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Sony revival to hinge on smartphones not PS4

With consumer spending converging on Apple Inc’s iPads and Samsung Electronics Co’s Galaxy phones, Sony on Thursday forecast smartphone sales to rise more than one-fourth to 42 million in the year to next March. It predicted sales of its digital cameras and Playstation consoles would contract at double-digit rates.
Sony’s boss, Kazuo Hirai, in 2012 identified mobile products, gaming and digital imaging as the core of a rebound in consumer electronics after more than a decade of decline for the pioneer of personal music players and compact discs. Of those three, mobile has since emerged as the best near-term hope for Sony to turn around its electronics business.
Financial services – mainly its insurance subsidiary – posted an operating profit of ¥146-billion, making it the consumer electronics company’s most profitable business.

http://www.theglobeandmail.com/repo...nics-to-hinge-on-smartphones/article11810476/
 

Z3M0G

Member
Could this be because it is one of the divisions which has the most ground to gain? Where their gaming division has been more stable?

(I don't know, just asking.)
 

Impossiburu

Neo Member
Could this be because it is one of the divisions which has the most ground to gain? Where their gaming division has been more stable?

(I don't know, just asking.)

Makes sense. Though I don't think gaming is that much of a boon for them. I think they make their money on TVs? Bullshitting here, just a guess.
 

Morfeo

The Chuck Norris of Peace
I need a Sony Xperia that lets me play all PS1/PS2-games on the go, with decent control-interface. Or just enable phone-functionality on the Vita I guess :)
 

DBT85

Member
Hardly a surprise, they sell far more phones every year than consoles and the phones have a nice markup. They might not make money on apps being sold on it but they also just get it out the door with a profit.

PlayStation is about staying in the livingroom.
 

cw_sasuke

If all DLC came tied to $13 figurines, I'd consider all DLC to be free
Both segments are important - if you think that PS4 isnt one of the most important launches for Sony as a company you are kidding yourself.
 
Could this be because it is one of the divisions which has the most ground to gain? Where their gaming division has been more stable?

(I don't know, just asking.)

I'm not so sure I would call the gaming division stable. They've been on an up and down rollercoaster in terms of profit since launching the original playstation. If you look at accumulated profit since 1995, they're about 1/30th of what Nintendo has made in the industry.

And the article makes it pretty clear that they will be taking a huge hit until next March.

Not really smart business on Sony's part.
 
they need to follow with another great top-range AND with some middle range phones

(i think they have in development)

They certainly don't need to abandon it 3 months down the line like they did with their 2012 'flagship' device the Xperia S

I've just had to get a new phone after losing my S and was tempted to get the Z but ended up with the HTC One, it just looks a lot nicer for me. I liked the idea of the waterproofing on the Z but then wondered when I would ever actually find a need for it.
 

ash_ag

Member
Playstation Mobile *believe*
A reimagined / extended version of that would be the future of the PlayStation handheld.

I'm not sure about how long the Xperia branding stays, though. Xperia Z was a huge success, so, I can see their next flagship being called Z2 or something -- but 'Xperia' will be dropped sooner or later, or likely used for something else in their ecosystem (much like Walkman is now their Music app).
 

RibMan

Member
Breaking up with Ericsson was a wise decision. The Xperia Z was their first step towards a flagship smartphone, once they kill the name and eliminate unnecessary models they'll have a big opportunity to shake things up.
 

DieH@rd

Banned
They've had a really nice success with XZ. However, they still dont want to enter with full force on American market with their phones.
 

Shai-Tan

Banned
this is one of those articles that is regurgitating from financial results and summarizing badly. for example the first quote is likely referring to the contraction in the handheld market relative to psp era
 

benny_a

extra source of jiggaflops
And the article makes it pretty clear that they will be taking a huge hit until next March.
According to Sony's own financial forecast the profits from the game divisions will remain flat and not a huge hit. I wonder why there is such a disparity as it's essentially drawing from the same data.
 

Somnid

Member
I think anyone betting on smartphones is really missing the bigger picture. It's like betting on PCs 5-10 years ago. The market for smartphones is becoming pretty flat and margins are dropping all over. Also Americans are starting to (still a couple years on this one) wake up and not take the 2-year contract which means they'll probably buy less phones but it won't matter because an octo-core, high DPI phone will browse Facebook just as well as what they probably have now. I think if Sony hasn't already moved on to in vogue things like tablets (kinda late to gain momentum there) and wearable tech then they may have right the ship again.
 

macewank

Member
that seems like a good idea i guess. their mobile division has been pretty consistently in the red from what I've read.. There's a lot of room for improvement there.

Now, will they ever hit Samsung status? Not likely. But there's plenty of room for them to at least get that division in the black.
 
Don't even care about phones that much but I'd love to own an Xperia Z. It has that same Sony brand appeal that all their products once had.
 
