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PlayStation 4 a bright spot in Sony’s dismal financials

by William Schwartz on May 14, 2014


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Sony has recently reported their disappointing financials, which saw a steep loss for the electronics maker. Looking forward, the company projects that it will once again lose money in the coming year, for the sixth time in the last seven.

Sony will see restructuring measures in the year to come, and will see a net loss for the year as a result. According to Sony’s CFO Kenichiro Yoshida, they’re “biting the bullet” in 14/15. Instead of trying to turn the ship around on a number of their unprofitable businesses, Sony will cut them all together. A move that many investors believe is the right course of action, perhaps one that should’ve happened sooner.

Sony projects that they will lose nearly half a billion dollars in the coming year. Former head of the PlayStation division, Kazuo Hirai has been at the helm for Sony for two years now. He hasn’t been quite able to push the company back into the black, as he had promised.

On the brightside, Sony is selling PlayStation 4 consoles by the boatload. The company’s PlayStation business is one of the bright spots of their most recent earnings, confirming that PS4 sales had topped seven million consoles back on April 6th — a number that is likely higher with another month on the books. Sony projects that they will sell 17 million PlayStation 4 consoles by year’s end. Unfortunately, despite leading the pack in next-gen sales, Sony’s gaming division is losing money as well. Sony reported that they lost nearly $80 million on gaming for the year ending in March ’14. The company attributed costs associated with launching the PS4 and a $60 million write-off for Sony Online Entertainment.

The PlayStation brand is just a drop in the bucket for Sony’s overall portfolio, however. The company who has their hands in the making of gaming devices like the PlayStation line, cameras, televisions, computers, insurance, and a number of different money making (or losing) ventures.

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  • hoppsy80

    As long as the game divisions making money I don’t care.

    People need to realise that even though Sony is the umbrella company for ps4 each sector has its own budget, seniors, stratagies etc. .

    Sony’s gaming division is doing exceptional and as gamers that’s all we should care about.

    • Facts First

      Losing 100 million dollars is hardly “exceptional”.

      • Oscar Portillo

        You do realize that Microsoft looses 1-2 billion a year on XBox and lost $300 million on the Surface tablet.
        So shut you miss informed idiot.

        • Facts First

          I’m not going to argue with you. I made a vow to myself that I would never pick on the retarded. But there’s a big difference between Sony and Microsoft. One company is making money hand over fist, and is considered the bluest of blue chip companies on the planet. The other is circling the toilet bowl right now. I’ll let you, the “informed”, have a look at the data from both companies and set everyone straight.

          My research of your previous comments indicates that you’ll ultimately make yourself look even more foolish and uninformed by trying to bend the cold hard facts of the real world to the narrative that you’ve formed for Sony as your beloved.

          Tata

          • The One

            Who gives a fuck kid. Did you forget you fucking idiot sony makes money off of every xbone game because of blueray.

          • bdlckkd

            Obviously not enough

          • bdlckkd

            Mind you that 9$ was in 2011, it probably went down since then too also Panasonic owns more of the blu-ray patents

          • Guest

            Somehow Sony figured out a way to.lose money on blueray. That’s talent.

          • Oscar Portillo

            You missed my point as allways you talk out your ass because my point is Microsoft soft is a bigger company and so common sense is the profit is bigger, but that also means when they loose they loose more.

            Another thing is that you keep confusing net profit with gross profit and so the retard calling someone an idiot only shows how little your brain is.

            But ok lets try this, first off you suck in many ways and second of all Microsoft makes most of there money in licensing which is declining by about 7% per year due to smart phones and tablets sales cornering the market.

            But I guess you knew this allready and just did not want to discuss the reall facts about your precious.

          • bdlckkd

            Just posted about this Microsoft makes money on smartphone patents inside of Android phones the more smartphone sales the more profit MS gets, but I guess you knew this already. (95%) Profit margin Did you do the math!?

