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Sony Struggles as Nintendo Soars

Day by day, Sony's (SNE) core electronics business is looking less like a white elephant. On Oct. 25, the Japanese company swung to a profit in the latest quarter, vs. the year-earlier period, thanks to brisk flat-panel TV and digital camera sales. It also raised its annual profit and sales forecasts from July. In the fiscal year ending March, 2008, Sony now expects overall operating profits to rise fivefold, to more than $3.9 billion, on a modest 8% gain in sales, to $78.8 billion. Both these numbers are 2% higher than earlier estimates.

The improving outlook underscores how more than two years of Chairman and CEO Howard Stringer's tough-love reforms have helped restore the vitality of Sony's key electronics division (BusinessWeek.com, 10/11/07).

But Stringer's record is hardly flawless. The biggest blemish: the money-losing video game business. The July-September quarter offered further evidence that problems plaguing the company's games division aren't going away soon. Had games been less of a drag, the company's overall results might have been more impressive. The games division's quarterly operating losses swelled to $848 million-double the figure from last year-and first-half losses reached $1.1 billion.

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businessweek.com
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Zhuk3699d ago

This is a great time to be a gamer, we are finally seeing the downfall of Sony and they are paying for their lies and arrogance. The PS3 is proving to be a dud while the Wii and Xbox 360 continue to be a favourite among 3rd party developers and consumers, I wonder how much longer third party devs will continue to support the PS3 and its horrible architecture, Sony is already begging them not to abandon the sinking ship so it can't be far off.

Real gamer 4 life3699d ago

Why do you have so much hate for Sony? What did sony ever do to you? And if you think that sony is going down you are wrong, sony is going no where.

Douchebaggery3699d ago

that might be the stupidest f*cking comment ever and that is saying a lot on N4G

pilotpistolpete3699d ago

Sony loosing money: a well known fact, but a little sadening for ps3 owners.

your comment: just sad.

andy0013699d ago

That is just the most ridiculous, juvenile, and uneducated post I have seen on this site. This is the first time I push the ignore button.

ErcsYou3699d ago

anybody that "hopes and prays" for a video game console to fail is not a REAL gamer..some gamers my be a little defensive about their system of choice but most dont wish death upon any system.. the day SEGA dropped the dreamcast in north america was day of morning for ALL gamers..i under stand how you feel about sonys"kens" previous statements about the ps3 but you need to learn to let things go, SONY is doing much better and "Kaz" has stepped in to make things better($399.99 ps3) i know that some gamers don't want a blu ray player and feel that it was forced upon us but most of them don't own a HDTV's..sooner or later you will and you will be happy to have it.

oh and by the way,losing 1 billion dollars in the video game industry is not unheard of....just ask Microsoft, Nintendo and sega

You don't drop out of the console business if ONE of your consoles failed.
SONY has ZERO failed consoles
MICROSOFT has ONE failed console
NINTENDO has THREE failed consoles(N64, GC and VirtualBoy)
SEGA has FIVE failed consoles ( 32x, sega cd, nomad, saturn and dreamcast)

Chris_GTR13699d ago

correction..
SONY now has ONE failed console

feejo3699d ago

That the price to pay for CELL that was not design for games. Cell is too advanced for programmers. I will not get a 360 or Wii either.

PS360WII3699d ago

NINTENDO has THREE failed consoles(N64, GC and VirtualBoy)

Not really true. Nintendo still made money off of the N64 and GameCube. So Nintendo only had one failed system the VirtualBoy.

DeckUKold3699d ago (Edited 3699d ago )

is wrong M$ and nintendo made money and business is all about money the virtua boy tho that was the only failure

EDIT N64 is still my favorite console to date

jackdoe3699d ago

Jeez man. Would Sony losing the console war and MS winning it give you an orgasm or something? Jeez man.

cmrbe3699d ago

I have lost all respect for you. I really did thought that you are a gamer that favours x360 but the truth is you are an immature hateful little kid.

