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With PlayStation network, Sony goes back to the future in search of revival

Japan's Sony Corp is hammering out plans to rise from the ashes of nearly $10 billion (£5.89 billion) lost in six years by building a future around its last consumer electronics blockbuster - the PlayStation.

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finance.yahoo.com
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lifeisgamesok1213d ago

Nearly a $10,000,000,000 loss 6 years. Ouch

user74029311213d ago

must have been a hard day for yall eh? :P

On topic: im glad there doing something about this, ps4 will help tremendously.

Eonjay1213d ago

Yes. By every estimation, Sony will be the console leader for this generation. No doubt this will help propell them in a positive direction.

I remember the days when it looked like Apple was down and out. Now, a billion dollars is a rounding error to them.

JoGam1213d ago

I'm glad they are taking Playstation even more serious now. I knew it was serious before but to Sony during the PS3 days It always felt Sony just didn't understand how much bigger Playstation can be. Can't wait to see Playstation 5 years from now.

n4rc1213d ago

Funny you mention apple tho..

Ms bailed them out.. Lol

cleft51213d ago

I love my PS4, PS3, PSVita, PSP, and PS2. PSN sucks. I am sorry, but while I love what Sony is doing right now as a company, PSN is terrible. I hate how long people in the US have to wait for releases of titles, I hate how we can't even view videos like we did and do on the PS3. Yet, if I go to the JPSN they can watch videos just fine. I hate how the online infrastructure for release day games suck. PSN has so many issues, I do love the free games. I love Sony, but they need to fix PSN because it is not acceptable right now.

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n4rc1213d ago

Its difficult to wrap your head around that number until you realize just how many sectors Sony competes in.. Movies, music, TV, home electronics etc..

Times have changed quite a bit in the last decade in those industries.. IMO they need to reevaluate what they do well and get away from what they don't.. Seems to be stubbornness unless they really feel they can turn them around

jukins1213d ago

You hit that right on the head with the stubbornness. That was sony's downfall they just refused to adapt to changing markets and thought they could survive on name alone. Now theyre, behind in almost every category trying to play catch up.

n4rc1213d ago

Part of it is marketing in some ways..

Sony TVs are top of the line.. I love them.. But the average Joe blow won't notice any difference except in price.. I always found viao laptops to be great as well. But... More expensive and not apparent why its priced higher..

Their entertainment division is struggling but so is everyone else.. The industry changed quicker then most can keep up

iceman061213d ago

Well, this is exactly what they are currently doing. Their "restructure" is designed to trim the fat. Cutting the PC division, streamlining their approach to TV (maybe offering more competitive pricing options in addition to high end), selling off buildings that have become relics of the past and leasing (in turn saving money), even trimming development studios...all examples of them finally acting to streamline their business to maximize profits.
You are correct, they have been traditionally stubborn about how and where they did business. Now, it looks as though they have been pushed to the point where they need to be serious about profits while they continue to innovate in the spaces that they exist.

Kavorklestein1213d ago

I agree that they have great products, Including SOME of their TV's, but they never ever deserve the asking price for them. They seem to want to just charge a 500 dollar "We're Sony" tax on most of their products, and that's what has shot them in the foot the most. They REALLY did charge too much for the PSP the PS3, and the PS2 when they first came out.

I'm glad to see them finally get it right with their pricing on the PSVita and The PS4.
Whether it's a slice of humble pie due to finances that caused the respectful pricing- or just an awakening that consumers will buy MORE products from Sony in the long run if the products aren't overpriced in the first place, it's a good change to see for the first time in ever.
They were nowhere NEAR as bad as Apple when it comes to overpricing their products tho, so I'll give them that.

I think their film industry involvement and the movies they usually make are typically top notch, especially their Japanese and imported films from Sony Pictures Classics.

I don't think that PSN makes them as much money as it should, but their hardware does.
Hopefully they can stick around for plenty of time longer because gamers need a good variety, and Nintendo and Microsoft need a good role model, and vice-versa. They all help fuel each other's ideas in a competitive and inspiring way.

