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Sony doubles forecast of annual loss to $6.4bn
- Thread starter DarkChild
- Start date
shinobi602
Member
flyinpiranha
Member
Trim the fat Sony, you make too much shit.
He is outlining his turnaround plan on Thursday. Think of this as Stringer's parting gift.
Keyser Soze
Member
Is any TV manufacture doing good today. They all be the house on 3D, and seem to have lost.
I don't think any more cares what TV they own any more. HD was a biggie, but 3D, 4k, or even 8k will not get people out in droves
I don't think any more cares what TV they own any more. HD was a biggie, but 3D, 4k, or even 8k will not get people out in droves
Damn, Sony.
Selling overpriced bullshit for all these years is finally coming back to bite them in the ass.
It's getting harder and harder to tell the difference between a $2500 Sony Vaio and a $1000 Lenovo. Or a $3500 XBR and a $900 Samsung.
Their perceived brand value is dropping like crazy.
Selling overpriced bullshit for all these years is finally coming back to bite them in the ass.
It's getting harder and harder to tell the difference between a $2500 Sony Vaio and a $1000 Lenovo. Or a $3500 XBR and a $900 Samsung.
Their perceived brand value is dropping like crazy.
No shows of stopping? Didnt they plan on cutting jobs yesterday?
Cygnus X-1
Member
Why doesn't the Japanese government bind the Yen to the Dollar in such a way that a lower minimum exchange is fixed?
AceBandage
Banned
Samsung, I believe, is making bank.
Because that would be fairly insane?
Sho_Nuff82
Member
Speaking of Instagram, is there any reason that Sony hasn't invested in any of these get-rich-quick social media phenomena like Skype, OMGPop, Instagram, or Zygna? I know none really fit their corporate image, but revenue is revenue.
TheContact
Member
Lower your prices, Sony.
LCD manufacturing is still profitable if you do enormous volumes, so probably Samsung is doing well
Well in the link, it says Samsung and LG are having profitable TV units.
zomgbbqftw
Banned
It's a balance sheet loss because of a loss of tax credits due to questionable profitability in the short to medium term.
The $3.2bn charge will not affect Sony's cash balance, they will end this financial year with around $10bn in the bank.
On Thursday at 3pm Japan time (2am New York) Kaz will outline his plan for the coming year and his long term vision for Sony as a company and where he sees them years from now. He will need to outline how he intends to make "One Sony" out of the 20 or so separate divisions they have right now
The $3.2bn charge will not affect Sony's cash balance, they will end this financial year with around $10bn in the bank.
On Thursday at 3pm Japan time (2am New York) Kaz will outline his plan for the coming year and his long term vision for Sony as a company and where he sees them years from now. He will need to outline how he intends to make "One Sony" out of the 20 or so separate divisions they have right now
Cygnus X-1
Member
Switzerland did it. Euro - CHF change was way too low (1 to 1 at some point) and was seriously damaging tourism and export. For that reason, the SNB fixed it to the Euro some months ago. Now things are still not great, but sure better than before.
Randolph Freelander
Member
Nothing against the Sony brand, but I think all I have from them at the moment is a Blu-Ray player and a PS2, neither bought particularly recently (define recent... the BR player was probably 2008 or 2009). My televisions and even my phone are Samsung. Whatever else Sony might make, well, don't have any of those things, either. At any rate, best of luck to them in their future endeavors.
captainraincoat
Banned
This isn't allowed under international trade agreements. It's what China does though.
dragonfart28
Banned
Now's the time Nintendo.
Yeah, the old LCD vs Plasma choice is now really just whether you want a Samsung or Panasonic.
At this point would Sony be better off just dropping out of the TV business altogether? I know it's a very visible market and all that, but if no-one's buying their TVs anyway, it might be better to get out of the market rather than let that sector drag down the rest of the company.
If Sony as a company does not understand that the brand Sony does not demand higher priced TV models, they are all fools. The inability of competitively pricing their TVs and taking a loss for 8 years! At 3-4 years wouldn't it have been evident that your current strategy is not working?
Twenty7KVN
Member
I'm curious to see how they handle the ps4.Are they still going to go balls out or (if the recent rumors are true)be more conservative.It's going to be a interesting next few years for sony game division.