Antiomo3699d ago

Sony Is what made console gaming for the past 2 generations.

Its far from a dud, its showing the exact symptoms as the transition between ps1 > ps2.

Ps2 will SLOWLY die out and make way for the ps3. Plus blu-ray is winning because of he ps3, hence driving down the cost of the technology.

gen16803699d ago

But if it were in my house the only person that would touch it would be the cleaning lady.

+ Show (11) more repliesLast reply 3699d ago
cloud360-7th_account3699d ago

Why do u always use PICS of Ken Kutaragi and PS3 like that

fredy3699d ago

that's SONY Pre-nov 2006... and we have yet to see the Ps3 clawbber the 360 to the ground, like it was suppose to when it first came out.

hey it's just a picture, on that note it is dumb to believe sony is headed for a down fall, but what ill say tho, sony will not dominate like last-gen.

just my opinion..

cr33ping_death3699d ago (Edited 3699d ago )

PLEASE someone go and find how the 360 is doing horribly in japan......we all know it, MS fans know it should be posted up again as a reminder. everybody knows where the Wii and PS3 stand... so why must this BS be reposted over and over.

edit: you say PS3 fans have this censoreship style in blocking certain news....well yeah when it comes to BS like this....if anything we are blocking your agenda in trying to rally your troops just so they can trash the PS3.

iceice1233699d ago

360 will die withot Japan! Oh wiat...what is this...world wide 360 outsells PS3 EVERY month? Hmmm but IT DOESN'T HAVE JAPAN OH NO!

shmee3699d ago

ps3 outsells x360 in EUROPE and JAPAN

North america is the only place where x360 outsells ps3.

However things would change

Bloodmask3699d ago (Edited 3699d ago )

Thanks for admitting that you tools censor the news. Constantly reporting things for bogus reasons. And on top of it leaving bad feedback on the post which is against the guidelines.

I approve negative type 360 stories all the time, and don't throw a temper tantrum. I also post a lot of news for this site, but the "only ones" that constantly get reports are negative PS3 types. News is news, good or bad. This article was posted by Newsweek "today". It is neither duplicate or SPAM.

You guys have no right to censor legitimate news. Good or Bad, this isn't News By Gamers. It is News 4 Gamers.

cr33ping_death3699d ago

ok so what if another story like " 360 sales going nowhere in JAPAN" pops up? you will think i know this already,,,,i dont need to re read this and its only going to start a flame war.......plus the pics you use in your stories are always showing the PS3 in bad light. your stories are more than likely legit, but your choices of pics arent going to help your stories get approved.

Dlacy13g3699d ago

The company on a whole is doing great but man their gaming division just continues to take a pounding. Hopefully this holiday will see some relief for them. I have no desire to see Sony completely fail...I like the competition that has arisen between the 3 consoles.

VendettaWFT3699d ago

I mean all this trashing is bullsh!t. It really doesn't matter in the end. Can we just all agree on one thing...like how Josh Beckett is a BEAST for the Red Sox in the post-season. Or how bout we all list our top 3 greatest concerts we've all seen. I'll go first.
1)Tom Petty
2)Jimmy Buffett
3)Smashing Pumpkins (these guys put on a hell of a show)

ericnellie3699d ago (Edited 3699d ago )

I'll have to agree with you on that one! Competition is a good thing. It forces companies to give customers the best value. Here are a couple of examples.
Microsoft thought a 20GB hard drive was big enough and "us" as gamers disagreed -- do you think they would have come out with a bigger hard drive if Sony didn't exist? Hell NO!
Sony didn't think online game play was important, don't you think that after Sony saw how well Xbox Live did it helped them realize just how important it truly is!
They have forced each other to step up, to excel, to execute and to deliver products with tons of features for a lot less;) As they battle, along with their fanboys -- I'll sit back and enjoy all the best aspects of each platform and I'll drink a few beers while I'm at it;)

lawler3698d ago

Sony failing would probably be good for gaming. It'll serve them right for using less intelligent gamers as a way to get bluray off the ground.