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Sony continues to post losses

Things aren't going well for Sony, as the company is struggling in multiple market segments to compete. The company has seen its profits slump and recently posted its eighth consecutive quarterly loss. Sony was also forced to cut sales targets for its TVs, gaming devices, and digital cameras as demand continues to weaken.

Sony has resorted to selling some of the property it owns in order to improve cash flow. In January, Sony sold its New York headquarters for $1.1 billion.

However, the sale of that headquarters didn't stop Sony from posting a loss of $1.73 billion for the quarter that ended in December. Sony blamed some of the loss on slumping TV sales that have plagued some of its competitors including Sharp and Panasonic.

“Having assets to sell is saving Sony,” said Mitsuo Shimizu, a Tokyo-based analyst at Iwai Cosmo Holdings Inc. “It isn’t really clear yet what can start driving growth.”

While Sony posted a loss for the quarter, the company still forecasts full-year net income of $213 million. Sony is also cutting 10,000 jobs, which should help push it towards probability.

“Sony is supposed to sell strong products that aren’t reliant on currency swings,” said Yuuki Sakurai, president of Fukoku Capital Management Inc. “We need to see those products before we’ll invest in Sony again.”

Sony also reduced its forecast for sales of portable game devices for its year ending March to 7 million units from the 10 million units it predicted just three months ago. In addition, Sony is reportedly looking at selling more land, buildings, businesses, and security holdings.
 
Sony does plan to launch a new “PlayStation 4” game console this year. An exact launch date and official name has not yet been revealed, but we expect to get the full details at the reveal on February 20. The console will reportedly have a price tag of $400+.

Sources: Bloomberg, Nikkei, The Verge



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making crap and expecting a profit?
By luv2liv on 2/7/2013 9:34:51 AM , Rating: 2
Sony makes crap and expect to make a profit? as if they didnt learn from all of those proprietary formats and now again on the PS Vita.
and why would anyone buy an overpriced TV when they can get a Vizio SmartTV for almost 50% less?

funny how Steve Jobs learned and copied from Sony though. Apple skyrocketed upward but who knows, Apple is starting to sink like Sony because people werent too convinced they need an extra row of icons in iphone 5. oops




RE: making crap and expecting a profit?
By tayb on 2/7/2013 9:47:45 AM , Rating: 2
Sony makes decent stuff it's just not good enough to justify the price. I still prefer Sony laptops if I need a Windows machine but the price is way outside the industry norm now so I pass.

quote:
funny how Steve Jobs learned and copied from Sony though. Apple skyrocketed upward but who knows, Apple is starting to sink like Sony because people werent too convinced they need an extra row of icons in iphone 5. oops


Except that Apple is essentially printing money. A "bad quarter" (Q4 2012) meant a net profit of $8,200,000,000.


RE: making crap and expecting a profit?
By SAN-Man on 2/7/2013 9:58:57 AM , Rating: 3
The big difference between Sony products and Apple products is the Sony products have some style and class whereas Apple products appear to be designed for colorblind infants.


RE: making crap and expecting a profit?
By AnnihilatorX on 2/7/2013 10:49:23 AM , Rating: 2
It's amazing how fast fashion changes. If the above comment was made 2 years ago it'd have been rated down to -1 in less than 5 minutes :)


By SAN-Man on 2/12/2013 4:14:38 PM , Rating: 2
I don't think I agree. Apple's design philosophy hasn't changed much at all since Y2K really. Their products continue to be refined and looking at them you can see a logical progression but they haven't really CHANGED. They still look like they were made for color blind infants who don't like hard right angles.


RE: making crap and expecting a profit?
By JackBurton on 2/7/13, Rating: -1
RE: making crap and expecting a profit?
By luv2liv on 2/7/2013 11:17:30 AM , Rating: 2
newsflash! if people cared about quality, they wouldnt listen to MP3 formats in the first place. nor would they buy ipod to listen to MP3. the ipod/iphone audio is horrendous!

people nowadays are buying based on marketing. Sony was king of marketing. was. apple is the king now.


By stickman555 on 2/7/2013 4:33:12 PM , Rating: 2
Agreed - compared to listening to cds/dvds through my home stereo mp3s on ipod are crap. But on a plan at 30,000 feet through noise-cancelling headphones, mp3s on an ipod are better than the alternative


By TakinYourPoints on 2/7/2013 6:55:57 PM , Rating: 2
There is still quality to be had if you pay for it. Panasonic plasmas for instance, those blow away anything by Sony or anyone else on the market right now, and they're well worth the price.

The problem with a company like Sony is that you're paying a premium for hardware that doesn't justify the price. I don't mind paying more for something if its worth it. Unfortunately Sony's laptops make anything look reasonably priced, even high end laptops by Apple or Lenovo, except that the Apple and Lenovo are going to be much much better machines.