          • Oscar Portillo

            Your quick at answering without doing the math I see.

          • bdlckkd

            http://www(.)forbes(.)com/sites/erikkain/2013/11/08/microsoft-earns-2-billion-a-year-from-android-is-it-time-to-drop-xbox/ Not to mention Sony pays MS royalty rights on Android devices…do they still make android devices?

          • Oscar Portillo
          • bdlckkd

            you know that is a 3 year old article

      • Shannon Novosel

        Most likely the loss came from the cost from promoting the PS4 Microsoft most likely money do as it is a long race not a short sprint but we know how you can be confused especially being facts never and bull first

      • Guest

        You seem upset at PS4’s stronger hardware, ~3 million sales lead, large number of 1st party studios, and larger developer support. It must suck that most or all of your claims and predictions turn out wrong. You must LOVE eating crow and being constantly wrong over and over again.

        You don’t understand business, sales, or hardware specs, all you can do is fling feces and scream “XBOX WON!!1″ like a rabid animal. Microsoft fanboy shills don’t love their console they just hate the success of others.

        PS4 will have the graphics advantage the entire gen. PS4 hardware and software will outsell Xbox globally the entire gen. PS4 will have more dev support and more 1st party games the entire gen. Sony still has a large number of 1st party studios and they’re all working on PS4 games. PS4 will make a net profit, and Sony won’t go bankrupt.

        The Xbox brand has lost Microsoft billions of dollars, Xbox One will lose them further billions. MS shareholders (that don’t exist to please delusional microsoft fanboys) will continue demanding it be sold off or shut down. It will be sad for you when that happens.

        Oh look, another constantly wrong fanboy lining up for a big plate of crow when Sony doesn’t go bankrupt. It’s sad that Microsoft fanboy shills are so desperate that their only hope is for Playstation to disappear completely instead of continuing to dominate Xbox in sales. Keep crying and shilling while everyone else ignores you and keeps buying PS4s.

        PS4 will have the graphics advantage the entire gen. PS4 hardware and software will outsell Xbox globally the entire gen. PS4 will have more dev support and more 1st party games the entire gen. Sony still has a large number of 1st party studios and they’re all working on PS4 games. PS4 will make a net profit, Sony won’t go bankrupt.

        PS4 is currently outselling Xbox almost 2:1 globally, 7 million to ~4 million as of April 6 2014. The sales gap is growing wider despite price drops and free Titanfall bundles. PS4 is still very supply constrained in some non-US countries.

        MS shipped 5 million to stores, sold ~4.2 mil to consumers, with ~800k rotting on store shelves. Most console gamers are ignoring MS fanboy apologizing, denial, and damage control and buying PS4s. Playstation is a net profit and PS4 will gain on that profit.

        “2nd fastest selling console ever!!1″ Yeah no, sales cratered after the one time delusional fanboy frenzy at launch. It’s going to get WORSE as time goes on, not better. Xbox is shipping under 360 numbers and will soon be selling under 360 numbers.

        Xbox will hardly sell anything in smaller “tier 2″ markets already dominated by PS3 and PS4. The global gap is growing wider, Xbox will never surpass PS4 in global sales.

        The 13 countries Xbox One launched in already account for ~90% of 360’s sales. Remaining countries will be 10% at best, but probably less since it’s launching late, more expensive, and less global appeal than the MURICA’ NFL TV box. I estimate the % of sales from non-launch countries around 5-6% at best.

        Furthermore, Xbox is ALREADY AVAILABLE in pretty much every European country as a grey market import. They’re stacked on the shelves of “unlaunched” European countries. That leaves Asia, South America, Middle East, and African countries.

        These markets for Xbox are so tiny they might as well be rounding errors. In other words, barely enough to move the global needle, let alone keep it from tracking under the 360 shipped numbers.

