Sony’s Pocket Pains.

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Nintendo were at it last week and Sony are doing it this week, what am I talking about? Losses. That’s right, as most expected Sony have posted a significant loss for the financial year ended March 31 2014, the electrics giant confirming that they had lost some 128.4 billion yen ($1.25b) a significant down turn in comparison to net income of 41.5 billion yen ($406m) in the previous fiscal year.
Sony placed the loss largely at the feet of the Playstation 4’s costly launch as well as the recording of a 6.2 billion yen ($61m) write-off of certain PC software titles sold by Sony Online Entertainment. Sony went on to reveal that they also expect to see a further year of losses for business year ending in March 2015. Somewhere in the region of 50 billion yen ($490m) has been predicted.

Sony's Pocket Pains.

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7 Comments

  1. Did they mention if they expect to hit revenue in the next fiscal year? Sony, as I know, also gave up their TV and laptop/PC divisions to focus on gaming, mobile etc. (?) If that was the case perhaps we can expect a healthier Sony next year.

    1. They confirmed they won’t have escaped the red by next year but do expect to be doing significantly better than this, and while your right about the PC division being sold off I think they are still holding on to the TV section despite in making them next to nothing.

      1. Ah I see. Thanks. So they are holding on on TV huh. You know,in the 90s, virtually most households on Asia has a Sony TV. They are pretty good and can last for 10 years! That product strategy is of no use now, since the new business model for most consumer electronics company is to make people upgrade their products every year. While I don’t know much about the their business, I really hope they can turn things around. They have music and movies as well. They have exclusive rights to michael jackson and Spiderman, etc. They must make use of those intelligently.

      2. You’ve hit the nail on the head here me thinks, Sony will indeed need to rely more and more on the movie, music and video game sides of their business if they really do want to turn things around.
        I do however also believe that they also have to either sell off the mobile and TV divisions or drastically reform them, the PS Vita could also use some attention but all in all I really can see Sony getting back on track if they just knuckle down and continue to trim the fat.

      3. I generally agree with what you said, but I HOPE they will not sell the mobile divisions. They spent 10 years with Ericsson to build that brand, and the Xperias are really amazing device. I want one, actually, but can only buy one for my girlfriend hehe.

        And yes, use their movie and music business to promote their other stuff (like maybe James Garlfield playing the Vita on a Spiderman movie) though I don’t know if that is ethical hehe

      4. I wasn’t saying they should sell off the mobile divisions because the phones are bad, the Xperia Z2 for instance looks lovely but the cell phone market is just so competitive that it requires an awfully lot of attention, and with Sony’s fingers in so many pies attention appears to be in short supply.
        As for product placement in a Bond movie well, what is it they say? All’s fair in love and advertising.

      5. You are right. And their divisions dont jive – we have music and film, then we have games and phones, etc. Too many pies. I hope they can figure out how to go above the red line this year. Same with Nintendo.

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