Sony Post ¥150B Loss

TheSixthAxis: "Sony's financial report released today is grim news. The electronics division has posted financials ¥340 billion lower than their earlier forecasts. In the Game segment, presumably meaning PlayStation, operating income (loss) is expected to be lower by approximately ¥30 billion. Of this, approximately ¥15 billion is due to the impact of the appreciation of the yen and approximately ¥15 billion is due to lower-than-expected sales. "

[Why dis]

No more.

Stop posting rehashed news.

[Fishy Fingers]

Doesnt happen often, but I agree with you.

[ReBurn]

How is it rehashed? Seems to just be confirming previous speculation.

[clinker]

The early news was that analysts forecasted 1.1 billion loss. Sony surprised everyone with a 2.9 billion operating loss or a 1.65 net loss after taxes for 2008.

[pumpkinpunker]

PS3 = Epic Fail

There will be no price drop this year. You can pretend there will be if it makes you feel better but if you show up at the gaming store with $299 and try to buy a PS3 you won't have much luck.

[Gamekings]

SONY is projecting a loss due to weaker DOLLAR

a projection could change as the YEN/DOLLAR appreciates/depreciates\

SONY is projecting a profit of 113m for the 3rd fiscal ending 31st december

[eelnats2000]

i hope people understand that if sony DOES lose money, it has nothing to do with the Playstation or the games division.

[karlostomy]

@ eelnats:

sorry bud. wrong.

"In the Game segment, operating income (loss) is expected to be lower by approximately ¥30
billion. Of this, approximately ¥15 billion is due to the impact of the appreciation of the yen
and approximately ¥15 billion is due to lower-than-expected sales."

[THC CELL]

yawn

who cares they will make it back and they will lose it each year

$1.65 billion is no damage really
they are worth 165Revenue ▲ US$ 81.714 Billion (2008)[2]
Operating income ▲ US$ 3.745 Billion (2008)
Net income ▲ US$ 3.694 Billion (2008)
Total assets ▲ US$ 117.603 Billion (2008)
Total equity ▲ US$ 25.36 Billion (2008)

[caffman]

if you are going to qoute wikipedia, at least read the source notes! Its now nearly a year on so I wonder whats changed

[Droid Control]

Its far worse than anyone thought!

It looks like Sony are losing money across the board!

TV - Hi-Fi's - PS3...

15 BILLION on the console side.... and we know the PS2 and PSP make them money, so how much exactly has the PS3 cost them???!!!

That dead duck has drained all their proffit from the PS2 and PSP and added even more debt.

STILL THINK SONY WILL PRICE CUT IN MARCH?

Not unless they are willing to go backrupt in debt!
And how's that loan comign alone that they still have to pay backl for their baleout last year?

2009 - worse year for sony - EVER.

[Mindboggle]

Sorry dude that whole comment was practically wrong.

1. You do realise its 150 billion YEN !!!! Thats about 1.7 billion US dollars, so its not the end of the world

2. It also says nothing is happening to the gaming division, it will continue as usual, the cuts will come from other Sony divisions

Please read the article before commenting

[Hellsvacancy]

I lost a £20 note this mornin god knows where that went

[Kratos215]

bubbles up

[sajj316]

Strange as I found a $20 bill in my suit pants this morning as I got ready for work. What does this tell me. Money lost in the past will eventually be recouped. I have faith in Sir Howard!

[Sitdown]

Hahaha....at first when reading your post, I thought you were implying that hellsvacancy had accidentally tipped you on his way out this morning. But yeah, money lost in the past might be recouped...but that does not necessarily mean it will be recouped by the one who lost it.

[techie]

Actually they've forecast it. They haven't posted it. It's only a prediction. Could be more or less.

[pumpkinpunker]

The forecast was a week ago. Sony released the official numbers today and they're worse than the forecast.

[karlostomy]

of which, the gaming forecast is thus:

"In the Game segment, operating income (loss) is expected to be lower by approximately ¥30
billion. Of this, approximately ¥15 billion is due to the impact of the appreciation of the yen
and approximately ¥15 billion is due to lower-than-expected sales."

It shows quite clearly that the appreciation of Japanese currency and lower-than-expected sales account equally for the losses of its ps3 gaming division.

A double blow for Sony.

I would suggest that a price drop for ps3 seems an unlikely event for the time being.

[Lumbo]

erm, the gaming part includes PSP, PS2 AND PS3
One look at the forecast shows that the PS3 sales forecast did NOT change (still 10 million) whereas both the PS2 and the PSP got reduced.

Hence "lower sales" does not affect the PS3 part of the gaming division.

But i see what you tried there in relabeling the gaming division to PS3 gaming division against better knowledge

[karlostomy]

@lumbo

It seems i have to take that extra step of logic for you, huh?

THINK!

does the PSP make a massive profit for Sony's gaming division?.... yes!
Is the PSP hardware sold at a loss?....NO!

does the PS2 make a massive profit for Sony's gaming division?.... yes!
Is the PS2 hardware sold at a loss?....NO!

Well, how did they make a loss overall then?

