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Sony stays in the red, trims annual loss forecast

TOKYO – Sony reported a smaller-than-expected 26.3 billion yen loss ($289 million) for the July-September quarter as healthy sales of PlayStation 3 game consoles and Michael Jackson hits put it on track for a gradual recovery.

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kaveti66163277d ago

They're still expecting a loss? This isn't so good. I said once a long time ago that Sony's sales success was a double-edged sword. Whenever they were selling consoles at a loss, I always said that the more they sold, the worse off they would be.

sakura20093277d ago

the article said the ps3 and michael jackson music helped sony

Goomba123277d ago

i want to see software reports. Hardware is a lose, got that, but what about software?

hay3277d ago

@1.2: True. Consoles are always investment. But we should be aware that gaming division have profits from other sources like royalties or sales.

chaosatom3277d ago (Edited 3277d ago )

Even with the loss!!

Pennywise3277d ago

Kave, you state "as I said before" like you have any actual insight to the company's profits or losses. From your statement, I am lead to believe you have a degree in business and you are probably a Sony stock holder, or even an insider in Sony's account department... right? If not, who cares what you have said before.

cliffbo3277d ago

the loss is an overall loss on all the products, so this does not affect the ps3 side of the business.

IdleLeeSiuLung3277d ago (Edited 3277d ago )

The investment into PS3 is just that an investment into future profitability so is not an issue. One of the big issues are their competitor, Samsun, whom sells their TV at a higher profit margin and recently tripled their profits.

Sony right now can't seem to match that.... so that alone will hurt especially a company in the red. With that said, the company is losing less, but then again during these times the companies themselves will intentionally under-estimate profit and over-estimate losses so they can "exceed" the expectations. You get seriously burnt if you don't and killed if you go below!

Greywulf3277d ago

DOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOMEEEE EED

(Gets on horse and rides around N4g while ringing bells)

The PS3 Is DOOOOOOOOOOOOOOOOOOOOOOOoooooo omeeeeeed

(continues ringing bells and riding around around)

SELL YOUR PS3... Sell your PSP.... SONY IS DOOOOOOOOOOOOOooooooOOOMeddddd d!!!! Get rid of your sony movies... quick.. before its too late!!! ITs OVER.. SONY IS OVER.. WE SHOULDN"T HAVE BOUGHT PS3s!!!! AGhahgahghagHAGhghaghaghaghag

DOOOOOOOOOOOOOOOOOOOOMMMEEEED

(rings bells still, horse dies)

doomed.

</gigantic sarcasm>

Blaze9293277d ago

It's nice how up until your comment...no one was even talking about "doomed" this or that....what is wrong with you? Grow up. Seriously, everyone was having a on-topic discussion without any of that fanboy crap and here you come to just be completely childish.

zeeshan3277d ago

Glad to see that they are slowly recovering. I mean yeah, they are still loosing but not as much as they used to. This should change in a year or two.

Anon19743277d ago

All the Japanese electronics makers are being hammered by the exchange rate. When you sell to the west, and their currencies are weakening, you don't make as much money. What do you do? Do you suddenly jack up your prices to even things out or do you just ride it out?

RememberThe3573277d ago

Of course they're still expecting losses, you don't just turn a profit after losing what, 3 billion dollars? The fact that they've been able to cut they're losses this much has to be promising to investors and and management alike.

thegood333277d ago

The PS3--it just does everything....except make a profit.

AridSpider3277d ago

Really, how old are you? Very childish. Sarcasm nothing, what/who are you being sarcastic FOR? Totally unnecessary.

somerandomdude3277d ago

This article is actually good news for Sony, and yes even the "RECESSION"!!!!!

