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View Full Version : Variety: Sony needs a recharge


RobertoOrtiz
10-20-2006, 01:49 PM
Quote:
"Sony has slashed its profit forecasts amid problems in its vidgame division, along with a costly battery recall.


For the fiscal year ending in March, Japanese electronics and content giant cut its expected operating profit by 62% to $424 million from a July projection of 130 billion ($1.1 billion). Expected net profit dropped 38% to $678 million from $1.1 billion.

Sony's next gen vidgame console PlayStation 3 has been plagued by delays. Originally skedded to ship in the spring, it was pushed back to November; the European launch was then pushed back again to March. In addition, Sony cut back the number of units expected to ship by Dec. 31 from 4 million to 2 million.

Conglom noted in its earnings revision that the delays are not only hurting vidgame unit Sony Computer Entertainment but also Sony Electronics, which is making components for the PS3.

Company is also having problems with handheld device the PlayStation Portable (PSP). Launched last year, the PSP is getting trounced in the market by Nintendo's DS; weak sales have led Sony to slash its shipment target for the end of the fiscal year by 25% to 9 million units. Nintendo has already shipped more then 20 million DS units. Sony now estimates that its game division will go $1.7 billion into the red for the fiscal year, nearly double an earlier projection.

"

>>LINK<< (http://www.variety.com/article/VR1117952287.html?categoryid=18&cs=1)


-R

Misery
10-20-2006, 05:59 PM
Now that's alot of beans!

thoughtlesswhisper
10-21-2006, 03:05 AM
goodness me. sony really has put all their eggs in one basket. this could make it or break it for them. i wouldnt be too suprised if i saw sony do a sege-like exit, out of games console manufacturing if it all goes tits up.

EnlightenedPixel
10-21-2006, 04:25 AM
Sony is still a massive entity in the world of digital hardware, I doubt even this would destroy them. They arent making as much overall proffit, that doesnt mean theyre losing money, they just arent getting as much, mainly, it effects their stock holders and their opinions of their brand.

thoughtlesswhisper
10-21-2006, 10:36 AM
Sony is still a massive entity in the world of digital hardware, I doubt even this would destroy them. They arent making as much overall proffit, that doesnt mean theyre losing money, they just arent getting as much, mainly, it effects their stock holders and their opinions of their brand.

Well i dont think 1.7 billion in debt is very easy to recover from my friend. Especially since they said it is not only affecting their games division. What im saying is (although still quite unlikely) if they totally bomb with the ps3, there is no quick way to get that money back. I dont know how much sony is worth in total as a company, but im pretty sure thats enough to sink the SCE part of them.

DoubleSupercool
10-21-2006, 01:18 PM
Sony is still a massive entity in the world of digital hardware, I doubt even this would destroy them. They arent making as much overall proffit, that doesnt mean theyre losing money, they just arent getting as much, mainly, it effects their stock holders and their opinions of their brand.

That's true, however it has been a long time since Sony had brought a new "must have" product to the consumer electronics market. Sony used to be about engineering amazing gadgets that filled people's needs. They seemed to have completely missed the boat or missed the target in several major entertainment areas (music being a huge one. Sony completely missed mp3 and again hampered themselves with proprietary formats).

Personally, I think that PS3 is more important to Sony than people might initially think.

EnlightenedPixel
10-21-2006, 06:05 PM
That's true, however it has been a long time since Sony had brought a new "must have" product to the consumer electronics market.

Thats because consoles arent " must have products" any more. Theyre too similar, and people already know what they want. No one seems to be jumping around from one console to the next like in the old days when people were frantic to find out if Sega or Nintendo were going to outdo eachother. That was also before real computer games, something people seem to forget. Youve essentialy got 4 competing rigs, PC, Xbox, Sony, Nintendo. And reguardless if MS dominates PC gaming, blame Apple for their own shortcomings in that department, and owns Xbox, they still only get people who are interested in developing for one or the other.

The jumps on "graphics" inbetween dont visualy come off as being big jumps either.

