Who's everyone? Because I think by now it's common knowledge that Nintendo still has tons of money in their bank.That's because everyone seems to think Nintendo is a tiny little company with no money. It's hilarious
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Sony full year results - $1.25bn loss, PS operating loss $78m, PS sales 14.6m, 17m fc
- Thread starter zomgbbqftw
- Start date
lensoftruth
Member
SniperHunter
Banned
How many years before sony stop bleeding?
Schweinehund
Member
There's almost never any return before year 1.
Gaming division is fine, it is the rest of the company that is in trouble.
Gaming division is fine, it is the rest of the company that is in trouble.
PS3 may see a price drop to $200 but PS4 will replace it within 2 years IMO.
maabus1999
Member
So Sony's Gross Profit Margin is under 8%. Sony is supposed to be a "premium brand" but that gross profit margin really shows that while the components and design may be premium, they have almost ZERO pricing power with the consumer due to the quality of competition. Again, the gross profit margin is terrible, especially when your revenue growth, while positive, is behind the industry average.
AcademicSaucer
Member
No webm.
the Wii was gold for nintendo
zomgbbqftw
Banned
From the call:
Questions on game:
Is the 17m forecast too conservative?
Half of PS4 users have PS+.
Is it worth bothering with PS Vita at just 3.5m units?
Vita doing less than expectations.
Is there a chance of PS2 like margins (10%)?
Cost of SNEI has reduced margins because of infrastructure investments, backbone servers etc...
PS4 has a good potential to achieve PS2 like margins.
Questions on game:
Is the 17m forecast too conservative?
Half of PS4 users have PS+.
Is it worth bothering with PS Vita at just 3.5m units?
Vita doing less than expectations.
Is there a chance of PS2 like margins (10%)?
Cost of SNEI has reduced margins because of infrastructure investments, backbone servers etc...
PS4 has a good potential to achieve PS2 like margins.
BeforeU
Oft hope is born when all is forlorn.
Overall it looks bad but 17million loss on PS is nothing. So thats a really good sign. I dont think Sony can stop bleeding and survive from the profit of playstaion only, they seriously need to do restructuring. And focus more on smartphones as well. Smartphone, Playstation and Playstation Network should be their key to success in this world.
I actually like Microsofts new Mobile first, Cloud first strategy.
I actually like Microsofts new Mobile first, Cloud first strategy.
Both PS3 and 360 need significant pricedrops. Poorer families still can't afford them, and that's a big untapped market so far for those consoles.
If Sony want to make more profit on PS3s, they need to make it slimmer, cheaper and easier to produce.
22nm Cell already exists and Digital Foundry are sure it's coming this year:
The 22nm Cell is also going into the PS3 server clusters for PS Now, to ensure the lowest electrical cost and efficiency
Nightengale
Member
Well, we don't know what kind of economies-of-scale that PlayStation is benefiting from Electronics/Mobile/PC to make that assumption.
But Mobile/Music/Pictures/TV/Finance/Camera could definitely co-exist with Playstation.
gundamkyoukai
Member
PS2 was good years for profit so if they could get done again that would be good .
Along with the other benefits it could bring to other sectors.
We can get a reasonably accurate guess. Last year they shipped 3.4M PS3 + PS2. The years prior were 1.9, 2.1, 2.2 for PS3 alone. So we can say the PS3 has probably averaged a touch over 2M shipped in the Jan-Mar quarter.
Now, this year they shipped 3.7M consoles including PS4. The PS4 is likely shipping about 1M per month. We're probably looking at PS3 <= 1M for the quarter. That's a big dropoff, and it's happening much more quickly than it did for PS2. I agree that it's still too expensive, but that's a problem with the design. It's never going to cost-reduce as well as the PS2 did, which is just one more way the project was a failure.
Also, this shipment number obfuscation Sony is pulling is some real bullshit. I wish someone would cal them out on it during an earnings call.
You wouldn't think that in the weekly Nintendo is doomed threads
You do realize that the only people that really say "Nintendo are doomed" are those that defend Nintendo saying others are saying it right? Case in point. The Wii U on the other hand is failing and people aren't just going to ignore it. Is there hyperbole? Yes, it comes from both sides but most know Nintendo still has lots of money.
And if it wasn't for PC and TV they'd be profiting. They've cut PC, now they need to cut TV.
EL CUCO
Member
zomgbbqftw
Banned
Are the TV and Mobile sales forecasts too aggressive?
