ZOMG - Sony slashes 2008 earnings forecast by 38% - PS3 profitability uncertain

[QUOTE="SecretPolice"][QUOTE="kenshinhimura10"][QUOTE="tupapi006"]

[QUOTE="kenshinhimura10"]And MS shares falled 43%. Big deal. Its all part of this economical crysis. But I doubt the TC, or anyone else here knows anything about this issue.kenshinhimura10

LINK?

Bloomberg TV. Just watch it and you will see, though you may have to wait a little till they get back to it.

MSFT:

Financial highlights
Income* 17.68 Bil
Sales Growth* +18.20%
Income Growth* +41.60%
Net Profit Margin 29.26%
Debt/Equity Ratio NA
* last 12 months

SNEJF:

Financial highlights
Income* 3.39 Bil
Sales Growth* +6.90%
Income Growth* -47.40%
Net Profit Margin 2.96%
Debt/Equity Ratio 0.31
* last 12 months

Never assume the TC is a snot nosed kid. :evil:

I give you that. But only a fool can think that Sony is dying and that is based on economical facts. This period of crysis will see small companies fall, and big companies trip, but nothing more. If the studies are correct, this should be solved by late 2009.

Also, studies sho that entertainment is one of the few markets that grows more during periods of crysis compared to the rest.

In a few words: This is mostly because the changes of currency. Most Asian companies are suffering from the same, and until this situation stabilizes, this wont stop. But this also means that we are going to be living up and down times, with stocks going up, down, sideways, etc.

If you analize your numbers, they are not bad numbers:

Financial highlights
Income* 3.39 Bil
Sales Growth* +6.90% This means that sales have gone up, not staled nor down.
Income Growth* -47.40%
Net Profit Margin 2.96% This means that they are actually making profits, so they are in teh green as a company.
Debt/Equity Ratio 0.31
* last 12 months

As you can see, if you analize that, you can clearly notice that they are not losing money, they just changed the amount of money they were going to make due to the current situation.

Now, to analize both Sony and MS, it would take a longer explanation, mostly because of the structural differences between both, considering Sony handles less money in a way as they are dedicated to technological innovations and stuff taht I seriously dont feel like explaining. Lets just say this: Sony, once every X amount of years, almosts depletes its capital to promote new technologies. They have been doing so since the beginning. MS on teh other hands, does not use much of its capital, and that why they stack up money.

PD: Sorry for some typos, im in my job, so I type as fast as I can and I miss the timing for some letters :P

[QUOTE="blue_hazy_basic"][QUOTE="kenshinhimura10"]

I give you that. But only a fool can think that Sony is dying and that is based on economical facts. This period of crysis will see small companies fall, and big companies trip, but nothing more. If the studies are correct, this should be solved by late 2009.

Also, studies sho that entertainment is one of the few markets that grows more during periods of crysis compared to the rest.

kenshinhimura10

The studies are more recent, done in growing countries, where during times of great economical unneasiness things related to entertainment see a boost. I recently did an esay based on the Latin American growing powers (as Chile and Brazil) and during their periods of recession, no more than 10 years ago top, this industry boomed above expected. Its easy to believe that the same can happen in other places.

What about his other point though? Sure, entertainment still does well because it lets people escape from the real world where things may not be going well for them. However, I imagine (like blue hazy basic) that they would go with the cheaper options. You can get lost in a DVD just as well as you can a BR. There is a HD console out there for $200 and a console that provides a whole other experience for $250.

Well they can't put out reliable hardware...

Mau-Justice

That means that they are falling, but not on the red. Its what happens when you suddenly are trading lets say 10 coins, tomorrow you trade 5. Thats a 50 % drop, or -50% This is what is happening here. They were trading double than what they are trading now. And they are expecting less revenues mostly because the Yen is now growing instead of falling. If the yen falled, the company rises. But I wont dwelve to deep into this, its hard enough to explain to the guy next to me, and its even harder to try to resume it to post it online.

In a few words: This is mostly because the changes of currency. Most Asian companies are suffering from the same, and until this situation stabilizes, this wont stop. But this also means that we are going to be living up and down times, with stocks going up, down, sideways, etc.

If you analize your numbers, they are not bad numbers:

Financial highlights
Income* 3.39 Bil
Sales Growth* +6.90% This means that sales have gone up, not staled nor down.
Income Growth* -47.40%
Net Profit Margin 2.96% This means that they are actually making profits, so they are in teh green as a company.
Debt/Equity Ratio 0.31
* last 12 months

As you can see, if you analize that, you can clearly notice that they are not losing money, they just changed the amount of money they were going to make due to the current situation.

Now, to analize both Sony and MS, it would take a longer explanation, mostly because of the structural differences between both, considering Sony handles less money in a way as they are dedicated to technological innovations and stuff taht I seriously dont feel like explaining. Lets just say this: Sony, once every X amount of years, almosts depletes its capital to promote new technologies. They have been doing so since the beginning. MS on teh other hands, does not use much of its capital, and that why they stack up money.

PD: Sorry for some typos, im in my job, so I type as fast as I can and I miss the timing for some letters :P

kenshinhimura10

That said though, Investors/share-holders have other options as to where to invest and no smoke screen yet developed can hide the sinking of ye ole mighty Sony of past gens. to what is happening at the present.

Sony will not - I repeat, Sony will not get out of this industry IMO but are being pressed like never before to show share-holders and potential investors that they have a credible plan to turn this thing around.

If not, Sony may very well be at the brink of toweling and me hope that doesn't happen.

[QUOTE="kenshinhimura10"][QUOTE="blue_hazy_basic"][QUOTE="kenshinhimura10"]

I give you that. But only a fool can think that Sony is dying and that is based on economical facts. This period of crysis will see small companies fall, and big companies trip, but nothing more. If the studies are correct, this should be solved by late 2009.

