = On Windows
Windows = Microsoft's
Microsoft = Blood sucking corporation
decrypt  +   273d ago
@gaffyh

Which is why we only buy a MS OS once in half a decade lol, that too on some discount. Id gladly jump at an opportunity to dump windows if Linux became somewhat more viable for games.
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whitefang1988  +   273d ago
@ slimey it's funny because I'm the exact opposite, I live in the UK but everyone I know is getting the x1 we all got xbox original and after that mainly stayed on Xbox. I've owned all PlayStation's and plan to own the ps4 just my multiplat console has to be Xbox because I'm so use to the control, all my friends who I enjoy playing with are staying on x1 and all my multiplats (achievements and saves exc.) Have been on x360. I think both consoles will be good though hurry up November!
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NukaCola  +   272d ago
It sucks but coming from a guy like Lalannana, I find it ridiculous you would jump on this when every single thing on Xbox One Live is blocked behind a paywall.
Evil_Abed  +   272d ago
Really? MP3 playback is behind a pay wall on Xbox one? Show me.
MTEC8  +   272d ago
The DNLA and MP3 situation is pure money grabbing bs on Sony's behalf. Purely to push it's Music Unlimited service, hope a update will address this sooner rather then later for this.

No, I will not be cancelling my pre-order because of it. I only really care about background MP3 for racers, but this has dampened my excitement a bit. Sony has been riding the positive pr train thus far, get back on it Sony and fix this damn it.
dmitrijs88  +   272d ago
in my country (Latvia) there are hardly anyone whos getting X1 and not just cos its not supported at launch, but because most people dont care about all those cable box services and kinect features
ALLWRONG  +   272d ago
"Sony is a corporation after all and is in it for the money" According to PS fanboys here Sony is in it for the gamers. Or is that only the case in MS news?
Muadiib  +   272d ago
Unless you have 60 million friends you're opinion is irrelevant.
scott182  +   272d ago
Well, playing games at a good resolution is good for me. I know other features will be added in firmware and Sony has the best game companies imo...
Pintheshadows  +   272d ago
Whilst I agree that lack of DLNA and MP3 support sucks massively and I won't touch Music Unlimited as from a Thrash standpoint it is worse than awful, neither of those things are leading selling points for a GAMES console.

Frankly it seems like the usual suspects are bringing them up to really grasp at straws.
MysticStrummer  +   272d ago
"I honestly don't know anyone IRL whos getting an XB1"

Same here (Texas). Every one of my gaming friends bought a 360, actually multiple 360s because of RRoD, but none want an XB1. They all switched to PS3 years ago and are happy with PS and PSN.

@Lala - Interesting that a MS fan like you would make a comment like that, since XB1 has so many features behind a paywall.
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P0werVR  +   272d ago
I don't see why this is a big deal. It's a corporation, it's all about profits. It's just other corporations know how to run a business.

Sony loosing money is nothing new. We've known this all along. So for them to go down the route of profitability is a GOOD thing. If not, you won't see another playstation. It's funny how these Sony fanboys claim they're only in it for the gamers...GTFO!

Sony gained a significant ground in the gaming industry because it was the ONLY major corporation during that time that was in the industry. But once the "big boy" Microsoft came into it, well the rest is what it is currently.

EDIT:

Also, this will make or break the playstation. Microsoft can duke it out, they have resources to last it out. Sony however is on the verge of the down side.

...another Sega?!
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andygee1987  +   272d ago
same with all my friends in uk,all jumping ship from 360 to ps4
FamilyGuy  +   272d ago
The biggest issue is that the PS3 already has these features and MANY of us LOVE the PS3 for having these features. The PS4 was naturally expected to have them too but it seems Sony is trying to push more apps. It'd be nice to know if other music apps will work in the background but they only mentioned Music Unlimited in their faq. That lead many to think they aren't supporting MP3s for a greedy reason, which may very well be the case. If they allow TuneIn to work I'd be happy to listen to that free radio app but no free alternative was mentioned.

I'm personally not cancelling my pre-order over these issues but it IS a big deal to me. The media streaming aspect far more than mp3 playback. I'll just have to switch to my PS3 when I want to watch my digital content.
The thought that I could wait did cross my mind though, DriveClub was a big reason to get a PS4 for me and it got delayed. There are other good looking games coming and I might just use the time to play FF14 Arr on PS4 so I'd much rather keep my pre-order than struggling to find a PS4 once games that I REALLY want come out like DriveClub and Infamous SS.

