Sony Warns of Biggest Loss Ever

focus · April 2012

Company forecasts massive $6.4 billion hole.
April 10, 2012

Sony has warned investors that it's about to post its biggest loss ever. The company says it will lose a record $6.4 billion for the financial year ended March 31st, the biggest loss in the company's history, crowning a fourth straight year without profits.

The company, which is set to shed 10,000 jobs, says the newly revised figure – double that previous predicted – is due to some complicated tax credit issues in the U.S.

http://games.ign.com/articles/122/1222641p1.html

joshuaboy · April 2012

Why is this in "The Arcade"?

MrSoutCity · April 2012

Then niggas should have left the hand held market alone and stick with what they were good at.

joshuaboy · April 2012

Full story:

Sony has warned investors that it's about to post its biggest loss ever. The company says it will lose a record $6.4 billion for the financial year ended March 31st, the biggest loss in the company's history, crowning a fourth straight year without profits.

The company, which is set to shed 10,000 jobs, says the newly revised figure – double that previous predicted – is due to some complicated tax credit issues in the U.S.

Sony management, led by former PlayStation division chief Kaz Hirai, also blamed poor demand for the company's TV sets and promised changes to turn the electronics giant around. Hirai's record in the games division through the life of the PlayStation brand landed him the top job at Sony.

Analyst Tetsuru Ii said, "To bring Sony back, Hirai needs to develop personnel and platforms that create competitive and innovative products, but a lot of talent left under early retirement plans. The old Sony culture would only allow it to make things that were the best globally. Under that logic, does it make sense to continue its TV business, when it's not even the market leader in Japan?"

Source: Fox Business

http://games.ign.com/articles/122/1222641p1.html

Sion · April 2012

That's terrible news.... the question is how much of the failures of Sony's other businesses going to cut into its operations at the Playstation division ? It's going to take Sony a long time to get out of this hole. They are virtually "broke", one has to wonder if Sony is going to be able to afford high grade technology or make major cuts for their next system.....

Sony lookin like Sega in 2001..... SAME problems with products and management, just Sony is in worse circumstances. If they don't turn to a profit and win on the PS4/Orbis, Sony will crumble and you can take that to the bank.

In order for Sony to get out of this they have to make record profits for at least 4 years straight uninterrupted, in a fragile U.S. economy & given Europe and Japan's economies in the toilet right now seems like a long shot.....

Alkindus · April 2012

the TV business is fucking them up right now lol, the world wouldn't make sense without SONY tv's though so hope them cats can prevail.

lamontbdc · April 2012

sounds like bad management. so they let the playstation guy take over the whole company. Maybe they should have just let him focus on the playstation. Kind of makes sense b/c it's like they lost focus on everything except the Playstation. All other sony electronics are total shit now. Sony shit used to be known for being durable but besides the PS3 i don't really trust any of their products.

joshuaboy · April 2012

Alkindus wrote: »

the TV business is fucking them up right now lol, the world wouldn't make sense without SONY tv's though so hope them cats can prevail.

Their TV's are too damn expensive compared to other brands. They and Toshiba. I bought a 3D TV just before Christmas. What you think I went with? The Sony at $ 1699.00 or the LG at $ 890.00 with a 3D BR Player?

Alkindus · April 2012

joshuaboy wrote: »

Alkindus wrote: »

the TV business is fucking them up right now lol, the world wouldn't make sense without SONY tv's though so hope them cats can prevail.

Their TV's are too damn expensive compared to other brands. They and Toshiba. I bought a 3D TV just before Christmas. What you think I went with? The Sony at $ 1699.00 or the LG at $ 890.00 with a 3D BR Player?

lmao touche mon ami, touche.

cough cough dissapointed you betrayed Sony cough cough lol

I guess Sony is to arrogant to realize the competition is offering the same quality for cheaper, put to much faith in their brandname? simple bad management/market insight? They're going the Philips route a lil bit I think, eventhough Philips owns LG, Philips itself is screwing up as a brandname.

earth two superman · April 2012

sucks for Sony.

And yet, I still have no reason to buy a 360.

dontdiedontkillanyon · April 2012

Sony are arrogant enough to think they can still overcharge for their stuff (Bravias, Vaios, etc) while every other company has caught up with them and pushing out products that equal or better their own at better prices. Wasting money on pushing pointless propriety media that no one ever adopts hasn't helped them over the years either.

I know the TV division has caused a lot of the damage (Samsung, LG, etc. beating them on price), but apart from the Playstation brand do Sony really have much going for them these days? No one really bothers with their MP3s and phones for example. The days when they could ride on their name alone are over.

joshuaboy · April 2012

Young-Ice wrote: »

If they do go belly up, I hope Nintendo acquires them. I got a gut feeling some good gaming can come from that if executed correctly.

