Sony to lose 35% of Annual profit....
Miscellaneous Forums/General Discussion/Sony to lose 35% of Annual profit....
No wonder considering the battery recalls, and the PS3 problems...:
Net income for the year ending March 31 will drop 35 percent to 80 billion yen ($675 million) from a year earlier, Sony said. Losses at the game division will be wider than Sony expected because of the PlayStation 3 price cut and slower sales of the PlayStation Portable. About 60 billion yen of operating profit will be erased from the division, the company said.
...Sony cut the price of the PS3 in Japan after consumers complained it was too expensive compared with Microsoft's Xbox 360 and Nintendo's Wii.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aHLZ6fnYiNoY&refer=home Only $675 million net profit? I could live with that :)
I think all of us here could live wealthy lives just off the INTEREST...!
Poor Sony; I feel real sorry for them!
I guess covertly putting root kits on customers computers might not have helped. I know I've avoided their products since that became common knowledge. It wasn't that hard to avoid actually.
Wow, a 35% drop in gross income? That's a huge deal for such a big company.
So, are their executives getting fired? Or bonuses?
It's the profit drops by 35%, they still earn the 65%.
Sure.....but a drop of 35% in one year...is a big deal. There's no reason to believe it'll stop there. Next year will probably be a further 10-20% drop.
The PS3 will be sold at a loss, right? That definately means their profits not done plummetting.
> It's the profit drops by 35%, they still earn the 65%.
True - but people will have bought their stock based on the 100% figure. Not making the 100% causes people to dump the stock, dumping the stock leads to further people dumping the stock, which leads to a bad situation for the company (less funds for research and development, lessened ability to weather further downturns)
Sony is doing quite bad for several years now.
they had to close or outsell whole divisions of their company and more are most likely going to follow after their BR deathbirth will enforce consequences (each format that was Sony pushed so far died. MiniDisk and UMD the last ones that some might still know from somewhere)
But perhaps that will remember them to concentrate on stuff they are good at (for example, not handhelds, their palm division was closed, PSP is doing bad as well) instead of trying to do everything and just "suck" money out the world.
..well..its Sony folks..Im sure it will be fine...
Fine....but as a lower lifeform than it once was.
Not that I'm complaining.
The PS3 will be sold at a loss, right? That definately means their profits not done plummetting.
This is why Nintendo know exactly how to make a profit from the games business. Sony have the wrong idea to introduce ANOTHER console with the SAME features, just with better graphics. The result is that they have another product that is more expensive to produce and they lose money initially - what happens if a lot of people are put off by the price tag?
Putting it simply, Sony don't innovate, they just immitate - and that's what the problem is.