This so much. Their mobile division is doing better after they bought out Ericsson. I actually see more people using Sony phones nowadays in Australia, but of course not as many as Samsung or Apple.
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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
Insane Metal
Member
Honestly, 74Mil loss on PS is actually very good. PS2 and PS3 brought a much, MUCH bigger loss by the time they were launched. The PS4 has been an excellent product by all means for Sony.
Basileus777
Member
Maybe they should make their phones more readily available. They are essentially ignoring the entire US market right now.
ethomaz
Banned
Being conservative...
Sony 4.2m at end of 2013 could means ~4.5m shipped.
Sony 7.0m at end of April 6, 2014 could means ~7.5m shipped.
PS3 Q3: ~3.3m
PS4 Q3: ~4.5m
PS3 Q4: ~0.7m
PS4 Q4: ~3.0m
In both cases Sony is shipping close to twice consoles than MS... and PS4 shipped close to three times than Xbone.
Amazing performance.
Sony 4.2m at end of 2013 could means ~4.5m shipped.
Sony 7.0m at end of April 6, 2014 could means ~7.5m shipped.
PS3 Q3: ~3.3m
PS4 Q3: ~4.5m
PS3 Q4: ~0.7m
PS4 Q4: ~3.0m
In both cases Sony is shipping close to twice consoles than MS... and PS4 shipped close to three times than Xbone.
Amazing performance.
Nightengale
Member
Their Xperia Z2 launch has been nothing short of a gargantuan mess. Massive delays, significant availability issues, etc.
I'm surprised they still did well, considering that fact.
NemesisPrime
Banned
The big White Elephant probably doesn't agree.
zomgbbqftw
Banned
The target was missed because of late Z2 shipments. It means this year starts at a higher base. 50m should be achievable if their new partnership with VZW and old one with T-Mobile US can be leveraged properly for the Z3 to be released in October in the US.
Maninthemirror
Banned
At this point sony should cut lose the vita and focus on gaming consoles the one consumers want, cut out the tv division and all other fat. 1.25 is not a huge loss for a company the size of Sony
ethomaz
Banned
How? The company is in a bad shape but the PS4 + PS3 shipment are really amazing for a Q4.
They've really executed poorly in the phone business. It's a shame, because it's a business that should be a really good fit for them.
Dragonborn
Member
Haven't they already pretty much abandoned the Vita? Outside of Japanese developed games that actually sell well, SCEA aren't really doing much of anything (SCEE isn't much better).
Pictures, music and financial services all do pretty well.
Gaming did great for a year with the launch of a new big platform which in their past history were characterized by significant losses. PS4 forecast seems strong and possibly conservative, PS3/Vita not so much...I don't know if they're planning to cut prices there, Vita is pretty much a lost cause except for Japan but PS3 which is at risk of a 5m year (I guess the split for the forecast is 12m PS4 and 5m PS3) could do much better with a 150$ entry price.
I also find it a bit ironic that the biggest losses come from the mobile division while the TV business has indeed improved a lot and seems actually headed towards profitability.
An other surprise are the huge losses/costs they are sustaining to get out of what seems a minor business like Vaio.....such losses are also having a negative impact on their net profits for the 2014FY which will be in the red notwithstading a positive operative forecast in all the segments, if they were to get out of TVs the impact would be much bigger...in this sense it might be resonable to spin off and try to reach a break even situation rather than dismiss.
Gaming did great for a year with the launch of a new big platform which in their past history were characterized by significant losses. PS4 forecast seems strong and possibly conservative, PS3/Vita not so much...I don't know if they're planning to cut prices there, Vita is pretty much a lost cause except for Japan but PS3 which is at risk of a 5m year (I guess the split for the forecast is 12m PS4 and 5m PS3) could do much better with a 150$ entry price.
I also find it a bit ironic that the biggest losses come from the mobile division while the TV business has indeed improved a lot and seems actually headed towards profitability.
An other surprise are the huge losses/costs they are sustaining to get out of what seems a minor business like Vaio.....such losses are also having a negative impact on their net profits for the 2014FY which will be in the red notwithstading a positive operative forecast in all the segments, if they were to get out of TVs the impact would be much bigger...in this sense it might be resonable to spin off and try to reach a break even situation rather than dismiss.
zomgbbqftw
Banned
Given the absolutely shocking execution in smart phones and tablets I still don't understand why heads haven't rolled. Kaz should have sacked all of the top brass at SMC and recruited externally from competitors like Apple, Samsung and Google to get moving. The current team are all awful. Lazy, slow, quick to blame others for problems, have poor strategy and poor ideas. Sony should be competing blow for blow with Apple in the premium sector, but poor execution and late arrival always seems to hold them back.
This is the second time I've seen people do this. Whereas if you read what he was saying and knew Wynnebeck at all you'd see that he's mostly anti-Nintendo.