From Atari to NES was a huge jump, then to SNES, freakin amazing, then onto SNES and 64, people nearly messed themselves in joy, but when it go tto PS2 and GC, and Xbox... as crazy as it was.. it still just seemed like a slight upgrade of the prior generation, and now, there seems to be even less hype within the masses, people are thinking a bit more logicaly, and just trying to figure out "well which one may have more games I might want to play?" In the old days it was just " HOLY CRAP! ITS NEW! GIMME GIMME!" And again, Gamers are getting older. We're getting smarter, more money wise, and simply stating something is 'new' doesnt phase most of us. Sure, it sets off the Fanboys, but thats to be expected for any market.

As for everything else, there's been many articles on Sony's shortcomings int he department of " thinking outside of the box". It seems like, they thought outside of the box, which now got pulled to the inside of the box, and they just stick with those ideas, rather than go outside of that box again. They also focussed on some of the wrong things. The Cell processor, as absolutely impressive as its architecture is, may have been a waste of time if its just going to hold them back. I personaly hope its manufacturing process speeds up after the innitial sales, and more and more chips are stable enough to use in the PS3, but its causing a lot of problems.

Blueray is NOT however something they wasted time with. At first I thought it was another BetaMax or UMD, but thats because the innitial images I saw of it were inside some kind of plastic container, made it look like a blue Zip-Disc. Now that Ive seen its just like any other CD/DVD, I dont see any reason why it wouldnt be accepted as the title champion of HD video/audio. Apparently its the only format which would allow for a full HD experience, and that is actualy something people are going to want, because in a commercialy driven society, youre alwayse trying to One-Up the Jonses: IE: Show off to other people.

Here's the thing though, Even if the PS3 costs a lot, its got all its functionality built in. If you want HD with the Xbox, youre going to now pay $200 for the plugin. That totaly negates the argument of PS3 costing more, it just costs more to start with, after that, youre pretty much even.

Outside of the Console market, yes, Sony dropped the ball. They havent seemed to try and make a full frontal assault agains the Ipod, which has practacly erased any memory of the name " Sony Walkman". I dont think they took that seriously enough, and they realy need to pick up the pace. Maybe they could play off of Microsofts own creation, the Zune, and make a much more open, blue-tooth MP3 device that does sharing, video, bluetooth PC-Player transfers, etc. Make it everything the Ipod and Zune arent. Maybe even make a solid armor plated version that could withstand some serious impacts for those of us who like listening to music wile we run/ride/jog/excersize on rough terrain. A massive shortcoming on MP3 players is how fragile they are when youre moving at over 10mph, or when it hits sharp stones.

Anyway, this is long enough. I think Sony has hampered itself, but I have hopes maybe theyll addapt a different way of doing buisness and R&D for their products, and actualy produce more amazing, beyond compedative products like they use to.

MAK
10-21-2006, 06:28 PM
Apparently its the only format which would allow for a full HD experience,

What ? :shrug:

RuinedMessiah
10-21-2006, 06:41 PM
goodness me. sony really has put all their eggs in one basket. this could make it or break it for them. i wouldnt be too suprised if i saw sony do a sege-like exit, out of games console manufacturing if it all goes tits up.

But Sony didn't put all their eggs in one basket. In fact, to the contrary. Sony put soo many eggs in soo many baskets that it's not not feasible to turn a profit this year. We all knew the Latop battery thing was gonna kill their aspirations, period. Even as it was happening, tons of people on this board were already saying "this is gonna kill their fisca report."

Then you have PS3 and PSP. PSP is losing steam in two of the three territories. I always wondered why the console that was the least popular in Japan of the two managed to get so many JRPGs and even of such high calibur (I mean, seriously. Jeanne D'arc has me drooling for it's release). Sony needs to rethink the PSP strategy and while there is no longer any chance in hell of securing a winning position, they need to secure a marketshare. Because, after all, if Playstation can't chisel away at Nintendo's handheld marketshare, I'm afraid we're stuck with zero competition and Nintendo, as an unchecked power, hasn't been the nicest of kings on the handheld scene. I mean, if you look at it, PSPs entry in the market was what really kickstarted DS because, until the numbers started rolling in out of their favor, they were happy dropping Pokemon Dash.

PS3, we all know, is not going to turn a profit this, or possibly even next year.

