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Sony's Yearly Loss Projection Doubles

*Gulp*

Sony’s difficult financial situation isn’t new but this latest report from the BBC says that it’s a bit worse than we’d all thought. Sony has forecast an annual loss of $6.4 billion, double what was previously indicated. This makes four years running that Sony has made losses.

The company is blaming tax bills for the big loss increase, their operating losses are reported at $1.2 billion. This dire situation is the catalyst for yesterday‘s reported 10,000 potential job losses and is being blamed on the failing TV department who haven’t managed a profit for eight years.

New boss, Kaz Hirai, is expected to outline his strategy for recovery on Thursday. We hope it involves Ridge Racer in some way.

Source: BBC, Thanks quinkill

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22 Comments
  1. quinkill
    Member
    Since: Oct 2010

    No worries. I’m hoping the recovery strategy involves Katamari and all the TVs in their TV department.

    Comment posted on 10/04/2012 at 10:14.
  2. Eldave0
    andUandU
    Since: Aug 2008

    Not surprised their TV department haven’t made a profit in years. Sony TVs are stupidly overpriced, especially when you consider that you can get a really nice Samsung for a fraction of the cost.

    Comment posted on 10/04/2012 at 10:32.
    • Roynaldo
      Member
      Since: Nov 2008

      yeah…was about to say the same thing. they look pretty and all that but we arnt all loaded with money.

      Comment posted on 10/04/2012 at 11:18.
    • skibadee
      Member
      Since: Oct 2009

      if the Sony ones were the same price I would have a Sony TV now instead of a Samsung.

      Comment posted on 10/04/2012 at 15:39.
  3. IAmJacksMedullaOblongata
    Member
    Since: Nov 2011

    They need to get out of markets they have no hope in competing in anymore.

    Walkman? It’s over (iPod). All those over-priced tablets that no one bought and had their RRPs slashed weeks later? Dump that, too. The market is saturated with good tablets at lower price points (iPad, Fire, Galaxy).

    And, most of all, get off your high horse about the Vita. It’s a wonderful piece of tech, and though it might be worth that price, you’re not going to sell that many at that price.

    I love how Kaz answered some questions on the blog about the Vita and there was not one question and answer about how it’s flagging in Japan and Sony have no plan (other than “let’s wait it out for Monster Hunter) to rejuvenate the market. And no one mentioned that, after an impressive launch line up, Vita is already in a lull software wise.

    I love Sony. I am a massive PlayStation fan, but some of the decisions the company have made for the last, oh, 5 years have just been monumentally bone-headed.

    Like, where are the games of Super Mario Galaxy quality on Move? Sorcery? Bit late, guys. What about Skyward Sword? Just another good idea (and good tech) you guys have failed to market and support.

    Why didn’t you support Demon’s Souls? Why haven’t you bought thatgamecompany yet? Where the hell is The Last Guardian? The list goes on …
    :(

    Comment posted on 10/04/2012 at 10:50.
    • Nickboss1
      Member
      Since: Mar 2010

      Spot on!

      Comment posted on 10/04/2012 at 11:02.
    • cc_star
      Team TSA: Writer
      Since: Forever

      Like/Recommend/+1

      Comment posted on 10/04/2012 at 11:07.
    • Taylor Made
      Member
      Since: Oct 2011

      But the playstation brand is doing just fine. Sony’s problem has nothing to do with the playstation brand what so ever.

      Just other departments TV, Cameras etc

      Comment posted on 10/04/2012 at 11:25.
      • Roynaldo
        Member
        Since: Nov 2008

        Thought that myself when reading the comment. The general point still stands though. Sonys top heads are making bad move after bad move and overpricing their products in pot they have their fingers in. Even gaming until very recently.

        Comment posted on 10/04/2012 at 11:35.
      • IAmJacksMedullaOblongata
        Member
        Since: Nov 2011

        The same PlayStation brand that is third in a three horse race and its new handheld device is being outsold by its predecessor in its home country?

        It might be “profitable”, but it’s far from “doing just fine” in my opinion.

