7DollarHagane
Banned
Lol but smartphones are the magic solution to all things and consoles are dead?
Read the thread again. The problem is that the profit from the gaming division is very small compared to the company's other businesses. Gaming is only about 8% of Sony's overall business if I recall correctly.It's still launch year of PS4 and they are using the old razor and blades business model like they have with every one of their consoles. They made losses during the year PS2 launched and during the year PS1 launched. This is actually looking to be best launch year gaming division has ever had (they will make small profit opposed to loss). Next year gaming division should make decent profit if PS4 continues to sell like it does.
Read the thread again. The problem is that the profit from the gaming division is very small compared to the company's other businesses. Gaming is only about 8% of Sony's overall business if I recall correctly.
Read at your leisure.
Q1 FY2014 Earnings Announcement
http://www.sony.net/SonyInfo/IR/info/presen/
http://www.sony.net/SonyInfo/IR/financial/fr/14q1_sony.pdf
Gaming and Mobile are both operating at a loss. All other main divisions are really strong.
While the PlayStation business - fuelled by the success of PlayStation 4 - continues to perform well,
I also blame their smartphones. While being incredibly functional. Probably the best smartphones on the market they're totally tonedeaf when it comes to market wants and needs. Their naming of the products is confusing and downright counter-productive for the consumers. What's best a E1 Dual or a Z1 Compact or perhaps a T2 Ultra Dual?
Cut 90% of the products offered in smartphones. Change their naming policy. Stream line the products for the market.
I don't see how it is off-topic when division budgets are set by the higher company. If they are losing so much money then those budgets could be affected, including gaming.
That was the earning report for the first quarter. How do you know how well the gaming division is doing right now? We're discussing the forecast for fy ending in March 2015. Nobody has a number. All we know from the article is
I'll never understand business.
How do you have the fastest selling console of all time, yet, your gaming division is one of the worst performing?
As I said in the other thread, the Playstation division could become far more profitable if they downsized. Sony have a lot of studios who release games that don't sell well, or outright bomb. It costs hundreds of millions just to operate one AAA studio.
They need to identify the studios who are efficient, and are capable of having success, and downsize the rest.
Read at your leisure.
Q1 FY2014 Earnings Announcement
http://www.sony.net/SonyInfo/IR/info/presen/
http://www.sony.net/SonyInfo/IR/financial/fr/14q1_sony.pdf
Gaming and Mobile are both operating at a loss. All other main divisions are really strong.
Because making a console costs at least 1billion$, it has large upkeep costs during entire console generation, and earning money back from them is a very slow burn that is almost always fully focused on software licencing and online transaction fees. If PS4 brought them $50-100 of profit for each console from start [which was not the case], that would give Sony big boost.
Their fault for continuing to ignore America. They don't even try here.
Does anyone else than Samsung and Apple actually make money with phones currently? I can see why Nokia sold the division to MS...
I am assuming the 1st quarter was Apr, May, Jun if it's like the UK system. Can anyone confirm?
It's only been 50 days since the start of this quarter if that is the case. You can't improve that much in just a month or so.
Yes, they say it's performing well but they mean against their forecasts. Gaming and Network Services (G&NS) is still the 2nd worst performing division though and that was my point. Gamers seem to think it's WAY up there.