Sony’s stock took a nosedive this week after a series of negative reports came out surrounding missing PS4 features, as well as information about the financial status of the company.
Right your title to your article is insinuating something completely different to what your source link says After reading the BBC article little is mentioned to the news being the reason. The actual reason is "Its earnings were impacted by the poor showing of some high-profile movies including White House Down. Meanwhile, its TV division - which has struggled in recent years - also posted a loss of 9.3bn yen during the period, At the same time, a drop in prices resulted in its Game division reporting an operating loss of 800m yen during the period, compared to an operating profit of 2.3bn yen during the same quarter a last year." Not because of bad news (which is what the title insinuates)
Well, it is more than that as well. Sony's sale of their building caused them to post a profit, but the company has and is still in decline. The Playstation business has recently been their bright spot, but even that bright spot has been barely lit, meaning relatively small profit. With more losses on each PS4 sold to attempt to price compete with MS, they are going to have further losses. Their biggest areas are TVs, Music, Movies and Playstation. Movies is a dud, TVs are a dud, Playstation is going for a loss and Music well... So no, Sony is not in a good shape, nor is it really turning around. Maybe they have to sell another building to post another profit.
Sony should Start Selling PS4 for Profit.
You shouldn't comment on financial articles.
@nukeitall Ps4 sells at a lose, but since it requires ps plus each console sold is profit Also yeah their tv business is in decline they need to advertise better, they are the best tv's for gaming with less latency compared to other tvs around 19 ms for their top of the line in america(12ms in europe) vs samsung with around 60ms which is massive for gaming, I hate delays on tv and can't play on my friends samsung.
The PS4 loss per unit is equivalent to less than the cost of a game. For Sony to break even, or make a slight profit, from each console sold they simply need to sell one game or accessory >= $60. Edit: Above @LordDhampire only thing is PS4 does not require PS+. A user could have a completely full experience with PS4 and not pay for PS+
This website has been talking crap about Sony for a while
LordD I thought you were full of s**t when I read your comment since I am a samsung loyalist. Then I did some research and damn it you weren't kidding. Guess my next tv is gonna be a sony. Maybe I am not as bad at shooters as I thought. :)
@Becuzisaid Sony doesn't make 100% profit on games or game accessories either. Sony definitely doesn't make $60 on any physical games (even exclusives) because they don't sell them for $60, the retailers do. Sony gets a 'cut' off each game which also has its own profit margin next to how much it cost to put out. If: Total Cost > Total Sales = No profit. That formula can be applied to any commercial product. The point of selling the PS4 at a loss is to outsell Microsoft on the hardware front. They make back that money over time by collecting royalties and cuts on all the games you buy over that console's life spent in your living room as well as the money they make of all the subscriptions you pay for, PS+ or otherwise. With business on this scale you always think long term. I believe they'll come out strong in the long term, but you have to be blind as a bat if you can't acknowledge that they're coming out of more than 5 years worth of hardship.
***"With more losses on each PS4 sold to attempt to price compete with MS"*** lol why am I not surprised that you're at the top of the comments in this article? $400 was Sony's target price from the get go. They was planning on bundling the camera for free, but the higher ups wanted to minimize loss as much as possible which is why the camera is being sold separately. So no, they aren't taking "more losses on each PS4 sold." Get your facts straight.
@BECUZISAID, a full experience as in your ps4 wont play cds, mp3s, stream dlna, or even play dvds or bluerays w/o downloading an update? If only playing games is your idea of a full experience i guess so.
Sony will be just fine... It's been doom and gloom for a long time, but things are getting much better for them. And the PS4 will be a monster, they will do good.