Jumping ship to the X1 was never a consideration either, they aren't supporting media severs at launch and I have no interest in any of their games.
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360ICE  +   272d ago
@decrypt.
Ah, yes. The PC. The cheap alternative to consoles that is not backed by corporations. I'm sorry, what?
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TricksterArrow  +   272d ago
Didn't care when my Atari, Amiga, SNES, Master System, Mega Drive (Genesis), Nintendo 64 and Game Cube couldn't play MP3, will certainly not care now.

Sorry, I can see how this is a problem to some, but particularly for me, who am ONLY interested on a GAMING device for GAMING, this is no problem whatsoever. Anything else that the machine brings aside from gaming is a plus, sure, and I welcome it, but I won't make it a deal or deal breaker out of extra stuff. Just give me the games and I'm set.
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shinrock  +   272d ago
ur friends with the whole world? wow ur popular.
Guitardr85  +   272d ago
Lol since when did it become bad for companies to make money off of their products...Isn't that the whole point of a business lol?
MrTimesplitters  +   272d ago
OMG PS4 SUCKS AND WILL BE A FAILURE

WELCO
METOT
HENEX
TLEVEL

SEGA!
MrTimesplitters  +   272d ago
OMG THE PS4 WILL FAIL HAHAHAHAH DONT CRY SONY FANBOYS.

WELCO
METOT
HENEX
TLEVEL

SEGA!!!!
Anarki  +   272d ago
I know 1 person and he's a die hard Xbox Fanboy. Everyother Xbox fan I know has slated the Xbox because of what happened when they announced it.

When the price goes down, I'll eventually cave, just to have the best of both worlds but for now I'll stick to my PS4.
rainslacker  +   272d ago
@hellsvacancy

The Kronos Quartet is available on Music Unlimited. The label they release music under is owned by Warner Music Group, which is a partner in the Music Unlimited program. They have several albums available and you can look it up by going to

https://music.sonyentertain...

That particular song is available from TKQ and Sigur Ross btw.

Sony has an impeccable classics selection overall both on Music unlimited and in physical CD format. They even have a separate label they use for their classical music offerings. If you're into that, then I don't think Music Unlimited would be that bad for you if you want a service such as this.

Nowadays, almost all record labels work together to provide their music to as many people as possible.

I understand not wanting to have to sign up for a service to listen to music you may already own, but before you go off on these rants you've been going on since yesterday, do a Google search.

I'm sure MP3 and DLNA support will be added in the future. For all we know, the playback software just isn't ready yet, similar to the way the DVD/Blu-Ray isn't installed day one without an update.
TheDev  +   272d ago
30+ message thread about something that was confirmed to be put back in the 2nd PS4 patch.

http://n4g.com/news/1384779...

It's a few articles down on this very website folks. I know, I know... those BIG article thumbnails are so attractive, the rest just doesn't matter. ;)
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ChrisW  +   272d ago
Sony made about well over $500 million profit with the PS3... yet it's a small drop in the bucket.
Sayai jin  +   273d ago
LOL...The disagree for stating the obvious. Other than the Wii U, what console by the big 3 have not sold well in the last 7-8 yrs? ...Nintys Wii, the PS3, and 360 all did extremely well so why wouldn't the PS4 and XB1 sell. They'll both be selling as many units as they can produce.
decrypt  +   273d ago
Economy isnt the same. More than 50million Americans are on Food stamps, count more than 10million on disability, the jobless participation rate is at an all time high, real unemployment in the US might be as high as 24%. Most widely generated Jobs in US today are low paying Mcdonald or barmaid jobs. Europe is pretty much in a simular situation.

Thus i dont see the next gen of consoles doing as well as the last gen did.
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Hutch2355  +   273d ago
Dont' worry decrypt, In America, land of buy now pay later, people on those programs always seem to find a way to purchase Iphones and big screen tv's. So they will find a way to get these systems too. My cut back on a pack of cigarettes and a 6 pack of beer each night and they will figure it out.
Sayai jin  +   273d ago
The economy is not doing well for sure. So they may not sell as well, but they will sell enough for each company to be very pleased. Also, even though economies are bad...retail sales are doing well...to even say some are seeing record profit. The holidays are always huge!
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decrypt  +   273d ago
@sayai jin

What retail are you on about?

Check walmart sales they are dipping, same goes for some of the other big retailers. Retail is certainly not doing well.

Infact Americans are today more in credit card debt than ever.

For more details youtube economists like Peter schiff to get an idea on the economy. US eco is a disaster. Its the mainstream media that doesnt want Americans to know this. There is no recovery. Infact we might be on the edge of another crash which will make 2008 look like a walk in the park.

