Sony Borrows 80 Bln Yen for First Bank Loan in 10 Yrs

Sony Corp., the world's second- largest consumer electronics maker, said it took out an 80 billion yen ($698 million) syndicated loan last week, its first bank borrowing in 10 years, to diversify funding sources.

The three-year floating-rate loan, which came from more than 20 Japanese lenders, pays 4 basis points more than the London interbank offered rate, or Libor, for six-month yen borrowings, said Mizuho Financial Group Inc., the loan arranger. The six-month yen Libor was last quoted at 0.44750 percent.

Sony tapped the country's expanding syndicated loan market as it offered a cheaper source of cash at a time when investors in corporate debt are demanding higher yields before an expected rise in Japanese interest rates this year. The fund-raising, which ended up bigger than initially planned, offered more flexibility than bonds, said Shinichi Tobe, Sony's spokesman.

[DC RID3R]

i just hope these guys know what they're doing man. we don't want another ENRON now do we?

[Marriot VP]

take note, this is a huge loan before the insane loss in PS3's per unit. How ready is Sony to loose 400 bucks per console. When they get to 10 million that'll equal == 4 BILLION. Compared to this loan of 700 million really shatters my confidence in them being able to pull off blu-ray.

now I know somebody's gonna spit out a last years revenue so let it begin.

[Marty8370]

Hav u read the full article,it for axpansion to there manurfacuring plants of LCD's(this is a huge groth industry and worth the joint investment),Also will help off the cost of makin PS3,Its around $150-$200 that sony may loss per console not $400.Also expect Sony to advertise PS3,Bluray,LCD's etc which all costs alot.

[TheMART]

it must be more then 150 to 200 a console.

MS is already loosing 175 dollars a console and they even don't have a BetaBluRay player included.

A stand alone BR player costs selling price around 1.000 to 1.200 Euro. Do you really think costprice of a BR player including all the other hardware can be so cheap? Don't think so.

And even if it is 200 dollars.

That will be a massive 2 Billion dollars loss per 10 million PSZero's sold.

No Sony is going the wrong way for sure

[EnforcerOfTheTruth]

You obviously don't have a clue what you are talkin about. Do you really think that only the Blu-Ray drive in the standalone player costs $1000-$1200? Dont you know that every HD-DVD and Blu-Ray player also have processors? In the PS3 already Cell does this job and if Samsung can bring a Blu-Ray burner for around $500, it appears reasonable that the Blu-Ray drive doesn't cost Sony more than $200.

[TheMART]

You obviously even have a lesser clue my friend.

HD-DVD for example stand alone player sells for 500 Euro's. But cost 700 Euro's/dollars to make.
They sell with loss.

BetaBluRay probably also or at least cost price. So 1.000 to 1.200 Euro's/dollars cost price.

There is no, I repeat, there is NO way that costprice of the BetaBluRay cost 200 Euro's/dollars

[achira]

the Mart you are wrong. ms is a software company, they must buy all the stuff. but sony has its own facturys, and can produce the stuff a lot cheaper.

[Marty8370]

#3.1 - Do the sums,if PS3 costs around $750-$800 to make.And Sony sells PS3 for $600(60Gb),that a lost of around $150-$200 and less on the $500(20Gb) PS3.

[TheMART]

Would you give some links that says it's this cheap? And please not one lame link only Sony trying to give the shareholders some air

[EnforcerOfTheTruth]

LOL I laugh my ass off, how can he give you a link if nobody besides Sony knows the PS3 manufacturing costs. Xbug, get a brain first and then come back here.

[TheMART]

THe scenario which is plausible:

CPU 230 dollar
BR 300 dollar
GPU 140 dollar
RAM 65 dollar
HDD 40 dollar
Other 130 dollar

total 905 dollars cost price. That's not included shipping and other marketingcosts per console.

That makes me 300+ dollar loss @ Launch window for sure

http://news.com.com/PlaySta...

http://www.engadget.com/200...

[TheMART]

So if he can't provide a link himself, how can he ever say then that it only costs 750 dollar to make?

Quit a dumb remark you made there, it works either way

[EnforcerOfTheTruth]

That's just reasonably thinking. The 360 CPU and GPU ain't much more cheaper than Cell and RSX, the only big difference is the Blu-Ray drive and that's in the $200 price difference. And I highly doubt that MS is still losing $175 per console, this was at launch, almoust a year ago.

[TheMART]

You can only cut costs when the production changes. The CPU is still on the same level, although they're testing with a smaller one.

Not implemented though. The other parts, if you look into it deeper instead of talking about it without having a clue, didn't lower so much in price. Ram, DVD/HDD al stay about the same in costs. The larger part to cut on is CPU. That will be done in 2007. So the loss will be still about the same on each console.

Furthermore, to think that 200 dollars for a BR player is cost you're wrong. The HD-DVD player is sold for 500 dollars, but costprice is 700 dollars. Even that is cheaper then the BR drives. It is told that they also are sold around or even under cost price.

Read first and then talk. The 360 CPU is cheaper to produce then the Cell. Furthermore, MS will earlier have reached the smaller CPU with less cost then Sony.

GPU is about the same price on both consoles.

So yep, the CPU of the PS is more expensive, much more expensive. The BR drive also cost more then 200 dollars to make.

The 300 dollars loss per unit isn't so strange @ launch window and who knows for how long

[Islandkiwi]

A bond is a loan generated by the company. You (the investor) buy a bond, in return you get a return on it. Bonds mature within a certain period of time.

