Sony's Financial circumstances

Discussion in 'Playstation - PS4 & Vita' started by Deleted member 92943, Feb 6, 2014.

  1. Deleted member 92943

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    I know it's been mentioned elsewhere but I thought that with Playstation being a major part of Sony these days, it's interesting to see how it falls into Sonys grand scheme in trying to get into the black.

    Let's not beat about the bush, they are bleeding money and they are doing as much as possible to cut outgoings and operating costs.

    They've sold their Manhattan headquarters for $1.1 billion
    BBC News - Sony sells Manhattan headquarters skyscraper for $1.1bn

    They sold their Tokyo 'holy land' headquarters for $1.2 billion
    Sony sells Tokyo office building for $1.2 billion as part of continued restructuring | The Verge

    Now they've decided to quit the PC market altogether in a deal apparently worth ¥50 billion. Their TV division which now looses the most money is being broken off into a separate part of the company
    Sony sells its VAIO PC business, is splitting TV arm into a separate company

    Not 100% sure but it seems the E-Reader group is also getting the chop
    Sony to close Reader store and move users to Kobo's e-book platform in 'late March'


    It's not all doom and gloom though. Over 2 million PS4 owners alone (so 50%) have also bought a Playstation Plus subscription which will bring in $100 million per year. Add all the other Plus subs and that will be a fair bit more
    PlayStation 4 PS Plus subscriptions tops 2 million | Playstation 4
     
  2. CAS FAN

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    All seems positive to me and it's clear that Sony have finally started to get their act together. They desperately needed this new, leaner more focused corporate structure and hopefully they can move on successfully in this new world.

    They could never quite compete with Apple in the high end laptop and PC world and Amazon have taken them to the cleaners in the e-reader market. That said, my wife swears by her Sony (and has had a couple of Sony E-Readers), which to be fair is a much more flexible platform than Kindle. Add to the fact that they have never been able to replicate their CRT success in the LCD and Plasma world (with the likes of Samsung, Panasonic and LG being more successful), then it's easy to see why they are moving in the direction they are.

    I think that they can come back strongly in the TV market with their new focus and hopefully they can slim down their range and provide consumers with some clear choices from an easy to understand selection. They do still make some very good TVs as well and we only have to look at the W905 for an example of that.
     
  3. Det

    Det
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    I need to get a W9 before they call it quits if they do.
     
  4. CAS FAN

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    They won't call it quits in the TV market. They just need to refocus to get back their former glory. Their problem has been that they have been in to many markets with too many products. They make TVs, consoles, amps, blu ray/DVD players, phones, e readers, all in one systems, MP3 players, tablets, projectors, radios, hi if systems and separates and probably a lot more stuff I haven't mentioned. The successful companies now focus on a more limited range and do what they do very well. It's just been hard for Sony to cover everything as successfully as their competitors who have been more focused.
     
  5. THE_FORCE

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    I'll always love Sony no matter how skint they get.

    They've always designed the most aesthetically beautiful pieces of technology I've seen throughout the years, and memories I'll hold forever dear when I was growing up was grabbing the latest Sony catalogue and swooning at their latest ES gear and Grand Wegas.

    I continue to remain one of their biggest fanboys. :blush:

    *sighs*
     
  6. CAS FAN

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    I have also enjoyed a lot of their products over the years and they have retained my custom in a. Lot of areas. Back in the trinitron CRT days I would buy only their TVs and still have an old 4:3 29" TV in my games room with some old consoles connected to it. They did lose their was TV wise in the flat panel era though and since then I have mainly owned Samsungs, with my main tv being a Pioneer that has lasted me the last 5 years!

    Phone and tablet wise, I have tended to prefer either Apple or Samsung, but I love the Playstation as a console, my last 4 amps/all in ones have been Sony's, I've owned Sony Blu Ray players and mini Sony hi if systems. I have had a great Bluetooth Sony speaker which has served me for years and overall I've got a lot of time for the brand. It's a brand which generally instils confidence in me.

    Looking back I used to love my Walkman and whilst this is another area where they have generally lost out to Apple, I find that I listen to most of my music now on Sony Unlimited (which is a good service).

    I would never become a complete fanboy of any brand and have tended to buy from other firms, where I have felt they have done a better job in some areas. That said, the Sony brand is one of the brands I respect most in consumer electronics and their products are usually of a high standard.
     
  7. iwb100

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    I have to say that a forecasted annual profit being downgraded by Sony to a forecasted $1.1Bn loss is my very definition of the opposite of "all positive".

    They're in a mess.

    But I want them to sort it out because I'd love to be able to buy a Sony TV again, if they can sort out some of the problems they've had. And certainly this year's models seem to be heading that way. Just make your bezels thinner please.....
     
  8. Stinja

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    Yep, they seemed to keep diversifying, which was fine when the economy was booming, but is hurting them bad now.

    I've always liked their products, as they seemed to really engineer the hardware well, then apply a decent dose of styling - and you have a desirable product. Unfortunately they've often been (too) pricey compared to the competition, and the average consumer is now after style not substance.

    Hopefully they can spin off the unprofitable bits, and compete on the areas they are doing well in, and make it back...
     
  9. CAS FAN

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    I wasn't referring to their current state as being positive, more that the steps they are taking are positive. They have been in a sorry mess for years (pretty much since the start of the digital age of flat screen TVs, mp3s etc.) and have been in too many markets, where they have been beaten by other firms.

