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Sony shares rally on hopes it could see the best profit in 20 years

entremet

Member
Why do they need it back?
They don't. Sony is s fundamentally different company now. They're healthy, but I don't see them back per se. They're not a major CE player anymore.

They've pivoted nicely. But they're rather boring outside of PlayStation.
 

Rebel Leader

THE POWER OF BUTTERSCOTCH BOTTOMS
Based Kaz

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Between the PS4 and their amazing cameras, I'm happy things are going well for Sony! Now if only they'd stop dicking around with their films and release something good.

They've pivoted nicely. But they're rather boring outside of PlayStation.
Their camera division is killing it right now.
 

entremet

Member
Might want to look up the A1E, various sites claim it's the best TV they've ever reviewed.
I've been following it on AVSForum: AVSForum owners thread

I'm not knocking the quality of their products. TVs have just become commodity items basically. They're cheap and have very low margins. The market for enthusiasts who appreciate stuff that Sony does is very small.

Do you remember the Pioneer Kuro line? Arguably one of the best TVs ever at the time. Pioneer is out of the TV business.
 
Well when Spiderman Homecoming makes close to 800 million this summer I don't think Sony Pictures will see it as a sign to sell.

Also they are doing Dark Tower, so there's a boatload of money right there.

Dark Tower releases in 4 months and we haven't seen any promo for it except a poster. That's not a good sign.
 

pswii60

Member
Let's just say there is no way Passengers had a $110m marketing budget.

We just don't know.

Rule of thumb indeed is that (outside of marketing) a movie needs to make 2x its budget to be in the black.
Marketing cost is a blurry line, because a lot of its cost can be also be transfered over to the video release (signage, tv ads, online ads, trailer cutting, etc).

SPE isn't doing very well (yet), but it looks like some people actually believe they lost $900m for Sony last quarter (which was a terrible one), when it actually made $40m profit.

Recently:

UW 5: budget: $35m - WW gross: $81m (underperformed​, but in black)
RE7: budget: $40m - WW gross: $312m (overperformed)
Life: budget: $58m - WW gross: $74m (way underperformed given star appeal and reviews)
Smurfs TLB (still in theaters,): budget $60m - WW gross: $135m

To come

Spider-Man, The Dark Tower, Emoji Movie, Blade Runner (with WB), Jumanji for holidays...

They'll be fine
It's just a shame that Sandler is now tied up with Netflix or they'd just push out a couple of cheap shitty movies with him in for some quick profit.
 

Yjynx

Member
I'm not knocking the quality of their products. TVs have just become commodity items basically. They're cheap and have very low margins. The market for enthusiasts who appreciate stuff that Sony does is very small.

Do you remember the Pioneer Kuro line? Arguably one of the best TVs ever at the time. Pioneer is out of the TV business.
Most definitely not following their TV division progress this couple of years....

And looks like some people actually stuck between 2006-2013 era of Sony. People changes so does company.
 

Shin

Banned
I'm not knocking the quality of their products. TVs have just become commodity items basically. They're cheap and have very low margins. The market for enthusiasts who appreciate stuff that Sony does is very small.

Do you remember the Pioneer Kuro line? Arguably one of the best TVs ever at the time. Pioneer is out of the TV business.

I hear ya, it's with every segment unfortunately.
As a consumer I'd prefer to have more choices than just LG/Samsung so to speak.
Hard to explain it, their products cost a premium but tend to drop the ball in certain area's.
 

komaruR

Member
i like sony's cameras. those picture quality are one of the best i've seen (don't flame me!)
back when sony's cell phone are shit (weak spec compare to competitor) but their camera on them are still great. now i think their phone are somewhat up to par with spec but overpriced (right??)

eitherway, their standalone cameras are still great tho. but since cellphone camera is more of a thing now for casual picture takers, those digital camera seems niche for casual customer now.
 

Melchiah

Member
i like sony's cameras. those picture quality are one of the best i've seen (don't flame me!)
back when sony's cell phone are shit (weak spec compare to competitor) but their camera on them are still great. now i think their phone are somewhat up to par with spec but overpriced (right??)

eitherway, their standalone cameras are still great tho. but since cellphone camera is more of a thing now for casual picture takers, those digital camera seems niche for casual customer now.

The mid-priced Z3 Compact competed spec-wise with Samsung's and Apple's flagship models.
 