I think anyone betting on smartphones is really missing the bigger picture. It's like betting on PCs 5-10 years ago. The market for smartphones is becoming pretty flat and margins are dropping all over. Also Americans are starting to (still a couple years on this one) wake up and not take the 2-year contract which means they'll probably buy less phones but it won't matter because an octo-core, high DPI phone will browse Facebook just as well as what they probably have now. I think if Sony hasn't already moved on to in vogue things like tablets (kinda late to gain momentum there) and wearable tech then they may have right the ship again.

They were really the first major company to make smart watches and they recently patented smart glasses. Sony are already in wearable tech.
 

wildfire

Banned
Could this be because it is one of the divisions which has the most ground to gain? Where their gaming division has been more stable?

(I don't know, just asking.)

No. Sony.


Sony is predicting that they will sell worse than the PS3's LTD.

Oh boy.
 

macewank

Member
Probably but I think their PS/game division is still a point of pride for them though so they will give it a lot of support.

oh. don't mistake this thread. PS4 is a priority.. In fact, it's probably THE priority.

Playstation is the bread winner in Sony's house. They'll give it the attention it deserves. They're just going to start paying some attention to these other areas (mobile being a big one) where they never make money.
 

Oersted

Member
Does anyone know longtime-numbers of the Xperia Z? It was a success right at the beginning, but can it compete over a long time with the big guys...


Could this be because it is one of the divisions which has the most ground to gain? Where their gaming division has been more stable?

(I don't know, just asking.)

PS2 to PS3. PSP to Vita. Shrinking would be an understatement.
 
Playstation is the bread winner in Sony's house.

Sony hadn't made an annual profit since 2008.

They finally cracked it this year based on the weak yen and insurance investments.

If PS4 doesn't substantially turn things around for them, do not expect another playstation.
 
They talk about near-term prospects. Fast-moving smartphone market will give them their profits when SE > Sony Mobile transition costs and other costs will settle down (likely more-or-less soon). Today it's an unprofitable division.

Game division generate profit despite 3 declining platforms (2 aged and 1 failed) and PS4 R&D costs. PS4 will also need time for market penetration and breaking even. And only then real money will flow. That's more like a long-term prospect.
 
r2haUrk.jpg

sup
 

Somnid

Member
They were really the first major company to make smart watches and they recently patented smart glasses. Sony are already in wearable tech.

The problem is they don't understand that's where any sort of revival should happen. Nobody cares Sony has smartwatches because they've put no effort into it. Hell, they had a 3D headset but utterly failed to follow that up leaving Occulus Rift to beat them to the punch. Sony is suffering from dinosaur syndrome, where they only know to spend lots of money to break into existing markets and do a mediocre job. Post-iPod they have effectively lost the ability to create waves in the tech industry. Kaz needs to fix that or they're going Nokia.
 

RibMan

Member
I think anyone betting on smartphones is really missing the bigger picture. It's like betting on PCs 5-10 years ago. The market for smartphones is becoming pretty flat and margins are dropping all over. Also Americans are starting to (still a couple years on this one) wake up and not take the 2-year contract which means they'll probably buy less phones but it won't matter because an octo-core, high DPI phone will browse Facebook just as well as what they probably have now. I think if Sony hasn't already moved on to in vogue things like tablets (kinda late to gain momentum there) and wearable tech then they may have right the ship again.

You make a very good point about wearable tech being the next big thing. I think a really well-designed wrist-device can revolutionize the tech world.

With that said, I think the holy grail for a company that offers a ton of electronics and services is having a single platform that unifies all of their numerous offerings. Sony appears to be placing that bet on Gaikai, and it seems like the PS4 and their mobile devices will be the way to introduce it.

I've said this before, but a device that can interact with Android phones in a seamless way would be a device that does extremely well. Imagine if your company had the opportunity to make that device (possibly PS4) and the flagship Android phone (possibly Xperia).
 
The problem is they don't understand that's where any sort of revival should happen. Nobody cares Sony has smartwatches because they've put no effort into it. Hell, they had a 3D headset but utterly failed to follow that up leaving Occulus Rift to beat them to the punch. Sony is suffering from dinosaur syndrome, where they only know to spend lots of money to break into existing markets and do a mediocre job. Post-iPod they have effectively lost the ability to create waves in the tech industry. Kaz needs to fix that or they're going Nokia.

Nokia would buy out Sony?
 
Could this be because it is one of the divisions which has the most ground to gain? Where their gaming division has been more stable?

(I don't know, just asking.)

Their gaming division has went from an incredible success with billions in profit (PS1 and PS2) to a huge financial failure costing them billions (PS3). They are now starting to head back towards profitability, i'm not sure that's really all that stable. I'd say it's more because the smartphone market is just a much bigger one than console gaming with much larger potential for profits and growth.
 
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