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Sony Projecting Big Fiscal Year Loss

Nintendo isn't the only company losing money. According to the AP, Sony is struggling, too. While Nintendo lost $924 million last quarter to Sony's more manageable $346 million loss, Sony has readjusted its fiscal year earnings to show a dramatic loss of funds. Originally projecting a yearly loss of $769 million, Sony is now forecasting losses of $1.2 billion.

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MultiConsoleGamer2175d ago (Edited 2175d ago )

That's pretty steep. In 2009 they posted a 4.7 billion dollar loss on the PlayStation divison. And then in 2011, they posted another 3.2 billion dollar loss that was company wide. And for this year alone they have posted two quarterly losses in a row.

First Nintendo utterly tanks and now this. I'm genuinely worried about the financial stability of the gaming industry. Some people ignorantly think giants cant fall. I've seen many companies come and go during my time as a gamer. I don't like what I see when I look into the future.

decrypt2174d ago

People on this site need to get a hint why MS or Sony havent announced a new console. Its because of these losses that they want to carry on with the current gen. Expect this generation to be much longer maybe 2-3 years more or so.

Ryudo2174d ago

Actually the Xbox 360 has been a rolling finical success and Microsoft has been profitable for years.

Go ahead and disagree though, we all know Sony needs to be better then Microsoft at everything on this site.

gamingdroid2174d ago (Edited 2174d ago )

The Xbox division within E&D at MS has been profitable for some time. In fact, at this time it is what is helping the entire division have a profit.

reynod2174d ago Show
Ulf2174d ago (Edited 2174d ago )

"In 2009 they posted a 4.7 billion dollar loss on the PlayStation divison."

I read the Sony financial reports every quarter, and I don't recall such a thing in 2009, or frankly ever for the SCE/SNE division by itself. You sure you're not confusing dollars with yen? A couple orders of magnitude difference there.

2174d ago
Anon19742174d ago Show
FanboyCatcher2173d ago (Edited 2173d ago )

Thanks for supplying those links Darkride66.
Why did you leave out all the important analysis, though?

While we are 'Fact checking' let's collate all the info we have:

1. Cumulative losses up until 2009 FY were $4.7 billion on the division responsible for the games business. That is definitely NOT make believe. This is confirmed in your links and also at other websites.
http://www.joystiq.com/2009...

2. In the 2010 FY (that's this year's result)this division posted a profit of $435 million, as per your link. This reduces the cumulative loss to $4.265 Billion in the division responsible for the PS3 games business.

Now, what gets me, is that you have totally forgotten to mention that the ps3 is still in the hole to the tune of $4.265 BILLION (That's billion with a B), after offsetting last Financial Years's profits.

You also forgot to mention that Sony just dropped the price of the Ps3, in a big way, which will be negating at least some of the positive effects of reduced Ps3 hardware costs and increased PS3 software sales that contributed to the last year's division profit.

That cumulative loss of $4.265 billion is definitely for real and it sure isn't going away.

Fact checking. You might want to look into it.

Death2173d ago (Edited 2173d ago )

Fiscal loses don't carry from year to year like that. When Microsoft invested a billion towards RROD failures it didn't set the next fiscal year in the hole. That is how they moved into the black so quickly.

The best way to explain it is like your own personal finances. If you budget yourself monthly and have a large expense like an auto repair, the amount budgeted monthly will not be enough to cover the expense. Money will have to come from your entertainment budget to cover it. You may have to get it from multiple areas, but it is still paid.

A company like Sony or Microsoft have a much larger pool of money they draw on. Their reserves are much, much higher than you may think. An annual loss would be written off from their reserves and the next fiscal year would start anew with some adjustments. This is one of the reasons Microsoft was shedding first party developers.

-Death

Ulf2173d ago (Edited 2173d ago )

@ FanboyCatcher:

The quote was "In 2009 they posted a 4.7 billion dollar loss on the PlayStation divison."

You went on to state "Cumulative losses up until 2009 FY were $4.7 billion on the division responsible for the games business".

If you don't see the spin, via the lack of full information, in the first quote, I can't help you.

Did you know that the Blu-Ray royalties from every BD disc printed (numbered in the billions now) goes to a different division as "profit"?

Did you know that the same is true for the manufacturing costs of the over 50M Blu-Ray drives in PS3's, despite the fact that they also send a royalty back to a different Sony division? About $9 times every PS3 made goes back in Sony's pocket, and about $21 goes into the pockets of the rest of the BDA.

Did you know that the cost-of-goods for every Sony 1st party game is spent largely at Sony disc manufacturing centers, thus resulting in income in another division? $5-$8 times tens of millions of discs and manuals printed since the PS1 era.

Consoles sell Sony TVs, audio systems, movies, you name it.

If you compare Sony's games division with, for example, Microsoft, the Sony division is doing a heck of a lot more good for the company as a whole. Don't try an spin it around for the uninformed reader. Spreading half truths, in hopes that the uninformed mind will jump to an untrue conclusion, demonstrates a lack of morality no N4G reader should have to put up with.