Zolf

Member
Outside of financial services, insurance and returing to gaming form, which the consistently dominate, where's the turnaround, guys?

Their phones are not found in big markets.

Their TV division continues to underperform.

Their movie division is a dud.

In terms of CE, they are irrevelant, with the Korean and Chineses companies eating their lunch.

By avoiding attempts to push volume and instead focusing on profitable market segments and regions, the mobile division has been profitable for the past 3 quarters.

The TV and consumer electronics division has returned to consistent profitability as well, by cutting costs and focusing on high end products.

The sensor division has actually had a few tough quarters due to the 2016 earthquake, but that has been a strong performer in recent years.

The music, camera, games, and financial services divisions have been consistently profitable.

The only unprofitable divisions at this point are movies, where Kaz has been in LA to oversee the restructuring personally, and the battery division, which I believe is being sold off.

Seems like a pretty solid turnaround to me.
 

kaiyo

Member
i like sony's cameras. those picture quality are one of the best i've seen (don't flame me!)
back when sony's cell phone are shit (weak spec compare to competitor) but their camera on them are still great. now i think their phone are somewhat up to par with spec but overpriced (right??)

eitherway, their standalone cameras are still great tho. but since cellphone camera is more of a thing now for casual picture takers, those digital camera seems niche for casual customer now.
Their flagships are (almost) always competitively spec-ed and are priced relatively similar to other flagships. Their low/mid range phones are over priced though.
 

DieH@rd

Banned
They should absolutely not give up on movie division. They should invest into restructuring, [giving less money to Avi Arad ;) ] and trying to find new profitable franchises. Bond franchise is up for grabs, who knows if they will snatch another long-term distribution deal for it.

Their flagships are (almost) always competitively spec-ed and are priced relatively similar to other flagships. Their low/mid range phones are over priced though.

I still find it bafling that they don't want to push their phones in the US. Kaz himself admitted that their primary phone market is Japan, and then Asia and Europe. In the US they have very limited deals with cell providers, and their phones often arrive in the US very late.

IMO, they should revitalize their business on a worldwide scale by offering OnePlusOne-styled 'flagship killler' in the $300-350 price range, and then evolving that phone line over the years.
 

vpance

Member
Movies biz is so volatile and high risk when you have no good franchises. And when your best ones barely scrape by in profits then what's the point?

All the best talent being consolidated with the bigger studios doesn't help matters. Get rid of movies, pocket the $20B, and make PS5 a beast.
 

kaiyo

Member
They should absolutely not give up on movie division. They should invest into restructuring, [giving less money to Avi Arad ;) ] and trying to find new profitable franchises. Bond franchise is up for grabs, who knows if they will snatch another long-term distribution deal for it.



I still find it bafling that they don't want to push their phones in the US. Kaz himself admitted that their primary phone market is Japan, and then Asia and Europe. In the US they have very limited deals with cell providers, and their phones often arrive in the US very late.

IMO, they should revitalize their business on a worldwide scale by offering OnePlusOne-styled 'flagship killler' in the $300-350 price range, and then evolving that phone line over the years.
If they do that it will lower their brand perception and it would be difficult for them to increase the price later on. They just need to get their phones on US carriers and do a massive advertising push. Launching the phone worldwide shortly after announcement.

Movies biz is so volatile and high risk when you have no good franchises. And when your best ones barely scrape by in profits then what's the point?

All the best talent being consolidated with the bigger studios doesn't help matters. Get rid of movies, pocket the $20B, and make PS5 a beast.
And when the ps5 flops like the ps3
And they sell the division for a few billion.
 
I've been happy to see Sony's return to form. They have the best TV and best cameras and best console on the market. Everything they do pushes boundaries. I hope their recovery continues.
 

DieH@rd

Banned
I liked their TV's but they were always so expensive.

Their 2017 line is really great, and their pricing is not that insane even.

  • X800D/X800E is a rare "no compromise" HDR entry 4K TV
  • X900E - FALD with great visuals
  • X930E is best edge-lit TV that was ever made
  • X940E is a behemoth of a TV with great visuals [only comes in 75"]
  • Z9D is one of the best high end LED TVs ever made
  • And now they added A1 for OLED lovers
 

vpance

Member
Their 2017 line is really great, and their pricing is not that insane even.