.....oh that's right. The PS3!
Does the ps3 Hardware still sell for a $50 loss per console?...YES!
http://n4g.com/ps3/NewsCom-...

Lumbo.... you weren't seriously suggesting that the PSP and PS2 are the lossmakers for the gaming division? Don't you think the PS2 would get discontinued if that were the case? Surely that logic doesn't elude you?

You know it's true, Lumbo.

:)

[psiom]

Is this story in Yen to make the numbers seem bigger?

[Captain Tuttle]

It's in Yen because that's the currency that Sony deals in and because the strength of that currency is one of Sony's biggest problems; it's the one thing they have very little control over. The Japanese government doesn't seem to care.

[ravinash]

Sony is a japanese company, so it has to report its earnings in Yen.
But remember that it operates around the world, so not all that money is in Yen.
If I was that company, then I would hold on to the US$ till the exchange rate improved. In which case, the loss reported was not really lost.
Mind you, I'm no lawyer, so i don't know what the legal requirements of this would be.

[psycho360]

To post in yen or dollar is not the issue. You guys want to spin everything or rationalize everything sony goes through or does. Its freaking 1.2Billion USD Loss, you think it does not matter?

You know how many zeros are in a billion right? 000,000,000 if thats not much than maybe you're sultan of brunei.

[ravinash]

yes, there are a lot of zeros in there.
Thats why 0.01 % means a lot of difference.
So if you hold on to your money until the exchange rate is more in your favour, that gets you back a lot of cash.

I'm not saying that Sony have not lost money, I'm just pointing out the these big sums of money have a lot more Liquidity to it.

[psiom]

Lighten up dude. I don't care anywhere near enough about the so called 'console war' to spend my limited hours in the day "spinning" news :)

It was only intended to be a little bit of jaded humor relating to all the FUD people spread when there's bad financial news.

No matter how bad the reality of the news really is, there are always people to take it a step further into hyperbole.

[Kushan]

This isn't good for anyone. Even if you're a diehard 360 fan, you need Sony to give Microsoft the competition that will force them to improve the console. And if you're a PS3 fan, obviously you want Sony to be doing well.

I hope the economy gets better, I'd hate for the next generation to be just Nintendo and Microsoft.

[killedinaction9]

a Micro$oft spokesman has commented today to show sympathy for Sony's situation

“150 billion yen?...... Is that it??? I wipe my arse with 150 billion yen everyday”

Just kiddin lads :) everyone's losing money.

[TheMART]

PS3 fans this isn't rehashed news.

Before Sony announced a 800 million dollar loss
They now have an update

1.2 Billion dollar

So they added 400 mln. dollar. This is news from today. Not old. Updated.

No price cut on the PS3 any time soonish I guess. Sony needs every buck they can earn

[Sez]

then sonyfanboys needs to start buying some games.

[Captain Tuttle]

Hopefully the die-hards at Sony let Stringer off of his leash and allow him to do what needs to be done.

Don't expect a price cut anytime soon.

[Firstkn1ghT]

You can pretty much kiss that needed price cut goodbye. Tough times are ahead for Sony. This economy is a lot worse than people think.

[PirateThom]

I like how people here are predicting no price drop now, because we didn't know Sony were already going to post a loss before today...

[Qfragger]

In hard times that's exactly what any company would do to shift more units. Sony don't just get revenue from hardware, they also profit from software sales. To be fair the software sales would be a better profit margin than the ps3.

We can all see the car industry lowering prices to try and grab customers that might not be in the market.

[shinobi333]

the price drop is happening no matter what.

[Captain Tuttle]

My gut is telling me that we'll actually see layoffs in the Gaming Division. Short term Sony MUST cut costs and weather this storm.

[Expy]

And electronics division has what to do with the gaming division? They are totally independent.

[Darkseider]

All in all even though the loss was a big hit it wasn't as bad as most think. After taxes the NET operating loss is 1.65 billion USD. Granted that is a huge amount of $$$ but with the restructuring should be offset by end of fiscal year 2009. Also the pounding the yen took really put a hurtin on things. This change accounts for nearly 75 Billion Yen gross loss which is approx. $840 Million USD. All in all not great but recoverable and with the restructuring Sony looks to be going the right way.

[pumpkinpunker]

They're screwed.

[dreman999]

Put that dot more over to the right. Don't try to miss lead people.

[Says you]

That is 150 billion yen that is only 1.7 billion not 150 billion dollars like wow I think you XBox 360 fans should rename yourselves the RetardBox 360 fans considering you guys are mixing up yen and $$ when there different.

[dreman999]

..........
$16,837,306.36 Billion....
.......Holy crap that alot of money.

[spectyre]

1 USD = 89.069 Japanese yen

$16,837,306.36 = sixteen million, eight hundred thirty seven thousand, three hundred six dollars and 36 cents.

The articles states it is a 150 billion yen... not 1.5.

[KingJames1906]

How long Sony continues to offer "Free Online Gaming" for the PS3 if losses continue to mount.

Personally I can't see it remaining free. Save this post. 2009 Sony will begin charging for Online Gaming. Just one of many reversals for the company.