Also, studies sho that entertainment is one of the few markets that grows more during periods of crysis compared to the rest.

aliasfreak

The studies are more recent, done in growing countries, where during times of great economical unneasiness things related to entertainment see a boost. I recently did an esay based on the Latin American growing powers (as Chile and Brazil) and during their periods of recession, no more than 10 years ago top, this industry boomed above expected. Its easy to believe that the same can happen in other places.

What about his other point though? Sure, entertainment still does well because it lets people escape from the real world where things may not be going well for them. However, I imagine (like blue hazy basic) that they would go with the cheaper options. You can get lost in a DVD just as well as you can a BR. There is a HD console out there for $200 and a console that provides a whole other experience for $250.

But I never speaked on PS3 sales. It was just yours and his assumption given I have a PS3 on my sig. Which is where you guys fail at my point.

Look, I see what you are trying to get and appreciate you coming from the angle your coming from. :)

That said though, Investors/share-holders have other options as to where to invest and no smoke screen yet developed can hide the sinking of ye ole mighty Sony of past gens. to what is happening at the present.

Sony will not - I repeat, Sony will not get out of this industry IMO but are being pressed like never before to show share-holders and potential investors that they have a credible plan to turn this thing around.

If not, Sony may very well be at the brink of toweling and me hope that doesn't happen.

SecretPolice

Yes I know, and that where my first post comes in. Lowering the profits instead of keeping the old and not meeting them generates more trust than not meeting them. Of course they are going to loose shareholders, most likely as much as they did on 2006 with the Battery fiasco and the PS3 launch. But it wont kill them as they are still a profitable company.

[QUOTE="aliasfreak"][QUOTE="kenshinhimura10"][QUOTE="blue_hazy_basic"][QUOTE="kenshinhimura10"]

I give you that. But only a fool can think that Sony is dying and that is based on economical facts. This period of crysis will see small companies fall, and big companies trip, but nothing more. If the studies are correct, this should be solved by late 2009.

Also, studies sho that entertainment is one of the few markets that grows more during periods of crysis compared to the rest.

kenshinhimura10

The studies are more recent, done in growing countries, where during times of great economical unneasiness things related to entertainment see a boost. I recently did an esay based on the Latin American growing powers (as Chile and Brazil) and during their periods of recession, no more than 10 years ago top, this industry boomed above expected. Its easy to believe that the same can happen in other places.

What about his other point though? Sure, entertainment still does well because it lets people escape from the real world where things may not be going well for them. However, I imagine (like blue hazy basic) that they would go with the cheaper options. You can get lost in a DVD just as well as you can a BR. There is a HD console out there for $200 and a console that provides a whole other experience for $250.

But I never speaked on PS3 sales. It was just yours and his assumption given I have a PS3 on my sig. Which is where you guys fail at my point.

I didn't assume that you were speaking of PS3 sales because you have a PS3 sig, it is because that is the only way you posting that seemed to make any kind of sense. This is a thread speaking about Sony's lower earnings forecast, you said that the entertainment industry does well regardless, this forum deals with video games systems, hence the assumption.

Now you have assumed incorrectly as well.

Edit: I see how you could be talking about Sony as a whole instead of just the gaming, but surely you understand the misunderstanding. This is a video game forum after all.

Good, i hope they lose even more money. Take a good kicking this gen and perhaps they'll release something good next gen. CreepyBacon

kind of agree with you there...or at least, secure the games that made them separate from competition last gen

I didn't assume that you were speaking of PS3 sales because you have a PS3 sig, it is because that is the only way you posting that seemed to make any kind of sense. This is a thread speaking about Sony's lower earnings forecast, you said that the entertainment industry does well regardless, this forum deals with video games systems, hence the assumption.

Now you have assumed incorrectly as well.

aliasfreak

Then we can close the discussion of whether I was speaking pro PS3 or not here right?

[QUOTE="aliasfreak"]

I didn't assume that you were speaking of PS3 sales because you have a PS3 sig, it is because that is the only way you posting that seemed to make any kind of sense. This is a thread speaking about Sony's lower earnings forecast, you said that the entertainment industry does well regardless, this forum deals with video games systems, hence the assumption.

Now you have assumed incorrectly as well.

kenshinhimura10

Then we can close the discussion of whether I was speaking pro PS3 or not here right?

Yep :D

[QUOTE="CreepyBacon"]Good, i hope they lose even more money. Take a good kicking this gen and perhaps they'll release something good next gen. Ipik_Fenris

kind of agree with you there...or at least, secure the games that made them separate from competition last gen

It will most likely be the case, Sony will HAVE to step up in the coming years, but their company moto is to innovate, which puts them in a crossroad, as they wont pull a Wii-thing that easily. I sure want them to remain in the console market, they have been a company that has given us gamers more benefits than any other. Bringing the first uncensored FF, redoing the old FFs with no censorship, bringing franchises that Nintendo never gave a damn about. Helped a lot of developers to grow, by giving them less retentions and royalties, as wel as assistance. They dont do that as much as they did before, they got to high with their success as most companies do (coughNintendocough) and are now paying for that.

I really dont want any of the current contenders to loose, though if one has to fall, I would prefer it to be MS as they dont produce nothing (they are only publishers).

there's no such thing as a 10 year plan. The PS2 hasn't had a big game since 2007, so it only lasted for 7 years. the Ps2 was also the most popular console in history and it graphics improved much more quickly than they are with the PS3

Ps3 will be lucky to last four years

MarloStanfield

PS2 is still being supported to this day with tons of multiplats like the lego series guitar hero/rock band, sports titles and tons more. You really have no idea what your talking about.....