@nukeitall: "Well, it is more than that as well." -No it's not. You wish it was, and that's why you went into subsequent points, but it's not. "Sony's sale of their building..." Profit is profit. Of course, when it's Sony getting a profit then it's not so great, but MS making a profit is the highlight of the entire industry right? "With more losses on each PS4 sold to attempt to price compete with MS, they are going to have further losses." Sony's loss on the PS4 is minimal, to the point they are expecting to immediately recoup the loss at launch. They're doing more than price competing with MS, they're absolutely trouncing MS in price, public opinion, pre-orders, specs, pretty much everything except non-issues like Kinect 2. http://www.gamespot.com/art... "Movies is a dud, TVs are a dud, Playstation is going for a loss and Music well..." Movies aren't a dud, tv's aren't a dud, you're overstating the Playstation loss (and ignoring Microsoft's Xbox One being sold at a loss) and music isn't a dud either. "So no, Sony is not in a good shape, nor is it really turning around. Maybe they have to sell another building to post another profit." Absolutely laughable. You ignore basic fact to further spread your sick love of Microsoft. If Sony weren't in good shape, and weren't turning around, there'd be no PS4, no PSVita Tv, and no new initiatives in PS Vita's future. Keep dreaming MS fanboy.
@nukeitall Yes, the PS4 itself is being sold at a loss, but Sony said once people buy a few games and PS+ then they will be making a profit, and who WON'T buy games for a new system, and I could see a few people not getting PS+ at launch, but the profit will even out over time, the PlayStation brand seems to be going into another golden age, they are not in trouble...
not in Europe When asked about if PlayStation 4 at the price point of €400 is profitable for Sony, Jim Ryan, smilingly, replied that atleast in Europe, the PlayStation 4 is profitable from the start. That’s, uh, top-top-top-secret information, uhm, but what I’d say is that Sony is, uhm, Sony is in difficult times at the moment and PlayStation is one of the pillar businesses that Sony’s leader, Kazuo Hirai, has identified as pivotal to sustaining Sony’s business, while he regenerates it and restructures. And therefor it’s really important that across our ecosystem that we generate cash and profitability. The €399 price point, which I’m really thrilled about, allows us to to do that. Xposed!
On topic, meh companies have financial ups and downs. Thats just part of the way of business. Sony has a large company that has several venues so some of their divisions are going to take losses sometimes. I expect their gaming division to make a nice impact on their company! As far as negative news for the PS4...there has really been any. So this title is rubbish. @xHeavYx - It's not talking crap those are facts as far as what the companies losses are. While I enjoy my Sony products. It's no secret Sony does not stand where they used to in the electronics market. There are other TVs that match or better Sony in that arena (Samsung, LG, etc). Their home audio, especially the home receivers are not what they used to be companies like Denon, Marantz, Onkyo, etc are leading the market as far as quality. Their car audio has plummeted and you can find it at Wal-Mart now.
Sony TVs are still far superior to any of their competitors. if you aren't afraid to spend, they have the best (e.g. 40" for €799 is a bit high in today's times) was at a store yesterday and they had a whole bunch of TVs multiplexing the Newcastle - Chelsea football game yesterday, many were Samsung and a few Sony, but those Bravias were leagues better, I was in awe. it looked like I was looking through a window. never understood why people bought Samsung TVs when Sony TVs are superior. LG is even furtherer behind.
@torchic - Well I respect your opinion, but Sony TV's are not at the tip top anymore. Their bravia line is exceptional, but as mentioned before the likes of Samsung, LG, Pioneer, and even Sharp match Sony's quality and at on some models better their quality. If you look around at reviews on the net you will see the rankings and thats not to mention that there TVs are now being outsold by the competition. You can get just as good if not better without Sony's high price tag.
Propaganda orchestrated by Sessler and Microsoft. LMAO
Microsoft and Sessler orchestrated the financial losses, title delays, negative profit margins on each ps4 console???? wow
Microsoft has title delays, financial loses, hardware issues, OS issuesn preorder issues, negative press.... shall I go on... it was a joke tho. Where is ur sense of humor
One only has to look at how close to launch, to see that some would love to see Sony and the PS4 taken down a couple of notches! This is further supported by the articles that have graced the front page of N4G just today. Either way this clearly won't impact my chosen purchase as I'm pretty confident it won't impact others and their purchase.