@hutch2355

The american dream is near its end, for the last 100 years the american monetary system has been hijacked by a cartel of private central banks. The federal reserve they call it, nothing federal about it. Since 2008 they have printed the USD into oblivion and the pace is accelerating getting goods on the back of a USD is a privilege Americans about to lose. Then it will be a world of hyperinflation where no one will be able to afford anything. The time isnt far. Do a bit of research.
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1OddWorld  +   272d ago
@decrypt
50 million lazy bastards the government welfare program has spawned. Welfare broke up the family by only giving assistance if the father was not in the home creating single parent homes and several generations of kids who see welfare as a way of life. Regulate the program, drug test's, required schooling and limit it's use by making it a 2 year program. In two years a person who has no job should easily be able to train for a certification or an associates degree. I hate both political party's bunch of morons cant figure out how to fix our increasing debt and keep de-funding school programs and increasing entitlements. Idiots

Tell me the number of truly disabled people cause it's no where near 10 million. Fat is not a disability, Dumb is not a disability. Go to Walmart and see these bulbous fck's driving those handicap carts pisses me off. Get up and walk you fat lazy fck or die.

I am way off topic.
Theyellowflash30  +   272d ago
Maybe cause the Xbox 360 launched at $299 and $399 and the Xbox One is launching at $499 in a bad economy.

I can't believe how many people think the Xbox One is just going set sales records with that price tag.
Volkama  +   273d ago
It's selling at a loss though isn't it? So it isn't so much a question of the console selling well, it's more a question of the games and services selling.

The early adopters are core gamers and will probably buy up playstation plus in a heartbeat. Will the wider audience be interested? Subscriptions to anything can be a hard sell, Microsoft and Sony are both going for it though.
TopDudeMan  +   273d ago
Well, logically since the announcement of the PS4 people probably stopped buying PS3s. So this'll be them claiming back the revenue of a years worth of PS3 sales since people were likely waiting for the PS4 to release.
darkride66  +   273d ago
As much as I expect the PS4 to sell well, again..another article overstates the importance of one device that Sony sells. Revenue generated from their games division is relatively small when compared to Sony as a whole. The entire division could cease to exist and shareholders probably wouldn't blink. Same thing goes for Microsoft's games division. Not that they're not generating a whole pile of money, but when compared to the entire company it's easy to see why most financial analysts don't even bother mentioning games when discussing the larger picture. Sony needs to turn around their TV division before they'll stop the bleeding. It's was getting better but this was disappointing news all around.

Also, it's funny to see Eurogamer throw up Microsoft figures for comparison, as if Sony and Microsoft were even remotely in the same business overall. Hell, why not through Toyota and Disney in there too.

And learn to read, Eurogamer. There were 2 million PS3's sold, not PS3/PS2 combined. Sony dropped the PS2 numbers from that figure last quarter. Right on the slide, at the bottom "PS2 is not included in Q1, Q2 FY13 and FY13 FCT"

I really think that the PS3 has a shot at outselling the Wii when this is all said and done. Wii numbers aren't going anywhere as the console is no longer in production, but the PS3 will continue to be supported for the next couple of years at least. It's very possible it could break 100 million before this is all over, and then it's only a couple of million more to take the Wii's crown this gen.

http://www.sony.net/SonyInf...
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FunkMacNasty  +   272d ago
Ps4 will definitely sell well at launch!!

I mean, I can't even pre-order one at any brick and mortar store in the US right now! So much for me getting one at launch :-( And, as a matter of fact, the demand seems so high, that I'm afraid I won't be able to get my hands on one until the summer :-(
Belking  +   272d ago
Dude that really doesn't mean much when you aren't making money on those sales. Its gonna take years for them to see any profits from the hardware.
darkride66  +   272d ago
According to Sony, the losses incurred from selling the PS4 hardware at a loss will be made up with subscription fees from PSN+ out of the gate.

And let's be realistic here. We already know the PS4 isn't nearly as expensive to make compared to the PS3 when it launched. The slight losses on hardware being predicted aren't going to last.
rainslacker  +   272d ago
And they'll get back profits from each game sold through licensing fees. I'd imagine most people are going to buy 2-3 games when purchasing a new system, and last I saw the licensing fees for most games are around $10 per copy sold.

1st party games make them even more money, and currently KZ:SF has really high pre-order numbers. I saw a stack of 50 or so of them sitting on the counter at GameStop tonight, so GS must expect it to sell since the store I go to hardly ever gets enough copies to meet demands on any game not COD or AC. To Sony, those 50 copies are already sold, regardless of if GS sells them or not. Now multiply 50 x 6,600 stores you get 330K copies sold to GameStop alone. Include Amazon, Best Buy, etc in those numbers, and they have already made their money back.

