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[iamshadowlark]

I can imagine it now.....

Sony CEO: Hey, we took a huge financial loss, but at least we got 70 million units out there. High five you guys?


FIRED

I don't know what this post has to do with what I said but ok....

 

[Xplatformer]

Yup. This thread reminds me more of Gamefaqs than anything else. Lots of kids wanting to see the system they don't own die.

Pretty much.

Bad loss...but nothing Sony wont weather.

 

[ASIS]

My point is that companies don't tend to aspire for GC level profit, and want to avoid its market performance all together. No company wants to ever take PS3 like losses if they don't have too, but most would want to sell say 70 million units.

Gamecube required Nintendo to go back to square one on the drawing board, PS3 gives Sony something to move foward on.

Oh ok now I see, yeah this is all completely true.

 

[2MF]

Normally I would say that the gaming division has to get profitable during the next-gen or it would get killed by backlash from investors. But given that TVs haven't been profitable for years at Sony, I'm not so sure.

Maybe TVs are too significant in Sony's history for them to let go. Or maybe they're a company that can't let go in general. Which could make their fall even quicker, if they keep losing money at the rate they have in recent years... But hey, at least you might see a PS5 in that case...

 

[.GqueB.]

Why exactly would anyone take pleasure in this?

http://www.youtube.com/watch?v=nCQGQ5qBQTA

 

[Syphon Filter]

shadowlark your realize ps3 is looked as a "clunker" too right?

 

[Unknown Soldier]

I can imagine it now.....

Sony CEO: Hey, we took a huge financial loss, but at least we got 70 million units out there. High five you guys?


FIRED

Howard Stringer should have never have been made CEO of Sony. He was from the media side of the business (the fucking record company) and he didn't know jack shit about Sony's other businesses. If Sony comes to an end this decade, the blame can be placed squarely on his shoulders. If it was possible to strip a British citizen of his knighthood, Howard Stringer should have had his removed a long time ago.

 

[OldJadedGamer]

My point is that companies don't tend to aspire for GC level profit, and want to avoid its market performance all together. No company wants to ever take PS3 like losses if they don't have to, but most would want to sell say 70 million units.

Breaking it down you keep saying it is better for a company to take a huge loss than to make a small profit and you are wrong.

I can imagine it now.....

Sony CEO: Hey, we took a huge financial loss, but at least we got 70 million units out there. High five you guys?


FIRED

And that did happen with Howard Stringer and Ken Kutaragi while other super old school Playstation employees like David Reeves and Phil Harrision left on their own.

 

[medrew]

My understanding is that companies can choose to a degree when they want to report certain costs. Like MS did during the RROD fiasco where they reported all costs for replacements/repairs in a single quarter to make their other quarters look better. Maybe I'm wrong but I don't think there is enough info publicly available to make the call on this particular case yet.

they don't get to 'choose'. MS had to do the RROD as per accounting standards which state that you need to set aside a provision for expected costs when you know there will be a material impact in the future. accounting works on a accrual basis... so expenses are recognised when they occur. there shouldn't be a 'choice'. what MS did with the RROD was set a provision on their balance sheet for the expected cost. that provision then in future periods gets written back/adjusted as units are returned. there's a timing lag obviously.

i'm not sure what sony's issues are here. presumably any write-down in their thai operations would have been covered to some affect by insurance so the amortisation write-downs would have been offsetting against something else. maybe they didn't feel the need to have insurance that covers unforeseen shut-downs (including loss of business), but that seems quite unusual for a manufacturer. i don't understand a lot of things sony does though.

 

[Camp Lo]

Deficit Over 94.7 Billion Yen

Holy Fuck!

Courtesy of google, that's "= 1.1916101 billion U.S. dollars."

Oh... Meh.

 

[2MF]

Sony is currently worth 336 THQs.

 

[iamshadowlark]

Breaking it down you keep saying it is better for a company to take a huge loss than to make a small profit and you are wrong.

Thats not what im saying at all. If by "breaking it down" you mean spinning it around and ignoring the relevant points then maybe you could get that...