Nah it's just karma, with all the Bs people have been trying to do to Microsoft and the way you sony fanboys have been acting there is no way sony is going to have a clean launch. I'm willing to bet that the closer we get to launch there will be more and more bad sony news.
How is it Karma if all the issues and setbacks that Microsoft are experiencing are things of their own doing? Karma is something that applies to someone that has done bad things to others for no apparent reason! In this case Microsoft does not apply! If anything the ball hasn't even begun to roll when it come to Karma in Microsofts case.
They also revised profit forecasts down, so that' not exactly going to cause shares to go through the roof... Still, PS4 is looking good for them.
Yeah...a series of negative reports. Wasn't it just one report of the same thing? There's a difference. A singular piece of bad news, that was quickly addressed, among a flood of positive press for the past 8 months. The missing features had nothing to do with the drop in stock. The earnings report did that. It's not a good thing, for sure, but the title of this article, and the description are trying to make this into bad news for the PS4.
Sony are selling the Ps4 at a loss but will recoup there money back in games & are very confident to pull back a greater market share in there tv sales having the patent for 8K tv's that will be with us in about 5-6 years time according to Sony SOE . So things are actually looking up at the moment for Sony in the next couple of years , tell me what electronics company hasn't been affected by this recession that were bearly out of .
this dude hate sony i been see him Defend so many time
40% slash. WOW. Like i said versatility,versatility, versatility. Gaming helps but Sony can't crawl out that whole. TVs not selling, cameras not selling. Stock just keeps going down,down,down. Who is running this company. Hey sell some more buildings, (Sorry that doesn't work either). Google would be smart to BUY them out, Stock is at a great price for hostile take over.
I'm no expert on these matters but, I don't think that japan (as a country) would let a japanese fortune 500 company be tooking over just like that. I could be wrong, but I would have policy to protect my business from foreign influence.
that is not how business works at all and shouldn't. There is a separation between business and government japan isn't communist. capitalism and free market goes against everything you said. globalization & free trade act say hello.
Yeeaaaahh....no. Multi-billion dollar companies don't just disappear like that, Sony are far from being bankrupt.
Just an interesting read. Check it out http://kotaku.com/5960411/h...
we're nearly in 2014, you didnt get the memo yet?
People need a memo to know what year it is? My faith in humanity is dwindling.
Meanwhile Microsoft adds good news over good news...
That's the funny thing. It's the death of Sony because of bad news...er...which ones? I mean, the real issues here, not the fabricated ones. Yet again, another company is rising because ... because of what? I guess it's easier to get back up if your down for a while, huh? I get it. There is only one way left, I suppose. But that must be if. FUD storm seems to grow in intensity the closer the PS4 launch comes. Interesting. We've seen that before. Media ignoring red ring for years. But every tiny little flaw in the playstation would kill Sony. Now, everybody ignores XBone's flaw, but Sony's stock drops because of what exactly? (I mean, it couldn't just be unrelated to Playstation at all, now, can it?).
I guess, for MS, bad news is better than no news at all.
... and d*** near all of it coming from this very site.
N4g causes Sony stock to slip... Now that would be funny lol
Yup the truth does hurt those Sony fanboys lmao but that is reality
Well you know you will buy an underpowered system that has gimped hardware because MS thinks they need to make a TV box with 3 crappy unfinished OS.
But you could end up with a system that ends up with no support if Sony go under. Might be time to consider jumping ship.
Ok praxxtor I'll join you on the titanic. Speaking of the titanic you remind me of the the band playing on the deck of the titanic as it plunged further into the icy water.good luck with that
@praxxtor MS doesn't need to go under to stop supporting their products: First xbox, no exclusive games for 360...
reality for you fanboy is just everything you like to hear.. your life must be sad my friend
It was completely unrelated to their playstation branch. This title is very misleading. By the way I'm not a Sony fan I'm a Playstation fan. There is a very big difference between loving a product that you purchase and loving a faceless company...*Looks at your name and pic* Yep, you're one of those MS tards aren't you? Funny thing is I plan on buying an XOne as well(I always buy both systems), but even after I buy it I'm not going to act like a dumbass and pretend that MS poops rainbows...Competition is good, fanboys need to get over themselves, yourself included. I literally buy and play xbox games because well... shit some of them look awesome...I know right,weird. I tell you what, as much as MS pisses me off(Sony too=No DNLA)this industry would be duller, and Sony would be complacent without MS as a competitor...You know what happens when your lone console manufacturer is lazy???Crappy games and crappy hardware.Period.
