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Sony’s Stock Plunges After Week of Bad News

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.

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iamnsuperman2029d ago (Edited 2029d ago )

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)

nukeitall2029d ago (Edited 2029d ago )

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.

HelpfulGamer2029d ago

Sony should Start Selling PS4 for Profit.

gaffyh2029d ago

You shouldn't comment on financial articles.

LordDhampire2029d ago

@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.

Becuzisaid2029d ago (Edited 2029d ago )

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+

xHeavYx2029d ago

This website has been talking crap about Sony for a while

PS3n3602029d ago

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. :)

EZMickey2029d ago

@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.

Outside_ofthe_Box2029d ago (Edited 2029d ago )

***"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.

Consoles4kidz2029d ago

@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.

scott1822028d ago

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.

DragonKnight2028d ago

@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.

TrollCraftTales2028d ago

@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...

miyamoto2028d ago

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!

+ Show (10) more repliesLast reply 2028d ago
Sayai jin2029d ago

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.

torchic2028d ago

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.

Sayai jin2028d ago

@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.

Cuzzo632029d ago

Propaganda orchestrated by Sessler and Microsoft. LMAO

ballsohard20132028d ago

Microsoft and Sessler orchestrated the financial losses, title delays, negative profit margins on each ps4 console???? wow

Cuzzo632028d ago

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

stuna12029d ago (Edited 2029d ago )

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.

whoyouwit042028d ago

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.

stuna12028d ago

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.

Knushwood Butt2029d ago

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.

rainslacker2028d ago

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.

Ps4Console2028d ago

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 .

+ Show (4) more repliesLast reply 2028d ago
zombie-fun5442029d ago

this dude hate sony i been see him Defend so many time

2029d ago
2029d ago Replies(1)
blackout2029d ago

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.

xXxSeTTriPxXx2029d ago

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.

SlavisH22028d ago (Edited 2028d ago )

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.

HammadTheBeast2029d ago

Yeeaaaahh....no.

Multi-billion dollar companies don't just disappear like that, Sony are far from being bankrupt.