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[reksveks]

So how are Sony shares doing vs Microsoft after these quarters came out. Can a lamen explain it to me in simple terms on how the market is seeing these results from both companies.

I personally don't take post earnings market reactions very seriously sadly. As all things, there are generally lots of overlapping factors including largely macro economy factors.
- There is the slightly complicating factor of the fact that Sony announced after the Tokyo stock exchange closed but the US stock was open so only one set of investors was able to trade on it.
- The most important factor imo is that MS doesn't rely on Xbox for alot of revenue/profits.

If you want the data:

Spoiler: Again it's too simple and early to pay attention to this.

MSFT has basically go from 268 to 280.42 (up about 4%)
Sony on NYSE has gone from 87.56 to 86.00 (down 2%)
MSFT - https://www.cnbc.com/quotes/MSFT
Sony NYSE - https://www.cnbc.com/quotes/SONY
Sony TSE - https://www.cnbc.com/quotes/6758.T-JP

 

[Lasha]

I am always amused at how much financial services is always among the best performing business units of Sony.

 

[Three]

Well exactly, it shows the fx changes are boosting Sony's revenue, while decreasing Microsoft's revenue.

Exactly, which would be a real bad or good thing because revenue performance is revenue performance. Companies still either lose real revenue or gain real revenue.

So back to the original question what real performance indicator would you use CC hardware revenue to find rather than just real hardware revenue? The FX loss or gain would be a real monetary loss or gain (one companies sometimes even offset by regional price fluctuation).

Do you want to use CC hardware revenue to gain insight into whether their volume was better this year? Sony has hardware volume data given and it increased, MS unfortunately hides theirs and you can't really say what xboxs -11% hardware revenue for them means vs xboxs -8% CC hardware revenue. You have no regional data to come to any real quantitative performance indicator.
You just know that MS had 11% lower hardware revenue this year but it could have been only 8% lower if they adjusted prices regionally.

It's just being used by the xbox regulars here to damage control a number.

-11% (-8% CC) xbox hardware revenue and +12% PS hardware revenue has the regulars upset when it is real revenue. They say companies always report CC when they don't. When I ask what the CC hardware revenue for PS is then since it's reported for the "apples to apples" comparison they don't say (because it's not). And for what? Will they find volume performance indicators in it? Nope. Would the company they love like a mother have made more money? No. They will just have a different number they can say isnt 3% as bad/good. Just for damage control.

 

[GigaBowser]

How are sonys shares doing?

Not great. I've been getting killed this year. Get it together Sony!

 

[sncvsrtoip]

What's interesting to me is that the HFW, GT7 and Ghostwire Tokyo were all big PS exclusives released last quarter and shouldve continued to sell as the PS5s filled the shelves. Instead we saw a 26% decline from last year when Returnal sold just 500k and Ratchet which sold a decent 1 million copies in a month. Still, you would think that a HFW, a sequel to a game that sold 20 million, and GT7, a sequel to a game with nearly 15 million users, would have better legs than this.

Did these three exclusives not match Returnal and Ratchet's 1.5 million haul in their second quarter? Ghostwire actually released late March. How much did that sell?

HFW is being bundled in with every playstation. Surely that game's 'sales' should be in the millions now. So where is this 26% drop coming from? Third parties? I dont remember third parties releasing any major games in April-June of last year.

hfw and gt7 was FY Q4 2021 with 14.5m first party game sales vs:
2020 Q4 7.9
2021 Q1: 10.5
2021 Q2: 7.6
2021 Q3: 11.3

 

[yurinka]

So does this mean, they launched the new playstation plus tiers but didn't incite an increase in users they just converted existing users to a higher paid option?

It seems that way to me looking at it, but I am not 100 percent sure.

Basically yes. But in many countries including the top region for PS (EU) it was released the last month of that quarter meaning that many players probably were going to renew/upgrade/join later once the word of mouth kept rolling and probably in this quarter regarding PS+ subs maybe the ones auttomatically moved to PS+ from PS Now probably weren't counted in PS+ because started the quarter in PS Now. I assume PS+ subs increase numbers will start to get noticed in the next and future quarters.

 

[Woopah]

Exactly, which would be a real bad or good thing because revenue performance is revenue performance. Companies still either lose real revenue or gain real revenue.

So back to the original question what real performance indicator would you use CC hardware revenue to find rather than just real hardware revenue? The FX loss or gain would be a real monetary loss or gain (one companies sometimes even offset by regional price fluctuation).

Do you want to use CC hardware revenue to gain insight into whether their volume was better this year? Sony has hardware volume data given and it increased, MS unfortunately hides theirs and you can't really say what xboxs -11% hardware revenue for them means vs xboxs -8% CC hardware revenue. You have no regional data to come to any real quantitative performance indicator.
You just know that MS had 11% lower hardware revenue this year but it could have been only 8% lower if they adjusted prices regionally.

It's just being used by the xbox regulars here to damage control a number.

-11% (-8% CC) xbox hardware revenue and +12% PS hardware revenue has the regulars upset when it is real revenue. They say companies always report CC when they don't. When I ask what the CC hardware revenue for PS is then since it's reported for the "apples to apples" comparison they don't say (because it's not). And for what? Will they find volume performance indicators in it? Nope. Would the company they love like a mother have made more money? No. They will just have a different number they can say isnt 3% as bad/good. Just for damage control.

The real performance is that it removes the effects of the exchange rate. Therefore it's a more accurate reflection how the company is doing, since the weakening of the yen is not something that Sony has control over.

My overall point is that it's always better to look at both revenue/profit and cc revenue/profit, rather than look at one in isolation.

 

[Three]

The real performance is that it removes the effects of the exchange rate. Therefore it's a more accurate reflection how the company is doing, since the weakening of the yen is not something that Sony has control over.

My overall point is that it's always better to look at both revenue/profit and cc revenue/profit, rather than look at one in isolation.

Fair enough, the more information the better but CC is the most useless metric for performance because it doesn't directly measure anything without regional data. You cannot get any real performance metric out of it.

It has no control over it but real revenue is real revenue it still means it is doing better selling hardware. A strengthening yen with the Plaza Accord is actually what killed the Japanese electronics export industry in the past. A weakening yen is real and is a good thing for selling hardware. CC I still don't see what you can get out of it in terms of assessing any performance, either volume or monetary.

 

[Airbus Jr]