Bloomberg: Sony Corp. (6758) fell to the lowest level in Tokyo trading since 1980, when the Walkman was new and before it introduced the first compact-disc player, after forecasting profit that lagged behind analyst estimates.
One Word: http://youtu.be/O9K8txc4MMk...
Your making a whole lotta sense right now. Its a damn shame really. Sony offers something for everyone but for some reason ain't catching a break. i'm going to blame this on global warming. I just don't get it
The blame can't be put on "global warming". I agree with the article that it's Sony's TV sales that is causing the loss. They are doing great everywhere else.
Sony spends too much on R&D. And they don't stop, either.
Sony is the biggest and best video game makers in the world. Playstation is the future and the future is playstation.
Fanboy much Akuma! Now if Sony was only a gaming company. Gaming is like one cog in the whole Sony machine. They are really in trouble, we just don't want to believe it.
That's his opinion Edward. He said they were the best, he never said they were the only ones in the gaming market.
Has nothing to do with gaming or Sony's gaming division though..
They should stop allowing these articals about Sony/MS that have ZERO to do w/ gaming. Both the companies do a lot of different things, we can't just have everything to do w/ Sony/MS being posted here.
Yeah, cause if you have cancer in your lungs it has nothing to do with your heart.
The reality is this has everything to do with gaming. Gaming was Sony's best division for some time. That changed with Ken Kutaragi's grand plan for the PS3. 5+ billion in losses has left Sony in a position where they couldn't respond properly to changing situations. Just like the losses in other divisions are hurting the gaming divisions ability to advertise and drop prices now. And not only do they need to keep posting these articles, gamers need to start reading them. And understanding them more. The more gamers understand the business that is gaming, the fewer ridiculous demands and the fewer fanboys. Okay, I was kidding on that last part. You can't change a fanboy because stupidity is the core problem there and facts can't help with that.
Well.. Its suppose to be in tech spy instead of n4g. Just like how anime suppose to belong in anime shinbun.
But outside of the Playstation brand and video games, I cant think of one thing that Sony is #1 in. Sony's gonna need to decide which departments and divisions need to be 'slashed & burned'......and they need to decide quickly.
I hope they bounce back! They cant catch a break. If playstation ever dies, im sticking with pc. Since I have always been pretty happy what I pay for when it comes to the ps brand.
One phrase "medocrity and trash sells". Sony i will continue to support your brand in gaming because you offer the highest quality in software and hardware. Keep it up youll be just fine. And you better continue to churn out those killa exclusives that turn out to be best games on the market hands down.
I wonder if that phrase can be used for the PS2 and Gran Tourismo or is it only reserved for non-sony products?
If you're going to insult Gran Turismo, at least spell it right......
What a load a bull. "Mediocrity and trash sells" So the ps1/ps2 are mediocre garbage? I always hear how much hyped the ps3 exclusives and how they are the pinnacle of quality which not necessarily right. You all talk like any non ps3 exclusive is absolute garbage in comparison. Ps3 lost majority of their fanbase early on do to their arrogance in the beginning of this Gen. "Next Gen starts when we say so" releasing the ps3 for a whopping £600 with weak launch and similarly weak online (at the time) With both libraries of games are 99% identical, am not surprised that both systems sells close to each other. If they released the ps3 for cheaper, never let go of resident evil and final fantasy and other major exclusives, Microsoft wouldn't have a chance.
This has ZERO to do w/ the PS3.
Great comment dark, to add, if people can't see the PS3 was rushed out so Sony could win the "format war" and secure themselves Bluray royalties for the next however many years they are fooling themselves. The funny thing is now that Sony won the format war (which everyone thought would be huge, me included) no one is trading their DVDs in for more expensive Bluray versions. The majority seems to be content with standered definition DVDs (like the Wii). The current state of the economy doesn't help either. As the rumor goes, Sony paid WB close to 500 million to drop and eliminate HD-DVD. Money that could have been spent in better ways, instead of putting a lot of their eggs in the Bluray basket that no one seems to care about anymore.
"Ps3 lost majority of their fanbase early on do to their arrogance in the beginning of this Gen." I doubt that was the case for millions who bought a Wii or 360 for a number of reasons. Both of those consoles released before PS3 and at a much cheaper price. The Wii was exciting for casual gamers (many of which came from PS2s) and Nintendo fans. The Xbox 360 caught on because of Gears of War, Halo, Mass Effect, Xbox Live and online gaming. Sony's $600 PS3 wasn't an arrogant move, it was a purely financial decision based on what it cost them to manufacture. In fact it was heavily subsidised based on the Blu-ray player within. I'm glad my PS3 has Blu-ray functionality and it sure has affected certain games in regards to storage, quality and convenience. I was okay to wait for a price drop, like I do with most consoles. The only arrogance was what you mentioned with Kutaragi's statements. The games weren't weak.. they were just not "top-tier". Resistance, MotorStorm, WipEout, Heavenly Sword, Ratchet and Clank... all good games. The online was weak though. It has come on leaps and bounds since.
