Article written by Alex C.
Published on 27/06/2012 at 09:00 AM.
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.
“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.
And whats that in pounds please?
£2.50.
at that price they won’t be selling the ps4 at a loss.
£760 million.
thanks
How long can a company keep making a loss and carry on? I don’t understand this logic.
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.
I recon ccstar is the best person to answer this – he seems to be the financial guru :)
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?
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 :-/
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….
100% concur. Do a few things brilliantly and let people know they exist for christ sakes.
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!
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.
They have ‘other peoples’ money.
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.
Would be interesting to have figures for MS, Nintendo etc to have some context of these figures. Eitherway, that’s a huge loss.
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.
They do have their fingers in a lot of pies, probably too many.
I wonder how there doing in the movie/music business?
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?)
They cant collapse, even if everything that could possibly go wrong did someone would save them. They are too big to fail now
Try telling that 2 Rangers fans :)