Sony prepares to post first annual operating loss in 14 years… $3 billion
When it rains it pours and over at Sony we’re looking at a torrential downpour the likes of which the company has never seen. Not long ago, analysts predicted Sony would post a massive operating loss of $1 billion on the year. Good call, analysts, only you were about 260 percent off. Sony let the cat out of the bag today and revealed it will post a staggering $2.9 billion operating loss, far and away the worst loss the company has ever seen. Sony’s last losing year, its only other annual loss in fact, was back in 1995 when its movie studio took a beating. Now, 14 years later, a terrible sales year coupled with the economic downturn amount to the worst annual performance the company has reported in its history as a publicly traded company. Sony plans to eliminate a horrifying 16,000 jobs between now and March of next year as part of an effort to shed over $2.8 billion in operating costs during that time frame. In the end, Sony is about to undergo changes the likes of which the company has never seen as it tries to recover from this past year – layoffs, facility closures, salary / benefit cuts and restructuring are now the name of the game.
ouch, they should start selling ipods
LOL @ ad after article.
“Congratulations!”.
Maybe they’ll stop dissing the Xbox now.
Doubt it, but maybe…
they need to cut the price on that PS3
@getbig
What so their operation loss can be 4 billion? Sony has really put themselves in between a giant rock and a hard place like downtown Detroit.
Classic case of a company thinking they are too good and refusing to lower prices. I am sure that if they lowered the price of the PS3, they would a shitload more of them. Stringer made a comment at CES about how they were the premier brand and they didn’t feel the affects of the economic downturn. Good call sir, good call.
So what does this mean? The playstation, TVs and computers prices will be slashed?!
Sometimes unhackables hardware is not good for your sales. I’m sure the PS3 would sell more if the games were crackable. I know it’s bad, but that’s how video consoles sell the by the large numbers.
Posted from BGR Mobile (iPhone).
Forgot to mention, they will gain the cash back when BluRay kicks in full swing
I have a nice home theater system and I want to top it off with a nice game console. Lets go shopping!
Ok, I buy a PS3 for $399.99. I take it home and plug it in, go and rent Call of Duty, and I am ready to go!
On the reverse side, I buy an Xbox for $199.99. I take it home, realize that there is no HDMI connection. That’s not a big deal, i’ll deal with it. I plug it in, go rent call of duty, I am ready to go. Wait…I have to go buy a wifi adapter so that I can play online. I, like a lot of people, don’t have my router sitting next to my television in my living room. So the wifi adapter costs between $60-$100 if I don’t go scouring ebay. I go home and hook up my wifi adapter, now I am ready to go. Nope, I have to pay for Xbox live. I buy a year subscription to Xbox live which is $50. I sit down, log on to Xbox live, and I am rady to go. NOPE! My controller NEEDS F**KING BATTERIES. So I go get a $3.99 pack of batteries. NOW I CAN GO! Of course I can’t save my game because the $199 version of the xBox doesn’t have a hard drive but that isn’t a big deal right?
So while the actual cost of operating the xBox is still roughly $50 cheaper than a PS3, add the fact that it has a Blu Ray player and I say that the PS3 is more than worth the cost. With the PS3 I get everything that the xBox has and then some for just a little more. I really don’t see why they need to lower the price? They just need to market it less as a gaming console and more as a media center.
yes, and as a media center they will sell less than as a game machine. they really needed to bring the price down to 299 befor christmas than 199 later this year. they way things are now, the ps3 is just an after thought to most people as its out of their price range. btw, the ps3 is my only console and use it everyday, its an incredible machine, but the only reason i was able to afford was because i found a used 60gig for 250 last year and jumped on it (it was 599 at the time) if not for that i probably still wouldn’t have one as i wait for the price to drop or have gotten fed up of waiting and gotten an xbox.
This is to be expected. You can’t stay on top forever…
I’m sure this goes beyond the sales of the PS3. Their laptops alone are over priced for what you actually get. BluRay has not picked up as they hoped, the licensing fees are crazy just to use the media format. I just don’t see the value in buying a $400 BluRay player when a PS3 does the same and then some. Slash prices, take some inital losses and I’m pretty sure in the long run, you’ll do much better.
LOL, I agree…. And Wii’s too
Looks like overcharging for computers, tv’s, media centers….I mean gaming consoles, etc…finally caught up and bit Sony in the ass. Hardy har, har.
@ Evan
You sir, are an idiot. Try to make some valid points. Hello, relevant…..table for 1.
@ HokiePS7
Did I say something that wasn’t true?
$3 billion loss? Couldn’t happen to a better company.
This is what rootkits, proprietary garbage, and overcharging will get them. Good for them.
@Evan
Ummmm yeah. Pretty much your entire rant. For the $399 you spent on your fancy BluRay player, you can get the 360, hatd drive, wireless network adapter, rechargeable batteries, and a year of Live ($30 btw). Then you will actually have TONS of kickass games available to you and TONS of people to play online with when you slap that new COD in. If you think the game availability and online experience of PS3 is anything remotely close to Live you’re kidding yourself.
Posted from BGR Mobile (iPhone) at: Latitude: 41.369751, Longitude: -81.941879
Blu-ray + HDTV = my $400 for the PS3 without complaint.