Sony records loss in latest quarter

Sony's latest financial results are in and the company is not only announcing a large loss for the quarter but, much like another Japanese company Nintendo, is predicting a massive loss for its entire fiscal year. It announced today that for the three month period ending on September 30 it recorded a loss of 27 billion yen ($346 million). compared with a net profit of 31.1 billion yen for the same period a year ago. Sony said that it now predicts it will have a net loss of 90 billion yen ($1.2 billion) for its full fiscal year, compared with a net profit of 60 billion yen for the same period a year ago.

Sony said that the losses are due to several factors, including the continuing floods in Thailand, which are disrupting supplies for a number of parts. A stronger yen is another reason cited by Sony for the loss along with a reduction in TV sales. Sony has plans to restructure its TV business that basically splits it into three groups; one to make the current LCD TVs, another for outsourcing the making of TV units and finally a division that is concentrating on the creation of next generation televisions.

Sony's Playstation 3 console sold 3.7 million units in the last quarter, compared to 3.5 million units in the same period a year ago. Sony has now sold 56 million units of the PS3 game console worldwide. Sony's huge overall loss means that Microsoft is the only one of the three console companies that recorded a profit for the last quarter.

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24 Comments

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ScottDaMan said,
I haven't purchased a single Sony branded item since the CD rootkit fiasco. I guess some people never forget evil.

My bet is you're minority here. Not many people even KNOW about that, let alone remember it. Sony doesn't sell to geeks. It sells to mainstream. Mainstream forgets that stuff very very quickly. Like ... within a few weeks. What this is due to, is competition in the industries Sony is trying to compete in. And they're not competing hard enough in many of them. That's what's causing this. Not rootkit related rubbish.

While SONY is struggling in most divisions, so is almost every other Japanese electronics company. The strong Yen really hurts their export margins, and the flooding in Thailand has affected production and supply in a major way. Panasonic reported massive losses just about a week ago. Honda is also having problems with these factors. Globally,TV sales are struggling, even with Samsung.
But SONY does need to come up with a killer product. I hope they can bring out a smart phone or a decent tablet sometime soon.

KingCrimson said,
XBox 360 will do even better now!

I think it already is

"Sony's huge overall loss means that Microsoft is the only one of the three console companies that recorded a profit ffor the last quarter."

Sony isn't going anywhere anytime soon. Their electronics have been more-or-less sub-par (sans their PS3). But they own a movie studio and get a **** ton for licensing of CDs, DVDs, and BluRay media discs.

I remember a time when I thought that Sony products were the very best that were available. My my how things have changed. The days of the DiscMan are long gone.

Shadrack said,
Sony isn't going anywhere anytime soon. Their electronics have been more-or-less sub-par (sans their PS3). But they own a movie studio and get a **** ton for licensing of CDs, DVDs, and BluRay media discs.

I remember a time when I thought that Sony products were the very best that were available. My my how things have changed. The days of the DiscMan are long gone.

Sony was great when they were just an electronics company. The moment they ventured into media and IP businesses, the rot set in. They are more interested in protecting their IP now than they are about putting out great products.

This news report is not very accurate. Following the hacking news, I would think it has a major affect on Sony corporations, but the news did not add that fact in. Instead, mention about something that was not a major significant.

Krome said,
This news report is not very accurate. Following the hacking news, I would think it has a major affect on Sony corporations, but the news did not add that fact in. Instead, mention about something that was not a major significant.

That's called Sony PR at work.

Can Sony be saved? (Sorry still a little miffed that the 1st lost for Nintendo in 30 years spells doom where Sony sinking doesn't seem to trigger this response).

Japan has been trying to de-evalute it's currency, it causing things purchased in japan to be more expensive (hurting there exports).

They just also bought out Ericsson part of Sony-Ericsson for 1.x billion

etempest said,
Can Sony be saved? (Sorry still a little miffed that the 1st lost for Nintendo in 30 years spells doom where Sony sinking doesn't seem to trigger this response).

Japan has been trying to de-evalute it's currency, it causing things purchased in japan to be more expensive (hurting there exports).

They just also bought out Ericsson part of Sony-Ericsson for 1.x billion

Sony isn't sinking. And neither is Nintendo. Both are multi-billion dollar companies with HUGE amounts of cash in the bank. The whole 'losses' thing is far deeper than just losing cash. It doesn't always work as black and white as you'd think. Microsoft lost billions on the XBox in the first few years. But they still made profit as a company. It's swings and roundabouts, and articles like Neowin's one on Nintendo are nothing but sensationalism. Neither company is going anywhere any time soon. Nintendo had a harder time in the mid to late 90's. And they still rocked a ton of cash.

Spirit Dave said,

Sony isn't sinking. And neither is Nintendo.

Microsoft never posted a loss in quarter as a company. Sony & Nintendo are, they're in big deep trouble.

KingCrimson said,

Microsoft never posted a loss in quarter as a company. Sony & Nintendo are, they're in big deep trouble.

There entertainment division (xbox and more) typically been in the red, I think there in the black this time around however. Microsoft sunk a LOT of money to get the xbox brand established.

etempest said,

There entertainment division (xbox and more) typically been in the red, I think there in the black this time around however. Microsoft sunk a LOT of money to get the xbox brand established.

Yeah ... Nintendo are not in any trouble. It's very stupid to believe they are, just because they lose a few dollars. Seriously, this is not a massive issue for Nintendo as a company ... shareholders won't be very happy but it's very likely to just be a blip. As I said ... Microsoft is a very segmented company, and the Xbox division haemorrhaged money for a long time. But you're looking at them wrong, because they don't operate the same way Nintendo does on a financial / structural basis.

M_Lyons10 said,
I can't say as this is surprising. Sony's getting trounced in every industry they're in...

Yeah, almost all their products have been getting worse and worse in comparison to other more leading brands out there. The only thing still standing is their PS3, which in turn also is the least profitable gaming console out there (not forgetting to mention the laughing stock of the gaming industry, due to all the hacks, removing of advertised features and its stupid design that was supposedly intentional).

Quick Shot said,
Flooding in Thailand and a strong Yen? Excuses, excuses......

To be fair they are perfectly legitimate reasons for a loss. Reasons for a loss this big though? No...there are other factors obviously.

still1 said,

this is about last quarter and not the one previous to that..

Just goes to show, people don't forget then, eh !

Wiggz said,

To be fair they are perfectly legitimate reasons for a loss. Reasons for a loss this big though? No...there are other factors obviously.


Doesn't every company have money invested in Thailand? And shouldn't they all be losing money because of a strong Yen?