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Toman851213d ago (Edited 1213d ago )

@lifeisgamesok

You are one of the Xbox fans who want Sony out of console business. That you have said many times on n4g. Thats sad, because everyone need competition in all market, phones, tablets, consoles and more.

Magicite1213d ago

Yeah its sad, but they are still making best consumer electronics and best console gaming since 1994.

ger23961213d ago

And amazingly they're still in business and thriving. Go figure.

k3rn3ll1213d ago

I wouldnt exactly call that thriving. Ye a playstation is, but gettin rid of
of an entire electronics division isnt. Also separating the TV business isntba posi l. Its a goodbmove for the company as a whole, but its never a positive thing to have tobdo b like thay

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Cryptcuzz1213d ago

Its great that Sony as a whole is realizing the great potential that lies in Playstation again. During the PS3 days, it seemed like they lost a little hope and motivation.

Sony does compete in many sectors such as movies, music, TV, home electronics, smart phones, and recently the personal computer sector as well.

Look at how many billions in cash Nintendo is able to accumulate in just the gaming sector. With Sony as a whole backing up the PlayStation side and focusing mainly on that going forward, I can see a much different Sony, financially, by the end of this generation.

As much as it hurts me to say this, but Sony needs a start over with the Vita. They need a different approach to compete with the 3DS. A refresh with much lower memory stick prices would do wonders for the Vita. Bring on exclusives to the platform games such as Gravity Rush and not just console versions of the game as well.

Macdaddy711213d ago

Come on now, everyone swore MS was going to drop X1 cause they reposition some of there company!!! and they was not Billions in the hole, so let swear Sony closing down Sony, selling off ps4, let all run out n buy X1 cause Sony not going to make it, lol
By the way??? MS was not Billions in the hole,
Every I mean Every big business loses millions n have to rethink there business at some point,

Concertoine1213d ago (Edited 1213d ago )

While i don't think the XB1 will be discontinued, MS has lost a ton of money on xbox as well.

@jts

The original xbox was one of the biggest financial failures in gaming history. They also didn't start profiting off the 360 until 2010 or 2011.

I do understand have have stated that the Xbone has more potential to be profitable than either of its predecessors for the low loss on hardware at launch.

jts18911213d ago

How do you figure? Unlike with the 360, MS is selling every Xbox One for a profit and it's matching and surpassing the 360 in sales during the same time frame.

iceman061213d ago

Microsoft was not billions in the hole. However, as of the end of fiscal year 2013, the Xbox division was indeed over $3 billion in the hole. The idea of MS possibly exiting the business stems from the fact that MS has more lucrative business ventures than Xbox and the shareholders were getting restless with the fact that it Xbox wasn't making money. On the other hand Sony actually relies, in part, on PS as revenue source.
It is ALL speculation, but it makes more sense that a company that doesn't need the revenue stream and is "getting pressure from shareholders" to improve or leave would be more inclined to cut and run than a company that actually relies on the industry for revenue.
Personally, I don't see EITHER of them leaving soon. But, I understand the standpoint of the financial analysts that might speculate this particular viewpoint.

shyheme11213d ago

Even though the Ps4 is making money, its not going to turn Sony's financial problems around. Not anytime soon anyway. Sony is a big corporation with many divisions that's losing millions of dollars, so the money made of the Ps4 just HELPS offset some of the losses from the other divisions. You can't lose money and make money at the same time and be profitable.

Muzikguy1213d ago

If you lose less than you make back of course you can be profitable. Movies are good, TVs not so much, music I'm sure isn't making much, and games are doing well. Phones are picking up too. It's the companies that want their hand in everything that end up hurting the most

MegaRay1213d ago

Sony's dumb. They should focus on videogames, movies, Phones and thats about it.

sic_chops1213d ago

Did anybody read the part where they quoted sales and said "market research firm VGCharts?" Haha

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