What? SONY to Post LOSS, First in 14 years - Looks Like Blu N' PS3's Aren't Enough

[gijoela]

Just late today, sources are saying that SONY will post it's first LOSS in 14 years, nearly 1.1 billion due to WEAK sales and weaker dollar versus the strong yen..It appears that the "stellar" year for Blu Ray wasn't that blu after all. Losses could WIDEN first quarter this year depending on how inventories move or don't move.

http://www.reuters.com/article/marke...00325520090113

Needless to say, all of the hand clappers regarding Toshiba's losses can now eat some de-licious hay! You see, what goes around comes around.

With PS3 sales DOWN and Blu Ray MISSING it's 1 billion in sales forecast this last year, things at SONY aren't looking too hot lately. Oh, I thought a new format was recession proof. Oh, I forgot, all the positive information about blu sales comes from the BDA or DEG. Funny how the 1 billion software estimate fell way short...I know, I know, it's the economy stupid. But I thought Blu was insulated from everything, at least you'd think so according to the normal band of bludots that haunt this forum.

Here's the whole story:

TOKYO (Reuters) - Sony Corp may post an operating loss of about 100 billion yen ($1.1 billion) this financial year, its first such loss in 14 years, due to weak sales and a stronger yen, a source close to the matter said on Tuesday.

Sony shares tumbled more than 8 percent in Tokyo, following a 1.9 percent fall in New York, after a media report on the likely loss.

Sony said last month it would cut 16,000 jobs, curb investment and pull out of some businesses to save $1.1 billion a year as the global recession hits demand for its products.

The maker of Bravia flat TVs and PlayStation 3 video game consoles has forecast an operating profit of 200 billion yen for the year to March 31, down from 475.2 billion yen in 2007/08.

But slumping sales and falls in the prices of liquid crystal display (LCD) TVs and digital cameras in the October-December quarter, as well as costs to clear up inventories, will likely send the firm into an operating loss, the Nikkei business daily said.

It added that the loss could double to around 200 billion yen depending on inventory conditions in the January-March quarter.

Analysts on average see an annual profit of 18.5 billion yen, a poll of 18 brokerages by Reuters Estimates showed.

Sony spokeswoman Mami Imada said the loss figure was speculation and declined to comment further on the report, which also appeared in Kyodo News and other media. The company is scheduled to announce its quarterly earnings results on January 29.

The loss would be only the second since Sony went public in 1958 and the first caused by troubles in its mainstay electronics business, the Nikkei said.

A one-time charge related to the company's U.S. film studio business was primarily responsible for the previous operating loss, reported for the year that ended in March 1995, it said.

Apart from restructuring charges and possible further losses on exchange rates, Sony is expected to write down roughly 50 billion yen of its holding in Sony Life Insurance Co, the newspaper said.

Many analysts expect Sony to undertake further restructuring steps, but the company this month denied a report in the Times of London newspaper that it planned to announce closures of Japanese factories and major divisions next month.

Sony shares were down 8.4 percent at 2,010 yen as of 0055 GMT, against a 4.6 percent slide in the benchmark Nikkei average. The company's shares fell 1.9 percent to $23.10 on the New York Stock Exchange on Monday.

[kowhite]

Well, no, Blu-ray isn't enough. Nor was it ever reasonable to think Blu-ray alone would be able to prop up the rest of Sony's hardships. So, to comment on that like it's a failure on Blu-rays part not to do so is downright fucking stupid.

[Sbert]

So after eating shit when HD DVD died, you harbor this personal vendetta against Sony and now that it's posting a loss, you feel justified in reveling in a companies poor showing?

Quite interesting.

Hey, you know that kid that bullied you back in the 2nd grade, if his mom died, would you be dancing on her grave?

Just wondering, seems like you have a bit too much joy in your post about the news.

Oh, just for your edification. BDA is more than just Sony.

[GizmoDVD]

PS3 got destroyed in December. Thursdays numbers should be fun.

[Flex Mentallo]

Wait a minute. Sony has a Life Insurance Company?

As for the article, Sony has had a few missteps here and there and blu ray as a whole may not be as profitable as they would have liked but as whole we can't really blame blu ray for all of Sony's financial issues. blu ray and the PS3 are really one of the few bright spots Sony can point to in its financial statements.

