Report: Sony facing massive PS3 losses

junehhan · 05-19-2007, 10:48 AM

Quote:

Originally Posted by The_Omega_Man

Agreed! Just be prepared for the the real facts as they may not be what you expect or deep down would like to see!

IOW -"Don't ask the question, unless you are really prepared for the answer!"

I want to see, as I can take it! Those numbers can't be any uglier than Sony's last quarter loss, or even Chrysler's recent last quarter loss! Ouch!

The_Omega_Man · 05-19-2007, 08:48 PM

Quote:

Originally Posted by junehhan

I want to see, as I can take it! Those numbers can't be any uglier than Sony's last quarter loss, or even Chrysler's recent last quarter loss! Ouch!

You should probably write an Econ. paper on this whole subject of Major CE Format battles and the resulting monetary, ideological, social and spending impact to the average consumer. Don't use us though, save that for the Psych. Paper! It is widely known that we early adopters have many ideological and social issues! - You can simply reference ANY of these forums if you need any proof of this!

junehhan · 05-20-2007, 06:36 PM

Quote:

Originally Posted by The_Omega_Man

You should probably write an Econ. paper on this whole subject of Major CE Format battles and the resulting monetary, ideological, social and spending impact to the average consumer. Don't use us though, save that for the Psych. Paper! It is widely known that we early adopters have many ideological and social issues! - You can simply reference ANY of these forums if you need any proof of this!

No thank you on that one. I am not at that level yet and don't think I would care to analyze a complex subject like that. Doing something like that would just suck the fun out of this format war for me anyway.

The_Omega_Man · 05-20-2007, 11:41 PM

Quote:

Originally Posted by junehhan

No thank you on that one. I am not at that level yet and don't think I would care to analyze a complex subject like that. Doing something like that would just suck the fun out of this format war for me anyway.

Now I think you understand where I was going with my statments!

LOL

jaypugh · 07-16-2007, 09:19 AM

Well, it has been announced that the PS3 will drop $100 in price, if it hasn't already. The problem is that it really doesn't matter how cheap a console is if it has no good games to play. I'm holding out until I see a game I would like to play. I'm betting that MS is going to have a pretty big Christmas this year with the lineup of games they are preparing for the holiday but I'm still unsure about Sony. I have been itching to buy a PS3 since launch since I typically have all of the new systems but with the PS3 I really haven't seen but one game on the system that I would actually buy. I'm not surprised at the lack of games but I am surprised that it is THIS HUGE. Maybe they should have delayed the PS3 yet another year or ditched the Blue Ray.

On another note, I'm sure you guys have seen the over 1 billion dollar loss that MS is taking on the 360 repairs.

johnnyd1 · 07-16-2007, 09:43 AM

Quote:

Originally Posted by unotis

LOL, you're not.

Why do you come to this forum? Ever since you first logged onto it you've just tried to crap on the threads (I hope I'm incorrect).

Why don't you contribute some knowledge or at least seek it to expand your knowledge of the equipment/formats available.

But to do that you'll need to at least listen to someone's opinion and if you don't agree, give some rational counter opinions/facts to back it up your disagreement.

When you first showed up I suspected you to be a "Troll", why don't you change my mind and try to help make this forum better and less combative.

I took you off ignore today to see if you could talk like a man or whatever you claim to be. But I guess not. You my friend are the joke. (I know I'm not incorrect).
Anyway...back to ignore.

BobY · 07-16-2007, 11:09 AM

Quote:

Originally Posted by jaypugh

On another note, I'm sure you guys have seen the over 1 billion dollar loss that MS is taking on the 360 repairs.

Actually there's a huge difference between *losing* a biliion dollars and setting aside a billion dollars on your books to cover future repairs. Sony is already out the money--it's already spent. For MS, this is a hit on paper only. It's for the future and will not come all at once, but will be spread over a long period of time and likely will never all be spent. In addition, their are deductions for service and repairs that you don't get for losses on sales.

unotis · 07-16-2007, 11:43 AM

Quote:

Originally Posted by johnnyd1

I took you off ignore today to see if you could talk like a man or whatever you claim to be. But I guess not. You my friend are the joke. (I know I'm not incorrect).
Anyway...back to ignore.

"Troll Alert"!

I guess I was correct, you just come to crap all over the forum and not add any good feedback or discussion.

I tried to get you to stop the Troll like postings, but I failed.

At least it only took you 29 days to respond to that post (quick thinking genius), next time refer to a post someone made last year (I don't care if you use the old excuse that I was on ignore).

I know I'm a man, and can carry on good intelligent discussions but, you seem to have a problem doing just that, yes just put me on ignore (that's easier then you hurting your tiny little brain trying to understand rational thought and reason).

unotis · 07-16-2007, 12:01 PM

Quote:

Originally Posted by unotis

"Troll Alert"!

I guess I was correct, you just come to crap all over the forum and not add any good feedback or discussion.

I tried to get you to stop the Troll like postings, but I failed.

At least it only took you 29 days to respond to that post (quick thinking genius), next time refer to a post someone made last year (I don't care if you use the old excuse that I was on ignore).

I know I'm a man, and can carry on good intelligent discussions but, you seem to have a problem doing just that, yes just put me on ignore (that's easier then you hurting your tiny little brain trying to understand rational thought and reason).

Sorry, I let that fellow get my goat and I did what I didn't want to do and got combative with him.

