Sony's situation is worse than previous thought by investors

Last quarter Sony lost 200 million dollars. In the previous quarter before that Sony posted a 35 million dollar profit but that was due in part with Sony selling their buildings including their headquarters in New York and Tokyo. Now Sony doesn't have those assets to sell and will have to go to others to make ends meet. Investors wants Sony to sell their entertainment division. Some are even looking at several electronic divisions including Playstation. Gaming sector posted a 10 million dollar lost. Add that to the fact that Sony lost all the money they made on the PS1 and PS2. Not to mention more than 5 billion dollars on the PS3. Sony is in deep sh%t right now to say the least. I have a feeling those that purchase a PS4 may truly find themselves in unusual circumstances in a few years.

We all know PS4 is a go, locked and loaded, better strap one on TC, its gonna be pedal to the muther fvcking metal.

SCEA president and CEO Jack Tretton added: Our goal with PlayStation 4 is to deliver inspiring and creative play experiences that gamers have never seen before. The level of enthusiasm weu2019re seeing from GameStop customers demonstrates how the promise of PS4 is resonating with gamers, and we're looking forward to unveiling more about the new platform in the coming months.Push the boundaries of play, Working with some of the most creative minds in the industry, PlayStation4 delivers breathtaking and unique gaming experienceu201dIt will offer a barn bursting amount of world class, high scoring exclusives, just like the PS3. Day fvcking 1. Speaking of the PS3, I'd like to thank Sony corporation with a special shout out to Ken Kutaragi

Through your hard work and dedication, you have given us a system of the ages and console of the generation. A value that only you could imagine has unfolded before our very eyes and blossomed into something very beautiful.So, you see, we took small steps to success all along that hike. Together, they added up to hundreds of thousands of small steps. But we might have chosen not to take the first step. We might have stopped at any point along the way. That would have meant that we would not have gotten to our destination.

There were also obstacles along the way. But with each small step they were overcome.

There were frustrations, fears and uncertainties. But with each small step they were crushed.

There was hardship and danger, but with each small step and focus on the desired destination it was conquered.So you see, success is no mystery.

Because, as the Chinese philosopher Lao-tzu said: A journey of a thousand miles must begin with a single step.

It takes only one small step to succeed and you have done it Ken. Bravo.

It goes without saying that a thanks is in order for Kazuo Hirai

You have taken Ken's vision and molded into something beautiful. All the world's your stage. And all the men and women merely players: A non-doer is very often a critic-that is, someone who sits back and watches doers, and then waxes philosophically about how the doers are doing. It's easy to be a critic, but not you Kaz, no being a doer requires effort, risk, and change and you have done a noble job. Bravo!

And last but certainly not least I'd like to thank Jack Tretton, your loyalty, perseverance and dedication has helped Sony reach it's goals and making Sony the #1 console of choice.That is real freedom. That is being educated, and understanding how to think. The alternative is unconsciousness, the default setting, the rat race, the constant gnawing sense of having had, and lost, some infinite thing.You have dared to go where others have been scared to go Jack, Thank you and God bless Sony USA."

inb4 Sony kills their gaming division

FYI, R/D is not cheap.

I am an investor and there has been rumors of Sony cutting parts of their electronics division. Not Playstation. But other sectors including television. I have to put a warning out that you should be weary of purchasing a Sony TV. Sony will not cover any warranties should they close their TV division.

Still PS4>>>>>Xbone

Deal with it

Can't wait to pick up my PS4 :)

I hope the ps4 helps, but yeah, as an investor, this company is a wreck.

This is SW dude, why are we discussing TV warranties?

It's been clear if the Playstation 4 doesn't meet expectations Sony's gaming division closes.

That was just an addendum to possibly warn others.

PlayStation is one of their top 2 most profitable divisions at this moment anyway. Unless ps loses the same amount ps3 lost at the start again, Sony is going nowhere but up.

From a business standpoint, Sony in general doesn't have enough money to keep supporting Sony Computer Entertainment. Their TV's and electronics just aren't selling, scrapping their Sony Computer Entertainment (playstation) branch would sure help them.