        I can’t wait for September’s “launch” to arrive with all the sales force of a wet fart. Microsoft fanboys will be left gobbling up a mountain of crow yet again while scrambling for more excuses and straw grasping. Same with this China straw grasping. I’m sorry but that’s reality and if you think Xbox sales are going to skyrocket in September you’re in for some serious crow eating.

        Xbox does not have access to all of MS’s money, they’re given a budget by shareholders and expected to turn a profit. MS shareholders aren’t going to throw endless billions into the Xbox brand that shows little or no sign of turning a profit.

        The Xbox brand has lost Microsoft billions of dollars, Xbox One will lose them further billions. Why do you think Microsoft investors keep calling for it to be sold off? Xbox, Bing, Surface, and Windows Phones are all in the same general area of failure and net loss. MS’s consumer products besides Windows have almost all been failures.

        Sony’s 1st parties are ALL working on PS4 games. The gaming division is making a profit and is well funded. The gaming division and first party studios are well funded and making a profit. During the quarter ending 31st December 2013 the Game business made a profit of $172m off the back of an impressive 64.6 per cent rise in sales year on year.

        Sony is selling or splitting off their lossy businesses (Vaio, TVs) and focusing on their profitable divisions. This means they’ll soon cut their losses and start turning a profit. You should be worried if Sony WASN’T cutting those losing divisions, but they’re making the right business decisions. They won’t ever be an empire again but they aren’t going under.

        The gaming division and first party studios are well funded and making a profit. During the quarter ending 31st December 2013 the Game business made a profit of $172m off the back of an impressive 64.6 per cent rise in sales year on year. Sony is in for a year or two of losses and restructuring, then provided their profitable divisions stay profitable, they’ll be on solid ground.

        Sony is still worth 18.5 billion. They just aren’t bringing in enough revenue or profits to bring that number up, and for a time, and probably for a few quarters here or there for the next few years, they might lose money. They also obviously have working capital, because they have games in development right now, and are able to market their newest system and do what they have to do to sell their products. If Sony were on the brink of bankruptcy, we wouldn’t be seeing AAA game announcements with budgets ranging from $50-100 million dollars. If they were on the brink of bankruptcy, they wouldn’t be buying Gaikai, or investing in new tech such as Morpheus or the PS4. PS4 will make a net profit, and Sony won’t go bankrupt.

        Sony Game, Financial Services, Devices, Music, Mobile Products & Communications, and Pictures are all profitable divisions. They aren’t going anywhere, sorry.

        Sony’s market cap is 18.65 billion as of today (2014).
        Market cap in 2013 was 17.6 billion it has gone up since then.
        Sony is ranked #80 in world as the most valuable brand 2013.

        Sony is ranked #506 in the global 2000
        #87 in Sales
        #171 in Assets
        #547 in Market value
        78.52 billion dollars in sales in 2013

        Your favorite piece of plastic is getting dominated by PS4 in sales, games performance, and dev support, causing you to harbor fevered delusions about Sony going bankrupt. Sorry, not happening.

        Sony Games Division FY 1995-2013:
        -9+57+117+137+77-51+83+113+68+43+9-232-125-58-56+48+29+2-8 = 244 billion yen net profit

        Yes the games division is still a NET PROFIT even after the PS3 losses, PS1 and PS2 were just that successful.

        You and others still trying to imply “dire” death health of Sony when Sony still has freaking over 18 billion in cash reserves, the loss they have is large no doubt about this, was already set aside in restructuring costs, by doing this now they are going to be saving in over 1 billion in costs! This takes time, and in that time if Sony did not do what the board has done it would have been far worse, over 2 billion in further loss’s.

        The point is playstation stock is not for public buy in. Sony has over 148 billion in physical assets , sony could indeed liquidate every thing except for smart phones , entertainment and playstation and stll have payed off debt, and still have 18 billion on hand to invest back into the three core pillars of the company, but see they would not do that.

    • Guest

      The article clearly said the gaming division is losing money, that’s not doing well. Sony clearly cannot afford to be in the gaming business.