"smaller-than-expected .... loss"
"healthy sales of (ps3) and (MJ) hits put it on track for a gradual recovery"

For those of you that are blind bot fanboys, Sony is a huge corporation and if they go under that means no more Sony technologies such as quality T.V.'s so you can play your 360, no more quality movies being funded by Sony's movie publishing division, that means less movies via live and Netflix, and most of all that means a widening recession and Sony is a big enough company that the hole global economy could face a melt down. So there would be less consumer spending which also translates into less funding for the 360 and this will be because consumers like you will have a hard time finding a good job to support your blinded fanboy addiction.

But don't worry because the PS3 slim sales are helping Sony dig its way out of a hard time.

Anon19743277d ago

thegood33 said "The PS3--it just does everything....except make a profit."

Not quite. Kaz confirmed the PS3 was profitable as an overall platform and has been since the last fiscal year. PS3 sales are within Sony's Network division. It more likely slowing laptop sales and slowing PS2 sales that are pulling the division down.

Brock Danger3277d ago

Well, hopefully another musical titan will die next year to "soften" their losses (sarcasm!). Seriously though, that is crazy, that the death of an icon had a serious impact on helping Sony get a little bit healthier during the recession.

Anyways, it's good to see a cornerstone of the gaming world do better than expected, this bloodletting war between Microsoft and Sony has given us an amazing set of consoles and competition, but the cost has been astronomical. The sooner these companies have their consoles start turning a profit, the sooner we're assured that this healthy rivalry will continue into another, hopefully even more excellent, generation.

sikbeta3276d ago

What everyone is expecting, The PS3 Slim was launched in September and at the same time they cut the price of the remaining faty models, from now on they make real profit as a whole Hardware + Software, people forget fast, maybe they are shocked with how amazingly the PS3 is doing since September

+ Show (17) more repliesLast reply 3276d ago
sirbigam3277d ago (Edited 3277d ago )

Wow they have allot of stuff on their plate but the thing is that almost everything on that plate has a risk. Hope everything works out by he end of the year.

chaosatom3277d ago

Get it? Xbox and RROD /XD

ultimolu3277d ago

chaoooooos...:T

I don't have enough tissues. You know they're sensitive.

gamingisnotacrime3277d ago

The PS brand has been reporting losses for a while, Sony As a whole is reporting plenty of losses in recent years, yet I see The PS3 offering free online and many free services, the price at $299 with Blu Ray included (which competes with Sony's stand alone Blu Ray Players) the first party studios pumping out game after game each month (crazy amount of great exclusives), They keep giving PS owners more bang for the buck while reporting in red numbers. I dont know how the rest of you guys feel, but that inspires some brand loyalty (towards the PS brand in my case). I bought the PS3 at $499, and recently sold my other consoles and got me a PSP Go, and im glad i did because what i have received in return for buying those 2 consoles amazes me.

Im not a blind Sony fan, im just a fan of a company that puts itself on the line (red line) for its costumers. The PS brand since its very begining has redifined gaming, and now with gems like Uncharted 2 they are trying to redefine gaming again, maybe not right now but for the future of gaming to enter a more complete experience with movie quality production (although lately movies are pretty bad quality).

Im a PS supporter and im loving it, too many games, too much value, and a too many hours of gaming heaven

Cheers

LeonSKennedy4Life3277d ago

I agree.

It's like there are still companies out there with good people at the helm.

Weird, huh? : )

Of course, the Internet Explorer guys always send the Mozilla team a cake when they release a new version of Firefox. That's pretty nice of them. : )

RememberThe3573277d ago

I'm pretty sure that's exactly what they're going for.

Hutch23553277d ago

This of course means that they are looking for a brighter next couple of quarters. I think It wont be long until they are back showing a profit. Hardware manufactures, not just game consoles, but hardware in general, are going to have a tougher time of it in this recesion. Software makers like Microsoft are going to have an easier time of it overall. Now after saying all that, it is too bad they are continueing to lose money. So that probably will mean more lay offs in the next couple of quarters. That is never good. As long as they continue to churn out incredible game after incredible game, I am sure the gaming division will be fine.

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