Then there is all the peripherals they sell at a profit day one. Controllers, cameras, possibly Move, all those little extras that people buy because of launch hype. All those overpriced Sony branded products are nothing but huge markup. My local GS has about 30 DS4's on the sales floor right now, and quite a few GS people have posted saying their stores have about 50 or so in stock. Again, those are sold units to Sony, and I'm sure those have a decent mark up on them at $60 a pop.

PS+ is another profit for them.

So yeah, I don't see it taking years for them to be making back that money. Last report I saw said they were losing about $60 per console sold, and it was only an estimate.

You don't include R&D costs into profit of a sold unit. Those are written off, and I believe they wrote those off that quarter where they sold that building you used to mention all the time.
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fear88  +   272d ago
I think its time for sony to seriously consider spinning off the entertainment division. I feel as though the movies and music division would be better as its own separate entity. Sony is doing exceptionally well in the mobile market after severing ties with erricson and the playstation division is managed properly and is about to turn a profit there. But the movie/music division in particular needs to go. Its been a drag on Sony for a long time and if they spin the division off, it will bring in more money for Sony.
mediate-this  +   272d ago
Yes it will sell well. But sell well enough to keep the whole of sony afloat is another question. Sony needs to stick with what makes them money, and sell off or produce less what hemmorrages them money.
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come_bom  +   273d ago
With all the help they are getting from Microsoft, PS4 is going to be a success with out a doubt.
MynextGen  +   273d ago
Geez you are in denial XboxOne has money Ps4 has peanuts lol
hollabox  +   273d ago
MS could buy both Nintendo and Sony if they wanted to. I'm surprise Apple has not made an attempt to buy either or since I've rumors about them getting back into the gaming business.
ZBlacktt  +   272d ago
Yet, biggest fail rate console in history. Copy Blu-ray player 7 years later, never won a overall Game of the Year exclusive, been outsold by Playstation every Gen, being outsold already in pre orders 2 to 1, 1080 vs 720p, lessor powerful console. Forced to change everything about the X1 policies by Sony not forcing them on gamers.

The facts could go on for days. Hope you are not in denial.
swerve121  +   272d ago
I think ZBlacktt here must of forgotten that MS own part of Blu Ray via the Codecs.
ALLWRONG  +   272d ago
LOL at the disagrees MS could buy Sony, twice.
amnalehu  +   273d ago
uuuuuhhhhhhh. OK.
phoenix_dusk  +   273d ago
It has almost no flaws as a console system.
phoenix_dusk  +   273d ago
I see the Xbone astroturfers are downvoting the truth. Living in denial is not a good idea. I guess living in 720p multiplats and their endless paywall of services is such a bitter-sweet thing to do just to deal with reality. LOL
majiebeast  +   273d ago
Who knows at this point.
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smokeyjoekenobi  +   272d ago
How can any console-only gamer play the superior technology card, seriously?
come_bom  +   273d ago
Nop. It has flaws. It just doesn't have as much flaws as the competition.
JonnyBigBoss  +   272d ago
Except first year games?
Hicken  +   272d ago
Roughly 130 of them, give or take.

Where's the flaw?
majiebeast  +   273d ago
Damn the pictures division really made some bombas this quarter. Who ever greenlit After Earth is probably looking for a new job right now.
phoenix_dusk  +   273d ago
Yeah, I think that's where mostly Sony got all their losses. The gaming division is doing so well and I guess Sony pictures kinda went to sleep after Skyfall.
Evil_Abed  +   273d ago
The gaming division didn't make any money, in fact it lost 8 million
Yeah, it is doing sooo well -___-
TheEnigma313  +   273d ago
GGJ

Check your facts before you spew nonsense. Sony only reported a loss in gaming because the development of PS4 and The gaikai investment. Money loss is normal when gearing up for a new gen console.
Evil_Abed  +   273d ago
People have been using the development of ps4 as an excuse for no profits for a lot of quarters now. Truth is, it made a loss. Bottom line.

Why it made a loss is neither here nor there. Last Christmas when they made only 6 million in profit everybody claimed it was PS4 R&D, now it's still PS4 R&D almost a year later.

