Home Gaming Sony to Post a $1.1 Billion Loss

Sony to Post a $1.1 Billion Loss

42 second read
7

dollar death spiral

Sony, the entire company not just Sony Computer Entertainment, are expected to post a massive $1.1 billion loss.

Gamesindustry.biz  (via 1UP) reports that Sony initially expected a $2.2 billion profit, but due to the economic downtown and weakening Dollar versus the Yen, they are now struggling. I fail to see how a $3 billion difference was generated by a weakened currency and economy, but I didn’t study business science.

So alot of hopes are pinned on the PS3 to bring some money back into the company. I hope that they recover because we really don’t need another Sega at a point when the ‘console wars’ have gotten this interesting.

The recession has finally hit the top of gaming food chain – the console maker.

Source

Last Updated: January 14, 2009

7 Comments

  1. janrik

    January 14, 2009 at 11:23

    Eina.

    Reply

  2. Rudolph

    January 14, 2009 at 12:07

    ouch

    Reply

  3. ewie

    January 14, 2009 at 12:45

    Problem with PS3 is that they will have massive stock on it.
    If we take november ndp numbers which was down 20 % off last year, and looking at vgchartz data it look like ps3 is down 500 000 units over last year holiday season.

    Sony would most likely have made sure seeing the rest of the year was 50 – 100 % up year to year to have enough stock on hand , to meet at least a 50% increase over last year holiday, so at the moment they will be sitting with about 2 000 000 units which was manufactured at a high price of at least $450 a unit. These units still have to be sold and will lead to a loss of between 50$ and 100$ a unit. So over the holiday season they sold just above 3 000 000 units, which could relate to $ 300 Million in losses, + a further $ 200 Million on stock losses for the next quarter. So look like about $500 Million might be attributed to the ps3.
    This does not even take in effect the strengthening of the yen with about 20% – 30%, which could add another $100 Million to the loss.

    And with the yen looking to strengthen to about 50 or 60 to the dollar, no price cut will happen this year.

    Remember Sony have a lot of additional cost like the psn network that cost a lot of money to maintain as well.

    Reply

  4. Wolfy

    January 14, 2009 at 15:06

    dude you posted the same thing in the other article aswel lol

    Reply

  5. Wolfy

    January 14, 2009 at 15:09

    Looks like the economy crisis on the world caused alot of people to rather buy cheaper tvs/dvd players/micro waves/cd roms ect ect..

    Looks like keeping up with the robinsons are last on everybodies mind. And a grand brand like Sony are not to mention other masive compies with name brand products got the short side of the stick

    Reply

  6. abe

    January 14, 2009 at 17:11

    I never get how this is possible.
    Surely Sony Entertainment pictures can cover that entire
    loss with one spiderman style movie?

    Reply

  7. ewie

    January 15, 2009 at 08:25

    It should have been posted in the other thread, as I do not think Sony will drop prices for a while.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Uncharted Movie Passes $100 Million – Sony set to Make a Franchise

After 14 years Sony finally released the Uncharted movie to medium reception. The movie ha…