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Playstation 3 has to suffer, signals Sony's boss

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- Sony Europe's David Reeves is almost refreshing at a time when refreshing's in short supply. In an intriguing shift from the standard "everything's coming up roses" mantra, Reeves reflects on the company's third quarter losses of $204m by telling The Guardian the company "simply [has] to suffer a little."

"[We have to]...go down in market share and mind-share," says Reeves. "It's like Ali v Foreman - go eight or nine rounds and let him punch himself out. We're still standing, we're still profitable and there's a lot of fight in us. I don't say we will land a knockout blow, but we're there and we're fighting."
 
Yoda: Fear leads to anger. Anger leads to hate. Hate leads to suffering.

Actually, these were the most reasonable comments from a Sony exec in quite a while (read the whole interview). Especially when compared to Krazy Kaz.
 
Originally posted by: fanerman91
Originally posted by: Oyeve
So whats keeping sony afloat? Surely it cant be PS3 or PSP. Headphones and cheap stereos?
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Their LCD's seem popular and are of good quality.
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I have a 52'' and 46'' Bravia at home and school, I absolutely LOVE Sony's LCD TV lineup. Between their LCD TV's and sound systems they will probably be fine. They'd be even more fine if they could get a handle on the PS3 manufacturing costs and drop the damn price!!! I'd actually consider buying one.
 
My wild guess on why the rumored price drop might happen in April is that their component costs (HD, blu-ray drive, etc.) are scheduled to drop again around then so they can drop the price without adding to losses.
 
Originally posted by: Oyeve
So whats keeping sony afloat? Surely it cant be PS3 or PSP. Headphones and cheap stereos?
Click to expand...

Sony has a huge amount of outstanding debt where Nintendo and MS has little to none. Even during Sony's most profitable years they had a lot of outstanding debt (over 10 billion). This is likely what's holding it up and keeping Sony afloat. I'm sure there are still many profitable divisions within Sony but sometimes having too many fingers in too many pies can lead to problems as a business.

The things is, in a good economy you can make enough money to pay off your debts and still leave a profit for your shareholders or keeping it in an account for cash reserves. In these tough economic conditions and with the weakening dollar and stronger yen, you lose money on the exchange rate and business is bad. A double whammy with huge losses even if you don't have any debt. Imagine losing this much money and still having to pay off huge debts when you have low cash reserves.
 
Originally posted by: DaveSimmons
My wild guess on why the rumored price drop might happen in April is that their component costs (HD, blu-ray drive, etc.) are scheduled to drop again around then so they can drop the price without adding to losses.
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That and it's the start of a new fiscal year. They are trying to keep the losses for this fiscal year to a minimum.
 
Originally posted by: Oyeve
So whats keeping sony afloat? Surely it cant be PS3 or PSP. Headphones and cheap stereos?
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Aside from the shitty power cord that every Sony product has, Sony usually makes great products.
 
PS2 is keeping them afloat, stil the most played console right now acording to the numbers that were published a bit ago.
 
I'm glad I only paid $8 for my new PS3. I buy games but I'm not really interested in playing them. I really only use it as a media server (rarely) and DVD/Blu-Ray player (mostly). I spent $100 on an HRAP3 (when I was in Japan) and I have tons of fighters for my PS2 but never touch them. I must be getting old.
 
Originally posted by: mc866
PS2 is keeping them afloat, stil the most played console right now acording to the numbers that were published a bit ago.
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Those were raw numbers that didn't account for the quantity of consoles. It wasn't a terribly useful statistic. They are still selling a lot of PS2s though, and they actually make money on them. I don't think it's enough to compensate for their losses on the PS3 though.
 
Originally posted by: Oyeve
So whats keeping sony afloat? Surely it cant be PS3 or PSP. Headphones and cheap stereos?
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The PSP has sold 41 million units apparently. Despite it's lack of games recently, it's doing well. Sony is a big conglomerate though. They have far more business interests than just video games and cheap stereos.
 
Originally posted by: mmntech
Originally posted by: Oyeve
So whats keeping sony afloat? Surely it cant be PS3 or PSP. Headphones and cheap stereos?
Click to expand...

The PSP has sold 41 million units apparently. Despite it's lack of games recently, it's doing well. Sony is a big conglomerate though. They have far more business interests than just video games and cheap stereos.
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And that conglomerate is expected to post their first loss in 14 years, approx. a 2.9 billion dollar loss To continue the analogy, about still being afloat; the ship is taking on water fast. They are throwing everything they can overboard, including a good bit of the crew, to lighten the load-
Sony said Dec. 9 it will cut 16,000 people by March 2010 to help save more than 100 billion yen in annual costs, the second major job reduction announced under Stringer?s tenure.

It plans to spend 30 percent less at the electronics unit than intended under a mid-term strategy and reduce the number of factories by about 10 percent from the current 57, the company said at the time.
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The worst part seems to be "The problem is that in the really fantastic economic circumstances we enjoyed in last five years, Sony has never made as much money as it should?ve done" Looks like they should have been trimming the fat years ago.


 
They lost $204m last quarter... but they're still profitable?

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Yes, that is very possible. Income statements lie. Cash flow is king.
 
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