Sony net profit falls 95% in Q3

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Falcon01

Jan 30, 2009 - CST 12:10 PM

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Holy Mammasita!

Sony's net profit dropped 95% in the third quarter due to a strengthening yen, the gloomy economy and stiffer price competition from electronics rivals.
Sony announced Thursday a net profit of ¥10.4 billion ($115.6 million) for the October-December 2008 period, down from$2.22 billion the same period the previous year.

Meanwhile, the third-quarter operating loss totaled $199 million, compared with an operating profit of $2.62 billion in the third quarter of the 2007 financial year.

Sony Pictures had a 6% increase in operating net on a U.S. dollar basis, but currency issues dragged it down to an 8% drop.

Revenue at Sony Pictures fell 22% to $1.9 billion despite a strong showing by James Bond installment "Quantum of Solace" as well as ancillary play for "Hancock" and "Step Brothers." The year-earlier quarter made for tough comparisons given the homevid release of "Spider-Man 3."

The electronics division, once a reliable cash cow even when other areas of the company were faltering, suffered an operating loss of $176.7 million as holiday sales of Bravia TVs and other once-hot products failed to live up to expectations. A year ago, the division reported a $2.23 billion profit.

The games division reported a 97% drop in operating profit, to $4.4 million. Sales of PlayStation 3 software gained 14.8 million units year-to-year to 40.8 million, but sales of PS2 and PSP software declined.

Meanwhile, PS3 hardware sales slid 440,000 units year-to-year to 4.46 million units, while sales of PS2 and PSP also fell. Sony blamed the appreciation of the yen against the dollar and euro for the anemic sales results, which dragged profits down.

As announced last week, Sony expects to record its first annual losses in 14 years, with a net loss of $1.67 billion and operating loss of $2.89 billion.

http://www.variety.com/article/VR1117999234.html?categoryid=13&cs=1&nid=2563

StevePro

Jan 30, 2009 - CST 3:06 PM

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Maybe Obama will give them a bailout.

We just had a doom and gloom meeting at the University where I work. Not good.

ReaggieP

Jan 30, 2009 - CST 4:34 PM

says... is thinking "Brick House"...

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Tim Raynor

Jan 31, 2009 - CST 12:11 AM

says... It puts the lotion in the basket . . .

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Good or bad economy, that's what happens when you spread yourself thin . . . and cook books!

Where's SkyChicken!?

[Post edited by Tim Raynor on Jan 31, 2009 - CST 12:36 AM]

posters5

Jan 31, 2009 - CST 12:38 AM

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tim,

my canadian associates found a picture of skyhawk.

Tim Raynor

Jan 31, 2009 - CST 2:52 AM

says... It puts the lotion in the basket . . .

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The real beauty is, Eddie, now that the real truth is finally coming out about Sony, SkyChicken is nowhere to be found!

Yep, Mr. know it all, never wrong SkyChicken is certainly hiding his head in the sand now! Oh, how Karma is such a beautiful thing!

posters5

Feb 1, 2009 - CST 3:23 PM

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i was at a local best buy about a week (eight days) ago. there were roughly 100 wiis stacked in the middle of the store. i went there again last night. all of the wiis were gone. i asked the employees about the wiis, and they said that they basically sell out of their wii shipments within the same day as they're put out on the floor.

meanwhile, the same xbox 360s and PS3s sit there, untouched. from the looks of things, people are still buying xbox elites, but the arcade and regular versions are almost dead in the water.

Tim Raynor

Feb 1, 2009 - CST 10:44 PM

says... It puts the lotion in the basket . . .

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It's amazing how Microsoft and Sony can not catch on to the concept of "attainable price" when it comes to thinking about the consumer. With the economy in the tank, you think these bozos would cut the price and just take the loss. Maybe not profiting, but making some money is better than no money at all. It will be even worse for them just letting their product sit there and never move. Nevertheless, I'm happy to see Nintendo realize greed doesn't always work and it's much better to make the consumer happy by selling a product that is much more attainable for the average family. Good for them! (y)

wolvinator

Feb 1, 2009 - CST 11:34 PM

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Nintendo Wii costs more than the xbox arcade. The truth of the matter is that the 360 has much more expensive technology in it but Nintendo knows how to better attract the family niche(parents buying Wiis for the family). It's safer for the parent to buy a Wii for their kids so that they don't worry about the youngens having bloody wars online, lol. I have a 360 and really love its capabilities but I totaly understand where parents are coming from and how Nintendo better markets their product.

Sony has a gaming console? Why didn't anyone tell me?

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