I just hope with how casual consumers are being catered too by other systems that Sony doesnt change its tune and start catering to casuals. I dnt want bs games like dance star wars, angry birds and other cornball games at the price if losing great games just because they see casuals are the mass market. I mean thy have to make their money but if Sony goes that route exclusively like we see with some consoles thtll be a sad day.
Sony needs to better price their products to do battle with competition like Sumsung and others...
Such an unfounded myth, honestly I have no idea how this even began, perhaps it's born from times when Samsung was a price leader by focusing on value rather than quality... this is completely untrue today: $3499.99 2011 Flagship, EDGE LED http://www.samsung.com/us/v... $3499.99 2011 Flagship, FULL-ARRAY LED http://store.sony.com/webap... The clear winner is obvious here.
linking one TV from each doesn't prove anything. lol. i'm not saying you're wrong, i'm just saying your sample size is way too small to come to any conclusion.
You've completely failed to see my point if you think my contention is to prove Sony has value based pricing based on linking that to TV pricing. Read closer, my point is that Samsung's pricing is not competitive at all.
Actually I think overall Sony is less than Samsung at this point.The problem for Sony is that Samsung is the quality and performance leader now. Samsung TVs have a better picture. Sony has to drop down in price to compete with the Vzios and LGs. They can't compete with Samsung right now. Concentrate on R & D until they can bring OLED or something better than Samsung to the market. They also need to accept that they invented the personal music player, but that market belongs to someone else now and step aside. They need to stop charging a premium for PCs. Sony, there is nothing special about your computers. Stop pretending there is. Unless your phones are going to play PSN and PS games, stop. Make Android phones. The whole X-whatever thing is a joke. Sony can get back to what it used to be if it gets back to what it used to be. An innovator. No more "me too" products selling for too much. Move. And the main thing that needs to change and the reason for Sony being on the verge of bankruptcy. Drop the arrogance. If you get the chance to get back to being a major company, don't be a douche again. Act like you been there before.
Its not samsung that are killing sony's tv's its vizio, viore, and other walmart brands. My 46in 1080p lcd cost around 500 when bravia's were charging more than double that. The bravia is better its not 500 dollars better. HDTV's are almost disposable these days and sony hasnt realised it yet. People dont want high end electronics anymore they want cheap, cheap, and CHEAP. Theres only a very small market who buys the top tier stuff and they all fight over that dying market while walmart and others clean house selling numbers they can only dream of. The only way you can charge a premium is if you invent a market like the iphone and ipad.
Punk's says: Punk's Not Dead!! Not?Sure? Sony trouble this 100% true. Playstation is the future??Fanboy's:yes,yes,y es!!I dont think so...numbers not liar. -Ps1-Ps2-Ps3-Owner-
not good sony not good. Restructure RESTRUCTURE!!
Sonys problem is that they have too many divisions. Gaming, Television, Radios, speakers, Laptops, Phones, Movies, Music, MP3 players, Cameras. They really need to restructure and get themselves away from the divisions that are failing.
Interesting times for Sony. We can all be armchair analysts, but to me (as an armchair analyst!) it seems clear they need to restructure to get out of the silo'd mentality they've had for years. Any company where the various hardware and software divisions don't talk, but need to work together is doomed. There's been plenty of examples of this in the past from them. Unfortunately that is only half the battle - as it also takes a culture change to push this through and make it stick, which may mean cutting departments, execs and recruiting new people at the senior levels. Any return to profitability Sony make in the next year will be down to drastic short term cost cutting; but to sustain any profitability will take a radical change in the way they do business and the products they sell.
Armchair analysts should be left as armchair analysts. It's easy to say Sony should converge and cut negative NPV assets. But then there are arguments that completely disprove this: simply because Sony's technology model is that based on synergistic benefits from having so many hands in different industry's. From a gaming perspective the PS3 would not have blu-ray, 7.1 audio or HDMI 1.3 if it weren't for their home-theater focus Although at the same time Sony is, with all sense, a conglomerate. And in all rationality conglomerates are irrational, simply because they are designed to cut-down on volatility (which technology firms require to drive growth) and will always canalbalise themselves (think PS3 and their stand-alone blu-ray players at the same price). The situation is a lot more complicated than it would seem. Kaz is clearly steering the company in the right direction since they predicted a 6.3 billion loss in April and yet for May YE only reported 5.7billion, clearly an increase in 0.6billion net revenue.
plmkoh, you should check previous statements from Howard Stringer from when he was the CEO of Sony. His biggest complaint was that division competed with each other more than they worked together. They bought technology from others for use in their products that had similar offerings from other divisions. That is one of the things he fought to change and is why the gaming division is part of a larger division now. And it's one of the things Kaz has vowed to continue. The current re-structuring will see more consolidation. Remember the Tiers reference. Cutting departments and executives is exactly what Sony needs and has already started to do.