  • Ian Williams

    Bring out the dead. Bring out the dead.

    • You are flat out wrong

      Hang on, there’s a few million Kinects you need to take with you to the landfill.

      • hoppsy80

        Haha

      • Ian Williams

        And ps4’s when they go bust

        • bdlckkd

          5-6 years when they’ll be buying a new console and we’ll still be using xbox one

          • You are flat out wrong

            God I hope not, I can’t imagine how utterly tragic the Xbone’s performance would be by then. I might even feel sorry for you!

        • Oscar Portillo
    • Guest

      You seem upset at PS4’s stronger hardware, ~3 million sales lead,
      large number of 1st party studios, and larger developer support. It must
      suck that most or all of your claims and predictions turn out wrong.
      You must LOVE eating crow and being constantly wrong over and over
      again.

      You don’t understand business, sales, or hardware specs,
      all you can do is fling feces and scream “XBOX WON!!1″ like a rabid
      animal. Microsoft fanboy shills don’t love their console they just hate
      the success of others.

      PS4 will have the graphics advantage the
      entire gen. PS4 hardware and software will outsell Xbox globally the
      entire gen. PS4 will have more dev support and more 1st party games the
      entire gen. Sony still has a large number of 1st party studios and
      they’re all working on PS4 games. PS4 will make a net profit, and Sony
      won’t go bankrupt.

      The Xbox brand has lost Microsoft billions of
      dollars, Xbox One will lose them further billions. MS shareholders (that
      don’t exist to please delusional microsoft fanboys) will continue
      demanding it be sold off or shut down. It will be sad for you when that
      happens.

      Oh look, another constantly wrong fanboy lining up for a
      big plate of crow when Sony doesn’t go bankrupt. It’s sad that
      Microsoft fanboy shills are so desperate that their only hope is for
      Playstation to disappear completely instead of continuing to dominate
      Xbox in sales. Keep crying and shilling while everyone else ignores you
      and keeps buying PS4s.

      PS4 will have the graphics advantage the
      entire gen. PS4 hardware and software will outsell Xbox globally the
      entire gen. PS4 will have more dev support and more 1st party games the
      entire gen. Sony still has a large number of 1st party studios and
      they’re all working on PS4 games. PS4 will make a net profit, Sony won’t
      go bankrupt.

      PS4 is currently outselling Xbox almost 2:1
      globally, 7 million to ~4 million as of April 6 2014. The sales gap is
      growing wider despite price drops and free Titanfall bundles. PS4 is
      still very supply constrained in some non-US countries.

      MS
      shipped 5 million to stores, sold ~4.2 mil to consumers, with ~800k
      rotting on store shelves. Most console gamers are ignoring MS fanboy
      apologizing, denial, and damage control and buying PS4s. Playstation is a
      net profit and PS4 will gain on that profit.

      “2nd fastest
      selling console ever!!1″ Yeah no, sales cratered after the one time
      delusional fanboy frenzy at launch. It’s going to get WORSE as time goes
      on, not better. Xbox is shipping under 360 numbers and will soon be
      selling under 360 numbers.

      Xbox will hardly sell anything in
      smaller “tier 2″ markets already dominated by PS3 and PS4. The global
      gap is growing wider, Xbox will never surpass PS4 in global sales.

      The
      13 countries Xbox One launched in already account for ~90% of 360’s
      sales. Remaining countries will be 10% at best, but probably less since
      it’s launching late, more expensive, and less global appeal than the
      MURICA’ NFL TV box. I estimate the % of sales from non-launch countries
      around 5-6% at best.

      Furthermore, Xbox is ALREADY AVAILABLE in
      pretty much every European country as a grey market import. They’re
      stacked on the shelves of “unlaunched” European countries. That leaves
      Asia, South America, Middle East, and African countries.

      These
      markets for Xbox are so tiny they might as well be rounding errors. In
      other words, barely enough to move the global needle, let alone keep it
      from tracking under the 360 shipped numbers.

