Sony Earnings Outlook Bleak

[fitbabits]

http://i15.photobucket.com/albums/a390/fitbabits/sony-Logo.jpg


Forbes is reporting that the financial outlook for Sony is looking increasingly bleak. This follows Sony cutting its own earning forecast by some $1.5 billion. With a B.

So what is responsible for the drastic cut? According to Sony, the biggest contributor to the cut was higher than expected foreign exchange losses. Also to blame is the stronger Yen which dipped below the 100-point mark against the US dollar. The net result of this is that exports become more expensive for manufacturers. Sony also predicted the global economic downturn would likely result in a negative impact on its television and digital camera sales.

Perhaps more worryingly, the company also stated that "market fluctuations could further negatively impact the revised forecast."

All this news has led one anonymous analyst to predict that Sony will post a loss for the 2008 fiscal year.

In related news, Sony's 2008 second fiscal quarter is down almost half to 73.7 billion yen ($754.9 million). It should be noted that this figure also includes a one-time gain of 60.7 billion yen ($621.8 million) from an earlier property sale.
Source - Forbes (http://www.forbes.com/markets/economy/2008/10/23/sony-earnings-cut-markets-equity-cx_twdd_1023markets04.html)

[Goronmon]

Holy crap that's a big logo.

[Troggles]

Their logo is bigger than their earnings.

[DangerousDaze]

It's not all doom and gloom. They expect PSP sales to be a million higher than originally forecast but that's not going to prevent the gaming division from making another loss.

[Gorvi]

Such is the state of the world economy right now. Ain't it grand?

[TheFlyingOrc]

http://i22.photobucket.com/albums/b350/theflyingorc/DrDoomChap.gif

[KingGorilla]

How does this compare to the rest of the market.? Most companies are down right now. Luxury goods makers are really being hit hard right now.

[Mike Kelehan]

Wow, a yen's worth more than a penny? We're in trouble.

[OldJadedGamer]

In a bad economy, people aren't rushing out to pay thousands of dollars on high end electronic equipment. This just isn't the time to push something like Blu-ray... and now it's like a huge anchor on the PS3.

[BlackPete]

Yeah, a Blu-ray doesn't seem so hot right now. I've always believed that in bad economic times, people are going to turn to cheap luxury goods because they need something to cheer them up. However, they still need to scrimp and save where they can.

If they're going to turn to video games, they'll probably go for the cheap(er) games and hardware. It'll be interesting if there'll be a massive surge in DS and Wii sales to see if my theory is correct.

[fitbabits]

Yeah, a Blu-ray doesn't seem so hot right now. I've always believed that in bad economic times, people are going to turn to cheap luxury goods because they need something to cheer them up. However, they still need to scrimp and save where they can.

If they're going to turn to video games, they'll probably go for the cheap(er) games and hardware. It'll be interesting if there'll be a massive surge in DS and Wii sales to see if my theory is correct.
The Xbox 360 is now cheaper than the Wii, so that may also see an uptick in sales based on your scenario.

[Johan]

I've always believed that in bad economic times, people are going to turn to cheap luxury goods because they need something to cheer them up.

I think this is quite true. I wonder if there will be any downward pressure on retail disk-based game prices from the standard $59.99 for the consoles and $29.99-39.99 for handhelds?

I'd like to see that, for sure!

[DeathtollWRX]

I don't really think Sony is going to be affected in any huge way. There will still be PS3 and PSP as well as a multitude of other things. Maybe they can just scale back on other technologies don't sell much of.

Do you guys really think Blu-Ray isn't selling ? do we have sales data in the last few months. I'm interested.. I know alot of BLU Ray viewers but they only rent and not buy.

[J Arcane]

The Xbox 360 is now cheaper than the Wii, so that may also see an uptick in sales based on your scenario.
And said cheaper 360 is also the crippled model with no built in HDD, despite being heavily marketed towards XBLA usage.

[fitbabits]

And said cheaper 360 is also the crippled model with no built in HDD, despite being heavily marketed towards XBLA usage.
It's still cheaper, and it's still a very viable purchase. The point I was responding to was dollar-related.

[MagGnome]

A lot of companies are losing money right now. The whole world economy is in a tailspin, but I guess we all know that.

[pomeroy]

A lot of companies are losing money right now. The whole world economy is in a tailspin, but I guess we all know that.

http://www.talespinhq.com/Layout/talespin.jpg

Look out for Shere Khan, though. He's a dick.

[fitbabits]

A lot of companies are losing money right now. The whole world economy is in a tailspin, but I guess we all know that.
Yep.

It's interesting to me, though, that LG, Samsung, etc. seem to be somewhat cashing in on this as far a televisions are concerned.

[GrenMag]

Maybe it's time they moved some of their manufacturing into the countries/regions with the depressed exchange rates...

[Johan]

...as far a televisions are concerned.

Great time to be making televisions, because the U.S. is going digital in Feb. of '09. People are upgrading their sets to get the signal (yes, some are also just getting converter boxes, or signing up for cable/satellite and obviating the need for a new set. Some are just upgrading, though.).

At least, that's my hypothesis. I, however, bought a couple of converter boxes with the free discount cards from the government. :)

[KingGorilla]

I think more will be upgrading to Vizios and not many to Bravias.

[MagGnome]

Look out for Shere Khan, though. He's a dick.

Oh, the memories. To be a child in the early 90s once again. :cool:


Yep.

It's interesting to me, though, that LG, Samsung, etc. seem to be somewhat cashing in on this as far a televisions are concerned.


I bought a beautiful Samsung 32" HDTV for my room just a few weeks ago. I love it!

I almost bought a Sony, but I decided that the Samsung was a better set.

[Purple Santa]

Oh, the memories. To be a child in the early 90s once again. :cool:

I bought a beautiful Samsung 32" HDTV for my room just a few weeks ago. I love it!

I almost bought a Sony, but I decided that the Samsung was a better set.

Sony hater! First no PS3...now no Sony TV set. Hatah. :eek:;)

[MagGnome]

Sony hater! First no PS3...now no Sony TV set. Hatah. :eek:;)

Fuck Sony! We all know all that company does is lie. :rolleyes: