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[zomgbbqftw]

Relevant information:

Sony lose $1.25bn, FY14 forecast of a $490m net loss.

Game division loses $78m, forecast $200m operating profit in FY14. 17m forecast sales of PS Home consoles, 3.5m portables.

http://www.sony.net/SonyInfo/IR/financial/fr/13q4_sony.pdf

Total losses from the PC division over this year and the next will amount to 171.7bn yen, that includes operating losses, asset impairments and goodwill impairments. Gives us an idea of what exiting the TV market would cost if they were to do it, though there is no goodwill associated with the TV division.

Game forecast:

Game & Network Services
Sales are expected to increase primarily due to an increase in unit sales of PS4s and an increase in network services revenue. Operating results are expected to improve primarily due to the impact of the increase in sales and a decrease in costs related to the launch of the PS4.

1,220bn yen revenue forecast, up by 16.9%, and a 20bn yen operating profit forecast.

 

[Majestad]

Is that good or bad? Seems bad at first glance.

 

[LX_Theo]

Sources are cool things

 

[Bundy]

Is that good or bad? Seems bad at first glance.

Loss = bad

But we already knew that.
They announced this weeks ago.

 

[killatopak]

Wow. I thought for sure they would at least break even with all the sold PS4s.

 

[Joe_Incognito]

Projecting another half billion dollar loss for 2014?

That does not inspire confidence.

 

[Colonel Nasty]

Ouch. And people think they'll cut the price of the PS4.

 

[The Great Dave]

Wish I got paid to lose money. I'd be so good at it too.

 

[Aquamarine]

FY12 = Last year

FY13 = This year

FY14 FCT = Projections for next year

 

[hamchan]

Is that good or bad? Seems bad at first glance.

Sony overall is in bad shape.

Game division is in good shape. Especially with a profit forecast.

 

[Occam]

Is that good or bad? Seems bad at first glance.

Is losing a billion good or bad?

 

[smurfx]

Wow. I thought for sure they would at least break even with all the sold PS4s.

17 mil is nothing compared to some of their past losses. they will make that up in no time.

 

[Tripon]

Relevant information:

Sony lose $1.25bn, FY14 forecast of a $490m net loss.

Game division loses $78m, forecast $200m operating profit in FY14. 17m expected sales of PS Home consoles, 3.5m portables.

More as I read it.

Still not giving separate numbers for the Vita, huh.

 

[coldone]

17M looks conservative. 12M PS4 and 5M PS3 ?

But it will be awesome if they could sell more and have more people sign up for PS+ etc.

 

[killatopak]

So Sony's situation is actually getting better year by year? At least in the gaming sector.

 

[Radec]

Gaming Division loss is probably due to R&D of PS4 and Vita ?

 

[bobbytkc]

Wow. I thought for sure they would at least break even with all the sold PS4s.

They don't make money on hardware. Console hardware is typically sold at a loss at launch. They will make it up as the console owners buy games over its lifetime.

 

[Bundy]

Wonder what's going on at SOE?

 

[Sami+]

A result of PS4 R&D, manufacturing, and selling at a loss I'm guessing?

 

[nhlducks35]

Well if you wanted any more evidence that Sony handhelds are dying, look no further that picture

 

[funkystudent]

Just for fun how much did the Ps3 cost them at this point?

 

[shinra-bansho]

Game loss is roughly in line with the PS1->PS2 transition from memory.

Didn't hit unit targets, presumably because of the last gen systems dying out faster than expected and Vita being Vita.

 

[RiccochetJ]

Wish I got paid to lose money. I'd be so good at it too.

You must be a kid. Is this your loss of innocence? It's a hell of a lot more complicated than that.

 

[Joe_Incognito]

Question about R&D costs for Sales Age.

Wouldn't R&D costs for the PS4 have occurred two years ago when the console began development?

 

[Riderz1337]

"Sales are expected to increase primarily due to an increase in unit sales of PS4s and an increase in network services revenue. Operating results are expected to improve primarily due to the impact of the increase in sales and a decrease in costs related to the launch of the PS4."

So I guess network service revenue is PS Plus subs? Also good to see that there will be a decrease in costs related to launching the PS4 recently. The gaming division should profit this year, assuming the PS4 continues to sell. They better not mess up E3.

 

[overcast]

Sony Pictures is doing terrible, I'm sure. Television can't be doing hot. Vita sold like shit.

PS4 is their pride and joy as of now.

 

[DrM]

They would be in much better condition without Vita and it will be interesting to see what will happen to it.

 

[Aquamarine]

Sony last year and current year sector performance comparison:

Operating income = core profitability


The MP&C segment includes the Mobile Communications and Personal and Mobile Products categories. Mobile Communications
includes mobile phones; Personal and Mobile Products includes personal computers.

The IP&S segment includes the Digital Imaging Products and Professional Solutions categories. Digital Imaging Products includes
compact digital cameras, video cameras and interchangeable single-lens cameras; Professional Solutions includes broadcast- and
professional-use products.

The HE&S segment includes the Televisions and Audio and Video categories. Televisions includes LCD televisions; Audio and Video
includes home audio, Blu-ray DiscTM players and recorders and memory-based portable audio devices.

