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Sony CEO Kazuo Hirai  (Source:
The company said a weak global economy and exchange rate moves are the cause

Sony is in hot water -- that's nothing we haven't heard before. The electronics company has been struggling with areas like its TV sector for a while now, and these troubles are reflected in the most recent financial earnings report.

Sony posted operating profit of $6.28 billion yen ($80 million), a significant 77 percent decrease compared to one year earlier. Analysts only predicted a 36 percent profit drop.
Sony had a 94 billion yen operating loss and $24.64 billion yen net loss for the quarter ended June 30.

Also, Sony slashed its previous financial predictions for the year until March 2013. It cut its operating profit forecasts from 180 billion yen to 130 billion yen, and also reduced its TV shipment predictions from 17.5 million to 15.5 million as well as its handheld device sales from 16 million to 12 million.

One glimmer of light, however, is that PlayStation sales are remaining at the previous prediction of 16 million sales.

So what's Sony's beef? The company said a weak global economy and exchange rate moves. Also, a lot of it has to do with the company's TV unit. Last December, Sony decided to shake up its TV division by negotiating a buyout of its 50 percent manufacturing stake with Samsung in the LCD joint venture. It also split its TV division into three units consisting of sales of LCD TVs, outsourcing manufacturing to cheaper foreign facilities and developing future TVs.

But help may come in the form of the new CEO, Kazuo Hirai, who was appointed to the position in February 2012. He vowed to take over the struggling TV unit himself, and made other management changes to help bring the company back to life.

In April 2012, Hirai came up with an entirely new game plan for making Sony profitable, which included design changes to gadgets like TVs, a reduction of certain models, and expanded game titles and subscription services.

Despite Hirai's best efforts, the company had to cut 6 percent of its global workforce in April in order to save some cash. Later, in May, Sony reported a record $5.7 billion USD annual loss.

Source: Reuters

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RE: Make the PS4 a be all, end all device
By StevoLincolnite on 8/2/2012 2:46:54 PM , Rating: 2
You forget that historically when Sony launches a new console, they sell it at a loss, only to be made up with games and accessories later.

If everyone bought a PS3 ONLY for a blu ray player when it launched, Sony would have posted even larger loss's.

Also, the Gaming division is only one aspect of Sony, they make allot of money from their other divisions, to throw them all out the window in favor of a new console that is going to loose money for the first few years doesn't make sense.

RE: Make the PS4 a be all, end all device
By quiksilvr on 8/2/12, Rating: 0
By quiksilvr on 8/2/2012 3:02:28 PM , Rating: 2
NEED EDIT BUTTON: Removing distractions from their bread and butter is A GOOD business choice.

RE: Make the PS4 a be all, end all device
By lightfoot on 8/2/2012 3:19:47 PM , Rating: 3
You would never want to use a SSD for DVR functions.

With large sequential data files (like streaming video) the disadvantages of a SSD far exceed the advantages.

By quiksilvr on 8/2/2012 6:39:36 PM , Rating: 2
I actually would like to use SSDs for the games itself. Hard drives have become so cheap now they can stick a 500GB HDD in there with minimal impact to development costs.

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