Cygnus X-1
Member
You're forgetting Sharp Corporation.
They could try to negotiate it at least. This change rate is killing the export.
I mostly have their Playstation branded products (except the Vita). I used to have their Walkmans and MD's back in the 90's and early 2000's. I also have a SE Xperia phone from 2009, which will be replaced by a Samsung Android phone.
Sony Forecast said:
Because they failed to make profit this year they need to make a valuation allowance against deferred taxes.
Yep, from what i usually see, anyone wants Plasma goes Panasonic and then LCD = Samsung.
Would be very hard to get someone to pay the £700-800 sony tax for a TV when what the cheaper manufacturers offer is just as good.
I may be wrong, but at this point doesn't Nintendo have more cash on hand than Sony?
Sony TVs...those things retail at very very high price compared to competitors and they don't exactly beat them. Their phones have been garbage, new line (Xperia S and Ion) are good, but a bit too late on market. Samsung is new Sony and they are not showing any signs of stopping.
How much cash does Sony have on hand?
People don't care about Sony TVs in our store. The ones who are "Sony boys" comes in, but as soon as I show a Samsung they're converted. Sony have no answer to Samsung design and Smart TV features.
Younger people want to use USB memory sticks too to play movies, but Sony are so damn stubborn with going against piracy. You need to register online to even get DivX to work. This while LG and Samsung (both only profitable TV companies) have MKV and all other major formats, while Sony only have DivX.
Adults want design and Smart TV features. Design-wise Sony has no answer to Samsung's thin frame. Smart TV-wise, their web browser lack Flash support, making it more or less useless for multimedia (edit: Clarification: Streaming). And their other Smart TV:ish features are ridiculous. It's funny considering they have so much experience in software via PS3.
Older people dislike the menus and remotes and chose LG any day of the day week due to their simplicity. LG also have many cheaper models that are popular which brings their production and components prices down.
Younger people want to use USB memory sticks too to play movies, but Sony are so damn stubborn with going against piracy. You need to register online to even get DivX to work. This while LG and Samsung (both only profitable TV companies) have MKV and all other major formats, while Sony only have DivX.
Adults want design and Smart TV features. Design-wise Sony has no answer to Samsung's thin frame. Smart TV-wise, their web browser lack Flash support, making it more or less useless for multimedia (edit: Clarification: Streaming). And their other Smart TV:ish features are ridiculous. It's funny considering they have so much experience in software via PS3.
Older people dislike the menus and remotes and chose LG any day of the day week due to their simplicity. LG also have many cheaper models that are popular which brings their production and components prices down.
Stumpokapow
listen to the mad man
More than half the loss is a tax charge. It doesn't mean the company is kicking ass and taking names, but they're not wrong to attribute it primarily to that. In the same way as Nintendo blaming forex stuff isn't inaccurate.
Yeah, like smartphones. Totally useless for multimedia. And most tablets. Also useless for multimedia.
zomgbbqftw
Banned
My my, they are not blaming taxation in the US, it is a valuation charge on a tax credit they have on the balance sheet. It is a non-cash charge. Sony will show they have around $10bn in the bank in their year end release in May.
RamzaIsCool
The Amiga Brotherhood
Just nix the tv business and put all you resources in gaming!!!!! Do it Sony!
The OP's a bit misleading in that it seems to pin the cause of the loss on the TV business.
The extra loss above and beyond their original forecast is a non-cash, non-operating loss. They had to write off tax credits in the US they previously recorded as earnings because, well, they didn't have the profits that would enable them to use those credits. Their operating and cash forecasts remain unchanged.
The extra loss above and beyond their original forecast is a non-cash, non-operating loss. They had to write off tax credits in the US they previously recorded as earnings because, well, they didn't have the profits that would enable them to use those credits. Their operating and cash forecasts remain unchanged.
McHuj
Member
It's interesting because I think the PS4 needs to be a big hit and be pretty profitable. The question is can they achieve that with a conservative design or do they need to go high end? There are valid reasons for both answers to that question and it depends on who is answering that question for Sony. The reality is no one knows how the market will react so either way they're gambling (all three companies are really taking a gamble imo)