      I can’t wait for
      September’s “launch” to arrive with all the sales force of a wet fart.
      Microsoft fanboys will be left gobbling up a mountain of crow yet again
      while scrambling for more excuses and straw grasping. Same with this
      China straw grasping. I’m sorry but that’s reality and if you think Xbox
      sales are going to skyrocket in September you’re in for some serious
      crow eating.

      Xbox does not have access to all of MS’s money,
      they’re given a budget by shareholders and expected to turn a profit. MS
      shareholders aren’t going to throw endless billions into the Xbox brand
      that shows little or no sign of turning a profit.

      The Xbox brand
      has lost Microsoft billions of dollars, Xbox One will lose them further
      billions. Why do you think Microsoft investors keep calling for it to
      be sold off? Xbox, Bing, Surface, and Windows Phones are all in the same
      general area of failure and net loss. MS’s consumer products besides
      Windows have almost all been failures.

      Sony’s 1st parties are ALL
      working on PS4 games. The gaming division is making a profit and is
      well funded. The gaming division and first party studios are well funded
      and making a profit. During the quarter ending 31st December 2013 the
      Game business made a profit of $172m off the back of an impressive 64.6
      per cent rise in sales year on year.

      Sony is selling or splitting
      off their lossy businesses (Vaio, TVs) and focusing on their profitable
      divisions. This means they’ll soon cut their losses and start turning a
      profit. You should be worried if Sony WASN’T cutting those losing
      divisions, but they’re making the right business decisions. They won’t
      ever be an empire again but they aren’t going under.

      The gaming
      division and first party studios are well funded and making a profit.
      During the quarter ending 31st December 2013 the Game business made a
      profit of $172m off the back of an impressive 64.6 per cent rise in
      sales year on year. Sony is in for a year or two of losses and
      restructuring, then provided their profitable divisions stay profitable,
      they’ll be on solid ground.

      Sony is still worth 18.5 billion.
      They just aren’t bringing in enough revenue or profits to bring that
      number up, and for a time, and probably for a few quarters here or there
      for the next few years, they might lose money. They also obviously have
      working capital, because they have games in development right now, and
      are able to market their newest system and do what they have to do to
      sell their products. If Sony were on the brink of bankruptcy, we
      wouldn’t be seeing AAA game announcements with budgets ranging from
      $50-100 million dollars. If they were on the brink of bankruptcy, they
      wouldn’t be buying Gaikai, or investing in new tech such as Morpheus or
      the PS4. PS4 will make a net profit, and Sony won’t go bankrupt.

      Sony
      Game, Financial Services, Devices, Music, Mobile Products &
      Communications, and Pictures are all profitable divisions. They aren’t
      going anywhere, sorry.

      Sony’s market cap is 18.65 billion as of today (2014).
      Market cap in 2013 was 17.6 billion it has gone up since then.
      Sony is ranked #80 in world as the most valuable brand 2013.

      Sony is ranked #506 in the global 2000
      #87 in Sales
      #171 in Assets
      #547 in Market value
      78.52 billion dollars in sales in 2013

      Your
      favorite piece of plastic is getting dominated by PS4 in sales, games
      performance, and dev support, causing you to harbor fevered delusions
      about Sony going bankrupt. Sorry, not happening.

      Sony Games Division FY 1995-2013:
      -9+57+117+137+77-51+83+113+68+43+9-232-125-58-56+48+29+2-8 = 244 billion yen net profit

      Yes the games division is still a NET PROFIT even after the PS3 losses, PS1 and PS2 were just that successful.

      You
      and others still trying to imply “dire” death health of Sony when Sony
      still has freaking over 18 billion in cash reserves, the loss they have
      is large no doubt about this, was already set aside in restructuring
      costs, by doing this now they are going to be saving in over 1 billion
      in costs! This takes time, and in that time if Sony did not do what the
      board has done it would have been far worse, over 2 billion in further
      loss’s.