The same reasoning applies with desktops, TVs, receivers (always horribly underpowered), phones, tablets, etc etc. You're generally going to find better products for the same amount or less.

They do make excellent Blu-ray players though, and the PS3 is good. Their new XPeria Tablet Z looks very cool as well, so we'll see if they can turn it around.


By retrospooty on 2/7/2013 10:33:23 AM , Rating: 2
Agreed. Sony has earned every bit of this 8 quarters of loss. They worked hard at it and deserve it fully. ;)

With that said, the experia Z looks pretty sweet, so long as it costs the same as other high end smartphones.


By Motoman on 2/7/2013 2:50:23 PM , Rating: 2
I have always marveled at Sony's moronic proprietary formats for things...that never works well, and yet they keep trying. Then of course there was the rootkit fiasco...

And when looking at them side-by-side, I'd guess that I would say a $2,000 Sony 50" LCD TV has a better picture than a $500 Sceptre 50" LCD TV. But once they're not side-by-side...I'm not going to notice the difference. So I can't ever justify the extra expense.


Simple mismanagement
By Ammohunt on 2/7/2013 11:49:02 AM , Rating: 2
Only complete asshats could screw up a company that has a decades old brand name that has been in the past a standard for quality. My entire home theatre system from TV to speakers is Sony next upgrade will probably be a different brand(no not that Vizio garbage). Like most mega corporations i am positive that they just need a management enema, gut upper and middle management and get some fresh blood in the company to revitalize the brand they have been resting on their laurels far too long.




RE: Simple mismanagement
By ktemple on 2/7/2013 2:24:01 PM , Rating: 2
This is beyond true.


Sale of HQ
By augiem on 2/7/2013 5:41:26 PM , Rating: 2
quote:
In January, Sony sold its New York headquarters for $1.1 billion.

However, the sale of that headquarters didn't stop Sony from posting a loss of $1.73 billion for the quarter that ended in December.


Did they count the sale before they sold it? If it was sold in January, shouldn't that show up on the next quarterly report? If they did, that makes the loss even worse. If not, it was only a $.63 billion loss.




RE: Sale of HQ
By augiem on 2/7/2013 5:43:37 PM , Rating: 2
Correction. The article linked states the net profit from the sale is $770 million after paying debts on it.


RIM?
By inperfectdarkness on 2/8/2013 2:05:32 AM , Rating: 3
I think it's high time that Sony & MS bury the hatchet, kiss and make up. Granted, all 3 console MFG's have been taking hits recently (which precludes tracing trends about any particular one of them). The difference is that MS & Sony have been barely scraping by on their costs in the console market.

Now maybe it's just me, but I've never liked MS produced hardware. RROD and overpriced tablets with abysmal battery life notwithstanding, I simply feel that MS does much better when it focuses solely on software. Conversely, I think Sony does better with hardware. There was no logical reason to migrate from the popular PS2 programming format to the labyrinthine PS3 format; and developers hated them for it. MS has more games in its content vault. Sony has more media content in its. HD-DVD died. MS has a better online gaming service. Etc, etc, etc.

Rather than bickering between themselves, these companies could come together and generate more profit for both via greater combined console penetration, and more attached game sales (since consumers won't be forced to choose between popular "exclusive" titles on one or the other).

As I see it, with consoles nearly in line with PC programming standards, it's going to be harder and harder to generate a compelling reason to own a console--versus even a mainstream PC (something that can do much more than a lowly console). This is especially true when consoles creep to the $500 range (like the PS3 has). MS should stick to DX improvements and making sure win9 doesn't suck. Sony should stick to building a console that's super-easy to program for & doesn't break the bank. Then it'll be win-win.




Sony's downfall
By Richard875yh5 on 2/7/2013 11:02:54 AM , Rating: 2
Sony screwed me years many years ago and I have not forgotten. They would not fix a 400 dollar external DVD recorder that was ship to them four times in CA and claimed their was nothing wrong with it. Even their software picked up the recording errors, but they chose to ignore them. I could not make a copy of a DVDs so the unit ended up being a paper weight. So now I say "screw you Sony".




cutting jobs
By Fidget on 2/7/2013 11:25:06 AM , Rating: 2
Is the 10,000 job cuts cited in this article the same 10k they said they were going to cut last year and still haven't done (or in the process of doing) or are these in addition to 10k last year?




Probability?
By fic2 on 2/7/2013 1:58:09 PM , Rating: 2
quote:
which should help push it towards probability .


I guess Sony is in worse shape than most people think if they are just trying to get to a probability state.




Sony
By Richard875yh5 on 3/7/2013 8:38:58 AM , Rating: 2
They screwed my years ago for a faulty ext drive DVD that was shipped to CA four time for repairs, claiming it was okay. This cost me back then over 400 dollars. for all I care, they can go bankrupt.




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