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Sony said Monday in a preliminary earnings statement that it expected to report a net loss of 260 billion yen ($3.2 billion) for the year ended March 31, 2011

http://fgn0nline.wordpress.com/2011/05/ ... disasters/

Sony is expected to post a substancial loss for the 2012 FYI. $2 billion is nothing compared to the lawsuits,PS3 unit returns, and the Europeon drop in sales as most sites are reporting that many PS3 owners in Europe are pawning thier PS3s.

MrSega wrote:Sony is expected to post a substancial loss for the 2012 FYI. $2 billion is nothing compared to the lawsuits,PS3 unit returns, and the Europeon drop in sales as most sites are reporting that many PS3 owners in Europe are pawning thier PS3s.

i wonder how true that is? here in the states where i live its tough to find a used PS3. when i was looking for my PS3 only 1 store in the in 3 towns had one. this is Saginaw, Bay city and Midland MI. i go to many of these stores on a regular basis and the used PS3 stock is still near zero.

Gary_b wrote:

MrSega wrote:Sony is expected to post a substancial loss for the 2012 FYI. $2 billion is nothing compared to the lawsuits,PS3 unit returns, and the Europeon drop in sales as most sites are reporting that many PS3 owners in Europe are pawning thier PS3s.

i wonder how true that is? here in the states where i live its tough to find a used PS3. when i was looking for my PS3 only 1 store in the in 3 towns had one. this is Saginaw, Bay city and Midland MI. i go to many of these stores on a regular basis and the used PS3 stock is still near zero.

I just swung over at NEOGAF and read thier debates reguarding Sony's finicial sitation, and theres a little good news but lots of BAD news for the entire company.

The good news, despite the $10 billion dollar budget blown on PS3 which has turned out to be a massive finicial flop of a console, Sony has been able to make up for only a small precentage of its losses with adeqaute overseas sales of PS3, if they are profiting modestly it helps them stay afloat on the boat.

Now the BAD news:

Sony is estimated to be over $100 billion in red and have posted annual losses 3 years in a row. Thier pretax profits for 2010 were actually $3 billion which is a much smaller profit from the previous generation.

Also Sony has dozens and dozens of 7 years worth of tax write offs that they must eventually pay back to the Japanese government, dating back to 2005 when PS3 development was finalized. If they post more losses and see a drop in profits, then investors will pull out support and funding for them which in turn could led to bankrupcy.

Overseas electronic sales of the SONY brand have been pummeled by Samsung,Apple,LG,Toshiba.

Basically Sony is hanging on a cliff, when they profit well, they hang on a little longer, if they keep posting annual losses,things can't stay in the right direction and if NGP bombs they may lose thier grip and fall off the cliff.

MrSega wrote:I just swung over at NEOGAF and read thier debates reguarding Sony's finicial sitation, and theres a little good news but lots of BAD news for the entire company.

The good news, despite the $10 billion dollar budget blown on PS3 which has turned out to be a massive finicial flop of a console, Sony has been able to make up for only a small precentage of its losses with adeqaute overseas sales of PS3, if they are profiting modestly it helps them stay afloat on the boat.

Now the BAD news:

Sony is estimated to be over $100 billion in red and have posted annual losses 3 years in a row. Thier pretax profits for 2010 were actually $3 billion which is a much smaller profit from the previous generation.

Also Sony has dozens and dozens of 7 years worth of tax write offs that they must eventually pay back to the Japanese government, dating back to 2005 when PS3 development was finalized. If they post more losses and see a drop in profits, then investors will pull out support and funding for them which in turn could led to bankrupcy.

Overseas electronic sales of the SONY brand have been pummeled by Samsung,Apple,LG,Toshiba.

Basically Sony is hanging on a cliff, when they profit well, they hang on a little longer, if they keep posting annual losses,things can't stay in the right direction and if NGP bombs they may lose thier grip and fall off the cliff.

I guess the first thing I thought when I read this was:

Since when did the NEOGAF forum become a source of reliable information?

Do you have any links to any of these debates you refer to?

MrSega wrote:I just swung over at NEOGAF and read thier debates reguarding Sony's finicial sitation, and theres a little good news but lots of BAD news for the entire company.

The good news, despite the $10 billion dollar budget blown on PS3 which has turned out to be a massive finicial flop of a console, Sony has been able to make up for only a small precentage of its losses with adeqaute overseas sales of PS3, if they are profiting modestly it helps them stay afloat on the boat.

Now the BAD news:

Sony is estimated to be over $100 billion in red and have posted annual losses 3 years in a row. Thier pretax profits for 2010 were actually $3 billion which is a much smaller profit from the previous generation.

Also Sony has dozens and dozens of 7 years worth of tax write offs that they must eventually pay back to the Japanese government, dating back to 2005 when PS3 development was finalized. If they post more losses and see a drop in profits, then investors will pull out support and funding for them which in turn could led to bankrupcy.

