Sony doubles forecast of annual loss to $6.4bn

[rikwakefield]

Sony thought brand power would sell their TVs lol. Wrong.

They've made this mistake before.

[Cuguy]

They've made this mistake before.

At some point in time, nearly every major company makes this mistake LOL

[Soldier 95B]

If I had a nickel for every thread that was in the wrong section, I would be a rich man.

TRIM THE FAT Sony.

[The Sith]

Ok fair enough, I will see how far I get posting everything that microsoft does in the 360 forum. I bet you I wont get far

Why are you so bitter? There have Sony tech articles I have posted here but never got moved to he tech section.

[Fijiandoce]

any number of factors could be contributing to this.
£6.4billion is quite small change for a company as big as Sony. NO, NOT SCE! SONY!
they do everything from produce record labels to manufacturing of semiconductors.
Sony have gotten to big and fat, a new sustainable business model is needed, dare say, a model similar to that of Microsoft.
also need a new PR department.....though im sure this has been needed for a while

Edit:
Manufacturing will bare the brunt of this. demand ain't all that high. even if it were, the tsunami didn't help Sony in any way. growth in the manufacturing sector is still slow and sluggish. i forget the forecasts though guess im pessimist for the time being

[Morganator]

I'm wondering about something here. I wonder how much of the loss is really attributed to Sony's loss of mindshare? We can say this and that in regards to the TV department or the PlayStation department but how much of the loss is really because Sony as a corporation has been engaged in some very questionable corporate tactics, i.e. strong-arming consumers, initiating and fighting frivolous lawsuits against the consumer, false advertising and the list goes on?

And let's all be honest here. Sony's TV line isn't exactly stellar in quality when compared to the likes of Samsung, Pioneer, Panasonic and even now, LG and Sharp. This isn't to mention other products like camcorders and cameras where Canon and other corporations have really stepped up their game. Then we have the likes of Microsoft and Nintendo which have really put the heat on Sony in the gaming division. Now some of these things have yielded great results but I'm betting Sony's loss of mindshare is the biggest contributor followed closely by intense market competition.

[radgamer420]

Looks like Kaz was right when he said that things may get worse before they get better. I really don't see how theses massive losses won't affect every division. I guess time will tell if this will effect the next PS launch.

I think its already having an affect on the PS3 as well since we've seen Sony starting to close game studios that havent been profitable for them. First it was Zipper and now I'm thinking that Evolution will be next. So I would be surprised if this doesnt affect the PS4 launch in some way.

[coolguy]

this is a huge chunk of money. sonny needs to make over all the company and get rid of there tv line.

[Sub-stance1]

I think its already having an affect on the PS3 as well since we've seen Sony starting to close game studios that havent been profitable for them. First it was Zipper and now I'm thinking that Evolution will be next. So I would be surprised if this doesnt affect the PS4 launch in some way.

Maybe so. One thing for sure is that they are probably forced to launch the PS4 a little earlier than they probably wanted to thanks to MS. This will definitely effect the profits for the PS3.

[Sufi]

How much of this has to do with the disaster?

[ex nihilo7]

I'm wondering about something here. I wonder how much of the loss is really attributed to Sony's loss of mindshare? We can say this and that in regards to the TV department or the PlayStation department but how much of the loss is really because Sony as a corporation has been engaged in some very questionable corporate tactics, i.e. strong-arming consumers, initiating and fighting frivolous lawsuits against the consumer, false advertising and the list goes on?

And let's all be honest here. Sony's TV line isn't exactly stellar in quality when compared to the likes of Samsung, Pioneer, Panasonic and even now, LG and Sharp. This isn't to mention other products like camcorders and cameras where Canon and other corporations have really stepped up their game. Then we have the likes of Microsoft and Nintendo which have really put the heat on Sony in the gaming division. Now some of these things have yielded great results but I'm betting Sony's loss of mindshare is the biggest contributor followed closely by intense market competition.

The high-end XBRs are.

[MATRIX 2]

The high-end XBRs are.

Not true.

