Sony's fiscal 2012 results: $820 million loss due to floods, earthquakes and exchange

[DP ServBot]

Sony's financial results for the fiscal year ending on March 31, 2012 are in, with the Japanese giant reporting year-over-year losses in revenue and operating losses that it attributes to "the unfavorable impact of foreign exchange rates, the impact of the Great East Japan Earthquake and the floods in Thailand, and deterioration in market conditions in developed countries."

Sony's fiscal 2012 ran from April 1, 2011 through March 31, 2012, with the company reporting net revenue of ¥6.49 trillion ($79.1 billion), down 9.6 percent year-over-year from the ¥7.18 trillion (approx. $89 billion) reported at the end of fiscal 2010. After expenses, Sony reports an operating loss of ¥67.3 billion ($820 million), which is actually a smaller loss than that reported at the end of fiscal 2011 (¥199.8 billion/approx $2 billion).

Year-over-year sales decreases were primarily due to Sony's Consumer Products & Services (CPS) and Professional, Device & Solutions (PDS) divisions, with CPS sales down 18.5 percent at ¥3.13 trillion ($38.2 billion) in 2012 vs. ¥3.84 trillion (approx. $48 billion) in 2011, resulting in an operating loss of ¥229.8 billion ($2.8 billion) - more than a 2,000 percent decrease from 2011's operating income of ¥10.8 billion (approx. $135 million). CPS encompasses Sony's consumer electronics sectors, including LCD TVs, PCs, photography solutions and, of course, gaming.

Sony partially attributes CPS' decline in sales to "lower sales of PlayStation(R)3 hardware due to a strategic price reduction and lower sales of PlayStation(R)2 due to platform migration," among other reasons like deteriorating conditions in North American and European TV markets.Sony's fiscal 2012 results: $820 million loss due to floods, earthquakes and exchange rates originally appeared on Joystiq on Thu, 10 May 2012 23:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

[SpaceHarrier]

If Sony wants to thrive they need to publish their games on other platforms, such as smartphones.

/s

[joshnickerson]

If Sony wants to thrive they need to publish their games on other platforms, such as smartphones.

/s

GENIUS! Have you ever considered becoming an industry analyst?

[SpaceHarrier]

GENIUS! Have you ever considered becoming an industry analyst?

Tempting, but how can I find the time when I'm so busy being a greedy, yet clueless, investor?

[duffmanth]

Sony's financial results for the fiscal year ending on March 31, 2012 are in, with the Japanese giant reporting year-over-year losses in revenue and operating losses that it attributes to "the unfavorable impact of foreign exchange rates, the impact of the Great East Japan Earthquake and the floods in Thailand, and deterioration in market conditions in developed countries."

Sony's fiscal 2012 ran from April 1, 2011 through March 31, 2012, with the company reporting net revenue of ¥6.49 trillion ($79.1 billion), down 9.6 percent year-over-year from the ¥7.18 trillion (approx. $89 billion) reported at the end of fiscal 2010. After expenses, Sony reports an operating loss of ¥67.3 billion ($820 million), which is actually a smaller loss than that reported at the end of fiscal 2011 (¥199.8 billion/approx $2 billion).

Year-over-year sales decreases were primarily due to Sony's Consumer Products & Services (CPS) and Professional, Device & Solutions (PDS) divisions, with CPS sales down 18.5 percent at ¥3.13 trillion ($38.2 billion) in 2012 vs. ¥3.84 trillion (approx. $48 billion) in 2011, resulting in an operating loss of ¥229.8 billion ($2.8 billion) - more than a 2,000 percent decrease from 2011's operating income of ¥10.8 billion (approx. $135 million). CPS encompasses Sony's consumer electronics sectors, including LCD TVs, PCs, photography solutions and, of course, gaming.

Sony partially attributes CPS' decline in sales to "lower sales of PlayStation(R)3 hardware due to a strategic price reduction and lower sales of PlayStation(R)2 due to platform migration," among other reasons like deteriorating conditions in North American and European TV markets.Sony's fiscal 2012 results: $820 million loss due to floods, earthquakes and exchange rates originally appeared on Joystiq on Thu, 10 May 2012 23:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

I have no doubt that those natural disasters contributed to Sony's financial losses in some way, but their financial issues go deeper I think. I feel Sony is in the position that Apple was in during the mid to late 90's. They have their hands in too many product categories. They need to kill off products like tablets where they're getting destroyed by Apple and Samsung. They also need to scale back huge on products like smartphones, PC's, and mp3 players again where they're getting destroyed by Apple, Samsung and others. Sony is still huge in video games, TV's/home theater, and cameras/camcorders, they may not be number 1 in those product categories, but they still have a huge presence and that's where they should focus they're energy. Kaz Hirai needs to take a page out of Steve Jobs' book.

[moggles]

genius! Have you ever considered becoming an industry analyst?

hahaha!

[Griking]

I have no doubt that those natural disasters contributed to Sony's financial losses in some way, but their financial issues go deeper I think. I feel Sony is in the position that Apple was in during the mid to late 90's. They have their hands in too many product categories. They need to kill off products like tablets where they're getting destroyed by Apple and Samsung. They also need to scale back huge on products like smartphones, PC's, and mp3 players again where they're getting destroyed by Apple, Samsung and others. Sony is still huge in video games, TV's/home theater, and cameras/camcorders, they may not be number 1 in those product categories, but they still have a huge presence and that's where they should focus they're energy.
Kaz Hirai needs to take a page out of Steve Jobs' book.