      The point is playstation stock is not for public buy in.
      Sony has over 148 billion in physical assets , sony could indeed
      liquidate every thing except for smart phones , entertainment and
      playstation and stll have payed off debt, and still have 18 billion on
      hand to invest back into the three core pillars of the company, but see
      they would not do that.

  • Ian Williams

    And in other news Microsoft made $24 billion this quarter.

    • Guest

      4 billion.

      • Ian Williams

        $24 billion

        • Guest

          24 billion revenue, 4 billion profits, don’t get me wrong, it’s really good.

          • Oscar Portillo

            Your confusing the kid.

          • Guest

            Hey, that’s what your mom told me last night!

          • Oscar Portillo

            My mom passed last year idiot.

        • You are flat out wrong

          lol Ian the sheep hassler thinks any of that will be wasted on the Sh*tbox.

          • Ian Williams

            Billions has and will be spent, enjoy your $3 games, indie titles

          • You are flat out wrong

            Has and will be kept in reserve while they try and fix Windows. :)

          • Ian Williams

            You talk some crap fatty

          • You are flat out wrong

            You’d be an expert in that, Ian. :)

          • Ian Williams

            Enjoy your bust company fatty

          • Guest

            You seem upset at PS4’s stronger hardware, ~3 million sales lead, large number of 1st party studios, and larger developer support. It must suck that most or all of your claims and predictions turn out wrong. You must LOVE eating crow and being constantly wrong over and over again.

            You don’t understand business, sales, or hardware specs, all you can do is fling feces and scream “XBOX WON!!1″ like a rabid animal. Microsoft fanboy shills don’t love their console they just hate the success of others.

            PS4 will have the graphics advantage the entire gen. PS4 hardware and software will outsell Xbox globally the entire gen. PS4 will have more dev support and more 1st party games the entire gen. Sony still has a large number of 1st party studios and they’re all working on PS4 games. PS4 will make a net profit, and Sony won’t go bankrupt.

            The Xbox brand has lost Microsoft billions of dollars, Xbox One will lose them further billions. MS shareholders (that don’t exist to please delusional microsoft fanboys) will continue demanding it be sold off or shut down. It will be sad for you when that happens.

            Oh look, another constantly wrong fanboy lining up for a big plate of crow when Sony doesn’t go bankrupt. It’s sad that Microsoft fanboy shills are so desperate that their only hope is for Playstation to disappear completely instead of continuing to dominate Xbox in sales. Keep crying and shilling while everyone else ignores you and keeps buying PS4s.

            It’s good to know you’re completely wrong and raging against facts and reality, and nothing you say will happen. I’m constantly right, you’re constantly dumb and wrong.

            PS4 will have the graphics advantage the entire gen. PS4 hardware and software will outsell Xbox globally the entire gen. PS4 will have more dev support and more 1st party games the entire gen. Sony still has a large number of 1st party studios and they’re all working on PS4 games. PS4 will make a net profit, Sony won’t go bankrupt.

          • Guest

            PS4 has the superior version of all console AAA multiplats, The Order, Driveclub, MLB 14: The Show, Deep Down, Uncharted 4, TLOU Remake, more dev support including indies, free to play games and MMOs like FFXIV and Warframe, and unannounced 1st party games (Gran Turismo, God of War, Media Molecule, Quantic Dream, etc.) Titanfall 2 and future 3rd party games will almost certainly be on PS4.

            Recently Sony has filed trademarks or had leaks for no less than 6 games. Entwined, Kill Strain, Blood Borne, Dark Chronicles, Project Beast and Guns Up. Expect a big E3 reveal of new games.

        • Guest

          This dumb, delusional, constantly wrong, hateful shill is too stupid to understand the difference between revenue and profit.

          • Ian Williams

            Hey, it’s copy and paste. how’s the electric shock treatment going?