So, Nintendo gonna start making TV's, DVD/BR players, Entertainment centres, computers, movies, etc. if they do?

dalyricalbandit · April 2012

if nintendo could get the playstation section of sony shit would be goat

earth two superman · April 2012

i say apple or google buys the PlayStation brand (if it even goes for sale). Nintendo is a long shot. MS is an even longer shot.

Sion · April 2012

earth two superman wrote: »

i say apple or google buys the PlayStation brand (if it even goes for sale). Nintendo is a long shot. MS is an even longer shot.

Co-sign, true say back in 2010 Apple said they considered making a move into gaming but wanted a good opportunity, google I didnt even think of lolol. The heads at Sony are going to be selling off divisions to raise some money... no word yet if PS is going to be sold but shit it looks likely. I think MS buying the brand would be a good move tho.

CottonCitySlim · April 2012

Thier movie department and ps3 can keep them going while they fix everything else...when your movie studio owns alot of hollywood they are ok...

focus · April 2012

MobTown wrote: »

Thier movie department and ps3 can keep them going while they fix everything else...when your movie studio owns alot of hollywood they are ok...

Companies don't operate this way.

ocelot · April 2012

TV is the reason for the lost... They can't compete with Samsung and their lower price...

imm0rt4l · April 2012

Vizio is a problem too.

Wild Self · April 2012

dontdiedontkillanyon wrote: »

Sony are arrogant enough to think they can still overcharge for their stuff (Bravias, Vaios, etc) while every other company has caught up with them and pushing out products that equal or better their own at better prices. Wasting money on pushing pointless propriety media that no one ever adopts hasn't helped them over the years either.

I know the TV division has caused a lot of the damage (Samsung, LG, etc. beating them on price), but apart from the Playstation brand do Sony really have much going for them these days? No one really bothers with their MP3s and phones for example. The days when they could ride on their name alone are over.

Sony got too cocky from the mid 90s to the mid 00s. They think that the Playstation brand can still sell like mad simply off the name. It ain't like that no more.

joshuaboy · April 2012

Young-Ice wrote: »

earth two superman wrote: »

i say apple or google buys the PlayStation brand (if it even goes for sale). Nintendo is a long shot. MS is an even longer shot.

I would think that Sony would want to keep the company in Japan considering the implications of it leaving the country could have on the damaged Japanese economy..

The more likely scenario would be, if Sony was in real trouble, there would be a bailout by the Japanese government.

earth two superman · April 2012

nah, i dont think sony is as crucial to japan as toyota or honda. could be wrong though.

joshuaboy · April 2012

earth two superman wrote: »

nah, i dont think sony is as crucial to japan as toyota or honda. could be wrong though.

Toyota is their flagship, yes. But Japan also put a lot into their electronics so Sony has a lot of respect. Both Sony and Toyota pumped a lot of money into Japan after the disaster.

earth two superman · April 2012

hell, GM came back stronger than ever after their bailout. maybe sony could do the same.

joshuaboy · April 2012

Sony Confirms Job Losses, Outlines Future

Sony outlines plans to focus on games, cameras and mobile as 10,000 jobs are axed.

Gaming will be a key focus point for Sony moving forward, the company has stated. Sony CEO Kaz Hirai also added digital imaging and mobile are other key areas that will be strengthened as the electronics giant plans a restructure to pull together its different arms together under the "One Sony" moniker.

It's part of an ongoing plan to turn around Sony's fortunes, with Hirai saying that the PlayStation 3, Vita and PSN will provide the foundation on which it can expand its profits, "by enriching its catalog of downloadable game titles and subscription services available through the PSN platform. He also confirmed Sony will be "expanding the line-up of PlayStation Suite compatible devices and content," hinting that the roll-out of PlayStation software onto mobile and tablet devices will soon ramp up.

Unsurprisingly, there was no mention of future gaming hardware launches.

Additionally, Hirai outlined plans to transform its ailing television business by streamlining its product range and improving the image and audio quality of its hardware line-up. Emerging markets were also targeted as key for expansion, as was moving into new business areas such as medical equipment.

Hirai also confirmed rumours circulating earlier this week that 10,000 jobs would be lost worldwide in FY12 as a result of the restructure.

http://ps3.ign.com/articles/122/1222855p1.html

joshuaboy · April 2012

Young-Ice wrote: »

earth two superman wrote: »

hell, GM came back stronger than ever after their bailout. maybe sony could do the same.

This is a possibility. I wonder if they could afford to bail them out right now though.

They should be more than able to. Look at how bad the US economy was when they made the decision to bail out the car companies. In the end, it was in their interests to save them. The more people working is the less strain on the government and more taxes being paid back into the system. Same would be true for Japan.

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