If you go back and read his postings an awful lot of them are just attempts to cause conflict and very Troll like indeed.

I hope he puts everyone on ignore so he cannot crap all over everyone's posts anymore (that would be his best way to make this forum better for everyone).

MikeRox · 07-16-2007, 12:40 PM

MAybe Toshibas tactic IS to take hits on their HD DVD players, but force Sony to drop prices below they anticipated/can afford to, and just play it out til Sony go bust and HD DVD is the only format left

Lee Stewart · 07-16-2007, 12:41 PM

Quote:

Originally Posted by unotis

Sorry, I let that fellow get my goat and I did what I didn't want to do and got combative with him.

If you go back and read his postings an awful lot of them are just attempts to cause conflict and very Troll like indeed.

I hope he puts everyone on ignore so he cannot crap all over everyone's posts anymore (that would be his best way to make this forum better for everyone).

Well the best thing to do is IGNORE HIM. He has nothing to add to the discussions whatsoever. If we do not respond to his posts he will go back to bluray.com where he belongs.

BobY · 07-16-2007, 02:47 PM

It also occurs to me that Sony's loss of nearly $2 Billion on the PS3 most likely does not include the estimated more than a million units built by Sony and not yet sold to dealers (based on the number of units Sony claims to have shipped versus the inventory at retail). They are likely sitting in Sony warehouses around the world.

Since these units may turn into sales at some point, they certainly would not have included them in the loss figures. That makes them a time bomb. Sony already paid for them (at a time when the manufacturing costs were at their highest), so only two things can happen:

1) They can sell the units to a retailer and put the currently hidden *real* loss of selling those products below cost on their books (especially bad if they have to blow them out at a discount price to move them, as it further increases the loss).

2) Scrap them and write the inventory down, which would be a disaster as they can only deduct a percentage of the depreciated value--and electronics depreciate very quickly.

Tick...tick...tick...

Lee Stewart · 07-16-2007, 02:55 PM

Sony's Q1 FY2007 Earnings Announcement

Date: July 26, 2007 [Thu] 17:30 JST
Presenter: Executive Vice President and CFO N. Oneda

tick, tick, tick

mshulman · 07-16-2007, 03:02 PM

Quote:

Originally Posted by BobY

Actually there's a huge difference between *losing* a biliion dollars and setting aside a billion dollars on your books to cover future repairs. Sony is already out the money--it's already spent. For MS, this is a hit on paper only. It's for the future and will not come all at once, but will be spread over a long period of time and likely will never all be spent. In addition, their are deductions for service and repairs that you don't get for losses on sales.

And there are plenty of consoles that won't need repairs in that 3 year window.

mshulman · 07-16-2007, 03:03 PM

Quote:

Originally Posted by Lee Stewart

Sony's Q1 FY2007 Loss Announcement

Date: July 26, 2007 [Thu] 17:30 JST
Presenter: Executive Vice President and CFO N. Oneda

tick, tick, tick

Corrected...

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07-16-2007, 09:19 AM	#35
jaypugh My plasma is High Def. Join Date: Jul 2007 Posts: 9	Well, it has been announced that the PS3 will drop $100 in price, if it hasn't already. The problem is that it really doesn't matter how cheap a console is if it has no good games to play. I'm holding out until I see a game I would like to play. I'm betting that MS is going to have a pretty big Christmas this year with the lineup of games they are preparing for the holiday but I'm still unsure about Sony. I have been itching to buy a PS3 since launch since I typically have all of the new systems but with the PS3 I really haven't seen but one game on the system that I would actually buy. I'm not surprised at the lack of games but I am surprised that it is THIS HUGE. Maybe they should have delayed the PS3 yet another year or ditched the Blue Ray. On another note, I'm sure you guys have seen the over 1 billion dollar loss that MS is taking on the 360 repairs.

07-16-2007, 12:40 PM	#40
MikeRox Blu Blu Skies! :D Join Date: May 2007 Location: Huddersfield, United Kingdom Posts: 12,416	MAybe Toshibas tactic IS to take hits on their HD DVD players, but force Sony to drop prices below they anticipated/can afford to, and just play it out til Sony go bust and HD DVD is the only format left

07-16-2007, 02:47 PM	#42
BobY What's all this, then?... Join Date: Jan 2006 Posts: 6,197	It also occurs to me that Sony's loss of nearly $2 Billion on the PS3 most likely does not include the estimated more than a million units built by Sony and not yet sold to dealers (based on the number of units Sony claims to have shipped versus the inventory at retail). They are likely sitting in Sony warehouses around the world. Since these units may turn into sales at some point, they certainly would not have included them in the loss figures. That makes them a time bomb. Sony already paid for them (at a time when the manufacturing costs were at their highest), so only two things can happen: 1) They can sell the units to a retailer and put the currently hidden real loss of selling those products below cost on their books (especially bad if they have to blow them out at a discount price to move them, as it further increases the loss). 2) Scrap them and write the inventory down, which would be a disaster as they can only deduct a percentage of the depreciated value--and electronics depreciate very quickly. Tick...tick...tick...

07-16-2007, 02:55 PM	#43
Lee Stewart Behold - the future! Join Date: Jan 2007 Location: Albuquerque, NM Age: 58 Posts: 25,193	Sony's Q1 FY2007 Earnings Announcement Date: July 26, 2007 [Thu] 17:30 JST Presenter: Executive Vice President and CFO N. Oneda tick, tick, tick