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[7DollarHagane]

Lol but smartphones are the magic solution to all things and consoles are dead?

 

[Taurus]

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.

Also, this post: http://www.neogaf.com/forum/showpost.php?p=130390391&postcount=146

 

[KillerMan91]

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.

Oh yeah. Definitely it's not enough to keep the company afloat if the other divisions fail. That I agree.

 

[Devilgunman]

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.

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 have from the article is

While the PlayStation business - fuelled by the success of PlayStation 4 - continues to perform well,

That's why I assume the gaming division is doing well at the moment.

 

[Heigic]

Mobile phone losses isn't surprising. iPhone or Galaxy are the only phones that exist to most people.

 

[fvng]

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.

Accurate. Their phones sell out day 1 in Europe but their naming of these phones is fucking stupid

 

[BokehKing]

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.

Because 99% of the article has nothing to do with gaming

People always say Xbox should be spun off when in reality the ps4 should

 

[Hindle]

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.

 

[mocoworm]

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 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.

 

[Darius]

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?

For one, it isn´t the fastest selling console of all time. At launch it had the advantage thanks to unprecedent supply but it´s tracking behind monthly and also in totals since months.

 

[Aostia]

At least Playstation brand is doing well (well...I think PS4 is doing well. Not Playstation as a whole), so we don'r risk anything for the moment (unlike Nintendo, maybe?)

 

[thewhitehawk]

Sony has been doing some great products lately but as far as their "One Sony" strategy goes, they've hardly done shit with it. There's a perfectly good example of a company who is capable of marrying great hardware with great software: Apple.

Sony has (almost) consistently made great hardware and married it with shitty software. Just the other day they announce a new MP3 player that plays uncompressed audio files with a D-Pad interface ripped straight from the 90's or early 2ks. Their camera and entertainment divisions have been hitting it off the charts in my opinion, but their smartphones, TVs are just in a miserable state.

 

[Usobuko]

Playstation still have to wait for a few more years to make the money Xbox division made during 360 late years, mainly by the virtue of subscription fees.

 

[Busty]

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.

Absolutely. They need to start with Zipper and Sony Cambridge, I haven't seen a game from either of them in years.

Spoiler

Your post was nonsense a few pages ago and it's still nonsense.

 

[gundamkyoukai]

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.

It's not surprising that gaming at a lost they just brought out a system.
What is important how fast they can make money off of it and that looking good at the moment .

After doing some reading this lost not as bad as i thought .

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.

Well this gen Sony has PSN+ so it should be interesting to see how that going to help them in that division along with being the WW leader.

 

[sechsterangriff]

I know it's easy to speak from the outside when the bad already happened, but I still don't understand how their strategy to refresh the flagship smartphone model every 6 months could've paid off. Specially when they were barely able to ship Z2 on time.

 

[TGO]

Already read this and it makes sense, Sony maybe selling those Z series but they was filling the market with a load of other phones nobody wanted because everyone wanted the Z series and now Z2, nobody wanted the mid range stuff.
They should have done 2 models and thats it, we don't even need the Z3 at the moment as it's identical to the Z2, they've been wasting money

After reading some of the comments in here I don't think people are understand whats going on, their premium Smart Phones are fine, it's the mid range they flooded the market with that cost them.

 

[hagege_s]

Their fault for continuing to ignore America. They don't even try here.

Does anyone know why they're not selling their smartphones (with AT&T/Sprint etc.) in USA ?

 

[ArtHands]

Does anyone else than Samsung and Apple actually make money with phones currently? I can see why Nokia sold the division to MS...

The CCP (Cheap China Phones) like Xiaomi and Huawei. They are eating into Samsung's budget phone marketshare at an alarming rate now

 

[Tempesta di Fuoco]

Sony isn't exactly in good shape. I honestly do not see them surviving the decade barring some sort of miracle. Kaz has been a flop.

Fully expecting their successful businesses to be sold off in the next couple of years. Samsung Playstation on the way.

 

[Devilgunman]

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.

No. You don't know if Gaming and Network Services is still the 2nd worst performing, that was my point. It's just your assumption. There could be many significant changes in earning from each division in the past 50 days. For example, this quarter G&NS will include the sales of Destiny PS4 bundle, which is probably the biggest boost in sales of PS4 this year. On the other hand, Sony Picture department might suffer from bad sale because they don't have any more blockbuster like Spiderman for the rest of the year. Your statement might be true when Sony provide us the report but as of now don't make it sounds like a actual fact just yet.

 

[ModBot]

This doesn't really have much to do with gaming. Sony is a much larger company than just Playstation, and the topics of interest for discussion with relation to this have nothing to do with the Playstation brand.