If you want to "check the facts", feel free to do a complete job, and don't leave out the ones that don't suit your purpose.

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jdfoster2174d ago

http://www.vg247.com/2011/1...

Basically this article... Gives you better information than IGN and shows that actually. Playstation side is growing while the rest of Sony is is stagnating.

ATi_Elite2173d ago

people quickly forgot Sony got smashed this year....literally smashed!

1. Earthquake
2. Tsunami
3. Radiation
4. PSN attack and shutdown
5. Riots in England burned down a Sony warehouse

all these events destroyed product, shut down manufacturing, and put a stop to sales. Sure TV sales may have been slow but these 5 items i listed really had a larger impact than a few 3D Bravia's collecting dust.

Grip2173d ago

I don't believe in karma but man, if there's one..... Karma is bitch

+ Show (1) more replyLast reply 2170d ago
TheBlackMask2175d ago

You do realise Sony isn't just about gaming, they have other products aswell you know.

God anything to put SONY/PS3 in a bad light. Face it despite the PSN hack this has been the year of the PS3...plain and simple.

Resurrection2175d ago

And now people can't report actual news because it hurts your feelings?? So we should all pretend that their projected $1.2bn is good news?

Jihaad_cpt2174d ago Show
v1c1ous2174d ago

How's Greece, Italy, and Spain going there jihaad?

Jonah_Reese2174d ago

Hey learn a little before you, you know speak stupid. Not an attack just advice.

Montrealien2174d ago

he won't respond Vic, he has nothing. He is just a kid with an internet connection who thinks talking bad about the US is the cool thing to do atm.

@TheBlackMask

I have been comming to this site for years, and I am happy you have finally confirmed to me that after 2006, 2007, 2008, 2009 or 2010 we finally got a winner with 2011? awesome!

*runs back to play Uncharted 3*

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Bigpappy2174d ago

Sony is loosing money in all departments "BlackMask". I take no pleasure in telling you this, as I am aware of the recent problems as a whole Japan as a country had to deal with, and as a gamer, I like the balance that we currently enjoy with the big 3 all having a good share of the market. This ensures competition will force innovation.

Christopher2174d ago

Actually, they're not "losing" money so much as spending it. Continued R&D, mother nature, recovery, PSN hack, buying out other companies, etc.

PSVita2174d ago

@cgoodo Exactly they just bought Ericsson and they pump money into buying studios, making games, and developing hardware.

gamingdroid2173d ago (Edited 2173d ago )

Sony buying up Ericsson wouldn't be recorded in the last quarters financial data. That will take some time to complete and at the earliest in the current quarter.

Continued R&D always cost boat load of money and with the release of PS Vita, I expect more investments which means even more losses on the books, but the facts are Sony has had 4 straight years of major losses.

It ain't just "investments" that will pay off right now. Things might change, and Stringer's been trying hard to revamp the old Japanese company, but things are just marginally better at this point from when Stringer took over.

Christopher2173d ago (Edited 2173d ago )

***Sony buying up Ericsson wouldn't be recorded in the last quarters financial data. That will take some time to complete and at the earliest in the current quarter. ***

I'm thinking that in the long end, buying them up is cheaper than the massive losses they have experienced with their investments in Sony Ericsson. Since 2008, it has been one of the biggest sinkholes for them outside of their LCD TV department.

Also, they've been continuing to pump more than they make into R&D on almost every front. Sony is struggling to keep up with all of their competition. Microsoft, as a company, is in a very enviable situation where they have the figurative corner on the OS market as far as overall market penetration and sales, which fuels their ability to slowly start dominating other markets. Honestly, if Sony doesn't partner up with another large business sometime in the future, I'm not sure how successful they will be in the long run.

They have been successful in increasing both primary (read PS3) video game hardware and software sales and maintaining profits, they just can't seem to keep up with how much they want to throw into R&D. If they are working in both Vita and PS4 right now, I doubt they will start seeing any profit for at least a year on those, longer for the PS4.

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Cosmo8112174d ago Show
jdfoster2173d ago

http://www.vg247.com/2011/1... .... basically this... shows how playstation division have grown while the rest of sony have stagnated and took on big losses. Plus many other factors effected Sony... Tsunami, radiation, strong yen etc etc

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gamer2342175d ago (Edited 2175d ago )

the problem wit dis gaming generation are three things, sales, reviews and fan-boys , nobody plays game for fun again which is very sad, if care is not taken ,the gaming industry will tank.

zeousPP32174d ago

I agree with the fact that these three things are destroying game sales. I love playing games, no matter which console it is on and if this stuff keeps on, then the gaming industry could be faced with a problem.

Ddouble2175d ago

Earthquake, Flooding, TV sales and Strong Yen.

Still thisis Sony as a whole not the gaming division.

tickticktick2174d ago (Edited 2174d ago )

Everyone still loses.