How exactly is it doing so good?
TheEnigma313  +   273d ago
Oh so what you're saying is it took ps4 only a year to be created? It doesn't need advertising, production, R&D? -____-

They also have to pay for games that are in the works for ps4. They have way more 1st party developers than MS; that costs money. Kaz just took over and the company is heading in the right direction, But I guess you know more than the stock holders?
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Death  +   272d ago
R&D costs for the PS4? They paid Cerny to pay AMD for the design. This was by far the least expensive console Sony has created. It's all subcontracted out.

The biggest challenge Sony will face this Holiday will be moving enough software and services to offset the losses on the hardware. The decision to make Plus mandatory will help in the long run, but I would imagine the majority of early adopters will already be Plus subscribers. The PS3 software and hardware are really going to need to step up to pull Sony through the next quarter.

I think in hindsight Sony would have been much better off including the $60 PSEye and matching Microsoft's $499 proce point. They would have retained the performance advantage and offset losses during an already critical launch quarter.
rainslacker  +   272d ago
R&D costs are written off at one time in most cases. Typically once at the beginning of the process, and then once near the end.

R&D costs aren't a measure of how much money they make off each system, and those costs are expected with any electronics device, even the X1.

Overall profitability is taken over the long term, not on a quarter to quarter basis. I'd suspect that the quarter that contains this month will show a huge increase in revenues, and depending on how many extras/games people buy for the PS4, they may show a profit. PS3 isn't doing to badly either in the games department, and I'm sure GT6 will bring in a tidy sum.
torchic  +   273d ago
compared to their previous consoles PS4 has the added disadvantage that it isn't pushing new Sony (or Sony backed) technology so investors, board members, shareholders want to see hard numbers (good profit margins)
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jimbobbeers  +   273d ago
It'd help if they actually sold the PS4 for a profit.
TheEnigma313  +   273d ago
No new system sells for a profit. The original Wii was the last console sold for a profit. They make money off of software. Hardware doesn't sell for a profit until about 3-4 years into its life.
jimbobbeers  +   273d ago
I wouldn't be so sure...

http://www.vg247.com/2013/0...
Brix90  +   272d ago
@jimbobbers

If there gona sell at profit or break even, then how come they said if Kinect wasn't included with the Xbox one it would be more expensive as a stand alone product...So I'm calling BS on that one
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DoubleM70  +   272d ago
Cochise Microsoft is going to make a profit right out the gate this time around. What's scary they are going to be able to lower the price on the Xbox1 next year with the Kinect included.
The_Villager  +   272d ago
Every one of Nintendo's consoles were sold at a profit except the Wii U.
brosephsmith  +   272d ago
I know right...losing 60$ a pop..every million they sell they are losing 60 mill.thanks for not trying to sell ps4 a profit!!ive never owned a ps3,just 360,but god i love Sony.anyone who has heart set on x1 must be sniffing glue
mushroomwig  +   272d ago
'Every million they sell they are losing 60 million'

You're missing the big picture, how many people will buy the console and not buy any software or a PS+ subscription? That's where they're going to get their money back. PS+ will become extremely important for Sony.
DiRtY  +   273d ago
Another 200 million USD loss for Sony. The PS division lost 8 million USD.

Somehow people here talk how MS is doomed after posting 6 billion USD profit a couple of days ago.
TheEnigma313  +   273d ago
MS didn't make 6 billion off of gaming. They make so much because their OS is in almost every new laptop and computer. Check the sales of their phones, tablets, mp3 players and other items that don't bring in profit.
blackout  +   273d ago
As a Company they made that profit. Unlike Sony. American Company's know how to make money and keep generating it. Sony has noooooo business plan. This is bad for Sony. You can make fun of Microsoft all you want but as a company they make a lot of MONEY.
DiRtY  +   273d ago
Of course not made by gaming! But overall MS crashes Sony easily. And even the EDD (Xbox division) if you compare it with the Playstation division for the past 5 years.

You should read the financial reports. Windows OS is NOT their main source of profit. Actually it is on no. 3 behind office and server + tools.

"Check the sales of their phones, tablets, mp3 players and other items that don't bring in profit."

