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Sony slashes full-year profit forecast by 40%


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#1 +Frank B.

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Posted 31 October 2013 - 08:28

Sony slashes full-year profit forecast by 40%

 

Japanese electronic giant Sony has slashed its full-year profit forecast by 40% as it continues to struggle.

 

It now expects to make a net profit of 30bn yen ($305; £190m) in the financial year to 31 March 2014, down from its earlier projection of 50 bn yen.

 

The cut came as Sony said its loss in the July-to-September quarter widened 25% from a year ago to 19.3bn yen.

 

One of the big drags on its earnings was its Pictures division which made a loss due to some high profile flops.

 

The division, which also includes production of movies as well as TV shows, recorded an operating loss of 17.8bn yen during the period, compared to an operating profit of 7.9bn a year earlier.

 

"The current quarter reflects the theatrical underperformance of White House Down, while the previous fiscal year included the strong theatrical performance of the Amazing Spider-Man," the firm said in a statement.

 

There was also a decline in television licensing revenue due to fewer movies being licensed year-on-year.

 

TV troubles

 

Sony, like many other Japanese electronics firms, has also been hurt by increased competition and slowing global demand for TVs.

 

A decline in TV prices has further hurt the profitability of the sector.

 

Sony's TV division posted an operating loss of 9.3bn yen for the three three months to the end of September.

 

At the same time, its gaming division which makes the PlayStation consoles also reported an operating loss during the period.

 

The firm said that the division's earnings were hurt after it cut the price of its PlayStation Vita consoles.

 

Sony cut the prices of the original PS Vita earlier this year in a bid to boost sales, which have been affected by an increasing number of users playing games on their smartphones and tablet PCs.

 

Sony's Game division made an operating loss of 800m yen during the period, compared to an operating profit of 2.3bn yen during the same quarter a last year.

 

Source: BBC News




#2 +Aheer.R.S.

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Posted 31 October 2013 - 08:34

Sony have been living off their reputation for too long, their TV's historically, although having a great picture, didn't last very long, Toshiba, RCA to name 2 are just as good and lasted way longer,

My Toshiba 33 inch (crt) still going strong today and that was an 18'th birthday present (I'm 38 now)

 

Shame really as like I said, they have great picture quality

(though I prefer my Plasma's)



#3 Arceles

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Posted 31 October 2013 - 08:38

Well, because of the price slash on vita I got one... and oh god, the screen is amazing and gravity rush is  a very well made game, I had forgotten how good these games felt compared to just PC gaming, except perhaps for the YS series from falcom...



#4 George P

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Posted 31 October 2013 - 08:49

Yikes.   The whole company has problems and even with a strong PS4 showing it's peanuts compared to the overall health of Sony.    They're just being chopped at from all sides,  Samsung is stealing their lunch with tVs and phones etc.  Movies don't seem to be doing good like the article says and each new spiderman movie seems to be bringing in less and less money compared to the first one (seems that people are tired of Spidey or growing tired of).   It seems the only thing they're making money on is the insurance they sell in Japan, which is funny because they're known as a big electronics company yet the only part without problems is insurance from what I've heard.   



#5 rfirth

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Posted 31 October 2013 - 08:55

It seems the only thing they're making money on is the insurance they sell in Japan, which is funny because they're known as a big electronics company yet the only part without problems is insurance from what I've heard.   

 

During this century, Sony has lost more money on electronics than it has made... they make most of their money, as you said, from selling life insurance.

 

Can you imagine if Microsoft had tried to undercut the PS4 on price and forced Sony to take a loss on every console sold? If they were cutthroat, they would.



#6 Raa

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Posted 31 October 2013 - 08:57

Sony have been living off their reputation for too long, their TV's historically, although having a great picture, didn't last very long

I'm afraid i'd have to disagree. I have a Sony Trinitron in my shed and it's still picture perfect.

In the lounge is a Sony Bravia that was the first model to include motionflow - also spot on.

 

Historically it's been a case of pay more for the name, but know you get a good product. I still like to think that holds up for Sony today.



#7 +Aheer.R.S.

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Posted 31 October 2013 - 09:00

I'm afraid i'd have to disagree. I have a Sony Trinitron in my shed and it's still picture perfect.

In the lounge is a Sony Bravia that was the first model to include motionflow - also spot on.

 

Historically it's been a case of pay more for the name, but know you get a good product. I still like to think that holds up for Sony today.

That's fair enough, I'm sure I was in the minority when I posted that, personally had too many bad experiences with em.



#8 nitins60

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Posted 31 October 2013 - 09:11

During this century, Sony has lost more money on electronics than it has made... they make most of their money, as you said, from selling life insurance.

 

Can you imagine if Microsoft had tried to undercut the PS4 on price and forced Sony to take a loss on every console sold? If they were cutthroat, they would.

 

 

Good idea! :)



#9 George P

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Posted 31 October 2013 - 09:36

During this century, Sony has lost more money on electronics than it has made... they make most of their money, as you said, from selling life insurance.

 

Can you imagine if Microsoft had tried to undercut the PS4 on price and forced Sony to take a loss on every console sold? If they were cutthroat, they would.

 

I think MS could attack with paying for exclusive games and leave the hardware price as is for now.  People will spend the extra money if they can get better and more exclusive games on it.   But yeah, at some point they'll probably be first to cut the price forcing Sonys hand in the matter.



#10 theyarecomingforyou

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Posted 31 October 2013 - 10:05

I think MS could attack with paying for exclusive games and leave the hardware price as is for now.  People will spend the extra money if they can get better and more exclusive games on it.   But yeah, at some point they'll probably be first to cut the price forcing Sonys hand in the matter.

The trouble is that Microsoft would need to cut the price of the Xbox One by 20% just to be competitive with the PlayStation 4 and Sony wouldn't have to follow suit if it has enough exclusive titles and offers better performance (both of which remain to be seen).



#11 George P

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Posted 31 October 2013 - 10:22

The trouble is that Microsoft would need to cut the price of the Xbox One by 20% just to be competitive with the PlayStation 4 and Sony wouldn't have to follow suit if it has enough exclusive titles and offers better performance (both of which remain to be seen).

 

Which is why if they have more exclusives cutting the price under the PS4 isn't needed as much.  Gamers will pay the extra for the games.   They could cut the price by $50 and toss in a free exclusive game and suddenly it's not much of a difference.  





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