TV, not really, we feel this year will have growth.
Mobile, definitely not, expanding into key markets and partnering with carriers for high sales growth.
Why is R&D spending growing so much?
Expanding smartphone development, that is our key business policy.
.....Next dude....
How will you achieve the 16m TV sales forecast, will you be gaining market share in a falling market?
Yes, we are doing well with 4K, the sales growth in 4K. Margins in India are strong.
What is the proportion of the market is 4K, also specifically for Sony?
I couldn't hear the answer properly, but it was specific to Sony.
How much of the 262bn yen of "all other costs" is a one off, and why is it so high?
135bn yen of that is for transforming the company (restructuring), on top of that Vaio business losses are included in that rather than the mobile section. Vaio business closes down so it is a one off cost ~40bn yen.
(the questioner seems like an idiot to be honest, Yoshida seems irritated).
... New questioner....
Same question again on the 262bn yen. FFS.
Not possible to give a further breakdown of the figure.
Asks the same fucking question again.
Of 135bn yen, 36bn yen is associated with Vaio, additionally more operating losses are associated with Vaio.
Is the restructuring cost larger than expected, what is management doing on this, is there going to be a positive impact worth more than the 100bn being spent?
Yes. More benefits than the 100bn announced previously.
Any new plans for restructuring to announce? More job losses etc...?
Doesn't look like it, just the same 5,000 job losses and a recruitment freeze.
Timing of restructuring, is it going to be first half heavy or spread out evenly, how much of the 100bn gain is already in the budget?
Benefits will be accrued in FY15, possible to get benefits in second half, but mostly in 15.
Question about regional staffing levels
Japanese labour laws are very strict.
How is baseline profitability going to be post restructuring?
Can't really say.
Fasulo - Paying a lot of tax.
TV, not really, we feel this year will have growth.
Mobile, definitely not, expanding into key markets and partnering with carriers for high sales growth.
Why is R&D spending growing so much?
Expanding smartphone development, that is our key business policy.
.....Next dude....
How will you achieve the 16m TV sales forecast, will you be gaining market share in a falling market?
Yes, we are doing well with 4K, the sales growth in 4K. Margins in India are strong.
What is the proportion of the market is 4K, also specifically for Sony?
I couldn't hear the answer properly, but it was specific to Sony.
How much of the 262bn yen of "all other costs" is a one off, and why is it so high?
135bn yen of that is for transforming the company (restructuring), on top of that Vaio business losses are included in that rather than the mobile section. Vaio business closes down so it is a one off cost ~40bn yen.
(the questioner seems like an idiot to be honest, Yoshida seems irritated).
... New questioner....
Same question again on the 262bn yen. FFS.
Not possible to give a further breakdown of the figure.
Asks the same fucking question again.
Of 135bn yen, 36bn yen is associated with Vaio, additionally more operating losses are associated with Vaio.
Is the restructuring cost larger than expected, what is management doing on this, is there going to be a positive impact worth more than the 100bn being spent?
Yes. More benefits than the 100bn announced previously.
Any new plans for restructuring to announce? More job losses etc...?
Doesn't look like it, just the same 5,000 job losses and a recruitment freeze.
Timing of restructuring, is it going to be first half heavy or spread out evenly, how much of the 100bn gain is already in the budget?
Benefits will be accrued in FY15, possible to get benefits in second half, but mostly in 15.
Question about regional staffing levels
Japanese labour laws are very strict.
How is baseline profitability going to be post restructuring?
Can't really say.
Fasulo - Paying a lot of tax.
Sony last year and current year sector performance comparison:
Financial services is a shining beacon. Just like the rest of the world, playing around with money makes more money than actually producing stuff.
maabus1999
Member
Most of R&D in smart phones eh? Positive, Sony has a very small market share and could grow. Negative, smart phone market has hit saturation (and tablets are approaching that mark too).
How well they do in Smartphones this fiscal year is going to depend majorly on execution because margin pressure industry wide is going to rise, especially in the US with carrier push back against subsidizing phones.
How well they do in Smartphones this fiscal year is going to depend majorly on execution because margin pressure industry wide is going to rise, especially in the US with carrier push back against subsidizing phones.
KojiKnight
Member
It's a dumb argument... but really. You think it's the Nintendo fanboys talking about "doom"? Have you ever been to any gaming website ever?
