Oh, it's a write off? That's still terrible but not as horrible as I thought before.
Vita
Sure this happened after he became president but you can't put that on him.
Sony will hpefullyvsell their TV division and become a leaner company. I believe that's kaz's vision. This is likely the blast year Sony will post a net loss so WSJ is just hyping it for clicks.
I actually didn't know this. What type of insurance?
I think they'll start downsizing the PS division, make a profitable division even more so. They own way too many studios.
Yeah, it just means that the sum of future cash flows for goodwill will be less than the carrying value, so a write-down to the market value of the asset is necessary.Oh, it's a write off? That's still terrible but not as horrible as I thought before.
Vita
Kaz has been fixing the problems caused by Stringer. Why would you get rid of the guy who is effectively healing the company?
Their phones suck, not surprised at all.
Sure this happened after he became president but you can't put that on him.
I made a prediction a while back Sony would go under 2015.
Maybe 2017 seems more apt.
Time for Microsoft to acquire Sony.
So, he's Iwata level effective then???
I made a prediction a while back Sony would go under 2015.
Maybe 2017 seems more apt.
If the studios make money....
What does a fail blog know about a thriving business.
fy ending march 2009: $1 billion net loss
fy ending march 2010: $3.1 billion net loss
fy ending march 2011: $2 billion net loss
fy ending march 2012: $4 billion net loss
fy ending march 2013: $1 billion net income
fy ending march 2014: $640 million net loss
fy ending march 2015 (projected): $2 billion net loss
Precisely! There isn't a problem. This is some fanboy gloom and doom bullshit! Plain and simple. Sony has been losing billions for years now and they're still going. They release good products with descent to god-tier quality and they have the #1 console in the world. Driveclub is coming out and they have Bloodbourn. Destany which launches on PS4 as the premier console has sold nearly a $1billion. I can go on about the new IPs and indie games that lead on their platform. No man's sky, and they also have steam on the PS3. Its the most extensive ecosystem for games and they're not spending their money to buy exclusives. As you stated, they make excellent phones and tablets too. People knock them because they're coming out of a terrible mess made by someone who doesn't understand how a Japanese company works. Kaz is fixing things and we just need to give Sony more time. Let Engadget write their ketchup article. What does a fail blog know about a thriving business. Remember the PS3? Now look at the PS4 -- yeah, exactly! Movies, TV, computers, portables.... never count out the comeback kid <3
I think the streamlining in terms of laptops et al they are currently doing will start to return them to profitability around 2016 tbh. 2005-2012 just saw them overstretch themselves and lose a focus.
And in 2 years you can change your prediction yet again. Are you an Analyst?
Mmmmmm yummy fudge.I think they'll start downsizing the PS division, make a profitable division even more so. They own way too many studios.
Sony spent years making overpriced, underpowered, shitty android phones, and now that they've gotten around to redeeming themselves with the most recent sets, people act like they don't know what the hell you're talking about when speaking of their poor reputation.
What happened? PS4 is doing well, their losses were being stemmed fairly ok recently (2bn - 1bn - 500m). Should have been looking to break even soon.
Aye, looks like the smartphone division is also one of the main culprits here.
​Sony expects losses to quadruple because of its smartphones
You couldn't even buy Minecraft with $2b
Not sure if serious? The Xperia line is one of the top tier quality handsets around right now. The Xperia Z3 Compact is a beast
Makes you wonder what the hell went down at Sony. I mean, wasn't the mobile division profitable past three years? I even remember the division having upward trend from YOY in regards of sales and profits. They weren't making big numbers but profit nonetheless.
Makes you wonder what the hell went down at Sony. I mean, wasn't the mobile division profitable past three years? I even remember the division having upward trend from YOY in regards of sales and profits. They weren't making big numbers but profit nonetheless.
The problem is Xperia Z line is doing great. Anything else is a throwaway product that seems to underperform. In 2012 Sony was known for its mid-range and entry level phones. These days those are exactly the type of phones you should avoid. They fucked up majorly this year in those segments because they thought "ah sure we'll just release a lot of models and that should increase our marketshare". The Z line is fine...but the problem is that's the only line that IS fine in the smartphone division.
As as big Sony phone fan (currently a proud Xperia Z1 compact owner), I'll tell you what the problem is - a quick Google Search will show you 40-50+ makes and models released in the last 3-4 years.
That's crazy for the scale of some of these launches. They're competing against themselves as well as their rivals with some of their products.
Exactly, sorry the guy I was replying to seemed to imply 'LOL Sony phones, they suck'. They don't. Even the mid-range ones assessed on their own merits were OK. They just oversaturated an already oversaturated market.
On the one hand it is a goodwill impairment, so it won't really effect the bottom line, on the other it means Sony have effectively declared that they aren't going to make significant profit from the division any time soon.