Just out of curiosity but what if the Playstation was one of the products that they decided to kill off. I mean really, Microsoft is in much better financial position than Sony is and the games really aren't any different on one console over the other. I argue that we really don't need both. Nintendo is a little different because they at least try to do things a little differently. They seem to have their little niche that they stay in.

[duffmanth]

Just out of curiosity but what if the Playstation was one of the products that they decided to kill off. I mean really, Microsoft is in much better financial position than Sony is and the games really aren't any different on one console over the other. I argue that we really don't need both. Nintendo is a little different because they at least try to do things a little differently. They seem to have their little niche that they stay in.

I would STRONGLY disagree...I don't think Sony would ever kill off the Playstation brand. The PS3 has far better exclusives in my opinion. I know the Playstation brand is part of Sony's consumer division which is losing money as a whole, but I believe the Playstation brand by ltself is turning a profit? It's not that there isn't still interest and demand for the Playstation brand, Sony just seems to make fucked up choices that prevents people from buying their products right away, like releasing the PS3 at $600 and making Vita memory $60 for a decent amount of storage.

[The 1 2 P]

I have no doubt that those natural disasters contributed to Sony's financial losses in some way, but their financial issues go deeper I think. I feel Sony is in the position that Apple was in during the mid to late 90's. They have their hands in too many product categories. They need to kill off products like tablets where they're getting destroyed by Apple and Samsung. They also need to scale back huge on products like smartphones, PC's, and mp3 players again where they're getting destroyed by Apple, Samsung and others. Sony is still huge in video games, TV's/home theater, and cameras/camcorders, they may not be number 1 in those product categories, but they still have a huge presence and that's where they should focus they're energy. Kaz Hirai needs to take a page out of Steve Jobs' book.

I think it also has to do with their 3D initiative which extended from their tv division right into their video game division. People have spoken and there is very little interest in 3D tv's and games from the mainstream. I've lived long enough to see the 3D gimmick surface every decade since the 1980's and this one wasn't any different. I'm alsmot certain that this years Sony E3 press conference will focus very little on 3D content. So if Sony stops with all the 3D propaganda they can cut cost that way too.

Just out of curiosity but what if the Playstation was one of the products that they decided to kill off. I mean really, Microsoft is in much better financial position than Sony is and the games really aren't any different on one console over the other. I argue that we really don't need both. Nintendo is a little different because they at least try to do things a little differently. They seem to have their little niche that they stay in.

Thats a very interesting suggestion. Although it seems alittle bit improbable at the moment, I could have said the same thing about Sega 15 years ago. The only reason I'd even consider the thought for Sony dropping out is that, although this is only their first time being in last place, they have lost a ton of money. This is the second year in a row that they have reported a huge year to year multi billion dollar lost. And on top of that they are pouring even more money into the PS4. So I suppose if the PS4 losses as much money as the PS3 has and if Sony(even as a whole with their other divisions) reports two more consecutive years of billion dollar loses then someone at the top will probably suggest the same thing you did. I can't really see Sony being a third party publisher but I suppose you gotta do what you gotta do to survive.

[Gamevet]

I think it also has to do with their 3D initiative which extended from their tv division right into their video game division. People have spoken and there is very little interest in 3D tv's and games from the mainstream. I've lived long enough to see the 3D gimmick surface every decade since the 1980's and this one wasn't any different. I'm alsmot certain that this years Sony E3 press conference will focus very little on 3D content. So if Sony stops with all the 3D propaganda they can cut cost that way too.

Sony probably lost money releasing that specialty 3D television for use with the PS3. They came and went pretty fast from retail. The last one I've seen was discounted at Fry's. Target has it marked down to $299.

I'd say their movie studios aren't doing so well either, with movies going straight to video within months of release. DVD was pretty popular, but I don't see Blu-Ray getting the same kind of love, since streaming video has taken a big chunk out of the home video market.

Thats a very interesting suggestion. Although it seems alittle bit improbable at the moment, I could have said the same thing about Sega 15 years ago. The only reason I'd even consider the thought for Sony dropping out is that, although this is only their first time being in last place, they have lost a ton of money. This is the second year in a row that they have reported a huge year to year multi billion dollar lost. And on top of that they are pouring even more money into the PS4. So I suppose if the PS4 losses as much money as the PS3 has and if Sony(even as a whole with their other divisions) reports two more consecutive years of billion dollar loses then someone at the top will probably suggest the same thing you did. I can't really see Sony being a third party publisher but I suppose you gotta do what you gotta do to survive.

It's not like Sony is a distant 3rd though. The PS3 is only a couple of million units behind the 360, and that was released a year before Sony's console. The PSP has done fairly well and is still a top seller in Japan, even outselling the Vita on a month to month basis.

Yeah, Sony lost a ton of money the first couple of years with the PS3, and the investment in Move hasn't panned out for them. Then you have to wonder if the Vita is selling at a profit, or if Sony is taking a loss with hopes of making the money back through software sales and memory cards?