Saturday, October 31

Sony shares rise thanks to PS3 Slim and smaller than expected loss

The internet is in an upheaval over the latest numbers posted by Sony Corp. that revealed a net loss for the quarter ended Sept. 30 of 26.3 billion yen ($287.5 million), compared with a net profit of 20.8 billion yen in the same period last year. If you thought that was bad, according to 15 analysts forecast, it could have been much, much worse; but thanks to the newly redesigned console, and drastic cost cutting measures, things are looking up.

The company has been hard at work on making sure all of its divisions are streamlined and efficient. Chief Financial Officer Nobuyuki Oneda said on Friday that the negative spread between the cost of producing the PS3 and its sales price have narrowed to about 10% to 12% and that he was expecting the gap to decline even further by early next year.

Although the losses are nothing to take lightly, it has to be noted that Sony's second quarter losses were considerable lower than a 40.4 billion yen estimate compiled by Reuters from 15 analysts forecast. CFO Nobuyuki Oneda remained cautious however, declining to provide a date for when its videogames and televisions business to return to profitability.

"The trend for prices to come down will continue for some time to come," Oneda said, pointing out the rise in lower-end television products. "That accelerates the unit price decline," he added.

On September 1st, 2009, Sony Computer Entertainment Inc. re-released their flagship console, and ever since then, its been on a winning streak, consistently outselling the Nintendo Wii and Xbox 360 in the three major videogames markets, North America, Europe and Japan.

So forget the doom and gloom forecasts, Sony and the PS3 are here to stay.

10/31/09 Ernice Gilbert


  1. here to stay indeed.

  2. There never was any doubt for they are Sony & Playstation

  3. Imagine this gen without the PS3, all we would have is Nintendo's casual garbage and a gimped Halo player with Gears 1 as benchmark game. No LBP, no MotorStorm, no Uncharted, no God of War III, no place for Ueda's The Last Guardian or QD's Heavy Rain, no 1 hour cutscenes with Snake, no MAG, no progress. All we would have is fees, overpriced accessories, DLC and the next fitnessdevice. No Gran Turismo, no Agent, no Demon's Souls or WipEout HD.

  4. It'd be a sad world indeed.

  5. I cant imagine what my life would be without uncharted. i have been using my computer for gaming for a long time and i recently got a ps3 with the uncharted 1 game CD.. and i am already in love with the game.. and yeah god of war.. they r any day better than halo and gears.. what sony are getting are called games.. though i will miss mass effect.. for tht i have my PC...

  6. There is no doubt that the ps3 as a console is much better than the xbox. But everyone has to admit the 360 has a wider choice of games and xbox live is so much better but im not paying £40 a year just so I can dowload a demo a week earlier. Also nearly all ps3 games are multi-platform anyway.

    I love my ps3 and I enjoy renting blurays and watching them on my hdtv, and its much more silent watching it too lol.

    P.S Im currently hooked playing Fallout 3 on it!!!