On wonders why they didn't do this with VAIO back in 2012 or earlier. Personally I don't think any of their electronics divisions can claim to have long term profitably and this should have happened years ago.
Otherwise the projection is just 180bn yen lower than before so the actual operating outlook hasn't changed significantly. One does wonder why this charge had been included in the Operating results though, surely this does not count as an operating cost, rather a one off impairment, especially since they are writing off the entirety of the goodwill associated with the mobile division.
Maybe amazon will buy sony. Make the first gaming/phone handheld!
How soon we forget...
It is time for Sony to join Windows Phone... Joke...
What if Sony becomes a company only for games, movies & insurance? I think under these 3 business, Sony will get profits for sure.
They are making the best phones at the moment with the Z2 and Z3.Their phones suck, not surprised at all.
It is time for Sony to join Windows Phone... Joke...
What if Sony becomes a company only for games, movies & insurance? I think under these 3 business, Sony will get profits for sure.
Yeah it is quite strange. It's almost as if the new leadership in the division was basically given a clean slate to start over again with a "it can't possibly get any worse" mentality. Seeing that you mention that it is Kaz himself taking over this, I imagine he would like to protect himself against a failure (ie needing to take an impairment loss again in the future while he's at helm) and to be able to maximise on his success (ie every bit of profit the division makes from now on basically is an added bonus).
It could also point towards the fact that the manufacturing pipeline for the next 12 months or more is already full with lots of products that Sony has no faith in (like the Xperia T, V or J that received almost no marketing push back in 2012).
The problem here is that this is yet another restructuring and change of strategy in the mobile division. SE went through at least 1 since the smartphone are began, then Sony changed its strategy after the buyout (finally offering flagships etc) and now again we are at a restructuring point.
Yet another fiscal year of profit loss isn't a problem? I don't think you should ever be in business. Also Activision made most of the profit off of "Destany," not Sony. And DriveClub most likely won't make a billion profit or anywhere near close to "Destany's" profits. This isn't a console war, this is a company losing yet another shit ton of money. >.>Precisely! There isn't a problem. This is some fanboy gloom and doom bullshit! Plain and simple. Sony has been losing billions for years now and they're still going. They release good products with descent to god-tier quality and they have the #1 console in the world. Driveclub is coming out and they have Bloodbourn. Destany which launches on PS4 as the premier console has sold nearly a $1billion. I can go on about the new IPs and indie games that lead on their platform. No man's sky, and they also have steam on the PS3. Its the most extensive ecosystem for games and they're not spending their money to buy exclusives. As you stated, they make excellent phones and tablets too. People knock them because they're coming out of a terrible mess made by someone who doesn't understand how a Japanese company works. Kaz is fixing things and we just need to give Sony more time. Let Engadget write their ketchup article. What does a fail blog know about a thriving business. Remember the PS3? Now look at the PS4 -- yeah, exactly! Movies, TV, computers, portables.... never count out the comeback kid <3Kaz has been fixing the problems caused by Stringer. Why would you get rid of the guy who is effectively healing the company?
It is time for Sony to join Windows Phone... Joke...
What if Sony becomes a company only for games, movies & insurance? I think under these 3 business, Sony will get profits for sure.
http://www.nytimes.com/2014/09/18/business/international/sony-widens-expected-loss-to-2-14-billion.html?src=busln&_r=0In a news release, Sony said it would focus more on its higher-end phones and cut the number of phones in its midrange lineup. It also said it would change the strategy for the division in certain areas without elaborating.
Last year, Sonys mobile phone division was its most profitable, but the company has faced falling sales as competition from Asian rivals in midrange smartphones has intensified. For instance, in the worlds largest smartphone market, China, companies like Huawei and Xiaomi have become dominant.
Meanwhile, at the higher end, the company faces tough rivals in Apple and Samsung. Analysts said that Sonys new Xperia Z3 smartphone could struggle as its release coincided with the announcement of the new Apple iPhone 6.
Still, others have been positive about Sonys handset unit, pointing out that a more modest plan aimed at the companys strongest markets, like Japan, could prove successful.
This seems to be the end game for Sony as a major player in consumer electronics; its a bit of a bellwether moment, said Pelham Smithers, managing director of Pelham Smithers Associates.
Mr. Smithers said he believed devaluation of the mobile communications unit could lead to a spinoff of the companys mobile phone division in what would be the final step of the company separating itself from its struggling major consumer electronics divisions.This year, Sony sold its computer division and spun off its TV group into a separate unit.
Going forward, Sonys exposure could essentially be to specialist areas like cameras and video games, software, Sony pictures and Sony music, Mr. Smithers said.
I remember being worried that this thing would kill the Gameboy. I was such a stupid kid.How soon we forget...