This news has been an on-going event. Let's not pretend these losses are blindsiding everyone here.
Of course, asking the gaming press to respond right now to this particular financial report is completely asinine; but I kind of get what the OP is getting at.
Maybe someone should do some google-fu and find out if Sony's financial troubles have had tabs kept on it with regards to the gaming press.
you are either Pro Nintendo or anti games
CadetMahoney
Member
ouch.
except the latest z2 that too has its problems their phones are not great. Bad screens and cameras. Samsung has better products and the sales proves it.
:lol good one
Sony is improving, very slowly, their smartphone sales, but their margins are still terrible:
They expect ~2% next fiscal year.
For comparison, Samsung is around ~20%.
They're just a lost cause.
They expect ~2% next fiscal year.
For comparison, Samsung is around ~20%.
They're just a lost cause.
CadetMahoney
Member
Yes, if it keeps going that way that's inevitable. Playstation brand will remain in one form or another.
MaulerX
Member
TechnicPuppet
Nothing! I said nothing!
This makes no sense.
Shining Sunshine
Banned
Smartphone and Gaming... get rid of everything else.
ethomaz
Banned
Do you disagree? Why?
How much did you think they shipped for PS4 at end of March 2014? From 17m forecast how much did you think it is PS3?
PS4 + PS3 shipped this year 14.6m... PS4 shipped over 7 million.... so I'm estimating ~7.1-7.3m for PS3.
It will be down next FY... so maybe ~5m PS3 shipped in FY2014.
17m - 5m = 12m.
12m + 7.2m (I'm being conservative) = ~19.2m at end of March 2015.... if PS3 ship less than 5m next FY then PS4 could even reach 20m at end of March 2015.
What don't make sense?
Phoenician_Viking
Banned
Even with many films tanking, Picture division is still profitable. This year it will be much better than last year.
Finance threads man. Half the thread is talking about iwata and why we won't get more negative articles. It's kinda sad.
Planetside 2? EQ landmark?
Of course but I was referring to GAF specifically where there are fine intelligent people and where this point is continually brought up. There are lots of crazies on the internet. I do my best to avoid them
SteveO1683
Member
They are barely in the US market. AT&T and T-Mobile are the only networks that would currently support their phones but it looks like they are spinning up some CDMA devices so they can add Verizon and Sprint to the list. Verizon has a huge customer base that was never given the option of a Sony phone that will have one now.
Nah, I think launching consoles costs to much to break even so quickly.
Four_Chamber
Member
Wow, Sony's profit margins are spectacularly crappy- in particular, their attempts to get into smartphones seems like an exercise in futility.
Stock down 7.5% right now
Stock down 7.5% right now
We'll done...
Sectorseven
Member
Now we know why they aren't funding that Harmonix game: They're pinching every penny, and rightly so.
No one reads. Too busy predicting doom.
HoodWinked
Member
Actually 78 mill loss is good. Typically the previous consoles success can carry some of the burden to hide large losses of a console launch. But the ps3 was always a loss leader.
Launching a new console is usually a 300+ mill loss endeavor so only 78 is exceptional. Also the losses also refects games in development so the revenue rebound will occur once those games begin to release.
The worst news would actually be Sony as a whole they are still posting huge losses while making a large amount of money from finance and insurance.
Launching a new console is usually a 300+ mill loss endeavor so only 78 is exceptional. Also the losses also refects games in development so the revenue rebound will occur once those games begin to release.
The worst news would actually be Sony as a whole they are still posting huge losses while making a large amount of money from finance and insurance.
Such a sad thing to see, layoffs
Though necessary for the company's overall health.
They've been laying off people constantly for years now. Thousands of job cuts per year has been the norm for Sony since about 2009. These cuts certainly have the potential to increase margins, but will also decrease revenue. Revenue growth had (until very recently) been Sony's primary calling card.
Related to the primary topic: as already mentioned several times, 78M loss in the gaming segment is actually very good by Sony's historical standards. They typically lose significant money up front and make that money back in the latter parts of a generation; at this pace, they may make it all back next year, let alone in year 5 of the PS4's lifespan. The only criticism here (and it's an important one) is that Sony remains weak in the portable/mobile sector, and that's where all the growth is.
The Mad Draklor
Member
From the outside, it looks really bad for Sony, but most of its divisions are actually doing well. Their TV business is losing less money and Sony just recently announced that they're going to stop making OLED TV's and only focus on 4K LCD's.
Is this even in doubt? PS3 averaged 14m yearly at its peak, it only has to do that to hit 20.
ultratruman
Banned
It's tragic because their devices are so well engineered and the market is hungry for premium android machines. Now the Samsung Pro Tablets will eat Sony's launch, despite arriving late.
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