        Comment posted on 10/04/2012 at 11:55.
      • Taylor Made
        Member
        Since: Oct 2011

        But its only 3rd cause it was released a year later in other words the playstation is in second place if we take a year out..

        Also maybe they didn’t buy thatcompany cause they busy letting other developers like zipper go to be buying another company

        Comment posted on 10/04/2012 at 12:02.
    • KeRaSh
      Member
      Since: Nov 2009

      I totally agree with you but I don’t understand your point about Skyward Sword. What does Sony have to do with a Nintendo exclusive Zelda game?

      Comment posted on 10/04/2012 at 11:56.
    • TheDemocrodile
      Member
      Since: May 2010

      i remember reading a cool piece on the demise of Sega that i feel relevant.
      When Sega becaome the market leader they seemed to lose sight of their vision for consoles and started looking more and more at what the other companies were doing, as a result they started flailing wildly to incoporate other peoples ideas into their own and started losing touch with their own market base which got so irritated by debacles such as the CD attachment for the megadrive etc that they drifted off to other makers and by the time they got their act together with Dreamcast it was all over.
      Now i know Sony has other divisons to make them money unlike Sega but when they are all loss-making its rather worrying.

      Comment posted on 10/04/2012 at 16:06.
  4. cc_star
    Team TSA: Writer
    Since: Forever

    Difficult to see a way back, other than shuffling the deckchairs on the Titanic.

    PlayStation might make a bit of money, but its got no chance of covering the billions & billions of losses sustained during its development & sluggish first half of its life.

    The plan was always that PlayStation is the cool brand that drives other Sony products into people’s homes except it hasn’t this generation.
    Sony Ericsson went from 4th largest mobile manufacturer to 14th
    Sony went from making the best TVs to lagging way, way behind Samsung & no-name Chinese brands.
    Apple is everyone’s default music player & importantly default destination for buying music.

    Meanwhile Sony music & video stores maybe on all their devices, but people just use those devices to access music & video from other sources making Sony’s much shouted about SEN, almost irrelevant.
    Same goes for the PSSuite, a way for Sony to make money selling games & apps across a range of Sony and they’ve far from hit the ground running with it & if their approach to it so far is anything to go by, it will fall by the wayside like so many other Sony ideas.

    The good news for Kaz, is that as Sony are ‘losing’ in practically every market they’re in, the only way is up… unless of course, there’s still further to fall until we see a dead cat bounce.

    Comment posted on 10/04/2012 at 11:04.
    • TheDemocrodile
      Member
      Since: May 2010

      i saw a dead cat bounce once…… not nice, never go to Guildford.

      i agree with you though, there is only an Up for them now, although i cant help but think with so many markets that theyre losing in that they`ll pull out of some entirely, i quite like Sony smartphones but i believe that they`ll be pulled first in that scenario, probably followed by the Hardware division of the Gaming branch.

      Comment posted on 10/04/2012 at 12:10.
    • skibadee
      Member
      Since: Oct 2009

      so much wisdom.

      Comment posted on 10/04/2012 at 15:41.
  5. Tuffcub
    On the naughty step.
    Since: Dec 2008

    There’s a lot of Vita’s been bought near me, according to Near – new ones popping up each day.

    Comment posted on 10/04/2012 at 11:23.
  6. Nickboss1
    Member
    Since: Mar 2010

    I think the question sony need to ask themselve is why has it taken 8 years to do something about this crisis.

    Comment posted on 10/04/2012 at 11:49.
  7. Nickboss1
    Member
    Since: Mar 2010

    I went into my local sony store yesterday to find that they had slashed the price of their 46″ 3D tv’s from £1,700 to £999. I paid £800 three years ago for my 46″ samsung hd tv. Ok it’s not 3d but who cares. I dont want to spend a grand on something thats looks near enough the same and i think most people would agree me.

    Comment posted on 10/04/2012 at 12:05.
  8. deadwelsh
    Member
    Since: Jun 2009

    Imagine what the world would have been like if Nintendo had gone with Sony instead of Phillips all those years ago (and yes i am aware this website probably wouldnt exist)

    Comment posted on 10/04/2012 at 17:14.

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