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Sony Financial Report Shows 95 Billion Yen Deficit

Uh oh.

A financial report published by Japan’s National Printing Bureau indicates that Sony Computer Entertainment are running a 95 billion Yen deficit.

Translations suggest that the company attributes 76 billion of that to Selling, General & Administrative Expense (SG&A) and 17 billion to taxes.

The figures don’t make pleasant reading, but it’s clear that whilst this financial year wasn’t at all easy for SCE, a lot of money would have been spent on R&D for PS4.

The Vita launch, some poorly performing first party games, natural disasters and fallout from the hacking affair would have all contributed too.

Regardless, SCE will need to recoup this quickly.

Source: NPB via NeoGAF.

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23 Comments
  1. ray_gillespie
    Member
    Since: Aug 2009

    “A financial report published by Japan’s National Printing Bureau indicates that Sony Computer Entertainment are running a 95 million Yen deficit.”

    I think that’s supposed to be 95 billion Yen.

    Comment posted on 27/06/2012 at 09:45.
  2. Nickboss1
    Member
    Since: Mar 2010

    And whats that in pounds please?

    Comment posted on 27/06/2012 at 09:47.
    • Forrest_01
      Member
      Since: Jun 2009

      £2.50.

      Comment posted on 27/06/2012 at 09:53.
      • Nickboss1
        Member
        Since: Mar 2010

        at that price they won’t be selling the ps4 at a loss.

        Comment posted on 28/06/2012 at 11:32.
    • Alex C
      One for all.
      Since: Forever

      £760 million.

      Comment posted on 27/06/2012 at 09:55.
      • Nickboss1
        Member
        Since: Mar 2010

        thanks

        Comment posted on 27/06/2012 at 11:47.
  3. Bilbo_bobbins
    Member
    Since: Jun 2009

    How long can a company keep making a loss and carry on? I don’t understand this logic.

    Comment posted on 27/06/2012 at 10:00.
    • jikomanzoku
      Member
      Since: Jan 2010

      I think it basically goes like this until a companies lenders decide that the prospects of them seeing their money back are unlikely and that they are throwing good money after bad – stop lending and call in their debts. But I am pretty shaky on this.

      Comment posted on 27/06/2012 at 10:11.
      • jikomanzoku
        Member
        Since: Jan 2010

        I recon ccstar is the best person to answer this – he seems to be the financial guru :)

        Comment posted on 27/06/2012 at 10:20.
      • Bilbo_bobbins
        Member
        Since: Jun 2009

        well its like you say, if the lenders feel they wont be getting their money back, then thats when it all goes tits up. But with Sony not making much money and seem to be going further into debt, surely this can’t last?

        Comment posted on 27/06/2012 at 17:20.
    • FRUIT0FDOOM
      Member
      Since: Aug 2009

      Fingers crossed if it ever did go right under – they would receive a bail out of sorts. But hopefully it will never get to that stage. Surely Sony is like a national treasure to Japan :-/

      Comment posted on 27/06/2012 at 10:15.
  4. YOURMUMANDME
    Member
    Since: Oct 2008

    Sony might benefit from taking a leaf out of Apples book and stick to a reduced and over advertised line of products. They’ve been churning out far too many products (especially TV’s) and have been rolling off the back of their old successes, maybe a change is needed to the company as a whole….

    Comment posted on 27/06/2012 at 10:07.
    • jikomanzoku
      Member
      Since: Jan 2010

      100% concur. Do a few things brilliantly and let people know they exist for christ sakes.

      Comment posted on 27/06/2012 at 10:13.
  5. FRUIT0FDOOM
    Member
    Since: Aug 2009

    Ouch, would not want to be opening the final demand letter on that sum!

    Having only GCSE business studies and Sim City 2000 to call upon as experience all I can suggest is: Build symmetrical blocks of Industry with road going through every four blocks, add 60% the area of your industry as residential with just 10% commercial. Wait for the population to increase (and moan about pollution) then send that TAX skyward at 28% Rake in the money for a year, sell up but leave enough to provide targets for random Tornados!

    But on a serious note; I do hope Sony can weather all this and come out on top. I really hope that much of that is R&D for the PS4 and I feel for anyone having to create a business plan to crawl out of the deficit.

    I don’t need GCSE business or Sim City 2000 experience to tell me that about certainly wasn’t on marketing yet a substantial amount probably should have been! Next generation is going to be seriously competitive and Sony need to shout about what ever it is the PS4 does better – and I mean SHOUT!

    Comment posted on 27/06/2012 at 10:12.
  6. skibadee
    Member
    Since: Oct 2009

    but there doing things like teaming up with Panasonic in the OLED TV biz they are putting $620 million into Olympus camera company so they have money.

    Comment posted on 27/06/2012 at 10:23.
    • cam the man
      Member
      Since: May 2009

      They have ‘other peoples’ money.

      Comment posted on 27/06/2012 at 11:59.
    • jimmy-google
      Member
      Since: Feb 2009

      It’s all interesting that Sony anre teaming up with Panasonic in a bid to under cut the price of the TV’s the Samsung/LG partnership will be releasing.

      Comment posted on 27/06/2012 at 12:04.
  7. gazzagb
    Master of speling mitakse
    Since: Feb 2009

    Would be interesting to have figures for MS, Nintendo etc to have some context of these figures. Eitherway, that’s a huge loss.

    Comment posted on 27/06/2012 at 10:42.
  8. Awayze
    Member
    Since: Jul 2010

    I remember when Sony were untouchable in the 90′s/early 2000′s. Everyone had some sort of Sony product but now they have so much competition from cheaper manufacturers.

    They need to do what Apple did to save themselves from bankruptcy and concentrate on a new product and stop selling products like TV’s, blu ray players, avr’s etc. If I was Sony, I’d concentrate only on the PlayStation, Handycam, Cybershot, VAIO and Xperia lines for now. Ive noticed how their new VAIO’s and Bravia’s are considerably cheaper than I expected.

    Comment posted on 27/06/2012 at 11:20.
    • cam the man
      Member
      Since: May 2009

      They do have their fingers in a lot of pies, probably too many.
      I wonder how there doing in the movie/music business?

      Comment posted on 27/06/2012 at 12:02.
      • BalramRules
        Member
        Since: Jun 2009

        I think they’re doing good in the movie business if you ask me (Skyfall’s coming out soon, yay!)
        And Sony also worked on The Amazing SpiderMan no?
        So I think it’s only the TV business that’s failing (from what I know, there could be more sectors, I don’t think the PS Vita’s profiting either, is it?)

        Comment posted on 27/06/2012 at 21:27.
  9. An-dz
    Member
    Since: Oct 2010

    They cant collapse, even if everything that could possibly go wrong did someone would save them. They are too big to fail now

    Comment posted on 27/06/2012 at 12:34.
    • blast71
      Member
      Since: May 2012

      Try telling that 2 Rangers fans :)

      Comment posted on 27/06/2012 at 18:43.

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