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Sony posts $196 million Q2 loss despite strong smartphone sales

Discussion in 'Off-Topic Discussion' started by sparkyscott21, Oct 31, 2013.

  1. sparkyscott21

    sparkyscott21 Moderator Staff Member

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    Sony said shipments of its Xperia smartphones were strong in the September quarter, but weak camera and PC sales coupled with the flop of its big-budget feature “White House Down” dragged the Japan-based giant into the red once again. The company on Thursday posted its results for the fiscal second quarter, during which it lost about $196 million on sales that grew nearly 11% on-year to $18.1 billion thanks to the weakening yen. Sony warned that its electronics business is weakening more quickly than it expected, however, as TV and PC sales continue to slow. The company still forecasts a full-year profit of about $300 million thanks in part to its upcoming PlayStation 4 launch, though that estimate is down 40% from the $500 million profit Sony projected earlier this year.




    10-31-13

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  2. ChrisG8

    ChrisG8 Well-Known Member

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    I watched White House Down recently, it was marketed wrong, it is really a comedy. As a parody of action movies like Die Hard or the very similar Olympus has fallen, it might have done better. As an action film, it is comical, not thrilling or exciting at all since everything that happens is either preposterous or just plain silly. It will be interesting to see how the PS4 does in the market. I am a big fan of the PS3 and that was a huge money loser for Sony.
     
  3. jonw747

    jonw747 Well-Known Member

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    The PS4 may do well, but I thought Sony lost money on every sale of hardware with the expectation of eventually making it up on software sales. It had been previously reported that they had been losing money on their TVs for something like the last 8 years.
     
  4. CatfishRivers

    CatfishRivers Well-Known Member

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    I would be interested in knowing if Sony made any money on GTV devices. I went to their web site and looked up their corporate reports - but GTV devices were not specifically mentioned anywhere. My guess is that GTV had a minor impact on their bottom line.
     
  5. ChrisG8

    ChrisG8 Well-Known Member

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    I think a lot depends on how well the XBox One does, if it is as great as the hype will have you believe, Sony might be in big trouble with the PS4. I thought the PS3 was a much better box all around than the XBox 360 but I think Sony lost more money than Microsoft did although I am pretty sure both ended this last round in the red, only Nintendo made money on the Wii. Yes, the Sony marketing strategy for game consoles has been to sell the hardware at a loss and make it up and hopefully a profit on the games and accessories. It worked out great with the PS2 but unfortunately, the several billion dollars Sony lost selling PS3 consoles was not recovered. I don't know where Sony stands now on the PS3 but a cumulative loss of a couple billion dollars is probably pretty close. Sony made a few billion dollars on the PS2. I had seen actual reported numbers at some point a couple of years ago but I only recall the general situation which was very bleak.

    I think Sony is planning on selling the PS4 console near breakeven, nothing like the situation Sony faced with PS3, where a loss of a couple hundred dollars per console was the norm for its first few years.
     
  6. ChrisG8

    ChrisG8 Well-Known Member

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    Yes, I agree Google TV has been immaterial to the Sony bottom line. A guess, Sony has sold something more than 1,000,000 GTV devices and either made a few dollars each on average or lost a few dollars each on average or something in between. Of course their line of television sets with Google TV had much bigger profit margin goals but the quantity manufactured and sold was relatively small and they dropped the product after one generation.

    Overall if Google TV has resulted in a loss of a couple million dollars for Sony to date, that would be consistent with what I think has happened. Compared to losses on TV sets, game consoles and computers, Google TV isn't even worth mentioning. I think Sony has done a nice job with their Google TV products but faced an indifferent market. I don't know much about the new Sony Google TV box other than it looks like a big step backwards to me in terms of what I want from Google TV.
     
  7. CatfishRivers

    CatfishRivers Well-Known Member

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    I posted in another thread that I think there will be new Google TV (Android TV) devices available by Spring 2014. The thing is - IMO it's hard to say if any of the current GTV players will be offering those new android TV boxes - or if it will be an entirely new OEM entrant into the market.
     
  8. jonw747

    jonw747 Well-Known Member

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    The PS4 may do well, but I thought Sony lost money on every sale of hardware with the expectation of eventually making it up on software sales. It had been previously reported that they had been losing money on their TVs for something like the last 8 years.
     
  9. pmcd

    pmcd Active Member

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    Well if Sony's GS7/8 were to be frozen at 3.2 I doubt many of their current customers would even think about buying into Android TV. Not that big a deal since there are so few of us. The whole thing is a bit strange.

    Philip
     

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