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Sony Slashes Profit Predictions

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Sony Slashes Profit Predictions

If you're a Sony stockholder, look away now. Seriously, I kid you not - this is not going to make happy reading. For the rest of us, it is my duty to report that Sony has just revised its earnings forecast for next financial year by a massive 57 per cent, according to MCV UK. It could be worse, at least Sony Still expects to profit, but it's not good by a long stretch.

The 2007/2008 figures didn't exactly make great reading, what with the £2 billion dent the PS3 was revealed to have made in Sony's profitability so another year of less-than-ideal performance isn't exactly what the doctor ordered.

The revised, 57 per cent lower, profit forecast now sits at ¥200 billion (~£1.27 billion) which isn't by any means a small amount. Sony is apparently blaming the combination of the Yen's increasing strength and a lack of demand for its products, especially LCD TVs, for the slump.

Still, there's a fair few decent games available on the PS3 now, with more coming so why not give Sony a hand and splash out a little?

Link:

MCV UK.

prag fest

October 23, 2008, 8:04 pm

Funny you should say that, I did actually just buy a PS3 because I felt a bit sorry for them.

Jmac

October 23, 2008, 8:30 pm

I actually just bought one because they are awesome and WipEout HD is outstanding. Plus Blu-Ray - how good is THAT? And it's quieter, better built, has a slicker interface and is generally more accomplished than its direct competitor.

prag fest

October 23, 2008, 9:37 pm

And...I have to agree with John, BUT it's online gaming setup is frankly rubbish in comparison.

Williamn

October 24, 2008, 2:17 am

Ok yeah sure... next time I earn more than &#1631.27 billion I'll give Sony a hand.

PGrGr

October 24, 2008, 12:07 pm

I could have told them their profits were going to go through the floor ages ago. Why? Because MS have been aggresively slashing the price of their Xbox. Its all very well talking about the PS3 having a 10 year lifecycle and bluetooth included, but I beleive that the majority of purchasers, when choosing a console will still be primarily motivated by how it performs as a games console rather than as an "entertainment hub", and how it performs in the here and now, rather than how it might perform in another three years. The fact is that for gaming purposes alone, the PS3 is not significantly better than the Xbox, but costs a lot more.





I believe that if Sony cut the price of the PS3, they would clean up in that market.





Then again, they must know that too. I just wish they would unveil the master plan.

Ed

October 24, 2008, 12:57 pm

Paul,





I don't believe dropping the price of the PS3 would help Sony much at all. For one, the PS3 is only one small part of the whole operation. On top of that, Sony is already making a loss on every console it sells so dropping the price further would just increase that loss. Also, I don't see many people all of a sudden being convinced to buy a PS3 just because it's a bit cheaper - even if it dropped to &#163200, it's still not at the level that people would consider it an impulse buy. Particularly because, as you say, most people still don't really care about the Blu-ray stuff, they just want a games console.

Rsaeire

October 24, 2008, 2:13 pm

What seemed as a great Trojan horse tactic, by including the Blu-ray drive in the PS3, has now come back to bite them in the rear. The reason for the majority of the PS3's loss, which is clearly obvious, is the fact that a Blu-ray drive is included. At least when the PS2 was released DVD drives had been available for a few years already, and so the price for including one in the PS2 wasn&#8217t as astronomical as it is with the PS3. Also, as the PS3 was released at pretty much the start of Blu-ray's life, it was always a big gamble for Sony to include a Blu-ray drive in the PS3 since there was little to no market awareness. It will be very interesting to see how the PS3 fares in the next 2 years.

PGrGr

October 27, 2008, 3:36 pm

Fair point(s!), Ed.

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