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Sony Q3 FY15 Results - Beats Market Expectations & 6.4 Million Shipped PS4's

R

Rand6

Member
They are the undisputed leader, on the biggest quarter, with great sales and PS+ subscriptions.
And the income is only ¥53.7 billion yen?
I was expecting better, something like Wii-numbers...
 
T

truth411

Member
Rand6 said:
They are the undisputed leader, on the biggest quarter, with great sales and PS+ subscriptions.
And the income is only ¥53.7 billion yen?
I was expecting better, something like Wii-numbers...
Click to expand...

One thing for sure, they were right on not doing a temporary price drop in the U.S. like MS did.
 
B

Bold One

Member
good resullt for Sony, I like them, they just need to be less stupid with their money and stop half-assing their projects.
 
C

chadskin

Member
Some more details from The Verge:

The Xperia smartphone business continues to struggle; Sony is laying off 2,100 workers by March 2016 having previously announced 1,000 cuts, meaning the division will shrink by around 30 percent in total. Sales were actually up slightly year-on-year with a small operating profit, but new mobile chief Hiroki Totoki is implementing a restructuring plan designed to streamline the smartphone strategy.

4K sets have boosted Sony’s TV business, meanwhile, helping it turn a profit for three straight months for the first time in over a decade. The gaming division continues to perform well, with strong PlayStation 4 sales and income from network services driving a 17 percent increase in revenue. Sales have also been helped across the board by a weaker yen.

The cyberattack itself, which authorities believe was orchestrated by North Korea, hasn’t made much impact on Sony’s bottom line. Sony is putting aside 15 million dollars (¥1.8 billion) in "investigation and remedial costs" connected to the hack and, despite a projected 11.7 percent decrease in revenue put down to fewer home entertainment releases and less box-office take, Sony Pictures still made a slim estimated operating profit of ¥2.4 billion ($20.4 million) for the quarter.
Click to expand...
http://www.theverge.com/2015/2/4/7975609/sony-earnings-q3-2014
 
C

CountAntonius

Member
Great to see a well made piece of gaming hardware doing so well. Sony has done a great job.

Do we know anything about SOE being profitable or not from this?
 
R

RespectThySole

Member
truth411 said:
I think that's right. Also if you take that AMD statement awhile back as gospel would that mean that the X1 is less than 10 million sold through??? I'd doubt that.
Click to expand...

AMD clarified that they were referring to sold-through so their statement seems about right.

18.5 million PS4s

&

10.5 million XB1s

would equal "almost" 30 million

---
Those PS4 numbers are superb. It's very near to the Wii in the same time frame.
 
Z

zeromcd73

Member
vinnygambini said:
Interesting tidbit:
[Sony initiated] recording of an 11.2 billion yen (93 million U.S. dollars) write-down of PS Vita and PS TV components. This write-down was recorded because the latestforecast of PS TV unit sales does not reach our original forecast as a result of lower than expected unit sales in the current quarter.

http://www.sony.net/SonyInfo/IR/financial/fr/150204_sony.pdf
Click to expand...
Sorry, but if someone has the time, could they please explain to me what a write-down is.

I looked it up and still not confident if I know for sure. Does it mean that because a product (Vita,PSTV) doesn't do well retailers sell it a constant reduced price that results in Sony having to constantly make up for the difference?
 
B

B.O.O.M

Member
zeromcd73 said:
Sorry, but if someone has the time, could they please explain to me what a write-down is.

I looked it up and still not confident if I know for sure. Does it mean that because a product (Vita,PSTV) doesn't do well retailers sell it a constant reduced price that has to subsidized by Sony?
Click to expand...

When a company, like Sony, can't justify the book value of assets in their books, they need write it down (reduce the value) to an appropriate amount..if not it would be misleading to those who use their financial documents.

ps: and yes you are on the right track with the PS TV example..that could very well be a good reason to do so
 
N

Nirolak

Mrgrgr
zeromcd73 said:
Sorry, but if someone has the time, could they please explain to me what a write-down is.

I looked it up and still not confident if I know for sure. Does it mean that because a product (Vita,PSTV) doesn't do well retailers sell it a constant reduced price that has to subsidized by Sony?
Click to expand...

Basically Sony assessed their Vita parts as being worth X million dollars, but determined that in reality, because of low demand, they were only worth X - $93 million since it was incredibly unlikely they could sell them for the price they originally thought they could.

As such, they have to "write down" the value of the asset (Vita parts).
 
B

Bold One

Member
travisbickle said:
So am I the only one who's disappointed Sony failed to capitalise on the popularity and didn't ship 9 million this quarter?
Click to expand...

5Wl3IrU.gif
 
C

Crema

Member
PS4 performing incredibly well but no console will ever sell enough to knock off the mighty profits of life insurance!
 
Z

zeromcd73

Member
B.O.O.M said:
When a company, like Sony, can't justify the book value of assets in their books, they need write it down (reduce the value) to an appropriate amount..if not it would be misleading to those who use their financial documents.

ps: and yes you are on the right track with the PS TV example..that could very well be a good reason to do so
Click to expand...

Nirolak said:
Basically Sony assessed their Vita parts as being worth X million dollars, but determined that in reality, because of low demand, they were only worth X - $93 million since it was incredibly unlikely they could sell them for the price they originally thought they could.

As such, they have to "write down" the value of the asset (Vita parts).
Click to expand...
Thank you :D
 
1

1st Course

Member
But honestly very good quarter overall. Most divisions are profitable now and Playstation is the strongest it been in like a decade,

Sony doing good.
 
M

Mpl90

Two copies sold? That's not a bomb guys, stop trolling!!!
Very good result for PS4 in Q3. Also, we now know the difference between shipments and sales for LTD sales up to December: 1.4 millions. Still, as said back in January, PS4 results so fare are very good. Congratulations to Sony. Both for PS4 and I'd say their overall results, quite many increases in Q3 compared to last years Q3. If only there weren't that smartphone sector's result bringing it way down...
 
L

Lace

Member
1st Course said:
But honestly very good quarter overall. Most divisions are profitable now and Playstation is the strongest it been in like a decade,

Sony doing good.
Click to expand...

It's a good sign, but there is still work to be done. In my opinion the mobile business needs to either get competitive in the North American market or consider selling it off. There is profit to be made but not taking advantage of all the such a large market is foolish.

Their TV's have shown an uptick with 4k being a huge driver. The benefit of being one of the first into the market and providing quality panels has helped reassert themselves as a premium tv company. I doubt they'd be able to pull in huge margins, but if they can keep it profitable we might just see Sony continue in the television market. Another small area they are being competitive in is the 4k projector market (however that's just something I've noticed and has no real bearing on them as a whole).

Overall the Playstation division has shown significant gains which is impressive based on the continuing decline of the business. Great design choices and clear marketing as a game console has done wonders for them.

Sony also provides one of the best mobile imaging sensors so I expect to see them continuing to invest heavily in that area.
 
H

HowZatOZ

Banned
I really don't see their TV division doing any better. LG, Samsung and other big brands who are doing well have taken Sony's pie, and their name is so synonymous with stupidly high pricing that no one wants to buy one. They can't go lower because that market is already swallowed up by in-store brand names.
 
C

COPLonesteban

Neo Member
While I'm glad Sony is profitable, am I incorrect in the rise in sales in most categories being directly attributed to the weakening yen? The FX impact column for games, for example has more than the difference in sales between quarters year-over-year. Maybe I'm reading it wrong?
 
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