Jihaad_cpt2174d ago Show
JokesOnYou2174d ago (Edited 2174d ago )

but thats fine, afterall when there is a catastrophic disaster America contributes the most resources and Aid, when there are mass killings of civilians or genocide, the world asks for American intervention FIRST, when theres famine and decease spreading in a poverty stricken nation we send the most doctors and food, so Yes its fine to disagree with our politics and ask did we do everything right, but never mistake that those who serve in our military are without a doubt great men and women who have the best intentions wherever their duty takes them.....unfortunately there will always be critics like you, calling names and mocking the man in the arena, all the while trying to hide your own issues of envy, jealousy and wishing you had 1/10 the courage to be a part of something that will matter when future history books are written. Sure blame average hardworking Americans who's tax dollars support so many great foriegn causes or blame the military who lost countless fathers, sons, mothers, & daughters for the benfit of people in many nations that they left their families to go help, just sit there, on your couch, nice & warm, and unafraid and blame, blame, blame, its a very easy position to take, and thats all critics will ever do. Congratulations.

>>>Steps off soap box.

oh, My bad this is gaming financial news. I hope all companies ultimately are profitable, thats good for gamers.

BabyTownFrolics2173d ago

in soviet union America blames you

Just_Gamer2173d ago

@JokesOnYou

What are you talking about? American military invades countries for resources and strategic position just like German did in WWII. How come your army intervenes only there where there is oil? If it was really for helping civilians, they'd also be helping them in countries without rich resources or the ones that aren't in a strategic position. Your army is just a service to your greedy bankers to help them rob the world. Let's check:

Iraq = Oil; justification was nuclear weapon - it was never found

Afghanistan = Strategic position (Russia&Iran); justification=hunting Bin Laden - hunted down 10 years after in Pakistan (obviously that wasn't a priority

Kosovo = Strategic position (cutting Serbia from Russia and forcing it into NATO&EU) justification = The refugees chased out of Kosovo by the Serb army. The mass graves. NATO spokesman Jamie Shea said there were 100,000 Kosovo Albanian Muslims unaccounted for. Problem is, none of it happened.NATO's original estimate of 100,000 ethnic Albanians slaughtered, later revised downward to 10,000, turns out to be considerably exaggerated. The truth is that Kosovo Albanian terrorists smuggled drugs and tortured Serbs and cut and sold their organs and one of the heads of their terrorist organization was the future prime minister of Kosovo, the friend of your bankers: http://www.bbc.co.uk/news/w...

Libya = Oil, justification: helping the rebels. Tell me, why would people rebel in a country in which they had a much greater standard of living than people in US? It was the African Switzerland. Free health care, free education anywhere in the world. Raising credit in a bank without interest rates! 0%. The truth is it was a small rebellion in eastern part of the country, organized from outside and blown out of proportion by western media. It's like if the rest of the World attacked USA because of OWS protesters and the police behavior towards them. That truth is not proven yet (it's still fresh but it will be proven when the whole thing fades out of the minds of american citizens...like the previous ones), but you'll see. Soon, Libyans will find themselves living in a bankers hell, just like the rest of us, indebted for life and getting poorer and poorer.

For the end, a food for thought. American ships are routinely sailing the South China Sea. What exactly are they doing there if they claim they're not an occupational force? Now think...how would you feel if it was a Chinese fleet routinely sailing the Caribbean?

Death2173d ago

Only 10,000 people slaughtered? What a waste of resources then. I'm sure they would have stopped the senseless killing of civilians had America not intervened. Your take on America is sad. If we are attacking Iraq for money, why has our economy gone so far down? By your logic we should be in an economic boom right now. Sadly we use our money and the lives of our soldiers to help those that need it. I agree with you though, America should focus on it's own interests and let everyone else deal with their own problems. We spend billions of dollars we don't have to try and help feed the hungry in other nations while hunger and poverty still exist here. It makes no sense to me when the thanks we get are from people like you.

-Death

Just_Gamer2172d ago (Edited 2172d ago )

@Death

I'm not saying 10000 is a small number but it's certainly way less than your government told you and it's clearly not a genocide.

By contrast, what about 380000 Serb civilians that got thrown out of Croatia. Many of them killed. That seems way more like ethnic cleansing to me than anything Serbs have ever done to others.

http://en.wikipedia.org/wik...

Even Tesla's family was expelled though every man on Earth has immensely much to thank him for.

But of course you've never heard of that since Croats were US allies. Just as they were German allies in WWII

http://en.wikipedia.org/wik...

As for the money, those wars are never meant to be fought for the benefit of American citizens but for the selected few rich and greedy corporate predators. They even robbed you directly in 2008.

USA is not a democracy anymore and it's not lead by the people or for the people. You're living in a Corporate Dictatorship. You have only two parties to choose from at the elections and both of those are controlled by the same few people.

But yeah, believe the lies, ignore the truth and just keep your head down while romantically thinking your country is an altruistic saint, working for the benefit of all, justice and righteousness.

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