  • X800D/X800E is a rare "no compromise" HDR entry 4K TV
  • X900E - FALD with great visuals
  • X930E is best edge-lit TV that was ever made
  • X940E is a behemoth of a TV with great visuals [only comes in 75"]
  • Z9D is one of the best high end LED TVs ever made
  • And now they added A1 for OLED lovers

Nice summary. Yeah they really have a solid lineup of TVs. 900E and 930E will be very popular when the price drops through the year.
 

LeleSocho

Banned
It's been obvious for a long time the Sony phone business was not going to work.

That's not because the phone business isn't profitable or because Sony's core businesses are too different to be relevant, it's all Sony incompetence because camera, screen, design, software are all very important things in phones and Sony is either leader or very competitive in these categories and yet their phones don't manage to capture attention from people.

It's great that Hirai managed to make the company profitable again but if the strategy is to cut everything that doesn't make money instead of fixing what you have Sony will be yes profitable but very stagnant and in the long term that's super bad.
 

SRG01

Member
i like sony's cameras. those picture quality are one of the best i've seen (don't flame me!)
back when sony's cell phone are shit (weak spec compare to competitor) but their camera on them are still great. now i think their phone are somewhat up to par with spec but overpriced (right??)

eitherway, their standalone cameras are still great tho. but since cellphone camera is more of a thing now for casual picture takers, those digital camera seems niche for casual customer now.

Not sure if they lump their image sensors with their imaging or semiconductor division, but their image sensor tech is literally generations ahead of their competitors. Apple and Samsung both use Sony's sensors in their phones (although some S7 variants used Samsung's own image sensor).

That's not because the phone business isn't profitable or because Sony's core businesses are too different to be relevant, it's all Sony incompetence because camera, screen, design, software are all very important things in phones and Sony is either leader or very competitive in these categories and yet their phones don't manage to capture attention from people.

It's great that Hirai managed to make the company profitable again but if the strategy is to cut everything that doesn't make money instead of fixing what you have Sony will be yes profitable but very stagnant and in the long term that's super bad.

Ehhh, it's more that Sony's mobile division had to cater to the Japanese market, which meant a new phone every six months versus a yearly cycle for other markets. That meant a lack of product support, rushed development, incremental changes, etc.
 
That's not because the phone business isn't profitable or because Sony's core businesses are too different to be relevant, it's all Sony incompetence because camera, screen, design, software are all very important things in phones and Sony is either leader or very competitive in these categories and yet their phones don't manage to capture attention from people.

It's great that Hirai managed to make the company profitable again but if the strategy is to cut everything that doesn't make money instead of fixing what you have Sony will be yes profitable but very stagnant and in the long term that's super bad.
I think it is just a step at a time. They were bleeding money before and now they are making money. They can work on going beyond that once they are in a much better position overall.
 

Elandyll

Banned
That's not because the phone business isn't profitable or because Sony's core businesses are too different to be relevant, it's all Sony incompetence because camera, screen, design, software are all very important things in phones and Sony is either leader or very competitive in these categories and yet their phones don't manage to capture attention from people.

It's great that Hirai managed to make the company profitable again but if the strategy is to cut everything that doesn't make money instead of fixing what you have Sony will be yes profitable but very stagnant and in the long term that's super bad.
Always wondered why they sell some of the best cameras on the market to their competitors, but do not use them themselves.
My only explanation is that they have some sort of non competing contractual obligation with Apple and whoever else to provide them their best components and not use them in their own sets...
 

kaiyo

Member
Yes that was me. Beast doesn't mean selling it for a loss.

The two things aren't really connected. I just wanted to throw in PS5 at the end.

Then they price it accordingly and less people buy it and buy the competitor instead.

Always wondered why they sell some of the best cameras on the market to their competitors, but do not use them themselves.
My only explanation is that they have some sort of non competing contractual obligation with Apple and whoever else to provide them their best components and not use them in their own sets...

They use their newest sensor in their Xperia.
 
It's impressive how the PS4 and cutting all the waste of money divisions saved the company.

Yes, but Kaz made these decisions. Kaz made the decision to go all in on PS4, even after PS3 was a big money drain.

Kaz gave Playstation the go-ahead to keep putting out great games keep most studios alive, let them continue to release new IP, continue to cater to fans of single-player games after all supposed experts kept telling us that single-player console gaming was dead.

