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Sony takes a 72% plunge....

Posted by Remlik (aka Remlik) Oct 29 '08, 07:59

SONY reported a 72% plunge in quarterly profit on WEDNESDAY as a surging yen wiped out perks from flat-panel TV and PLAYSTATION 3 sales, as well as box office revenue from the movie "Hancock." SONY CORP. marked a net profit of 20.8 billion yen ($214 million) for the JULY-SEPTEMBER period, down 71.8% from 73.7 billion yen the previous year. Sales in the fiscal second quarter slipped 0.5% to 2.072 trillion yen ($21.4 billion).

SONY makes about 80% of its sales overseas and is extremely vulnerable to fluctuations in the exchange rates. A rising yen erodes the overseas profits when converted into yen.

Just last week, SONY drastically cut its full-year projections. For the fiscal year through MARCH 2009, SONY is expecting a 150 billion yen ($1.5 billion) profit, down 59% from the previous year, on 9 trillion yen ($92.8 billion) sales, up 1% on year.

SONY also recorded an equity loss of 3.1 billion yen ($31.9 million) in SONY BMG because of a declining music market, it said. Best-sellers included KINGS OF LEON'S "Only by the Night" and AC/DC's "No Bull."

Responses:

Though the gaming division's sales increased, selling twice as many PS3 consoles and games. - Ender Oct 29, 08:05 9
- ps3 q2 sales were up 86%, that's really not "nearly twice"...nm - x Oct 29, 08:08
- The PS2 outsold the PS3. I still find that funny. -- nm - JaxSean Oct 29, 08:07 6
  - Interestingly, they just announced they're going open-platform on the PS2. - Ender Oct 29, 08:21 1
    - This can only be good for gamers. Maybe I'll finally get Duck Hunt ported to PS2 like I've always wanted. -- nm - emoticreature Oct 29, 08:36
  - I think I can still wring a year of enjoyment out of my PS2. I just started FFX yesterday, so I've got that series and God of War before I'm bored. -- nm - emoticreature Oct 29, 08:11 3
    - i played both persona 3 and yakuza 2 on ps2 this year. both were great....nm - x Oct 29, 08:31
    - I never finished GoW2, and my daughter still does DanceDanceRevolution occasionally. -- nm - JaxSean Oct 29, 08:16 1
      - Oh, that reminds me: there's a new Tomb Raider next month so, you know, I got that goin for me. -- nm - emoticreature Oct 29, 08:42
- [deleted]
Does any of this mean I should be able to afford a PS3 in the nearer future? -- nm - emoticreature Oct 29, 08:01 22
- it's really one of the main reasons that they can't cut the price. they've put themselves in a tough spot as a company... - x Oct 29, 08:05 19
  - There's that, but also I think that with some major exclusives like LBP, Resistance 2, & eventually Killzone coming out they don't see the need either - Ender Oct 29, 08:13 3
    - they're getting pummelled by the 360 in the us and uk because of the price comparison and have even lost 6 weeks running in japan.... - x Oct 29, 08:25 2
      - Sony has had to move away from pushing out as many consoles as possible, and more towards making a profit each quarter. - Inigo Oct 29, 08:32 1
        
        they hamstrung themselves by *promising* a profit which essentially dictated they couldn't cut price by xmas... - x Oct 29, 08:39
  - I think it will see increasing market share as blu-ray starts edges out DVD over time, unless the Xbox add-on really takes off. -- nm - emoticreature Oct 29, 08:09 14
    - maybe. but when your previous console's market share was upwards of 90% and you follow it with what the ps3 has done..... - x Oct 29, 08:22 1
      - It's very similar to what Nintendo did the 64: Try to push third party developers around... - Inigo Oct 29, 08:29
    - They've been saying that for months though. -- nm - Don Homer Oct 29, 08:12 8
      - The PS3 pluses (first party exclusives, Blu-Ray) are balanced by XBox's third party dominance, and cheaper price. - Inigo Oct 29, 08:23 7
        
        except for Metal Gear Solid, Sony has no 1st party exclusives that are system sellars anymore. Resistance 2 (while good) isn't going to move units. -- nm - Remlik Oct 29, 08:32 5
        
        maybe not system sellers, but there are some excellent looking exclusives coming. lbp and infamous and heavy rain should all be aces...nm - x Oct 29, 08:37 3
        
        Ibp? what's that one? -- nm - Remlik Oct 29, 08:38 2
        
        little big planet. the big exclusive that shipped this week...nm - x Oct 29, 08:40 1
        
        Mine's at my house! - Callisto Oct 29, 08:50
        
        GT5 will, but that's a while away. -- nm - Inigo Oct 29, 08:33
        
        i think they'll end up around parity worldwide, ultimately. sony has a much stronger global reach and a longer term plan....nm - x Oct 29, 08:28
    - If Microsoft was smart, I think they would make a blu ray player standard on the 360 asap. -- nm - Subversive Oct 29, 08:12 2
      - rumor is that the Xbox 2.5 will be that. -- nm - Remlik Oct 29, 08:24
      - They have no need to do that. And it would drive up their costs significantly. Blu-ray simply isn't the seller (so far) that some people had hoped. -- nm - Don Homer Oct 29, 08:14
- No, this means it will cost you $999 now. -- nm - JaxSean Oct 29, 08:03 1
  - Rats! *shakes fist at currency markets* -- nm - emoticreature Oct 29, 08:05
Stupid American weakness in the dollar. Even when PS3 sells like it should, we lose. (nm) - Ken Kataguri SI Oct 29, 08:00
ouch. -- nm - JaxSean Oct 29, 08:00
ha! -- nm - colin Oct 29, 08:00

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Sony takes a 72% plunge....

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