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Sony seen posting first op loss in 14 years

Sony Corp is expected to post an operating loss of about 100 billion yen ($1.1 billion) for 2007/08, the Nikkei business daily reported, far short of the company forecast for a profit of 200 billion yen.

The operating loss -- Sony's first in 14 years -- could be double that, depending on inventory conditions in the January-March quarter, the Nikkei said it had learned.

In October, Sony forecast a full-year operating profit of 200 billion yen for the year to March 31, down from 475.2 billion yen in 2006/07.

The loss would be only the second since Sony went public in 1958 and the first caused by troubles in its mainstay electronics business, the Nikkei said.

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PS360WII3537d ago

Ah profits, losses, stocks, bonds, fiscal quarters, forcasts, etc.

Things gamers dream of...

TOO PAWNED3537d ago

Especially for fanboys, just wait and you will see.
This is going to be at least 50+ comments, could reach hundred.

chaosatom3537d ago

Not like just Gaming division-Sony.

Sony is a huge company, and i can see the recession affecting them in a huge way

DaKid3537d ago (Edited 3537d ago )

The exchange rate hurt them the most. Just as it has hurt many other japanese companies.

Edit @Chris
I believe in a week or so, most companies will give their quarterly update, so we should have an idea by then.

Chris3993537d ago (Edited 3537d ago )

I am so, so tired of analysts' "predictions".

Regardless, the gaming division will post another profit (as it did last time, I believe). And that's the only thing that gamers should care about.

Preemptive of any "MS has more money than God" comments, please note that MS is only 44th on the list of the - and this part is key - US' most profitable companies. That's the US, not the world. Almost all companies are affected by recessions; MS is not exempt. They have their own job-cuts and "belt-tightening" incoming.

I really wish that MS would have spent less money on buying multi-plats and more on buying studios though, as this year is looking a little bleak on my 360 (Halo Wars and Alan Asleep, no thank-you). Star Ocean is really the only appealing title, and I'm waiting for the reviews on that one (I usually don't care what reviews think, but LR and IU have really put a bad taste in my mouth. PS3 has a much nicer line-up: plenty of software to tide me over till the recession passes.

My fingers are crossed for gaming surprises this year, but with a recession in full force, I don't see a lot of that going on.

Oh, and here's the Forbes link, in case anyone thought I was BSing:

http://money.cnn.com/magazi...

Cheers,
- C

Captain Tuttle3537d ago (Edited 3537d ago )

But the Fortune 1000 isn't the most profitable companies, just the biggest. By profit MS is in the top 5 or so. That list just deals with the size of the corporations. Look at #4 General Motors and how much money they've lost.

Thanks for the link though, interesting reading.

Have a bubble

DaKid3537d ago (Edited 3537d ago )

Here is a link the to 20 most profitable comapanies in the world.

http://money.cnn.com/galler...

Microsoft is 15.

Edit- Its almost sad, if you look through the gallary like the top 5 are all energy companies. (oil)

Captain Tuttle3537d ago

Interesting list Kid...thanks for posting the link. I wonder how that list would read today now that oil prices have collapsed. The only company that I really trust on there for the long term is GE....maybe Microsoft but that's a BIG maybe.

DaKid3537d ago

You bring up some good points many of those companies were really effected by the finiancal crisis. I bet the next one will be a different picture, because oil has crashed, and some banks that are on there are hurting really bad.

Also toyota is on there, and I know they are going to post a lose for the first time in like 40 years or something.

Chris3993537d ago

These are also interesting to look at:

http://money.cnn.com/magazi...

http://money.cnn.com/magazi...

That's the company stats on a global level. Sony has greater revenues, assets and stock-holders equity. Microsoft generated more profit though.

