Sony to post huge losses

[AndrewTS 0]

Sony is likely to post a 70.3 billion yen ($658 million) loss for the quarter ending on March 31, the largest loss in two years, compared to the 38.2 billion yen loss of last year. The company will report the exact figures on April 27.

 

Investors will have to rely on Stringer, the company's first non-Japanese CEO, to pump life back into its earnings growth. Shares of Sony had dropped 2.2 percent since March 7, when it named Stringer the company's first non-Japanese CEO and Ryoji Chubachi as president. The stock was higher than the 5.2 percent decline reported in the Topix Electric Appliances Index, which tracks shares of Sony and 160 other Japanese electronics makers.

 

Stringer has announced a three year plan, wherein Sony will cut costs, probably resulting in job cuts and falling prices. Sony is also placing a lot of stock into its PSP system, which they believe can turn into the 'next iPod' if it can 'define itself as more than just a video game player.' The company is also making digital copies of its movies and television shows so filmmakers can use them more easily in DVDs, digital cable, and internet downloads.

 

Whatever the case, Sony has its work ahead of it.

 

Source: GamesAreFun

 

Of course, the losses are probably from other areas of the business--from what I understand their biggest money maker is the Playstation line of products--but it's rather interesting considering that despite all that success, the company isn't as strong as you'd think.

 

PSP as the "next iPod," though? Eh, I don't know about that...and UMD I don't see as having much appeal outside of gamers.

[Lord of The Curry 0]

I can understand the whole "next iPod" mentality that people have towards the PSP. I doubt it will ever come close to the sales or marketing that Apple has put into the Pod but when it comes down to it, financially, the PSP has the edge here. You can spend $250+ on an iPod and just get an MP3 player or $350 on a PSP and get a hell of a lot more.

[teke184 0]

The only way I see UMD taking off is if they can price the movies around the same price or less than the comparable DVD versions.

 

 

Some of them are just ridiculous though... $25 for Kill Bill volume 1 on UMD vs. getting both volumes on DVD for the same price. Also, someone could buy the super-duper special edition of Pirates Of The Carribean for the same price as the UMD version.

[Anya 0]

Blasto 2 could save the company.

[Exslade ZX 0]

Didn't they have to stop selling a bunch of PS2's or something anyways?