Their phone business is profitable as well.
Surface is not.
And the Zune was cancelled 5 years ago. Can't believe you mentioned this one.
Death  +   272d ago
Sony's main source of operating income comes from their Financial division and also from insurance. I don't know if it's by design or mismanagment, but their gaming division has been struggling for close to a decade. The falling of the yen in 08 and the earthquake and tsunami in 11 haven't helped either. They have also struggled against competition in the tv sector against rivals such as Samsung and we have all seen them lose quite alot in gaming where the Playstation brand dominated for a very long time. This resulted in a significant downgrade in their stock which made it harder to get financial backing that they really need.
andibandit  +   272d ago
Struggled in the tv division, is an understatement
Lucreto  +   272d ago
You also forgot the $6 Billion loss the Microsoft's gaming division is still in. Microsoft has made money but are still paying off the initial cost of original Xbox.
#8.2 (Edited 272d ago ) | Agree(6) | Disagree(6) | Report | Reply
Death  +   272d ago
Not even close to accurate. Any losses the company incurred in the past with the Xbox were written off at the end of the fiscal year they occured in. Losses are not carried year after year in business. It's a tax write off at worst. The only time this isn't the case is when the company does not make a profit as a whole. If that is the case they need to take out loans to pay for the losses. Sony lose money fiscally for 4 years which is why investors pressured them into selling off assets at the end of their last fiscal quarter. This netted them a very small fiscal profit, but was a short term fix.

If you trully want to remember the 6 billion loss from the Xbox, you may want to take a closer look at what has happened with the Playstation. If you're keeping tabs on losses, Playstation is in worse shape. Thankfully that isn't how businesses operate.
Lucreto  +   272d ago
http://i.imgur.com/UwdTasL....

Sony is still in the black but lost a good bit.
mediate-this  +   271d ago
What do you mean paying off as if they received a loan?? Learn business before you spew non sense. Recouping is the word you are looking for. Both gaming divisions will do good, just sony is hoing to probably be more conservative this go around
theDivision  +   273d ago
I have no doubt the PS4 will do well. Everyone I have talked to is getting a PS4 (even the guy who can and installed my cable told me him and all his tech buddies are getting the PS4 for the simply fact that it is cheaper and more powerful) The only market place I can see the Xbox1 winning is the one with young children who aren't going to research and just want the X1 because they had the X360 (my younger cousins were going to do this until I dissuaded them)

PS4 even has knack so I see a range for all audiences at a cheaper price, can't see how it won't do well.
Alvidta  +   273d ago
Lol, just because someone buys it means they're children? people like you need to grow a pair, it's only consoles.
theDivision  +   271d ago
@alvidta
I did not say that's the only reason why someone would buy a console I said the only market (age group) I picture the x1 winning in is the one I stated above. If you read the comment you would see that. I wasn't saying the xbox1 would fail either I just simply stated I believe the PS4 will do better in most markets. Nice job jumping to conclusions though and blowing a statement out of proportion.
andibandit  +   272d ago
@thedivision

Explain to me how your logic applies to the case of the Wii
#9.2 (Edited 272d ago ) | Agree(2) | Disagree(0) | Report | Reply
christocolus  +   272d ago
you disuaded lil kids from getting a console they want all bcos of your fanboyism?thats an all time low even for a fanboy as yourself....i can imagine those kids hating you after seeing how much fun their friends will be getting from kinect titles i.e zoo tycoon,kinect sports etc.
theDivision  +   271d ago
@christocolus
Well considering they are all 9 and up and the fact that two out of three of them have ps Vitas I think they'll thank me actually, but hey it was a great try.
mediate-this  +   271d ago
All young people will buy consoles, dont act like sony's demographic is mature audience. They have the same demographic, people who play games, just have to market the right way.
Alvidta  +   273d ago
That's it, there is no way we'll be getting anymore consoles after this. PS4 and X1 is the last.
TheEnigma313  +   273d ago
It might be your last but they will make more.
EXVirtual  +   273d ago
Consoles aren't going anywhere. The PS4 is going to sell better than the PS3 in the long run.
DoubleM70  +   272d ago
Yes it definitely will sell better than the PS3. I just want you Sony guys to be realistic. Competition is good and you don't want either company to do bad.
RaptgamersUnited  +   273d ago
Sony will make tons of money this gen. Not only on the hardware but on digital distribution services and Ps Plus
boing1  +   273d ago
I do not like what I'm reading. No DLNA and no mp3 playback??
gamepard  +   273d ago
ok it is simple,... follow this little instruction (at least in the gaming area) bring GOOD AAA EXCLUSIVES on PS4 and off course take the edge in multiplatform games..
feraldrgn  +   273d ago
It's a shame about Sony's other divisions, I hope they get those in check some time in the future.
zerosignalxst  +   273d ago
"MP3 and DNLA will be considered post launch", says Shuhei Yoshida. It may not be present at launch but at least they're thinking about it.

https://twitter.com/yosp/st...
boing1  +   273d ago
Good to know. AFAIR, DLNA on PS3 was also post launch.
RevXM  +   273d ago
My mind was set to get a ps4 at launch. But Im going to hold off until basic features are in place. Im thinking of things like DLNA, media playback (MP3, Flac, Xvid, MKV, Mp4 etc), and proper usb functionality. Things ps3 have always had.

