Sony's quarterly profit drops 94%

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RapidSnail

Diamond Member
Apr 28, 2006
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Financial woes:

The gaming division that was once a boon to Sony's bottom line is now helping to drag it down. The company's net profit for the second quarter is at 1.7 billion yen ($14 million), down from 28.5 billion yen during the same period last year.

The recall of 9.6 million Sony laptop batteries was the biggest factor in the drop, costing the company 51 billion yen ($429 million). Costs in readying for the PlayStation 3 launch come in second at 43.5 billion yen ($366 million). And Sony also cut back shipment targets of the PSP for the 2006 fiscal year from 12 million to 9 million compared to 14 million units last year.

Game Informer
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October 26, 2006 - Sony reported its income for the fiscal period ended September 30, and as predicted times are hard for the company. Sony's net quarterly profit dropped to 1.7 billion yen (approx. $14.7 million US) from the 28.5 billion yen (approx. 241 million US) from the year earlier. On the upside, overall revenue for the quarter rose 8 percent to 1.85 trillion yen (approx. $16 billion) from the 1.7 trillion yen (approx. $14 billion US) from the same time a year earlier.


Sony Corp.'s Executive Vice President and Chief Financial Officer Nobuyuki Oneda has a bad day.

Sony was stung by the 51 billion yen (approx. $429 million US) price tag on a recall of nearly 10 million exploding laptop batteries. Sony Computer Entertainment, the company's game division, was also an anchor reporting 43.5 billion yen (approx. $368 million US) operating loss for this quarter. Declining sales of the PlayStation 2 and PlayStation Portable worldwide and sliding PS2 game sales were partly responsible for the shortfall.

The company also explained that the cost of research, development, and launching of the next-gen PlayStation 3 console was substantial.

Sony now predicts an 80 billion yen (approx. $674 million) for the entire fiscal year. With the launch of the PS3 in November, Sony expects overall annual revenue to rise 10 percent to 8.23 trillion yen ($69.5 billion).

IGN
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New estimated shipping target for the PS3:

October 26, 2006 - Sony's second quarter financial briefing, held on the 25th in Tokyo, was full of bad news for stockholders, but had some good news for gamers. Japan's Mainichi Interactive reports that Sony Chief Financial Officer Nobuyuki Oneda said of the firm's target to ship six million systems worldwide by the end of the fiscal year (March 31, 2007), "We don't believe this is a difficult target."

Many analysts and industry insiders have expressed doubts in Sony's ability to reach the goal, especially given recent shipment cuts that brought the number of worldwide units expected in retail by the end of December to two million units. Recently, Famitsu publisher Enterbrain issued a prediction that Sony would be able to sell just 4.13 million PS3 units by the end of the fiscal term.

IGN
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At least some of you gamers out there have something to be happy about. I think. I hope.
 
ElFenix

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
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6 million? do they really think they'll sell that many?
 
Queasy

Queasy

Moderator<br>Console Gaming
Aug 24, 2001
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Originally posted by: RapidSnail
Japan's Mainichi Interactive reports that Sony Chief Financial Officer Nobuyuki Oneda said of the firm's target to ship six million systems worldwide by the end of the fiscal year (March 31, 2007), "We don't believe this is a difficult target."
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You also said you were going to launch in the Spring. You also said that you were going to launch simultaneously with 2million units in Japan, North America, and Europe.

Forgive me if I don't necessarily believe you.
 
Schadenfroh

Schadenfroh

Elite Member
Mar 8, 2003
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Originally posted by: ElFenix
6 million? do they really think they'll sell that many?
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or even be able to build that many.

But, Sony is still profitable, looks like the antisony people dont have to worry about them going away anytime soon.
 
mugs

mugs

Lifer
Apr 29, 2003
48,920
46
91
They're struggling to get 500k built for the launch, and they think they're going to be able to build 11x that in the following 4 months? I think their "target" is optimistic, and may very well be an outright lie (not that Sony would EVER lie about anything relating to the PS3)
 
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RapidSnail

Diamond Member
Apr 28, 2006
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Originally posted by: Schadenfroh
Originally posted by: ElFenix
6 million? do they really think they'll sell that many?
Click to expand...

or even be able to build that many.

But, Sony is still profitable, looks like the antisony people dont have to worry about them going away anytime soon.
Click to expand...

What does antisony mean?

Edit - Wow, I can't believe I'm that oblivious. I was sounding it like Antimony.
 
S

spidey07

No Lifer
Aug 4, 2000
65,469
5
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Burn, Sony....Burn.

It would please me greatly for them to go belly up. And it will probably happen. Samsung is kicking their teeth in.
 
jman19

jman19

Lifer
Nov 3, 2000
11,225
664
126
Originally posted by: RapidSnail
Originally posted by: Schadenfroh
Originally posted by: ElFenix
6 million? do they really think they'll sell that many?
Click to expand...

or even be able to build that many.

But, Sony is still profitable, looks like the antisony people dont have to worry about them going away anytime soon.
Click to expand...

What does antisony mean?
Click to expand...

:roll: smart ass.
 
Gooberlx2

Gooberlx2

Lifer
May 4, 2001
15,381
6
91
Originally posted by: ElFenix
6 million? do they really think they'll sell that many?
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That's worldwide. I think they'll easily reach that, especially with meager presence the Xbox's have in Japan. I dunno if they'll do it by March though.
 
A

AgentJean

Banned
Jun 7, 2006
1,280
0
0
God. Let Sony DIE!!!!

That's what the get for DRM infecting CDs and not telling people!!!
I also have beef regarding SOE's treatment of Galaxies.



BURN SONY. BURN!!!!!!!!!!!!!!!!!!
All your profits are belong to us. ;)
 
V

Vortex22

Diamond Member
Sep 6, 2000
4,976
1
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26.8 million DS systems... That's insane for something so many people thought would flop. I hope the same thing happens with Wii.
 
D

d3n

Golden Member
Mar 13, 2004
1,597
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Originally posted by: spidey07
Burn, Sony....Burn.

It would please me greatly for them to go belly up. And it will probably happen. Samsung is kicking their teeth in.
Click to expand...

This is exactly what I thought when I saw the topic.
 
I

Injury

Lifer
Jul 19, 2004
13,066
2
81
Originally posted by: RapidSnail
Originally posted by: silverpig
Originally posted by: RapidSnail
What does antisony mean?
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Anti-Sony. People who don't like Sony.
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Oh goodness. I was pronouncing it like Antimony (Stibium). I am not joking either.
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Heh... at least you answered the question that I've had for a year of working with various metals of "WTF is Antimony 'sb'... oh well. Who cares."?
 
mugs

mugs

Lifer
Apr 29, 2003
48,920
46
91
Originally posted by: RagingBITCH
6 million worldwide sounds like a really large number. GL Sony
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And strangely enough, it's the exact same number that Nintendo has announced they'll ship by the same date! Coincidence? Eh... not so much.

Unofficially Nintendo is way ahead of schedule on production and could ship far more by then.
 
I

Injury

Lifer
Jul 19, 2004
13,066
2
81
Originally posted by: spidey07
Burn, Sony....Burn.

It would please me greatly for them to go belly up. And it will probably happen. Samsung is kicking their teeth in.
Click to expand...

I think they are too big to go belly up... but if the sales of the PS3 are as bad as some people are thinking (and hoping!) it will be, I could see them trying to throw some baggage overboard in order to keep the ship from seeping too low.
 
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