[Indy_aka_Rex]

Originally Posted by Flex Mentallo

Wait a minute. Sony has a Life Insurance Company?

Yep, it's a Yakuza front, they use it so when all those rich Japanese families don't pay off their "debts", someone gets a pinky cut... or worse - and that's when the Sony Yakuza swoop in and get all their monies back for Sony.

Ok, that's all a lie - but it is an AWESOME lie that would make an AWESOME movie.

[viewsonic]

Originally Posted by GizmoDVD

PS3 got destroyed in December. Thursdays numbers should be fun.

Correct me if I'm wide of the mark here but didn't it sell half of the amount the 360 did but at twice the price therefore bringing in the same revenue?

If the 360 outsold it 2:1 at the same price THAT would be 'destroyed'.

[Jawsfan]

Amazing! I really don't know why some people even come to this site. Since they don't like HD software and hope for it's failure. Sorry but OP is pathetic.

[gijoela]

Let's see, wow, how *stupid* is this reality.

The PS3 is the ONLY game console with an EXCLUSIVE BLU RAY PLAYER built inside and manages still, still after going into it's THIRD year on the market is in LAST PLACE in sales. This FACT has NOTHING to do with the economy, stupid, no pun intended.

The bottom line - even with an EXCLUSIVE ONBOARD in it's game console SONY is still last in terms of SALES of the PS3.

It doesn't take much *intelligence* to wonder out loud why it's OWN EXCLUSIVE FORMAT is still NOT enough to push the PS3 above and BEYOND it's competitors. What the fuck doesn't make sense about that?

Clearly BLU RAY should be an advantage and BOOST sales since so many of you here insist it is sooooo popular and the big thing at the moment and clearly, CLEARLY it's not!

According to the throngs of bludots that haunt this forum, the PS3 is the end all to all gaming consoles, the mothership, the perfect machine as it's been quoted here time and time again, yet still it manages to put itself in THIRD PLACE and now will add to SONY's losses much like the XBOX adds to MS's losses.

Gee it's a no-brainer that blu ray sales in terms of machines and software will increase as prices decline (or will they) and people buy a few titles to feed their machines. whoa, what a concept. Ooooo, ahhhh, let me forecast 400% growth in software sales because of this, what a genius I am!

The sad fact is Hollywood was banking on people double dipping on older titles on blu ray, so until catalog sales take off, blu ray is nothing but a new release driven format, another fact some of you just can't deny.

Sales of blu ray titles drop off tremendously in just the second week of release many times. That shows enthusiasts are still fueling a struggling format, IMO.

[xolan99]

Originally Posted by gijoela

Let's see, wow, how *stupid* is this reality.

The PS3 is the ONLY game console with an EXCLUSIVE BLU RAY PLAYER built inside and manages still, still after going into it's THIRD year on the market is in LAST PLACE in sales. This FACT has NOTHING to do with the economy, stupid, no pun intended.

The bottom line - even with an EXCLUSIVE ONBOARD in it's game console SONY is still last in terms of SALES of the PS3.

It doesn't take much *intelligence* to wonder out loud why it's OWN EXCLUSIVE FORMAT is still NOT enough to push the PS3 above and BEYOND it's competitors. What the fuck doesn't make sense about that?

Clearly BLU RAY should be an advantage and BOOST sales since so many of you here insist it is sooooo popular and the big thing at the moment and clearly, CLEARLY it's not!

According to the throngs of bludots that haunt this forum, the PS3 is the end all to all gaming consoles, the mothership, the perfect machine as it's been quoted here time and time again, yet still it manages to put itself in THIRD PLACE and now will add to SONY's losses much like the XBOX adds to MS's losses.

Gee it's a no-brainer that blu ray sales in terms of machines and software will increase as prices decline (or will they) and people buy a few titles to feed their machines. whoa, what a concept. Ooooo, ahhhh, let me forecast 400% growth in software sales because of this, what a genius I am!

The sad fact is Hollywood was banking on people double dipping on older titles on blu ray, so until catalog sales take off, blu ray is nothing but a new release driven format, another fact some of you just can't deny.