It is just bullshit and Sony knows it.
Ps4 is a lesser system than the ps3, perhaps even launch ps3...
The next console is supposed to be an uppgrade from the previous and as it stand atm PS3 is a more complete system.
Sony have always been touting multimedia features and all the way its been like -PS3 IS NOT A GAME CONSOLE ITS A ENTERTAINMENT SYSTEM!

Now all the music and movies we will ever experience on Ps4 is through the paywall of sony Unlimited, Netflix etc.
Dont have internet? screw you you must pay to listen to whatever we got, this awesome local band your cousin is in. No we dont have it, but hey we have 5 songs from Rihanna for you whenever your ISP fixes your internet!
boing1  +   273d ago
Well no, PS3 didn't have all those features from the start. DivX and DLNA certification was added much later.
RevXM  +   273d ago
You are right, but come on it doesnt change the fact that this is the wrong direction to strip away features this way.

I think its anticonsumer to downgrade and put things behind a paywall and require internet!

Luckily I checked in on Yoshida's page on twitter a few minutes ago and he recently talked to the Ps4 dev team about ps3 media features missing on Ps4.

"Had a very good discussion w the PS4 Dev team today. We're happy & appreciative to learn so many people use and like PS3's media features."

https://twitter.com/yosp/st...
#16.1.1 (Edited 272d ago ) | Agree(1) | Disagree(0) | Report
boing1  +   272d ago
^^Absolutely agree. I too feel it as a downgrade and something that shouldn't happen. Hopefully they'll add everything back later. I can only imagine that those two things, no matter how basic they are, were on the bottom of the 'to-do for launch' list.
stevehyphen  +   272d ago
Music Unlimited allows you to authorize a device for offline playback, so you can still listen to favourited or playlisted music offline, but I understand what you mean.

I made a post above about how the situation applies to me.

I'm sure it's not a deal breaker for most people, but to me this is extremely important. My mind is racing right now about what to do. I need a definitive answer, either yes or no, before launch.
RevXM  +   272d ago
Thanks for agreeing.
I see I made a tiny misinformation about from what time the ps3 had certain things in the first post, but I stand by my opinion of the case.

Luckily there is hope.
https://twitter.com/yosp/st...

Im going to visit both N4G and YOSP at twitter a few times a day to monitor the situation.
Im glad to see that Yoshida listens and is talking and reasoning with the ps4 team, hopefully he will turn the boat around before launch so that the functionality gets patched in due time!
Hicken  +   272d ago
I'm not too happy about it, either. I'm not certain what the reasons are behind it, but I don't think Music Unlimited is the only motivating factor.

That said, it's not gonna affect my desire to purchase a PS4, because I know that, at the least, they're working on it. They addressed it early, and are working on a solution. That aside, I'll still have all the games I want and need, and all the relevant functionality.

I think it's an issue that needs to be dealt with, but I don't think it's as big a problem as you're making it out to be.
I think it's a huge problem, especially for people who bought PS3's and saw that all 360 games could be played while listening to whatever music you wanted.

Me personally, I've been waiting for the PS4 so that I could finally have that functionality and now just two weeks before the U.S. launch of the console they let that info loose? It's obvious why they didn't address it months ago and very underhanded as well. So much for "addressing it early" as you said.

I love using custom soundtracks when playing Fighting games, racing games and would love the inclusion with FPS games as well. I have a very nice sound system and if I'm just hanging out will very often use the PS3's music player and visualizer.

"they're working on it"? Please prove that, it would keep me from cancelling my preorder. Because Yoshida talking with the dev team means NOTHING unless he comes out and says himself that said functionality will appear in a future update very soon.

Saying that there's no .MP3 support for your console and then offering a service to take it's place for a monthly/yearly fee is a total M$ move.
blackout  +   273d ago
Whats funny is that Microsoft gets a lot of BS for whatever reason. But they can post a 900,000 lost on the Surface and just smile at it. Sony posts lost after lost after lost and everyone forgets that you have to make money,money,money. Microsoft just posted six billion in profit for one quarter. Now that's the company as a whole, Sony couldn't hold Microsoft's jock strap if it was sagging off there nuts, but Sony seems to be the golden child here. Microsoft,Apple and Google can buy and sell Sony twice and still be profitable next quarter. LOL
Gamer187  +   272d ago
I find it funny that people argue over how much money a company makes off the backs of consumer. MS & Sony are not your friends and the gaming division are just another column on a spread sheet and can be easily deleted as such.