I'm not a financier, but I find this stuff interesting nonetheless :)

Cheers,
-C

Shadow Flare3537d ago

Home has already generated $1 million. And there's hardly anything really great to buy. Imagine when we get tons of really cool stuff in home; Sony will be generating millions and millions. It all helps. And i bet you anything, that when microsoft realises how much money something like home makes, they'll make their own rubbish version. That's how microsoft works. Look for success, copy, alter, claim they invented it first

jaysquared3537d ago

" I reckon this is where Home will have been a good investment
Home has already generated $1 million. And there's hardly anything really great to buy. Imagine when we get tons of really cool stuff in home; Sony will be generating millions and millions. It all helps. And i bet you anything, that when microsoft realises how much money something like home makes, they'll make their own rubbish version. That's how microsoft works. Look for success, copy, alter, claim they invented it first "

I doubt right now Home has been a good investment for Sony. Yes it has generated a 1 million in transaction but i'm pretty sure Sony has spent much more than that in creating home and maintaning it since its a free service. Yes home is suppose to have a bunch of sponsors and ads to help Sony but as of right now there's not a lot companies jumping on it. Seems not a lot gamers are jumping in it as well judging from my time spent on it at a friends house.

Also microsoft already has something like Home in terms of making money its called Xbox Live and the Microtransactions that are bought. Maps for games, themes, gamer pics etc etc....

mint royale3537d ago

on the following dates:

MS: January 22nd
Nintendo: January 29th
Sony: January 29th

All 3 may struggle - MS cut prices but will the extra units sold have amde up for the revenue lost per system?

Nintendo has been selling out as ever but the yen has affected them but who am I kidding they have only ever made 1 loss they will be fine.

Sony- may struggle as ps3's are still been sold at a loss and the yen exchange rate has crippled them.

I don't think sony's fortunes have a shot at turning round until the yen devalues against the euro, pound and dollar. Nintendo is getting away with it because their profit margins are huge on the wii but it is really hurting sony. This is evident in the fact they have dropped from 5th (3 years ago) to 23rd in the list of Japan's biggest companies.

POGfinder3537d ago

SONY is projected to post NET PROFIT last quarter too

OPERATING LOSS =/ NET LOSS

SONY will project profit net profit too

dcbronco3537d ago

Many seem to think Sony is the only company that restructures contracts and cuts manufacturing cost. the 360 has had several rounds of cuts and is making a profit even on the arcade. The normal reduction in cost for a console is 25-30% the first few years. Microsoft has had three rounds, in the summer of '06,'07 and '08 including die shrinks on the GPU and CPU. Don't let them fool you, they are making a nice profit on the Pro and Elite while breaking even on the Arcade. But you can't blame them since they have been paying the price for entering the market for some time. It is a business.

+ Show (11) more repliesLast reply 3537d ago
wil4hire3537d ago (Edited 3537d ago )

SONY IS DOOMED!

THE PS3 JUST RUINED SONY'S 14 YEAR RECORD.

THANKS TO BLURAY AND THE USELESS PSP. Not only is the PS3 a useless 900 dollar bluray player, but its TOO expensive to just play movies since there are no games.

SO MUCH FOR THIS GENERATION SONY, YOU BLEW IT HAHAHAHAHA!

bbl, going on a treasure hunt to find a jasper 360.

[/s]

RebornSpy3537d ago

And if this was about MS, you would be serious...

wil4hire3537d ago

so.. ya. I use windows & debian just like everyone else. They are good at making only certain programs that I need to use windows for.

RebornSpy3537d ago

because I hate fanboys/girls.

It is sad how they argue over stuff instead of just enjoying the games. Unfortunately this site is filled with them, sometimes drawing me into their traps.

Spike473537d ago

so please refrain from posting " PS3 iz teh doomz" comments.

floppyfeet3537d ago

It DOES have to do with ps3 , you kids need to stop defending the ps3 so hard

http://www.1up.com/do/newsS...

http://www.guardian.co.uk/t...

Aaron Greenterd3537d ago

this news isn't going to save Microsoft either, so why don't you worry about yourself

floppyfeet3537d ago (Edited 3537d ago )

The ps3 is a gaping bloody gash in sony's head that is bleeding money.