    TVs - were fairly dominant or at least extremely competitive in the CRT market, but now they are regularly outsold by several brands
    Music - the walkman was a dominant brand, now Walkman products are just one to the other MP3 players languishing behind the ipod
    Consoles - the PS1&PS2 were dominant, but the PS3 became just another console, outsold by Nintendo and with sales similar to the Xbox
    E-readers - great product and first to mass market, but destroyed by the now dominant Kindle.

    It sounds like the restructuring of the company could see them return to what they do best. The PS4 is a great device and they are building a great gaming ecosystem so I can see them succeed there. Their latest TVs are very good and if they can keep a focused product range there then they could do very well. I they pull out of some other markets (e-readers, laptops etc.) then that will allow them to be more focused on the areas where they have been previously dominant (consoles, TVs and maybe music).
     
  10. RedAl

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    Lets not forget their latest range of Smartphones and Tablets are doing really well too. Once my current phone contract is up I`m going for the Z1 smartphone.
     
  11. Deleted member 92943

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    Do they still make MP3 players or is the whole world only using iPods now? Maybe that's a division they could scrap too and push their phones/ tablets more.
     
  12. iwb100

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    They're losing lots of money on TV's. And won't break even on PS4 consoles for 2 years (according to their own projections). These things aren't going to save Sony. Drops in the ocean springs to mind....
     
  13. zt1903

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    You need to look behind the headlines sometimes.

    The change in forecast is mostly "accounting stuff" associated with the restructuring that they announced i.e. because they have announced the restructuring they now have to make provision for the redundancies that they announced (even though the cost will be in the future) and will have to change the basis of asset valuation on the divisions that they are spinning off or selling.

    Sometimes when you do something positive it has a (short term) negative accounting impact. That's what's happening here - and why their share price has actually gone up over the last couple of days.
     
  14. iwb100

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    Sony aren't restructuring and cost cutting because things were going well...however you look at it, and Sony will inevitably put a more positive spin on it, or try to, they definitely needed to do something.
     
  15. Det

    Det
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    And they are...
     
  16. zt1903

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    No one is suggesting that Sony does not have issues, they have long been a company in need of finding some focus and undertaking serious restructuring - which is why Kaz Hirai was appointed in the first place.

    However, you appeared to be wanting to draw a conclusion from Sony (maybe, it's only a forecast right now) making a small loss in this financial year that was unmerited.
     
  17. iwb100

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    I don't think suggesting a company that themselves were forecasting a profit this financial year, that have since downgraded that into a $1.1 billion loss, are in trouble, is an unmerited jump. They are in trouble and at least have a plan to deal with it, but cost cutting and reorganisation cannot be viewed as a positive, not until you see what the end of turnaround position looks like.
     
  18. zt1903

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    I refer you to my previous post #13 on this thread.
     
  19. CAS FAN

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    Breaking even on a console after 2 years would be a fantastic result. Not sure that they ever broke even on the PS3 lol. It's not the hardware where they make their money though, it's the PS+ subs etc.
     
  20. CAS FAN

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    Don't really get your points in this thread.

    - Sony are in financial trouble, have lost focus and diversified their business too much
    - As a result they have become the Jack of all trades in the consumer electronics world, where they were once dominant in several areas
    - They have identified this and are restructuring the business to hopefully return to more profitable times, being more focused

    Nobody is saying that Sony aren't in trouble and it's not about putting a positive spin on anything. It's simply about them doing what they need to do to return to the good times.
     
  21. Deleted member 92943

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  22. Soundburst

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    I think we have a Sony Centre here in Belfast. It's in quite a fancy listed building right beside City Hall - It can't be cheap.

    1.jpg
     
  23. Deleted member 92943

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    That will be listed on rightmove in the next few days :p
     
  24. Soundburst

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    Hahaha. I don't doubt it. I've never been in! I don't know why anyone would go direct; surely everything is RRP :confused:
     
  25. Det

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    I've never seen a Sony store.

    Get rid of them all. They arent exactly Apple and can get away with their own high street retail shops.
     
  26. Soundburst

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    I wouldn't say get rid of them all just because I've never been in one.

    The staff in those stores, be it front of house, or back of house, have families to feed and mortgages to pay.
     
  27. Det

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    I'm not saying I dont feel for them and their families. That's the first thing that comes to mind when I hear of stores closing but it's also the way business works. If its unprofitable and has been for a while then they need to cut costs.

    With virtually EVERY retailer carrying Sony kit and online purchasing there is no reason to pay high lease costs among other things.

    They aren't exactly a clothing brand that would benefit from having a physical presence all around the world.
     
  28. Stinja

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    There's a Sony store in Bromley, and (i think) one up near Tottenham Court Road. Unfortunately the few times i've been in, they dont ever seem to carry Gaming stuff - ok they dont want to be a game store, but not controllers, PS3 video cables, gaming headphones, or other hardware and support items.

    When i wanted to get my PS3 fixed, they said they couldn't help at all... Sony product.. Sony store... ok...
     
  29. Deleted member 92943

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    They should just ditch their stores and make bigger pushes in John Lewis for example. We have a rep from Panasonic and Samsung every weekend and NOTHING from Sony which makes me sad
     
  30. zt1903

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    IIRC the UK Sony stores are not actually owned by Sony but are actually franchises.

    A company like Sony doesn't need to own stores as every electronics retailer is going to carry their products. Unless you're creating a flagship retail presence - like Apple stores - then I don't really see the point.

    Good business move IMHO.
     

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