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Sony to lose 1.1 Billion Dollars. How Come Nobody is Talking About This?


The Derrit
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Oh come now. We all know Nintendo's secret weapon, one they're saving for when they're truly screwed, is the big-budget, Peter Jackson directed, live-action Legend of Zelda movie they know we've all been waiting for.

On topic, I agree with Modus. Sony's everywhere. It doesn't matter as much to them because they have a lot of other successful hands in the oven. I think they even own rights to my firstborn son.

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why is this not being spoken of?

because news.

let's say there's a giant massacre in Iraq or Justin Bieber gets in a car accident. guess which one will be covered most. yep, Justin Bieber. why? because more idiots are interested in that shiz than our actual world. that'll get more interest and probably give news companies more money.

news, everyone.

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Because while Sony is losing money in general, their games division, specifically spearheaded by the PS4 launch, is making money hand over fist.

....what? i'd like to see those numbers.

ps4 is not sold at profit, just like ps3 wasn't, nor the ps2 before that - even with licensing i highly doubt they're making money off of the one to two games people have bought.

both sony's and microsoft's gaming divisions have been HUGE money sinks for their respective companies.

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Do you think maybe it has something to do with the fact that Nintendo is more likely to be complained about because of a larger fanbase of the company itself? I mean it's been around for a big while, has some pretty iconic franchises that you think of when you hear "Nintendo". Also the fact that it's not at the forefront of the console wars and probably never will be makes Nintendo habitually look like it's going to be eradicated.

Sony, on the other hand, has always had this air of huge corporate structure, so it's not as interesting to talk about losing $$$. This is different from Nintendo which seems more corporately unprepared for events like this. It may or may not be, I'm talking about the perception (which media news plays off of)

why is this not being spoken of?

because news.

let's say there's a giant massacre in Iraq or Justin Bieber gets in a car accident. guess which one will be covered most. yep, Justin Bieber. why? because more idiots are interested in that shiz than our actual world. that'll get more interest and probably give news companies more money.

news, everyone.

Is any of this even relevant?

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Well here are several different sources showing just how much Sony made thanks to the PS4 launch:

http://venturebeat.com/2014/02/06/playstation-4-helps-sonys-game-division-record-a-65-increase-in-operating-revenue/

http://www.polygon.com/2014/2/6/5385210/sonys-revenue-booms-with-playstation-4-sales

And here's another source about their former Vaio business:

http://news.yahoo.com/sony-lowers-forecast-loss-trying-sell-vaio-074051017.html

Honestly Derrit, no offense, but I personally expect people who start talking about company financials to be of the sorts that keep abreast with this type of "inside baseball". From the looks of you original post, it seems like you're playing the part of an indignant Nintendo fanboy with tunnel vision.

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Sony didn't sell PS2 for profit in hardware alone, but they made a mint that generation through licensing fees, accessories, 1st party games, and being the #1 selling console that generation (PS2 sold by a landslide over any other console that generation... heck well more than even 360 & PS3... heck not too short of both of them combined (PS2 = 120 Million units, 360+PS3 = 160 million units)

They sold a lot more than "one or two games" for PS2

PS3 is where they struggled, while taking a HUGE loss on hardware in hopes of making it up through licensing... this only works if a LOT of people want the unit and the games, which didn't happen for a while (multiple factors). TOWARDS the end of this generation, they finally were making profit off and continue to make profit (maybe even off the hardware, the newest model PS3 looks like its made out of crappy/cheap components)

The PS4 is a different story... Sony isn't making the same mistake as PS3, the PS4 is sold close to cost (parts are less than $400 to produce), they might not be making profit but they aren't losing anything either. And then you calculate in the licensing fees, accessories, 1st party games, PSN+ subscriptions, etc. They are off to a good start being the popular console this generation again too.

As far as why people point out Nintendo's failures over any other company.. its "Cool" to hate Nintendo right now :/ Plus people seem to just have a fantasy of having their games on the console of their choice so they don't have to buy their hardware or use their online network... which are 2 valid weak points of Nintendo's last 2 consoles. But its just fanboy fantasy mostly. Nintendo is fine

Edited by Crowbar Man
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As far as why people point out Nintendo's failures over any other company.. its "Cool" to hate Nintendo :/ People seem to just have a fantasy of having their games on the console of their choice so they don't have to buy their hardware or use their online network... which are valid weak points of Nintendo's last 2 consoles.

I don't think it's cool to hate Nintendo, I think the last part of your quote is the more important part. Nintendo needs to get up to date with modern technology. x_X If you're going to match the price point, also match the quality. It's important.

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No one else is bringing up numbers, so I'll be that guy. I'm pretty sure the market has it covered -- SNE is down ~15% over the past 6 months, and down ~5% over the past three months. It's probably not making waves in the enthusiast press because most people just don't care. That, and SNE/MSFT are really hard to reason about because they're into so many things.

As far as patent coverage, from what I can tell Sony seems to be about on par with MicroSoft. the numbers are staggering.

I wish both SNE and MSFT would roll out their various divisions though. I've had a few calls made on trends in one division get blown out of the water by incompetence in unrelated industries.

[edit] - fix timeframes

Edited by Newt
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