The Devices segment includes the Semiconductors and Components categories. Semiconductors includes image sensors; Components
includes batteries, recording media and data recording systems

Starting from the second quarter ended September 30, 2013, the disclosure for sales to external customers for the Pictures segment has been
expanded into the following three categories: Motion Pictures, Television Productions, and Media Networks. Motion Pictures includes the
production, acquisition and distribution of motion pictures; Television Productions includes the production, acquisition and distribution of
television programming; Media Networks includes the operation of television and digital networks.

Starting from the second quarter ended September 30, 2013, the disclosure for sales to external customers for the Music segment has been
expanded into the following three categories: Recorded Music, Music Publishing and Visual Media and Platform. Recorded Music
includes the distribution of physical and digital recorded music and revenue derived from artists’ live performances; Music Publishing
includes the management and licensing of the words and music of songs; Visual Media and Platform includes various service offerings for
music and visual products and the production and distribution of animation titles.


The Financial Services segment results include Sony Financial Holdings Inc. (“SFH&#8221 and SFH’s consolidated subsidiaries such as Sony
Life Insurance Co., Ltd. (“Sony Life&#8221, Sony Assurance Inc. and Sony Bank Inc. (“Sony Bank&#8221. The results of Sony Life discussed in the
Financial Services segment differ from the results that SFH and Sony Life disclose separately on a Japanese statutory basis.

 

[reptilescorpio]

Sony Pictures are doing better than I thought they were.

Wonder what's going on at SOE?

Working on like 3 games that haven't come out yet. Once they start earning money off them the SOE division will look a lot better.

 

[The Great Dave]

You must be a kid. Is this your loss of innocence? It's a hell of a lot more complicated than that.

Dad says I'm very mature for my age but I don't know :3

 

[bobbytkc]

Question about R&D costs for Sales Age.

Wouldn't R&D costs for the PS4 have occurred two years ago when the console began development?

R&D can include things like Playstation Now which is still in the testing phase I suppose.

 

[jimbobsmells]

Gaming division loss according to that graph seems to be due to costs launching the PS4 (probably realising r&d) and write off of SOL software (no idea what that was?).
Forecasting a favourable net operating income is a good sign though. Even if it's only 20m.

 

[killatopak]

They would be in much better condition without Vita and it will be interesting to see what will happen to it.

They're actually profiting on the Vita. Not that much though.

 

[Bundy]

Not gaming-related, but:
Announcement of Company Split (Small-scale Company Split) of Sony Corporation into
Sony Mobile Communications Inc.

 

[Shiggy]

Gaming Division loss is probably due to R&D of PS4 and Vita ?

Those costs were probably capitalised this FY as they were already past the research phase. Thus these costs were likely not expenses and did not impact profit or loss.

 

[davepoobond]

Time to buy Sony stocks.

 

[Radec]

Sony last year and current year sector performance comparison:

Operating income = core profitability

damn, if Sony focuses on Financial Services they will be seeing everything in black.

 

[SwiftDeath]

Guessing we can't extrapolate updated PS4 numbers from this :\

PS division losing money? Is that R&D costs or what?

 

[nhlducks35]

They have $10 billion in cash and cash equivalents and had a total cash inflow of $1.5 billion.

 

[Riderz1337]

Sony Pictures is doing terrible, I'm sure. Television can't be doing hot. Vita sold like shit.

PS4 is their pride and joy as of now.

I think Sony Pictures actually profited.

 

[jimbobsmells]

I think Sony Pictures actually profited.

Correct

 

[furious]

Is losing a billion good or bad?

You have to spend money to make money. They clearly need to spend more money.

 

[Riderz1337]

damn, if Sony focuses on Financial Services they will be seeing everything in black.

Yup if it wasn't for Financial Services Sony would be pretty much dead...

 

[Kysen]

Can we get a legend on that graph? What is mp&c and he&s?

 

[vinnygambini]

damn, if Sony focuses on Financial Services they will be seeing everything in black.

Sony Financial Services is their saving grace.

Sony Game & Network Services revenue increased, operating income declined due to R&D costs, hardware loss (PS4) and a further decline in current gen.

Transition seems to be normal and their guidance for FY15 seem solid.

 

[shinra-bansho]

What's the 262B yen forecast operating loss from "other"?

Margins improved a lot for IP&S, and quite a bit for FS too.

 

[Withnail]

Question about R&D costs for Sales Age.

Wouldn't R&D costs for the PS4 have occurred two years ago when the console began development?

Seriously?

Project Morpheus
Playstation Now
PS4 redesign
PS5

R&D is constantly ongoing.

 

[Kenshin001]

Have they run out of buildings to sell?

 

[Occam]

Guessing we can't extrapolate updated PS4 numbers from this :

PS division losing money? Is that R&D costs or what?

And marketing, setting up PS4 production etc. That's normal and nothing to worry about. If anything, PS4 was relatively cheap to launch.

 

[And_Gignac]

Why is Playstation posting an operating loss? Wasn't the ps4 profitable since launch?