Sales of blu ray titles drop off tremendously in just the second week of release many times. That shows enthusiasts are still fueling a struggling format, IMO.

So people aren't double dipping on Blu-ray but they would've totally double dipped on HD DVD? Is that what you're saying?

[Jawsfan]

So gijoela. The questions are. Do you really take this much joy in blasting blu-ray? If so does that mean you don't want any kind of HD software because of the HD DVD failure or is there some other reason for your glee? If so why do you continue to come here?


Look I can understand that after the war there was lots of hard feelings but really, to wish and hope for the failure of Blu just so you can thump your chest back at the pro blu boys is really just silly. Again I ask - Don't you want Blu to do well so we have something to watch on out 1080p TVs?

Or would you rather have nothing?

[gijoela]

Originally Posted by Jawsfan

Amazing! I really don't know why some people even come to this site. Since they don't like HD software and hope for it's failure. Sorry but OP is pathetic.

Oh, stop crying. I love HD in ALL forms, including Blu Ray. This post about SONY's troubles only signifies that NO ONE is immune to a VERY competitive marketplace in terms of content delivery and that no single format will ever prevail as one again, not in our lifetime.

A tightening economy is only going to drive people to the cheaper and easier rental market where there are a lot of choices these days and they are not suckered to $26-30 for a movie to own.

Do you really *think* that this economy will increase ownership of movies or rentals? Gee, now think slowly!

Can anyone deny that a hotter rental marketplace will only spur more download or other alternative adoption as a result of a tough economy? Won't VOD or MOD look attractive and convenient? I forgot, I asking the wrong crowd! And won't the net result mean blu is just too expensive to be competitive?

I mean, I think Blu is in trouble as a whole. We are only two months into this gettting steeper everyday economic downturn, no fucking expert from DEG, Nielsen, Video Business, or any *group* knows the future, nobody. This is an unprecedented time that is at it's beginning, not at it's end.

But, go ahead, keep dreaming. Tell that to Citibank and it's stockholders, now trading at $5 bucks

Sadly, Blu Ray is caught up in it.

[Merrick97]

Originally Posted by gijoela

Sadly, Blu Ray is caught up in it.

No sh*t Sherlock??!!!

Everything is caught up in it!!!

This thread belongs in the gaming smackdown section.

It has NOTHING to do with bluray and all you're trying to do is pick a fight with everyone who likes blu.

You say the PS3 is in third. Well guess what? Somebody HAS to be in third place. If the Wii was in third would that make it a failure.

The gamecube came in third did that make it a failure?

Its like calling the worlds third strongest man a wuss.



Thats gonna lead to one thing for you:

[kowhite]

It doesn't take a rocket scientist to read the article, and see exactly what the key drivers are that are causing Sony to go from forecasting operating profit to operating loss. In fact, the article YOU posted gijoela, even makes specific note of what the issue is. It's in YOUR post!

Yet, for some reason, you still have not bothered to read your own article. Perhaps instead of wasting everyone's time bitching and moaning about Blu-ray and showing everyone what a nitwit you are...you should try and act a little more informed.

Originally Posted by Merrick97

No sh*t Sherlock??!!!

Everything is caught up in it!!!

This thread belongs in the gaming smackdown section.

It has NOTHING to do with bluray and all you're trying to do is pick a fight with everyone who likes blu.

It doesn't even belong in the gaming forum. Read the article, the only mention of PS3 is to say that Sony makes it. The article is pretty clear about what are the root issues for Sony for this loss. Which means...this belongs in the currency exchange/HDTV forum if it really wants to be on topic.

[Merrick97]

Originally Posted by kowhite

It doesn't take a rocket scientist to read the article, and see exactly what the key drivers are that are causing Sony to go from forecasting operating profit to operating loss. In fact, the article YOU posted gijoela, even makes specific note of what the issue is. It's in YOUR post!

Yet, for some reason, you still have not bothered to read your own article. Perhaps instead of wasting everyone's time bitching and moaning about Blu-ray and showing everyone what a nitwit you are...you should try and act a little more informed.

I agree. Im not a fan of DHL or American car companies but that doesnt mean Im gonna go outside and laugh at those who are suffering (or lost their job) for it.