Bad news for Sony...

[wideawakewesley]

PS3 platform holder slashes earnings forecasts by 57 per cent; falling demand and strengthening Yen blamed

Japanese electronics firm Sony has issued a profit warning ahead of its full year financial reports next March – slashing its profit forecasts by 57 per cent in the process.

The Times Online reports that Sony had previously predicted full year profits of YEN 470 billion, but this has now been cut to YEN 200 billion.
Eidos

A combination of the Yen’s increasing strength and falling demand for Sony products, most notably its LCD TV range, has been blamed.

Some analysts are now predicting future losses for the firm and recommending investors sell any shares they hold in the company.

http://www.mcvuk.com/news/32111/Sony-issues-profits-warning

57% drop! OUCH!

Wes

[nshady]

Ouch is right.

[heyseuss]

Profit forecasts aren't very important to the individual investor, only to corporations that are in the bidness of trading. Afterall, they are merely predictions, and no company ever suffered long-term from an innaccurate earnings prediction. Besides, the article partly blames the increasing strength of the Yen, so it's not like having 10 clams is actually better than having one dollar, unless the strength of the clam is more than I think it is.

[tsmith15]

Sony should invest in a line of products that isn't top-of-the-line because people seem to like cheap stuff more.

[nshady]

I think OLED will take off once they get the prices down.

[tokenuser]

Sony should invest in a line of products that isn't top-of-the-line because people seem to like cheap stuff more.Really? Do you own a Macbook or a iPod?

People also want a quality product, and Sony has brand recognition - rightly or wrongly - as having a good product.

[tsmith15]

Really? Do you own a Macbook or a iPod?

People also want a quality product, and Sony has brand recognition - rightly or wrongly - as having a good product.
I don't own a macbook or an ipod.

I am not saying to get rid of their current stuff, I am just suggesting that adding a lower-tier would expand their availability to lower and lower-middle class people.

For example, a lot of people don't buy macbooks because they cost twice as much as toshibas and stuff.

I would rather have a Sony TV than a Westinghouse TV, but I would feel bad spending $500 more for an equal size.

[wideawakewesley]

Sony definitely charge a premium for their brand and it's exactly why I never buy Sony products. Same reason I don't own any Apple products too. I'm unwilling to pay more, in part, because of the name on box.

Wes

[joeyrock]

I think they make "quality stuff" but the price premium for some it doesn't equal the edge they have over other's like it used to.
- The PS3 is more than double the price of the 360.. is blu-ray worth that much to the vast majority of people?? Clearly not.
- Samsung LCD TVs are up there with Sony ones, and must be taking a good chunk of Sony's TV customers. Samsung used to be "sony for cheap people". Now Samsung have clawed it's way up to be an equal.
- The audio player market which sony dominated in the CD age is no longer there's. If anything there association with the CD and tape walkman make them seem dated.
- They are doing well in the "candy bar" phone market. But are non-existant in the blackberry/iphone/LG touchscreen market. Which seems to be the new thing in phones.
- Blu-Ray is doing nowhere near what they projected it would after the death of HD DVD.
errrr what else.... their cameras are way further down the list of "best cameras" than was 3 or 4 years ago.

I think they've spread themselves too thin and their brand isn't held in the same regard as it used to be.

[deegraww]

there is more to paying extra money then just the name on the box. I know with apple it comes with customer support (as I've had no issues with their customer support) also for me a location I can walk into and get help if needed. To ME that is worth my extra money.

[heyseuss]

The PS3 is more than double the price of the 360..

Was.


is blu-ray worth that much to the vast majority of people?? Clearly not.

Wasn't, but is now.

[tv-geek]

i hope this means that the price will drop way down. i need to buy one before FFXIII comes out. having a blu-ray doesn't hurt either. but i wonder if they will keep the price the same until after FFXIII comes out, since the game sells the system and not the other way around.

[wideawakewesley]

i hope this means that the price will drop way down. i need to buy one before FFXIII comes out. having a blu-ray doesn't hurt either. but i wonder if they will keep the price the same until after FFXIII comes out, since the game sells the system and not the other way around.

You know that's coming out on 360 too right?

Wes

[dolson]

You know that's coming out on 360 too right?

Wes

Versus isn't.

Yet.

But I'm sure it will. Just as MGS4 will.

[wideawakewesley]

Is FFXIII the versus one?

[trunolimit]

supply and demand. sony knows people are willing to pay that price so they charge people that price.

over valued currency does drive up prices over seas so that bad news for us. But electronics is a weird market. prices don't fluctuate up they only go down.

part of the reason we are in this economic mess is because the us dollar has been overvalued for a while and it's finally catching up to us. countries like japan and china have been enjoying the benefits of undervalued currency. their products are cheaper than domestic products so they export like crazy which is suppose to strengthen their currency and drive up the prices so their export slows back down and other countries exports grow. but those countries kept their currency weak on purpose so they can maintain trade surpluses.

Sony should invest in a line of products that isn't top-of-the-line because people seem to like cheap stuff more.

on a global scale that's correct. if its cheaper to import than it is to make it will be imported. quality is something most people will be willing to sacrifice if the price is right. I would buy 10-20 dollar headphones almost on a bi weakly basis until I realized that hey if i just bought some really good ones than I won't have to buy headphones all the time.

[dolson]

Is FFXIII the versus one?

I don't understand the question... Heh.

There are several FFXIII games (just like some of the other FF games).

There's vanila FFXIII (PS3, 360), Versus (PS3), and Agito (PSP).

[aerodash84]

If people knew that the 360 wasn't fully finished and had such a high failure rate on release I think things would be different. If I had known it would've taken more then a year I believe before they fixed the problem then I would have waited and bought one of the other consoles. I figured more then 6 months should have been enough time. If they hadn't extended the warranty coverage then I definitely would have given up on the system.

[jay_ray]

I don't understand the question... Heh.

There are several FFXIII games (just like some of the other FF games).

There's vanila FFXIII (PS3, 360), Versus (PS3), and Agito (PSP).

Was Agito confirmed for the PSP?, I thought it was cell phone only. Or was it announced with Parasite Eve 3.

[dolson]

Was Agito confirmed for the PSP?, I thought it was cell phone only. Or was it announced with Parasite Eve 3.

Yeah, it was announced at that Square-Enix party after E3 (if memory serves). Same day as The 3rd Birthday was.

Though, I checked Wikipedia just now, and it doesn't list Mobile as a platform for Agito... I thought T3B was Mobile, but didn't know about Agito being on Mobile. Honestly though, I haven't followed it that closely.

I did hear, can't remember where, that Agito was complete, but Square is holding it back until FFXIII is done. I don't know if that's true, or maybe I'm remembering that wrong, but I swear I read it. I'd google, but I'm on my PS3 and I am starting ep. 8 of The Shield now. TTYL! :D