So does owning the worst fail rate console in video gaming history. Costing billions in repairs. Oh look what comes next...sub par parts, 720p, bottleneck design, batteries in our remote controllers and $500. Being outsold every..single..year in consoles. No matter the head start, cheaper price or worldwide launch.
See that's why people don't know what they're talking about. Sony does outsell Micro in consoles. Guess who makes a bigger profit though? That's what it's about...profits. If we both had lemonade stands and you teased me about selling 10 more cups, but I made more money when we compared profits. Would you still be happy?
Hardware sells vs Software sells. One is a thousands times easier to move. Also controlling the market helps in that software aye. Meanwhile again, they try hardware and it's a fail of a product created by them. This is a video game site and it's clear MS will never touch Sony in this department.
Ok, so the reason Micro does better software is because it's easier to move. False..it isn't easier to move. If it was easier Killzone would sell a ton more titles. Micro will never touch Sony yet Micro went from 25 million to 80+ million consoles sold. While Sony has gone from 150 to 80+ sold. Microsoft has also sold more exclusive games this generation. They also have made more money from online services this gen. They have a higher attach rate than Sony. Micro also owns the largest IP in gaming next to GTA. For some reason Micro will never touch Sony...yeah ok then. ; )
Would now be the time I tell you I own an IT recruiting firm here in the NW and I've placed people at MS. So I get it for sure. All these companies restructure all the time. We are in the USA, the number 1 video game consumer in the world. Which last I checked makes up for 48% of the worlds total sells. So that's a great help to MS being US based. But even so, we see how in many cases they are neck and neck. While we look over in Japan. Sony's home land we see MS does not do very well at all. Out of all those sells in game software, notice how they've never once won a exclusive Game of the Year? 2006 Mario Galaxy 2007 Zelda Twilight Princess 2008 Fallout3/LBP/MSG4 2009 Uncharted 2 2010 Red Dead Redemption 2011 Skyrim 2012 The Walking Dead/Journey 2013 The Last of Us ( kind of a given ) So anyone can put out a Halo, Call of Duty...Put that together with being based in the number one consumer population on the planet. There ya go.
@the wb - dont care ... Still going to buy the better lemonade and its clear one tastes better
Don't feed the troll guys. Just another reputation manager/corporate shill with multiple accounts.
if you knew anything about financial investments, you would know that its more possible for Microsoft to lose their gaming department towards Samsumg, because their major gaming investor which invested 2 billion dollars last year alone, wants to sell their stocks... so next time shut up
Week of bad news? What happened I must have missed something?
Apparently not being able to play Mp3s, not having DLNA support, and smoking your competition in head to head multiplats makes for a week of bad news.
That's what I was thinking lol
same here :D didn't bother opening that video i don't want to give them a click.
Sony isn't just Playstation. They simply aren't doing well. Electronics and movies aren't where, anywhere near, where it needs to be. They are hinging a TON on the PS4 being a success for the company. It's also a reason why Shuhei was talking of PS being a streaming service to more platforms and not just rely on hardware. http://www.gamespot.com/art...
Over the past week, I've seen FAR more bad news from Microsoft's end than anyone else's. Sony isn't doing well? OK. Given your history here, I really shouldn't be surprised you'd jump on this bandwagon, while the overwhelming, positive Sony news, never sees you at all.