Your comment proves my point... They need synergy, and should have synergy, but they don't. There's plenty of information on the web about how departments worked on competing products, in silo's, and people spent more time creating empires than working together. I read an article a long time ago about how the division creating the Sony MP3 player that was supposed to go up against the iPod was built in complete isolation from the division writing the 'iTunes equivalent' software - and neither would talk to the other. It was a disaster. Another good example, is how so many of their products used different formats of memory card - MemoryStick was well established in Sony, and yet the Entertainment division spent time and resource making their own cards for the PS2; and yet other products used more mainstream cards, such as SD etc. As dcbronco mentioned, Howard Stringer has said as much in the past.
I know a lot of people are saying "well, they will be okay". This is a false statement. How many companies have we seen close down recently? Not only is low stock an invite for a takeover, but people aren't realizing that Sony is Sony. Its not like if they close down because of television sales that the console department wont close as well. Sony as a whole is losing a ton of money and investors, which is what its all about. You lose investor confidence and your done. To the people saying to just dump the television department, you cant just do that. You have contracts to fulfill and quotas to meat. They would surely go out of business if they just up and closed down the television part of Sony. Sony has taken big gambles on things like 3-D and its not paid off like they hoped. Even though Sony makes a profit off the PlayStation 3, new consoles are always sold at a loss. Honestly, Sony is in a very bad situation and people saying that they'll be okay, obviously aren't living in the real world. We don't need them to go out of business like Sega, so I'd suggest people try to support them as much as possible, but when you hear things like: The most recent financial reports have clearly made investors anxious. The Consumer Products and Services division alone saw an operating loss of $2.8 billion. "Sony is facing a lot of difficulties and the new president has not been able to produce a clear plan as to how he will turn around the company," Fukoku Capital Management's Yuuki Sakurai told the BBC. "The little that investors have heard, they are not very impressed with." Doesn't inspire confidence.
other's differ in another's take on the idea that it may be tough situation but they see that Sony has a clear plan and a way to turn thing's for the better. Sony CEO to lay out revival strategy as losses pile up Apr 12, 2012 Hirai, who succeeded Howard Stringer as CEO this month, will lay out a detailed plan he hopes will revive the company hobbled by a television business that has racked up $10 billion in cumulative losses in eight years, battered by weak demand, fierce competition and a stronger yen that makes exports less competitive. "Hirai, a 26-year Sony veteran, has vowed to take “painful steps” and insisted he won’t shy away from weeding out poorly performing businesses or making cuts to bolster profitability. He is likely to announce a third wave of job cuts, adding to the two rounds of layoffs Stringer made in his six-year tenure." “We believe the revival of Sony entirely depends on the improvement of profitability in its core manufacturing business,” Masashi Oda, general manager of the equity investment department at Sumitomo Mitsui Trust Bank, Sony’s largest investor, said in an e-mailed reply to a Reuters query." “At the moment, Sony would not be sustainable without restructuring, and we recognise Sony is heading in the right direction with its efforts.” http://www.firstpost.com/fw... gee Sony's largest investor sure has doubt's it seem's lol
Drop your TV's, Sony.
And yet they still release new games and new IP's on a consistent basis unlike some that have endless streams of money.. Keep it up Sony. I'll always support you.
You know what, that just goes to show how unfair people have been to Sony this generation. The amount of exclusives released and first party developers they have is incredible.
There has been talk over the least few weeks of someone acquiring EA. I think the better acquisition is Sony. And the perfect company to do it would be Apple. They have over 100 billion that they need to do something with. Even after they give a huge amount of it top shareholders, they will have more than enough to buy Sony. Sony already has several businesses that Apple wants into or already is into to an extent. Buying Sony would give them a firm footing in all of them. Movies, TVs, gaming, music. It would also give them their own manufacturing infrastructure on the cheap. Having the largest movie collection and some of the bigger franchises in movies will give Apple more power when it comes to pricing movies and music. Having Pixar, Sony pictures, Tri-Star and Columbia all under one roof. Along with Sony BMG. Drop the phones. Make the high end TVs iTVs. Drop the computers. Take the patents from phones and computers. Keep Blu-ray until digital is the close to the lead and then sell it off. Take the camera technology and add it to the iPhone and iPad. Offer 20 billion and take it. Or wait a few more months since the price will be dropping more soon and get it for less. If there is no PS4 announcement at E3 and the Vita continues to sell in s,mall numbers the price will drop further. Get an even better deal. Apple would be a perfect buyer.
From an objective point of view, this does have to do with anything Sony-related, as we are speaking of the brand image. The huge corporations need that image: Coke, Apple, McDonald's, Budweiser, ...Sony. This affects the entire company, including gaming. We are almost at the point of a new generation, but this time, the Playstation brand does not have the rest of the company to back them during the critical first 2-3 years when they function in the red, before the new system becomes profitable. They need to do some MAJOR reconstruction, starting with the discontinuation of their TV's. They can no longer compete effectively.
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