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JackFetch

Sony lost $5.7 billion last year

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The creator of the Walkman music player and PlayStation games console forecast an operating profit of 180 billion yen for the year to next March, compared with a consensus estimate of 173 billion yen among 18 analysts surveyed by Thomson Reuters I/B/E/S. It forecast a full-year net profit of 30 billion yen.

In the year just ended, Sony posted an operating loss of 67.3 billion yen, lower than the average 95 billion yen loss estimated by 17 analysts.

Hobbled by losses from its TV business and competition in mobile phones and other devices from rivals Apple (AAPL.O) and Samsung Electronics (005930.KS), Sony is struggling to make money.

Under new CEO Kazuo Hirai, Sony is slashing costs and jobs in a bid to turnaround its struggling TV unit. While considering partnerships to help Sony compete better in TVs, Hirai is looking to cameras, gaming and smartphones to spur growth.

Since the start of the year, Sony shares have tumbled 58 percent, while the benchmark Nikkei 225 index .225 has declined 13 percent. At current levels, Sony is worth less than a tenth of Samsung and just 3 percent of Apple. ($1 = 79.5500 Japanese yen)

http://www.reuters.c...E8490A120120510

While a little different than Nintendo because they do a lot more than just video games, it's still a huge deal.

If anyone is wondering how Microsoft compared, Xbox 360 sales were down 48% but they still beat both Sony and Nintendo every month. The Kinect is saving the Entertainment and Devices Division. It would be better, but that's also where the Windows Phone is.

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Haha, Video Game sales might have eclipsed movies in total revenue but at least hollywood knows how to turn a profit overall. For every John Carter Disney makes they've still got an Avengers.

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Pretty sure Activision are making a very handsome profit, to name just one developer of many making a profit, so there is plenty of money in the video game industry.

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The developers are making money but like Jack said the hardware-makers aren't. It would be like saying it's OK that Paramount lost a billion in a quarter because Working Title and the other production houses made money. It's indicative of an overall problematic business plan.

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The fact that the end of a generation of hardware is in the middle of a terrible worldwide recession is the worst part. One of these companies might not make it through this if the economy doesn't get better soon. Nintendo is coming out with new expensive hardware when most people can't afford to buy it.

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Activision's software department isn't always the height of success, either. They ran the Guitar Hero franchise into the ground with new title after new title after new title and oversaturated the market until they killed their cash cow.

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The fact that the end of a generation of hardware is in the middle of a terrible worldwide recession is the worst part. One of these companies might not make it through this if the economy doesn't get better soon. Nintendo is coming out with new expensive hardware when most people can't afford to buy it.

That might not be entirely true. There's a weird sociological phenomenon that happens with certain high-priced electronics items where people still buy them despite recessions. The iPod and iPhone are the most recent example, where nearly everyone and their mother has one despite the fact that logically they shouldn't be spending that much money. There's a very good chance that the next generation of consoles will still sell well despite the recession.

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I think that's because a phone is now something people can use 24 hours a day. I'm not sure anyone has the same justification for using their console.

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There has been a precedent in the past that entertainment is recession-proof.

That said, the games industry is in a transitional period and the next generation is going to be rough for everyone.

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Activision's software department isn't always the height of success, either. They ran the Guitar Hero franchise into the ground with new title after new title after new title and oversaturated the market until they killed their cash cow.

Activision have a new cash cow, which is going to be a lot more lucrative for them. Skylanders.

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