Sony Q2 Profits plummet 94%..in your face, Zenien!

[Fenrir]

Sony Q2 profits plummet 94 percent

PS3 delay, battery recall gut-punch electronics-maker's quarterly profits; game division 43.5 billion yen in the red.

By Tor Thorsen, GameSpot Posted Oct 26, 2006 12:39 pm PT



Two weeks after Sony revised its annual profit forecast, the company has reported its income for the quarter ending on September 30, 2006. And, as analysts predicted, the three-month period was not kind to the electronics giant.
Sony's net quarterly profit plunged to just 1.7 billion yen ($14.36 million) for the fiscal second quarter from 28.5 billion yen ($240.8 million) a year earlier. However, overall revenue for the quarter rose 8 percent to 1.85 trillion yen ($15.6 billion) from 1.7 trillion yen ($14.4 billion) a year earlier.


How could Sony's income rise and profits fall at the same time? One major factor was its recall of 9.6 million laptop batteries, which cost the company 51 billion yen ($429 million). Another was its game division, Sony Computer Entertainment, which reported a 43.5 billion yen ($367.5 million) operating loss for the quarter. The shortfall was blamed on declining international sales of the PlayStation 2 and PlayStation Portable during the quarter and sliding PS2 game revenue. During the quarter, the company produced 5.02 million PS2s (an increase of 0.01 million units over July-Sept. 2005) and 3.89 million PSPs (an increase of 0.14 million units over July-Sept. 2005).


Sony also said its profit "deterioration was due to recording of charges associated with preparation of launch of the PlayStation 3 platform and the continued high research and development costs associated with the PS3." The next-gen console is set to launch in Japan and North America next month and in Europe in March 2007, but will be available in much lower quantities than Sony originally envisioned.


Sony now predicts an 80 billion yen ($674 million) for the full fiscal year. That figure is 38 percent below the 130 billion yen ($1.1 billion) net profit it had forecast in July. It expects overall annual revenue to rise 10 percent to 8.23 trillion yen ($69.5 billion).




http://www.gamespot.com/news/6160550.html?tag=latestnews;title;0



Finally, payback for all those suckass financial earnings and sales threads you plagued these boards with. Har har!

 

[Avalanche]

In fairness, she can't have predicted the massive battery recall that cost Sony a massive amount of their profits.

 

[Fenrir]

In fairness, she can't have predicted the massive battery recall that cost Sony a massive amount of their profits.

 

[Avalanche]

Did she make predictions after after the recall, making me very much wrong?

 

[Fenrir]

Did she make predictions after after the recall, making me very much wrong?

It has nothing to do with Zenien's predictions.

 

[Avalanche]

It has nothing to do with Zenien's predictions.

What were you ing then? I'm utterly confused!

 

[Fenrir]

What were you ing then? I'm utterly confused!

Read the last line in my first post in the thread.

 

[Zenien]

The silver lining is that their performance rose 8 percent. The Battery issue just killed their bottom line for the quarter.

 

[Fenrir]

The silver lining is that their performance rose 8 percent. The Battery issue just killed their bottom line for the quarter.

And their games division is 367.5 million in the red, so no, the battery issue isn't the only thing they screwed up this quarter.

 

[Zenien]

The games devision didn't mess up their quarter because they anticipated the games devision eating up that money a long time in advance. It's following the same trend that the PS2 did with associated costs of development, and the PS1 before that.

It's not like they had to revise their earnings because the games devision was goign to lose more then they thought.

 

[Fran]

If I'm correct, Sony is losing $1,000 for every PS3 sold.

That's a lot of $, no matter who you are.

 

[GoldenAgeHero]

If I'm correct, Sony is losing $1,000 for every PS3 sold.

That's a lot of $, no matter who you are.

i thought they were losing 300.

 

[Zenien]

I don't think we've ever gotten an official statement from SOny on the matter.

 

[Fran]

An analyst said it, it was a while back.

 

[GoldenAgeHero]

sony is possibly the dumbest company ever.

 

[Fran]

This is the second Sony bashing thread I have seen with the icon beside it.

The other one, you ask?

Mine, bashing the Sixaxis.

 

[Zenien]

Hey now the sixaxis might be used well in a title or two, it's the lack of rumble that sucks.

 

[WhatsHisFace]

More like the "sux asses" Wahahaha. And BTW, Sony is poor.

 

[Avalanche]

sony is possibly the dumbest company ever.

And yet they've won out two generations in a row, and likely will again. They can't be that dumb. They're doing something right.

 

[Fenrir]

And yet they've won out two generations in a row, and likely will again. They can't be that dumb. They're doing something right.

Hey Mr. Sony Defense Force, you should try learning to live with fanboy hyperbole on videogame message boards instead of retorting with unnecessary replies everytime some disgruntled gamer says something negative about your favorite company. You don't see me jumping on everyone's back whenever the Microsoft corporation gets any flak around these forums just because I love my PC and 360 now, do you?

 

[Avalanche]

^

Well, you don't see me running around the MS forum bashing every mistake they make. I couldn't care less. Works both ways.

I think, maybe, me and you are destined to disagree on pretty much everything.

 

[Fenrir]

Well, you don't see me running around the MS forum bashing every mistake they make. I couldn't care less. Works both ways.

Perhaps you should read my post better. I'm simply asking you to grow a thicker skin instead of snapping at the slightest, most insignificant negative comment hurled at Sony. You should also keep in mind that a lot of gamers are pretty pissed at Sony right now, what with the PS3's sky-high price, giving Europe the shaft and closing down Lik-Sang.

I think, maybe, me and you are destined to disagree on pretty much everything.

We still got VF5 and DMC4 though.

And Square-Enix needs to get off their collective butts and release FFXII already.