A loan is the company borrowing money from a financial institution (banks). In this case 20 banks.

I don't really have much to say. Obviously Sony felt they were getting a better rate with the loan, the money isn't even being used for PS3 stuff...what's to say?

[jib]

ps3's losing more than 200 a console. well atleast from what i read. no offence but uh... i think an analyst would know better than you.

[FreeMonk]

They should of just asked Bill Gates for the loan!? I'm sure he would of said Yes.

[Marriot VP]

or he could say no, and than say that he doesn't believe they would be able to pay the money back.

[kingboy]

when i hear these figures sometimes i feel sorry for these companies

[mikeeno7]

i feel sorry for Sony. Not.

[EnforcerOfTheTruth]

The CPU doesn't only get cheaper cause it get smaller. Improving the production, what means better yields is a big, big factor. Or how else do you explain that Intel or Athlon chips get constantly cheaper although they don't get smaller. It's almoust insane to think that CPU producing costs doesn't lower in a 1 year span. Usually they get 50% cheaper if not even more and that not cause the got smaller. RAM/DVD/HDD lower much in price too, it's just that RAM/DVD reached almoust already the cheapest production possible. Don't you remember that slow DVD burners costed $500 by the time they got out? And how much cost they now? $50-$100 for a much faster, better drive.
And none HD-DVD, Blu-Ray player or burner is sold on loss. This companies must make a win, cause they can only make profit with the hardware. This is only a phenomenon in the console area, you won't buy anything anywhere else under the production costs, cause they must make profit with hardware and can't rely on software. So the truth is Samsung is bringing out a Blu-Ray BURNER for $500 and they are making profit with it.

[TheMART]

You always talk talk talk when facts say something else...

Ok, here you have it selling drives with loss:

http://www.digitimes.com/ne...

http://www.engadget.com/200...

So yes they are selling the format under cost price to win the war, or they make money on movies they release also (like Sony makes money on putting movies out, but sells hardware on the other hand).

Better yields are a factor, you're right. But they won't cut the price in half right the first year. And yields with 360 CPU where quit ok as far as I've read. Sony's Cell though should have larger yield problems, so yeah maybe they can cut some costs.

That's what I am saying about RAM/DVD/HDD. THe price is already so low that it's marginally when they get cheaper. That's not the big bite. It's the GPU and CPU costs that make the larger part of the pie

Samsung will be making a loss if they sell @ 500 euro's/dollars. But probably they want to make the format win. Like Toshiba on the other side having 200 dollars/euro's loss on each unit sold.

Go read the links man

[EnforcerOfTheTruth]

Xbug that's Toshiba, of course they can just like Sony sell it at loss, cause they can make later profit with movies. That's not the case with Samsung, Panasonic or whoever, they won't make any profit with software. And why should Samsung want Blu-Ray to win the format? Just think a little, they won't make any profit with software and they bring Blu-Ray AND HD-DVD players out, so they don't give a broken $hit which format wins.

[EnforcerOfTheTruth]

Analyst my ass. First of all analysts are just as many times wrong as they are right and secondly in the Internet era everybody can call themselves analysts. Even the supposed professional analysts at Merill Lynch got their $800 estimated PS3 production costs beat down spec for spec. It made look them like some ridiculous amateurs.

[Optimus Prime]

so this little [email protected] xbug is back. i remember him from the old sites and he was always on the 360 sites. now he thinks ps3 will win the console war. you guys have no good games, i hope you enjoy watching hi def movies on your blue ray(if it ever comes out) because you wont be playing ne good games, unless you consider warhawk a good game. lol

[EnforcerOfTheTruth]

I never posted on your xflop site, hell I was only once there to see if some other Sony fanboys are flaming there, but nope, I didn't see even 1 Sony or Nintendo fanboy. Here I also don't see too many Nintendo fanboys, truth is it's only you lil xrats who are so pathetic.
BTW Xbug I will play a lot of great games on PS3 ;-) You have also some good games, not great but good and I won't miss anything cause I already play your best games on PC ;-)

[DC RID3R]

I'm so sad to see sony being pimped!!!!
only businesses in deep financial turmoil, take out loans!! you dont see real O'Gs takin out loans, they give out loans, so that they can then rape the borrower for interest simple!!!!! Put it this way, can u see MS takin out A loan???? Nuff said!!!!!

[EnforcerOfTheTruth]

They don't need to take a loan, cause they monopolised the OS market and have $hitloads of money. They are even spying most of you Xrats out and you are still on their [email protected] LOL

[THELANDSOFSAND]

lol

help! S.O.S!

Sony need money to save the PS3 disaster!

ship is sinking...

[Bishop]

Many of you seem to right Sony off because they have been number 1 too long or because you do not care for there games but Sony has many more fans then Microsoft does overall "to many people have XP"

Also according to many sites Sony's profits have risen by 68% this year in television sales so they can make up for the loss and the primary reason they took out the loan was to try and purchase the 50% of BMG that they do not own. Sony knew they were going to take a loss because all consoles seem to take a loss when they are first introduced into the market. So don’t go around thinking Sony has lost their mind they have been around long enough to know how to stay in business. But I suppose many of you MS fans hope Sony goes out of business so MS won’t have any competition and can set prices for games at $200 and have consoles that are $1000’s. Competition is always good and unlike you 360 fans who hate Sony I am a Sony fan that doesn’t hate MS even though their operating systems are the worst there is. Without competition there is no need to improve.

[THELANDSOFSAND]

NJ1307 ia a racist asshole and a multiple account user who spams the site

BAN NJ NOW