If things dont turn around in the first quarter the ps3 will be dreamcasted. its simple fact

Sony is a company that is focused on MANY different divisions , and the divisions that are not making money for them are the divisions that get cut first. Its not completely out of the question for sony to completely yank the cord on ps3. Sega did it

Death3537d ago

The losses Sony has incurred in their games division have been reduced dramatically and the PS3 will start generating a profit for Sony by the end of this year unless they make some crazy price cuts. They are relatively close to breaking even in the division now. As production costs go down and game revenue picks up the Games division will be making Sony money again after 3 years of losses. These losses are common when launching a new console, the impact was greater this cycle due to the high production costs of the PS3. If the PS3 does see a 10 year life span, it will have been a very good investment.

Don't turn this into more than it is. Microsoft is seeing a decline in income also and reducing their work force to adapt. Nintendo is still printing money, but they are an anomaly.

-Death

floppyfeet3537d ago

I dont need a paragraph of excuses to sum it up better.

Sony failed this gen and its their fault for thinking gamers would invest in things other then gaming

Death3537d ago

The shift from PS1 to PS2 happened after they system fell below the $199 price point. Why do you think SOny expected 150 million owners to buy at $599? Did the high launch price affect sales? Sure, but not to the extent you are implying. Had Sony launched a Blu-Ray-less PS3 for $399, the revenue they are currently receiving from Blu-Ray sales would be gone. The push for high definition tv's would be smaller and the market for Sony Blu-Ray players would be significantly smaller had they been able to beat HD-DVD without the PS3 which is highly doubtful.

Even at $399, Sony is getting hit with the brunt of the recession since they have the honor of being the most expensive entry level console on the market. They are still able to keep pace with Xbox 360 sales though which start at $199 and go all the way up to $399. For their price level, PS3 sales are far from "bad".

-Death

floppyfeet3537d ago

did you see the november software and hardware?

they are doing terrible , and november is one of the biggest months for spending on electronics. Its only getting worse , NPD for december should put things in perspective for you since you dont understand the beating sony is in for after christmas.

Because nobody is going to splurge on a $400+ video game console after the holidays when they can buy one that has all of the same features for 200 bucks

Death3537d ago

but it doesn't have all the same features as the PS3. The lack of a HDD, wi-fi or Blu-Ray playback are missing from the Arcade. For $199 it's a great console if you simply want to play games, but it is not targeting the same customers as the PS3. Realistically speaking, the $299 Xbox 360 Pro is the console most gamers buy since it has the features most people are looking for in the box.

Even with a less than stellar November and December, Sony sold close to the same amount of PS3 as Microsoft did 360's. That is not something you can ignore. 2009 has just begun, so it's a bit of a stretch to say how Sony will do this year.

-Death

The Lazy One3537d ago

it sold a lot less nov/dec... o.O

mint royale3537d ago

he is perhaps the most balanced poster on this site and a credit to it. Just because he said one thing against the ps3 he was suddenly a fanboy whilst his accusers were blissfully unaware how ignorant they were.

Traveler3537d ago

Yep, I have always liked 'Death' because he tries to be fair to both consoles. Bravo 'Death'!

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NobleRed3537d ago

Sony is teh doomed, they will go bankrupt, Sony sucks, 360 rules bla bla bla bla ect.

sit down droid3537d ago

sony is dieing of a cancer and that cancer is the ps brand. ;) lol flame ill tell you FFFLLLAMMEEEEEE!!!!!!!!!!!11

360 man3537d ago

oh jus get lost you liverpodlian

ur not winning crap dis year

GiantEnemyLobster3537d ago

And you droids still think PS3 is going to 'win' this gen? Microsoft put $1 billion aside for hardware fixes, but at least they are making up for that money in hardware and software sales LOLOLOL unlike Sony who have lost all this money on their precious FlopStation 3. With this recession thats getting worse every day, its time to kiss Sony Computer Entertainment division goodbye.

Sony is the next Sega/Atari

REDZEV3537d ago

To true, To True. The funny thing is I'd rather play the Dreamcast or the Atari Jaguar over the POS3. Anyday!!!

POGfinder3537d ago

not net loss

SONY is projected to post profit this term too

+ Show (1) more replyLast reply 3537d ago