Edge Backlighting essentially eliminated LCD's for anybody who gives a damn about PQ.

[Morganator]

Front page on the forums has an article on Sony stopping Qore.

[Beast of Bourbon]

Did anyone ever use it? -> next up Home

[malys]

It's not as bad as it looks, the extra reported loss is in DTA's which is a whole lot different than operating costs. In the end it most likely means they'll be paying less taxes in a year or more when they're back to making a profit

[Cuguy]

It's not as bad as it looks, the extra reported loss is in DTA's which is a whole lot different than operating costs. In the end it most likely means they'll be paying less taxes in a year or more when they're back to making a profit

yeah, that's the spin being put out on the web today to try and get some damage control. Whether it was revenue or DTA's, it is still money that Sony lost, whether it was revenue they could levy against, or revenue coming from sales. It was money that Sony planned on, or did have, and now is gone. That is a loss.

[Ghost-Rhayne]

Yeah Sony has a lot of fat to trim, but I think now that they are streamlining their efforts to what they're good at, we will see a slow but steady return.

[Cuguy]

Yeah Sony has a lot of fat to trim, but I think now that they are streamlining their efforts to what they're good at, we will see a slow but steady return.

Exactly.. been awhile in coming, but now it is in progress.

[cookiehour]

In before doom is screamed...oh, wait.

Sony will be fine. Yes, this is serious but Sony will get out of it.

[Cuguy]

In before doom is screamed...oh, wait.

Sony will be fine. Yes, this is serious but Sony will get out of it.

I don't think anyone is saying "doom" but this is just a sign that Sony is in need of a reboot.

[Morganator]

I don't think anyone is saying "doom" but this is just a sign that Sony is in need of a reboot.

Exactly. Sony as a corporation and its executives as a whole need to realize that over-diversifying will lead you nowhere. It's cool and awesome that they've been able to do so much but what's really needed is a core set of products that are reasonably priced and have the same quality as the competition or better. Ironically, I think where Sony shines the most is in the R&D department. They've been paving the way for years now.

[Ghost-Rhayne]

Company positioning games, mobile and digital imaging as key areas

Sony CEO Kaz Hirai has outlined a new plan to reverse the company's fortunes following a massive $6.4bn loss for the financial year just ended.




Shares in the electronics firm have dropped by seven percent since it first warned of the massive loss, and Sony has since confirmed plans to slash 10,000 jobs.

However, concerns the troubles could result in diminished support for PlayStation appear unfounded, with Sony naming the division as one of three focus areas going forward.


"Sony is positioning digital imaging, game and mobile as the three main focus areas of its electronics business and plans to concentrate investment and technology development resources in these areas," it said in a statement.


"By growing these three businesses, Sony aims to generate approximately 70 percent of total sales and 85 percent of operating income for the entire electronics business from these categories by FY14.


"Sony will target game business sales of one trillion yen and operating income margin of 8% by FY14."
The platform holder has also pledged to increase its digital output, with both PSN titles and "subscription services" on the agenda.


"The company aims to increase sales by enriching its catalogue of downloadable game titles and subscription services available through the PSN platform, and also by expanding the line-up of PlayStation Suite compatible devices and content."

I never doubted this. Sony are going through a rough patch and it will take awhile but putting all their resources into these areas is going to pay off. Next gen is gonna be very interesting.

[Sylar]

shit me that's a hell of a lot of money to lose, lets hope this business plan works out

[radgamer420]

any number of factors could be contributing to this. £6.4billion is quite small change for a company as big as Sony. NO, NOT SCE! SONY! they do everything from produce record labels to manufacturing of semiconductors. Sony have gotten to big and fat, a new sustainable business model is needed, dare say, a model similar to that of Microsoft. also need a new PR department.....though im sure this has been needed for a while

If 6.4 billion was "quite small change" then Sony wouldn't be asking their executives to return their bonuses. But I do agree with the rest of your post.

[mooninites]

Invest more money in the areas your most successful in. Good thinking. Let's see if it works out well for Sony

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