Sony sees $ 560 million losses from burnt batteries and PS3 discounts

A quick estimate of Sony's losses will amount to US$ 560 million, out of its expected US$ 1.1 billion profits in half this year. That's US$ 340 million for a global recall of some 10 million lithium ion notebook PC batteries and US$ 220 million worth of price slash for the PS3. Unfortunately, the figure could rise further if the PC vendors or consumers take legal action against Sony. So put two and two together, and we're watching 560 million of 'em greenbacks slowly burn to ashes...

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UrbanJabroni5904d ago

Unfortunately for Sony, this is really only going to get worse. This article failed to mention the biggest addition to the battery problem:

"Ars Technica reports that Sony is issuing a "worldwide recall of all of all Sony-manufactured lithium-ion batteries used in notebook computers." About time. This comes on the heels of Lenovo announcing a ThinkPad battery recall. Forbes reports Sony is working with the U.S. Consumer Products Safety Commission "on a worldwide recall program for certain battery models [that] may involve additional recalls.""

This means that _every_ Sony laptop battery, in addition to possible other battery models. Forbes hass estimated this is going to cost Sony well into the billions.

Also, while it isn't clear in this article, the estimate of a $220 million loss on PS3s is JUST from additional price cuts..."But in the meantime, Goldman Sachs projects, Sony will lose nearly $2 billion on the PS3 by the end of this fiscal year in March."

With all of this put together Sony is looking at a $3-$4 billion dollar loss, with $6 billion in the bank and profits of $1million. Sony is also banking the company on the PS3. (
If there are additional manufacturing delays or sales aren't what they are predicting, this is a company that could be in serious dire straights.

Note for fanboys: I am NOT talking about the quality of the PS3 AT ALL. This is solely about money loss from exploding batteries and PS3 losses.

Deceased5904d ago

They deserve everything they get root kits, exploding batteries, PS3's frying like bacon in a george foreman.

DC RID3R5904d ago

agreed, great points made!!

what a LOT of people DON'T realise is that sony are NO longer the no.1 electronics company in japan!!!
for the last 3 years or so, SHARP has emerged as japan's TOP DOG. because of this sony have literally had to beg SAMSUNG (if you check out japan's war history with korea you'll know what i mean), a korean company, to bail them out with plasma screen technology, which is hillarious to me, as japan practically scorns (looks down on) korea! heheh

now they have to eat their own sh*T to survive in their own backyard!!!

culminating with the laptop battery fiasco, sony's WHOLE image is now quickly becoming what Goodmans*t!!!

but i knew sony were frauds from WAY back with the ps1+2.

crap disk drives that blow after a few plays, suggest to me that either the company who made them were dumb(didn't know what they were doing) or smart (realising that if the disk drive breaks, chances are your gonna have to buy another).
I go with the latter, and that's why i dislike sony!!!

never try to PIMP a PIMP!!!!!

Islandkiwi5904d ago

Sony used to mean quality, but this battery fiasco is just awful...and what's worse, it's long and drawn out. Sony should have recalled themselves, as it is they're letting their names get further sullied every three-four with a new recall notice.

TheMART5904d ago

Whow whow whow again!

I knew Sony was doing bad, but this is even worse then I expected... Buy a PS3, because it might get worth money to sell it to a museum soon!

bilal5904d ago

soon someone would put you in a museum for taking fanboyism to such new heights....

Chronical5904d ago

Serves them right. F*** Sony. thats what happends in the end when you cut corner. It all comes back to you. Im not just talking about the batteries but everything Sony has

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