  • bdlckkd

    So expect a worse loss when it comes to it they seem to lie about their loss projections as well or theyre just always wrong

  • bdlckkd

    Time to jump ship!! Sony fans be like “Jack I will never let go!!!”

    • Oscar Portillo

      And Microsoft fans be like , but mom the man said these are “magic beans” if I plant them they will grow and take me to the Cloud were I will find Ian the boy with the golden XBox.

      • bdlckkd

        Idk who you’re talking about…

      • Ian Williams

        Wow, you must be five or even six for a vivid imagination like that.

    • You are flat out wrong

      If that happens, I can’t wait to build my rig, pirate everything and contribute to the AAA crash.

      • bdlckkd

        You got Nintendo, I’m honestly thinking their next console might actually be really worth while.

    • Guest

      You seem upset at PS4’s stronger hardware, ~3 million sales lead, large number of 1st party studios, and larger developer support. It must suck that most or all of your claims and predictions turn out wrong. You must LOVE eating crow and being constantly wrong over and over again.

      You don’t understand business, sales, or hardware specs, all you can do is fling feces and scream “XBOX WON!!1″ like a rabid animal. Microsoft fanboy shills don’t love their console they just hate the success of others.

      PS4 will have the graphics advantage the entire gen. PS4 hardware and software will outsell Xbox globally the entire gen. PS4 will have more dev support and more 1st party games the entire gen. Sony still has a large number of 1st party studios and they’re all working on PS4 games. PS4 will make a net profit, and Sony won’t go bankrupt.

      The Xbox brand has lost Microsoft billions of dollars, Xbox One will lose them further billions. MS shareholders (that don’t exist to please delusional microsoft fanboys) will continue demanding it be sold off or shut down. It will be sad for you when that happens.

      Oh look, another constantly wrong fanboy lining up for a big plate of crow when Sony doesn’t go bankrupt. It’s sad that Microsoft fanboy shills are so desperate that their only hope is for Playstation to disappear completely instead of continuing to dominate Xbox in sales. Keep crying and shilling while everyone else ignores you and keeps buying PS4s.

      PS4 will have the graphics advantage the entire gen. PS4 hardware and software will outsell Xbox globally the entire gen. PS4 will have more dev support and more 1st party games the entire gen. Sony still has a large number of 1st party studios and they’re all working on PS4 games. PS4 will make a net profit, Sony won’t go bankrupt.

      PS4 is currently outselling Xbox almost 2:1 globally, 7 million to ~4 million as of April 6 2014. The sales gap is growing wider despite price drops and free Titanfall bundles. PS4 is still very supply constrained in some non-US countries.

      MS shipped 5 million to stores, sold ~4.2 mil to consumers, with ~800k rotting on store shelves. Most console gamers are ignoring MS fanboy apologizing, denial, and damage control and buying PS4s. Playstation is a net profit and PS4 will gain on that profit.

      “2nd fastest selling console ever!!1″ Yeah no, sales cratered after the one time delusional fanboy frenzy at launch. It’s going to get WORSE as time goes on, not better. Xbox is shipping under 360 numbers and will soon be selling under 360 numbers.

      Xbox will hardly sell anything in smaller “tier 2″ markets already dominated by PS3 and PS4. The global gap is growing wider, Xbox will never surpass PS4 in global sales.

      The 13 countries Xbox One launched in already account for ~90% of 360’s sales. Remaining countries will be 10% at best, but probably less since it’s launching late, more expensive, and less global appeal than the MURICA’ NFL TV box. I estimate the % of sales from non-launch countries around 5-6% at best.

      Furthermore, Xbox is ALREADY AVAILABLE in pretty much every European country as a grey market import. They’re stacked on the shelves of “unlaunched” European countries. That leaves Asia, South America, Middle East, and African countries.

      These markets for Xbox are so tiny they might as well be rounding errors. In other words, barely enough to move the global needle, let alone keep it from tracking under the 360 shipped numbers.