Overseas electronic sales of the SONY brand have been pummeled by Samsung,Apple,LG,Toshiba.

Basically Sony is hanging on a cliff, when they profit well, they hang on a little longer, if they keep posting annual losses,things can't stay in the right direction and if NGP bombs they may lose thier grip and fall off the cliff.

EDIT: I found the discussion.

And it isn't 7 years of tax writeoffs, its 3 years, and they were deferred tax assets, which I beleive relate to the previous 3 years of losses for the company. In Japan companies can uses DTAs up to 7 years, if I understand correctly. Over all the people in the discussion seemed to feel that Sony was over the worst of their troubles and that the Earthquake is the main cause of their losses.

Since the troubles with PSN took place after end of their 2010/11 financial year the losses from this issue won't be known until the end of their 2011/12 financial year

my personal opinion is that Sony will bounce back. i don't see Sony releasing a new home console for a long time, at least 5 more years. they have plenty of time to recoup any losses on producing the PS3. I for one think it is the best console on the market as of now. I am not a Sony fanboy or even a Sony fan, but i can see the quality is higher on the PS3.

we have all 3 consoles here at my house, so im not just claiming this without experience. we have an elite, a wii and a PS3 120 GB. i also had 2 old white 360s. one was an arcade and the other was a pro with the HDMI port. the pro got the good ole red ring and the arcade was ok, other than it needing to be cleaned. it got so packed with dust that it was over heating. after it was cleaned out it worked fine until the day i sold it. no problems so far with the elite, well it did go all red ring for a sec when i installed the halo reach beta testing demo. after i restarted the 360 it was fine though.

Gary_b wrote:my personal opinion is that Sony will bounce back. i don't see Sony releasing a new home console for a long time, at least 5 more years. they have plenty of time to recoup any losses on producing the PS3. I for one think it is the best console on the market as of now. I am not a Sony fanboy or even a Sony fan, but i can see the quality is higher on the PS3.

we have all 3 consoles here at my house, so im not just claiming this without experience. we have an elite, a wii and a PS3 120 GB. i also had 2 old white 360s. one was an arcade and the other was a pro with the HDMI port. the pro got the good ole red ring and the arcade was ok, other than it needing to be cleaned. it got so packed with dust that it was over heating. after it was cleaned out it worked fine until the day i sold it. no problems so far with the elite, well it did go all red ring for a sec when i installed the halo reach beta testing demo. after i restarted the 360 it was fine though.

I see the situation getting worse for them, overseas electronic sales will continue to slump, there will be numurous lawsuits on the PSN breach,NGP is destined to BOMB rather badly, 3DS sales are an indicator that the demographic for mobile gamers is changing and these consumers seem to be disinterested in traditonal handhelds smart phohes and tablets are the handheld future. NGP won't succeed if its sold for $300-350 pure and simple.

Sony in my opinion will leave the hardware business in about 3-4 years. There WON'T be a PS4 as far as I'm concerned and SEGA now has a shot of throwing thier hat back in the ring if PS3 sales slump again and Sony posts another annual loss.

MrSega wrote: NGP won't succeed if its sold for $300-350 pure and simple

i agree with you on this one for sure. they have to get this out for under 300. i won't touch it until it cost $100 or less. that is to god damn much for a hand held gaming machine. the world economy is poor and they are churning out shit at these price points? who is running this project? Nintendo is stupid too. the 3DS should of been $175 at the most. i wont touch that pos until its under 100 as well.

Gary_b wrote:my personal opinion is that Sony will bounce back. i don't see Sony releasing a new home console for a long time, at least 5 more years. they have plenty of time to recoup any losses on producing the PS3. I for one think it is the best console on the market as of now. I am not a Sony fanboy or even a Sony fan, but i can see the quality is higher on the PS3.

we have all 3 consoles here at my house, so im not just claiming this without experience. we have an elite, a wii and a PS3 120 GB. i also had 2 old white 360s. one was an arcade and the other was a pro with the HDMI port. the pro got the good ole red ring and the arcade was ok, other than it needing to be cleaned. it got so packed with dust that it was over heating. after it was cleaned out it worked fine until the day i sold it. no problems so far with the elite, well it did go all red ring for a sec when i installed the halo reach beta testing demo. after i restarted the 360 it was fine though.

I think thats a pretty fair assessment. I personally beleive that Sony has made some pretty bad mistakes this generation and certainly need to pick up their game. The debacle with the PSN hack is very serious, but I think they can come back from this. I've stated before that Sony need to look back at the PS1 and PS2 and see how they got those right, then analyze where they went wrong with this gen. I think a good start would be to bring the developers in at an early stage and ask them what they want from a PS4, they also need to aim for a more realistic price point, I personally am not interested in a $600 game console, $300.00 is pretty much my max, also by now I'd be expecting to pick up a PS3 for a lot less than 300 bucks.