CGI-Quality This is from a finacial standpoint...not PR news. There's a distinct difference between the two. Get out of N4G for awhile..look at Sony's earnings and then look at Micro earnings and see where the two companies sit. Given my history here...I'm not hoping Sony fails. It'd suck if they do...but the facts are facts. Good PR doesn't make money and Sony needs more money than good PR. Thanks anyway : )
Well MS would be in a very bad position without their PC software division. People buy a new PC MS makes money with it because they all come with Windows. Zune failed. Tablets are not doing great. Windows phone 8 isn`t exactly a huge hit either. Windows 8 is a horrible OS if you use a normal PC that doesn`t have touch. 360 considerably higher sales than last gen but again third place in global sales. If you want to play all games you are forced to have Windows, if you want to use every software you are forced to use Windows, if you have a business you are forced to use Office because OpenOffice doesn`t work with all file extensions and MS makes it as hard as possible for Office files to work at all or work fully with OpenOffice. They get their money from those areas because there are no other options thanks to the way MS undermines their competition with shady business practices. Look at IE if people have a choice they will stay away as far as possible from MS products because they are not as great as they think when it comes to developing software.
@theWB: And here I thought we were rid of you. They're not hinging anything on the PS4, except perhaps the PlayStation division. It's just the wishful thinking of fanboys like yourself that Sony's doing so bad that only the PS4 can save them from going under, and that the PS4 won't be able to do so.
@Hicken Not rid of me...just post less. I know stalking me is a little harder to do now, but I'll be around don't you worry.
Please, continue to decrease the rate of your posts until they approach and then equal zero. You don't even understand what you're talking about. You think bad PR has no impact on the money a company makes? You think being lambasted in the media doesn't result in lowered stocks and less investor confidence? Do you really believe that Microsoft or anybody else can get destroyed in the public eye and NOT suffer for it? Bad press has destroyed countless companies and careers, from politics to Hollywood. On the other hand, good PR has sustained, revived, or started numerous careers and companies. But I guess if you had the good sense to acknowledge that, you wouldn't have made those completely stupid posts in the first place.
It's clear the blind rage you have for me clouds your reading. If you seriously have that big of a problem with me then I'll continue to laugh. While I wasn't posting as much I'd forgotten about you as your points mean very little to me. PR has a small impact on money. Microsoft hasn't had the best PR with their products lately yet they still post profits. Sony hasn't had the best PR with their products(other than Playstation) and they post losses. See how that works : )
It's clear you think too highly of yourself, and don't comprehend that every company is not the same. The majority of Microsoft's money comes from software, specifically from Windows. And though computer OS is a consumer service, of sorts, it's not very direct: while some people do, indeed, buy their OS directly, most of the money Microsoft makes in this area is through contracts with various PC manufacturers. Therefore, in that arena, at least, PR doesn't have a huge affect. In other avenues, such as phones, where the consumer has a less indirect line to purchasing a Microsoft product, so PR is more important. And no such market- that they operate in, at least- needs good PR more than gaming. For Sony, they have multiple such markets, because they make more consumer-reliant goods. Namely: their electronics. If their TVs get a bad reputation, people buy Samsung, instead. If their Blu Ray players are unreliable, people will opt for a Toshiba. If the PlayStation is not well supported, people get an Xbox. (By contrast, if you hate Windows 8, your next best option is still Windows... just not 8.) PR isn't as bad for them when it comes to their life insurance or banking, but even there it's a near thing, as a Japanese company like Sony is far more likely to go under from bad PR than a Western company like Microsoft. And, of course, there are the Microsoft fanatics that brush off any bad publicity by placing the blame at someone else's feet. Like Apple and the iPhone, it's hard to lose money there when people don't care if you kill their kids, because they're still gonna buy your product. And your original point is still off: there isn't much weight on the PS4, outside of what it means to PlayStation. They're not a company who's designed around one product. All their eggs aren't in one basket. If the PS4 flops, it COULD damage the company heavily. But it being successful doesn't override all shortcomings in other areas. The streaming aspect of PlayStation, by the way, is not so much for PlayStation itself as it is for Sony Entertainment. I don't know if you've noticed- or have and just chose to ignore it to make your point, as usual- but they're trying to make that all one unifying service to provide games, movies, and music across all devices. So yeah... no.
Good time to buy then.
buy while it's cheap then on the 15th your triple your profit