The post-earnings sell-off in Sony Corp.6758.TO-11.13%’s shares is a painful sign of just how much investors had been hoping for the company’s revival. Sony’s turnaround measures had been showing signs of paying off, begging the question: What went wrong?

Let’s take another crack at Sony’s earnings release.

Sony’s PlayStation 4 video game console and controllers on display at the Tokyo Game Show 2013 in September.

Bloomberg News

Where did Sony miss?

Movies: The division booked an operating loss of Y17.8 billion ($181 million) compared with a year-earlier profit of Y7.9 billion after box office misses such as “White House Down” and “After Earth.”

Sony’s argument: The business is likely to recover following a positive response to recent releases such as “Captain Phillips” and “Cloudy With a Chance of Meatballs 2.” Last year’s figure is a tough one to follow after the blockbuster, “The Amazing Spider-Man.”

Investors: The pictures segment is inherently volatile. “Movies are in many ways a hit-and-miss, but it’s the structurally troubling electronics division that’s disappointing,” said Takuya Yamada, a senior fund manager at Astmax Asset Management, which has around $1.2 billion in assets under management.

Electronics products: Sony cut the sales target for TVs, personal computers, digital cameras and video cameras for the second time this year, citing a slowdown in emerging markets. Its TV division logged an operating loss after briefly turning profitable in the previous quarter for the first time in three years. It lowered its outlook for LCD televisions by 6.7%, video cameras by 8%, personal computers by 6.5%, and digital cameras by 4%.

Sony’s argument: The economic slowdown in Latin America was worse than expected while sales were also weaker than expected in the Middle East. “The markets for conventional products (such as camcorders and digital cameras) are shrinking faster than expected,” said Sony Chief Financial Officer Masaru Kato. With more people snapping photos on smartphones, Mr. Kato said Sony is aiming to tap into these users by introducing new devices such as the QX camera that combines the functionality of a high-end compact camera into the body of a lens attachable to smartphones. Mr. Kato also signaled more restructuring for the PC business, although he didn’t unveil details such as potential job cuts.

Analysts: “Growth for future potential core products such as smartphones and games was not enough to offset weak performance from current mainstays such as TVs and PCs,” Koki Shiraishi, a senior analyst at SMBC Nikko Securities Inc., wrote in a report. Credit SuisseCSGN.VX-0.50% analyst Shunsuke Tsuchiya also cited “a strong risk of guidance being lowered again” due to rising restructuring costs and weaker product sales.

What are the bright spots – or at least glimmers of hope – for Sony?

Videogames: The game business booked an operating loss of Y800 million compared with a gain of Y2.3 billion in the previous year, due to price cuts in the PlayStation Vita and unfavorable currency impact. Sales increased 5.1%. But Sony says that’s likely to turn around, and analysts tend to agree.

Senior Vice President Shiro Kambe said he expects sales to pick up significantly after the Nov. 15 release of PlayStation 4, the company’s first reboot of its popular videogame console in seven years. Sony plans to sell five million PS4 units by the end of March.

“We still believe the PS4 could prompt a (positive) reassessment of the game business,” Credit Suisse’s Mr. Tsuchiya noted.

Smartphones: Sony’s operating loss from the mobile products and communications segment narrowed sharply to Y900 million from Y23.1 billion while revenue jumped 39%. Sony identifies smartphones as a core business and has poured resources into that product line. In February, Sony introduced its flagship Xperia Z smartphone and a successor model was released in September.

Financial Services: Sony’s insurance business saw a 26% increase in operating profit and a 5.9% boost in revenue thanks to a rise in the Japanese stock market.

Music: Sales increased 16% helped by best-selling titles such as Justin Timberlake’s “The 20/20 Experience – 2 of 2” and Kana Nishino’s “Love Collection.”

Discontinue the PSP...

just gonna leave this here. It sheds some much needed perspective on how Sony is doing.

http://www.notenoughshaders.com/2012/09/08/the-ten-year-decline-of-sony/

Use the Sony Credit thread.