Anyone Think Sony May Go Out Of Business? Profits Fall 95 Percent

shuges

shuges

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Going out of business may be a reach. But what do you guys think will be the future of the Playstation? There have been whispers (rumors) that Sony may decideto abandon the gaming market altogether.
And what about Blu-Ray? It still hasn't quite caught on yet.
Can Sony continue to afford pouring money into areas where there is no potential growth for revenue?


January 29, 2009 -- Updated 1305 GMT (2105 HKT)

TOKYO, Japan (CNN) -- Sony blamed the global economic slowdown, increased competition and an appreciating yen for a 95 percent drop in third-quarter profits, as the company announced its results Thursday.
Profits for the quarter, which ended December 31, fell from nearly 200 billion yen ($2.2 billion) in 2007 to about 10 billion yen ($110 million) in 2008.
Across the company, sales were down 25 percent, but electronics and games sales were especially hard hit.

Sales of games, including the company's popular PlayStation series, fell 32 percent over the year. Sales of electronics decreased by nearly 30 percent.

The appreciation of the yen also cut into profits.

A stronger yen makes Japanese products more expensive or forces companies to lower their profit margins to keep prices the same.

Last week, Sony warned that it will close out the fiscal year, which ends March 31, with an operating loss of 260 billion yen ($2.9 billion), its first in 14 years.

http://edition.cnn.com/20...1/29/sony.loss/index.html
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seriously, Sony has fallen off so viciously. mostly due to their arrogance about their perceived superior console
 
damn. just bought a Sony Blu-Ray player recently. Hope the warranty still work after that....
 
damn 95% drop
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well thats what happens when u think u got it on smash and sit on ya thumbs....i dont see them abandoning the gaming market wholly tho
 
.....and to think, they had the Walkman first
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, howthey got behind in the music technology game is also
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Originally Posted by ericberry14

seriously, Sony has fallen off so viciously. mostly due to their arrogance about their perceived superior console
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Yep that's just it right there.
 
You would think that the PS3 sales would pick up because of the Blu Ray. One bad quater isn't gonna put a company like sony under.
 
i just love how CNN - the leader of "ps3 is doomed" articles - decided to put this out on the day that news got out that both 360 and ps3 sold 10.8mil worldwide for 2008

why arent people buying more 199 consoles?
 
Originally Posted by Fear The Ibis

Xbox 360 may just really kill the playstation after all.
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the hate is obviously thick,
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at people thinking this spells some kind of doom for SCE and the playstation 3,

yall do realize that SCE is profitable right? and that SCE is more than just PS3 right? (especially with SOE becoming part of SCE) and how much u guys thinkit costs to make a psp or ps2
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again how many more 360s were sold than ps3s in 08? why arent people buying more 199 consoles?
 
Well I'm still looking forward to price drop anyway. While this may mean no PS4, they had a good run. PS2/3 was the best of the next gen consoles.
 
Originally Posted by AntBanks81

Well I'm still looking forward to price drop anyway. While this may mean no PS4, they had a good run. PS2/3 was the best of the next gen consoles.
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That's far from what this means. Keep in mind that with time production costs go down because of advances in technology. Sony knew that. Theyfelt the pressure to put out a product and they did knowing the losses they'd take, but the economy is amplifying that. Regardless, the world is in agloomy state and its just as much a psychological issue as it is economic right now. We'll see what happens as the months go on.

And
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@ the rest of you people.
 
just for the quarter though...and it still eeked out a $1.2 Million profit though
and their revenue was 23 Billion.

they're not going anywhere anytime soon.
 
JUST LIKE NINTENDO IN THE 90'S ... gassed off of the success of the original nintendo, they raped developers for publishing and royalty fees
they were too arrogant and dissed sony which led to the creation of the playstation in the first place. However, nintendo has always been big on cash
and has pretty much stuck to games ...

anyways ... sony has fallen off ... high prices for products that aren't worth it, inventions such as the minidisc, now they coming out w/ a PSP 2 ... itwill
sell but nintendo has just shipped its 96th million DS unit .... they taking mad L's right now... they won't go out of business but sony has alot lessexclusives
than they used too, sort of like nintendo did back in the day ...
 
Profits may have fallen but they regardless they still made profits.

The only thing sony should worry about are their pissed off investors.

I own a PS3 but I hate sony. I hated them ever since they force consumers to buy their memory sticks for their memory stick exclusive device. They areexpensive and inferior to SD. And lets not mention the Atrac codecs were on their MD players and MP3 players a few years ago. You basically have to convertyour entire mp3 music library to atrac in order to transfer songs to their portable music players.

Ever since then I never touched a sony product besides ps3, blu-ray and games.
 
Originally Posted by ericberry14

Originally Posted by justhotkicks

Originally Posted by ericberry14

mostly due to their perceived arrogance about their superior console
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Fixed.
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it was fine the way it is.
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its funny, a year or 2 from now, gears of war 3 is gonna come out and im probably going to be saying to myself "why doesnt this look better thankillzone?" - maybe cause all these 360 developers need to stop bleeding this unreal 3 engine dry, sony's hitting hard this year with SUPERIOR lookingexclusives such as kz2, god of war 3, heavy rain, uncharted 2, and possibly GT5 - PS3 is definitely superior

now before u start with that "360 has better online" - yeah, we all know live is better with its cross game chats and cross game invites so itsbetter in terms of communication, but i dont see live doing 128 vs 128 anytime soon, let alone 30 vs 30, hell Epic couldnt even get 5 on 5 right (yall knowwhat i mean)
 
^ (thehealthinspector)
Dog, this is not a 360 vs PS3 thread.

You do realize that you were the 1st to even mention "360" in here right?
 
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