But then you have unsuccessful ideas of Sony's like the Walkman MP3 players. I mean, some of their gadgetry just reeks of cool. Like these, for example.

http://www.sonystyle.com/is-bin/INTERSHOP.enfinity/eCS/Store/en/-/USD/SY_DisplayProductInformation-Start?ProductSKU=NWS705FBLACK&INT=sstyle-audio-tophero-beta_black

http://www.sonystyle.com/is-bin/+INTERSHOP.enfinity/eCS/Store/en/-/USD/SY_DisplayProductInformation-Start?CategoryName=audio_mp3players_capacity_8gb&ProductSKU=NWA1200VIOLET&Dept=audio&INT=sstyle-pa_mp3players-deptfeature-NWA1200VIOLET|sstyle:sy_cat_content_p:pa_mp3players

Hell, even the beans look neat when they are on.
http://www.sonystyle.com/is-bin/INTERSHOP.enfinity/eCS/Store/en/-/USD/SY_DisplayProductInformation-Start?ProductSKU=NWE307BLACK&Dept=audio&CategoryName=audio_mp3players_capacity_1gb

Not to mention Sony is putting a large amount of their investments in their new lines of Bravia and Cybershots. Plus, I hate to mention it because of the liths, they do have new battery technology although it seems like only they will trust their own shit this time.

EnlightenedPixel
10-22-2006, 12:58 AM
Whos bright idea was this though for the Walkman?
"Available in two hip colors, violet and pink"
They'd sell more if it came in Black, CherryRed, and Silver.

thoughtlesswhisper
10-22-2006, 11:26 AM
Whos bright idea was this though for the Walkman?
"Available in two hip colors, violet and pink"
They'd sell more if it came in Black, CherryRed, and Silver.

MAK asked you a question.. You have heard of HD dvd right?

EnlightenedPixel
10-22-2006, 07:32 PM
MAK asked you a question.. You have heard of HD dvd right?

Hm, you seem a bit hostile about me missing someones question. Oh, I see, you work for Microsoft?

Anyway what I meant is that the 360 stock doesnt support full HD out of the box, though 720 may be seen as "an hd format" 1080 is higher resolution, and its what sells TV's. Why would someone want a 720 output being pushed out on a 1080 format tv? Again, its all about being able to show off and one up your neighbor when it comes to this kind of stuff. Im not sure how MS wants to distribute the 1080 upgrade to those who arent plugged into their network. Why they even needed to start it at 720 is a mystery to me.

I think MS has a good start though, they came out first this time, whereas Sony came out like, a year before everyone else giving sony some serious leverage.

thoughtlesswhisper
10-23-2006, 10:31 AM
i dont work for microsoft. I work for EA. 360 does do 1080. 1080i straight out of the box and 1080p soon with upgrade. If you dont have your 360 online you dont deserve the upgrade (:p). Joking, but serious at the same time. If your already crippling your 360 with no internet, then i doubt progressive scan image instead of interlaced will make or break ur 360 for you.

EnlightenedPixel
10-23-2006, 03:13 PM
i dont work for microsoft. I work for EA. 360 does do 1080. 1080i straight out of the box and 1080p soon with upgrade. If you dont have your 360 online you dont deserve the upgrade (:p). Joking, but serious at the same time. If your already crippling your 360 with no internet, then i doubt progressive scan image instead of interlaced will make or break ur 360 for you.

I figured you work for Microsoft in the sense you have to make sure EA is meeting their standards.

1080i is essentialy the same ammount of visual information as 720P, it may be the same size, but its sessentialy a compressed 1080p or an upscaled 720p. The reason they dont broadcast widespread 1080p is because there isnt currently enough bandwidth to support it, so for now we're going to be limited to using stored media for 1080p entertainment.

If needing the internet is crippling the 360, then its not realy a smart buisness plan to base it on needing the internet, notably a high speed internet to actualy play online, something many people still dont have, theyre still only able to afford the nice cheap 56k/112k dialup connections.

I never saw XBL as being a huge selling point anyway. I run into less kids calling eachother obscene names on standard FPS PC games than the droves of millions found on XBL.

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