So the current PS losses are the lowest ever for Sony in a launch year right? And they are expecting a profit this year. So really nothing to doom and gloom in regards to the Playstation division. Seriously though, something needs to be done with TV division. Sony would be posting a healthy profit if it wasn't for TV and PC. The losses from PC will affect the company for another year. Hopefully, TV division losses will keep shrinking as they have.
The levels of BS coming from these answers is staggering. No way is TV growing for them, neither is mobile as they just cant compete with Samsung/Apple. Sounds like more of the same.
lensoftruth
Member
These smilies don't work do they?
Well something caused losses to go from -85 billion yen to -26 billion yen year to year.
.
No wonder Sony won't shut down the TV divsion, not enough boredom rooms.
Gives another meaning to corporate welfare.
Wow another reason the Japanese electronic giants can't really compete on an equal footing. I wonder how much they lose yearly on redundant and unfireable staff.
Both PS3 and 360 need significant pricedrops. Poorer families still can't afford them, and that's a big untapped market so far for those consoles.
If Sony want to make more profit on PS3s, they need to make it slimmer, cheaper and easier to produce.
22nm Cell already exists and Digital Foundry are sure it's coming this year:
The 22nm Cell is also going into the PS3 server clusters for PS Now, to ensure the lowest electrical cost and efficiency
Anand Shrimp-ring needs to get on that PS3 backlog
Selling assets?
They can DEFINITELY compete with Samsung on mobile, their phones are close to stock Android and don't have S-Garbage for starters.
Basileus777
Member
Why does any of that matter when it comes to sales?
IncandescentPrecept
Banned
shinra-bansho
Member
Had no idea it was that ridiculous. Bizarre. It's basically a privately paid unemployment benefit...?
I guess it's a cultural and generational thing, as I can't imagine working in the same place for one's entire life.
gundamkyoukai
Member
I don't see TV growing but they don't have to sell as much Samsung/Apple to grow mobile .
There phone business has getting better last few years .
Wyndstryker
Member
No webm.
Damn that DS/Wii generation.
RoadHazard
Gold Member
Sony's smartphones (Xperia) are doing better than those of you looking at it from an American perspective seem to believe, I think. They may not have much presence in America yet, but aren't they third globally? In Europe and Asia they're doing rather well, AFAIK.
The Mad Draklor
Member
And Sony expects another half billion loss for this year for restructuring... Makes me wish that Sony has done this much sooner. Here's hoping that their restructuring takes less time than expected.
At least their good divisions are performing well. The fact the company's performance as a whole is bogged down from trying to sell off its PC business and outsourcing its TV business is irritating. We would be seeing Sony posting profits otherwise.
At least their good divisions are performing well. The fact the company's performance as a whole is bogged down from trying to sell off its PC business and outsourcing its TV business is irritating. We would be seeing Sony posting profits otherwise.
There weren't any large asset sales booked this FY, as far as I know.
True, but even the HDD-less 12GB is too expensive. I think the cell is really hurting their cost structure.
The Mad Draklor
Member
sechsterangriff
Member
Yeap, because they don't have deals with American carriers most people here tend to think their phone division is doing badly when they're actually very competitive in Europe and Asia.
Is the Z series gaining traction in the US? Just walking round a UK City centre today and most phone stores carry large Xperia Z2 posters. Seems to be doing pretty well over here.
Their smartphone sales are beaten by Huawei , LG and Lenovo. While Apple and Sumsung eat most of the cake.
According to IDC:http://www.idc.com/getdoc.jsp?containerId=prUS24645514
According to IDC:http://www.idc.com/getdoc.jsp?containerId=prUS24645514
Freeman
Banned
A nice PS3 revision with a price-drop appeals to me much more than a VitaTV. I would get another PS3 if that was the case.Both PS3 and 360 need significant pricedrops. Poorer families still can't afford them, and that's a big untapped market so far for those consoles.
If Sony want to make more profit on PS3s, they need to make it slimmer, cheaper and easier to produce.
22nm Cell already exists and Digital Foundry are sure it's coming this year:
The 22nm Cell is also going into the PS3 server clusters for PS Now, to ensure the lowest electrical cost and efficiency
They are just another Android manufacturer in a sea of them, without the insane marketing cash Samsung has.
Way behind. Clearly dumping billions of $ will help them, just look at how Win phone is doing.
eighty(one)
Member
Who knows? Tepid launch of PS4 in JP and sluggish sales there, have had to have impacted the numbers
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