Recognizing, and playing to, the strength of the Playstation brand, even when it's temporarily down for the count, is good leadership. Bad leadership would instead have told them to close most of their internal studios, to let the few remaining studios only pump out sequels to their most bankable franchises instead of trying something new, to keep chasing that GaaS bunny, to double down on squeezing as much as you can with services and microtransactions from your current user base instead of trying to expand it, to buy a sure-to-be bankable success for a few billion, instead of making your own from the ground up
 

DieH@rd

Banned
I wonder how much money Sony Music division has made from their Fate/Grand Order mobile game that is holding top rankings for so many months now? Hopefully upcoming financial report will offer some insights.


After the success of that game, Sony quickly announced [at TGS 2016] development of new PlayStation mobile game division [with new Wild Arms and Arc the Lad being most notable games that are under production].
 

Memento

Member
I think they should focus only on flagship models of the Xperia line.

Drop all the budget ones.

Their flagship smartphones are amazing. I still have my Xperia Z1. I love the design.
 
Thats good. To be honest I dont see them claiming that Walkman status anytime soon.

Their phones seem okay. The Xperia XZ Premium looks nice, and has some nice features, but its missing a finger print sensor for the USA version in 2017. I doubt they would do well here as the high end market for smart phones is mostly fought between Apple and Samsung. While the low end is Samsung and Xiami and Huawei. I have never seen any of their phones in a store let alone a carrier. It seems like they arent even trying so I could give zero fucks about them here in the states.

I think their movie division will do just fine this year though. Spiderman looks amazing and they have The Dark Tower.

However it does seem that they are more the Playstation brand similar to how Apple is the iPhone brand.
 
Xperia phones are great. Still using my 2013 Z1, and apart from the battery starting to become less effective (which is inevitable), it still works a treat.
 
Interesting about Spiderman movies and the Venom and Carnage characters.

Problem with the latter is Cletus Kasidy is a serial killer and wouldn't lend well to a family-rated movie, where all the money is. Deadpool is an exception though. Venom's pseudo-appearance in Spiderman 3 was baffling but again he's a great character.

With those three characters and G Goblin they could grow Spiderman movies to be bigger than Avengers imo, but the direction is all over the place.
 

Toni

Member
It's been impressive to see the turnaround that Sony has made in the past few years.
I remembered reading articles that there's a good chance Sony could go bankrupt in two years, and that was from a couple years ago. Fixing their film division will be a tough nut to crack for Kaz though, as they don't own that many valuable film IPs, compared to the other major studios.

They have James Bond and Spider-man.

Which both amass over 600 million worldwide usually.

They also released Kate Beckinsale's Underworld and Passengers earlier this year.

Other high profiles movies from Sony / Columbia Pictures later this year are the Jumanji remake with The Rock and The Smurfs (family-friendly easy money).

At least on the movie box offfice front, they won't be doing bad at all this year.

They will have Spider-man do the heavy lifting for them.
 
They have James Bond and Spider-man.

Which both amass over 600 million worldwide usually.

They also released Kate Beckinsale's Underworld and Passengers earlier this year.

Other high profiles movies from Sony / Columbia Pictures later this year are the Jumanji remake with The Rock and The Smurfs.

At least on the movie box offfice front, they won't be doing bad at all this year.

They will have Spider-man do the heavy lifting for them.

I thought Sony was about to lose Bond?
 

Memento

Member
They have James Bond and Spider-man.

Which both amass over 600 million worldwide usually.

They also released Kate Beckinsale's Underworld and Passengers earlier this year.

Other high profiles movies from Sony / Columbia Pictures later this year are the Jumanji remake with The Rock and The Smurfs (family-friendly easy money).

At least on the movie box offfice front, they won't be doing bad at all this year.

They will have Spider-man do the heavy lifting for them.

There will be a Jumanji remake? THIS YEAR? Hype!
 

Toni

Member
I thought Sony was about to lose Bond?

Skyfall was the biggest and highest-grossing James Bond movie ever and it all happened thanks to Sony Pictures. It did 1.1 billion in the box office.

Sony won't loose the license.

Warner Brothers have been trying for the longest to snatch James Bond from Sony, but after the incredible success that was Skyfall...it'll never happen.
 
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