      I can’t wait for September’s “launch” to arrive with all the sales force of a wet fart. Microsoft fanboys will be left gobbling up a mountain of crow yet again while scrambling for more excuses and straw grasping. Same with this China straw grasping. I’m sorry but that’s reality and if you think Xbox sales are going to skyrocket in September you’re in for some serious crow eating.

      Xbox does not have access to all of MS’s money, they’re given a budget by shareholders and expected to turn a profit. MS shareholders aren’t going to throw endless billions into the Xbox brand that shows little or no sign of turning a profit.

      The Xbox brand has lost Microsoft billions of dollars, Xbox One will lose them further billions. Why do you think Microsoft investors keep calling for it to be sold off? Xbox, Bing, Surface, and Windows Phones are all in the same general area of failure and net loss. MS’s consumer products besides Windows have almost all been failures.

      Sony’s 1st parties are ALL working on PS4 games. The gaming division is making a profit and is well funded. The gaming division and first party studios are well funded and making a profit. During the quarter ending 31st December 2013 the Game business made a profit of $172m off the back of an impressive 64.6 per cent rise in sales year on year.

      Sony is selling or splitting off their lossy businesses (Vaio, TVs) and focusing on their profitable divisions. This means they’ll soon cut their losses and start turning a profit. You should be worried if Sony WASN’T cutting those losing divisions, but they’re making the right business decisions. They won’t ever be an empire again but they aren’t going under.

      The gaming division and first party studios are well funded and making a profit. During the quarter ending 31st December 2013 the Game business made a profit of $172m off the back of an impressive 64.6 per cent rise in sales year on year. Sony is in for a year or two of losses and restructuring, then provided their profitable divisions stay profitable, they’ll be on solid ground.

      Sony is still worth 18.5 billion. They just aren’t bringing in enough revenue or profits to bring that number up, and for a time, and probably for a few quarters here or there for the next few years, they might lose money. They also obviously have working capital, because they have games in development right now, and are able to market their newest system and do what they have to do to sell their products. If Sony were on the brink of bankruptcy, we wouldn’t be seeing AAA game announcements with budgets ranging from $50-100 million dollars. If they were on the brink of bankruptcy, they wouldn’t be buying Gaikai, or investing in new tech such as Morpheus or the PS4. PS4 will make a net profit, and Sony won’t go bankrupt.

      Sony Game, Financial Services, Devices, Music, Mobile Products & Communications, and Pictures are all profitable divisions. They aren’t going anywhere, sorry.

      Sony’s market cap is 18.65 billion as of today (2014).
      Market cap in 2013 was 17.6 billion it has gone up since then.
      Sony is ranked #80 in world as the most valuable brand 2013.

      Sony is ranked #506 in the global 2000
      #87 in Sales
      #171 in Assets
      #547 in Market value
      78.52 billion dollars in sales in 2013

      Your favorite piece of plastic is getting dominated by PS4 in sales, games performance, and dev support, causing you to harbor fevered delusions about Sony going bankrupt. Sorry, not happening.

      Sony Games Division FY 1995-2013:
      -9+57+117+137+77-51+83+113+68+43+9-232-125-58-56+48+29+2-8 = 244 billion yen net profit

      Yes the games division is still a NET PROFIT even after the PS3 losses, PS1 and PS2 were just that successful.

      You and others still trying to imply “dire” death health of Sony when Sony still has freaking over 18 billion in cash reserves, the loss they have is large no doubt about this, was already set aside in restructuring costs, by doing this now they are going to be saving in over 1 billion in costs! This takes time, and in that time if Sony did not do what the board has done it would have been far worse, over 2 billion in further loss’s.

      The point is playstation stock is not for public buy in. Sony has over 148 billion in physical assets , sony could indeed liquidate every thing except for smart phones , entertainment and playstation and stll have payed off debt, and still have 18 billion on hand to invest back into the three core pillars of the company, but see they would not do that.,

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