Welcome to reality
joeorc  +   272d ago
@blackout

Microsoft,Apple and Google can buy and sell Sony twice and still be profitable next quarter

its easy to point out profit generating parts of your company, when your overhead is quite small vs what other companies overhead is.. and no they could not buy Sony you do know how big Sony's over head is? because you seem to not know a lick about it, because if you did, you would know that cash reserve Microsoft has would in fact be eaten up, if they even tried to do it. the resources your talking about would dry up any chance for profit for decades there skippy.
Tzunoy  +   272d ago
you gotta love the "make believe" phrase that sony uses to make people believe that they deserve a buy. :) make them believe :)
#18 (Edited 272d ago ) | Agree(2) | Disagree(2) | Report | Reply
Kidmyst  +   272d ago
I have my music collection through Google and stream my MP3 in my house through Wifi so not having MP3 is no big deal. But some games come with a digital version of the soundtrack, so it'll be interesting how this pans out.
taijutsu363  +   272d ago
Lately all these Xbox one is better article are just coming outta the woodwork! And now with ps4s launching coming in 2 weeks, all these PS4 has problems articles are coming out to try and stop or slow down ps4s sales! Getting quite tired of seeing those.
ziggurcat  +   272d ago
am i the only one not surprised that this was submitted by a one bubble xbox troll?

fail this article, already since it's only been submitted to troll...
andibandit  +   272d ago
Wouldnt that remove the basis for this whole site?
Arturo84  +   272d ago
Why do people still post how much a console will sell in their region just because you and your 3 online friends have decided to go pinky swears on a purchase doesn't mean you have any true knowledge of what's going to happen its like the latvian guy saying hardly. Any xboxes will sell in the country what did he actually survey the whole population? And about preorders anybody can preorder all they want then cancel so it will be months before we even get a bit of info of how these launches went and their impact
IWentBrokeForGaming  +   272d ago
The issues PS4 is facing out of the box aren't as vast as what Xbox One is facing!
inStereo  +   272d ago
Sony's stock has dropped 11% today - that's a pretty serious dip. When I checked it this morning, it was down 13%. Not a good day for them.
mushroomwig  +   272d ago
Welcome to the stock market, it constantly varies.
Silly gameAr  +   272d ago
Can't crap on what the games division is doing, so lets just bring the company in as a whole and shine a negative light on them and compare them to their competition and post it on a gaming site. That'll show em'.
ibrake4naps  +   272d ago
I didn't know people cared about playing mp3's on their consoles :-/
The_Villager  +   272d ago
It's not just about playing MP3's, many people used their PS3's (via external hard drive) to watch their movies and tv shows. Not being able to do this on PS4 now is a huge letdown.
DoubleM70  +   272d ago
Well on the PS4 you can finally play your music while playing a game. Now you than put playing basic audio CD's and MP3 behind a paywall.
OhhWerd  +   272d ago
I bought both, but am having hesitation regarding the ps4, debating on just flipping it.
Adolph Fitler  +   272d ago
What makes me laugh is MS fanboys keep harping on about ALL the exclusives XBone has on launch day, & how little PS4 has.... 1.Dead Rising 3, 2. Forza, 3. Ryse, 4. Killer Instinct that's 4 for XBone, now 1.Knack, 2.Killzone:SF, 3. DC Universe, 4.Resogun, 5. & a whole bunch of indie titles for PS4, & the only 1 out of all these that actually properly looks like a game running on nexy gen consoles is KZ:SF.....and yes Xbots, that includes Ryse, as it looks like a really nice 360 game, & that is after seeing it for real ingame up close & personal at EB's Expo. I also played Dead Rising 3 & it was very average, considering....Dead Rising 1 was far more impressive, & DR2 is a better game than ALL, I mean graphically DR3 was embarrassing...The most impressive game I seen running for XBone was Forza, so that is good for Forza fans...But I wouldn't be talking about exclusives just yet being more in numbers on XBone, as so far the numbers are in Sony's favor, & with Titanfall as the only real future excitement generator in the foreseeable future for XBone, whereas, PS4 getting Infamous:2nd Son in Feb, & Planetside 2 around the same time, as well as Driveclub......then the FACT that THE HUGEST multiplats in COD & BF are looking & running way better on PS4, well....Lets just say, I know what system I WILL be getting. The games machine in PS4, not the psuedo wannabe set top multimedia box..
GentlemenRUs  +   272d ago
I'm getting sick and tired of people nitpicking on news unrelated to gaming because its Sony...
MrTimesplitters   272d ago | Immature | show
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