There's Nothing to Laugh About Kaz.
Probably not, but lets not rule it out; after all, this Fiscal Year for Sony is a fresh start, with Kazuo Hirai taking over Howard Stringer as CEO and promising a big change in Sony. But will his change be enough? Sony’s loss for last Fiscal Year was $6.4 billion dollars and as I’m sure you know they haven’t turned a profit in over 4 years. The problem for Sony, as Kaz puts it, is that there is too much concentration on too many things.
This is our only chance to change
- CEO of Sony Corp. Kazuo Hirai
Sony literally has its paws over everything in the electronics industry. But the main problem for Sony lies in T.V’s, they are wiping profits in other divisions. All in all Sony’s TV business has lost over 10 billion dollars in 8 years, and haven’t turned any form of profit.
However it’s not just the TV’s causing the problem, Sony’s Playstation division is also a source of debt. With the PlayStation division losing $2.8 billion dollars last Fiscal Year (nearly 50% of the debt). ALL hardware sales including PSP, PS2 and PS3 were also down from the numbers of the last fiscal year and Sony predicts that within this Fiscal Year combined hardware sales between the PS2 and PS3 will be even worse than last year. The one thing Sony is banking on? Handhelds.
This nifty chart shows the Hardware and Software sales of the Playstation Division. As you can see the PSP sold 6.8 million units in the FY of 2011 compared to the 8 million units in the FY of 2012. Sony’s estimates for the combined sales of the PS3 and PS2 this FY are sitting at 16 million compared to the 18 million sold last year.
The handheld projection is what’s most interesting as it sits at 16 million as well. Interesting because if you look at the declining PSP Sales 8 million from FY10 > 6.8 million in FY11 you’d have to assume that in FY12 PSP sales are going to drop below 6 million, especially with Sony’s latest handheld now on the market. So with a projection of 16 million handheld sales and assuming that the PSP sales are declining each year you can assume that Sony is projecting the PS Vita to sell over 10 million units this year. At its current rate, 10 million units wouldn’t be possible. If the Playstation Vita’s sales kept continuing like they were right now it would only sell 3-4 million units by the end of the year. So how will they reach 10 million?
There’s going to be something big at E3, there’s got to be, otherwise I can’t see Sony making it anywhere close to their current projections.
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Right, and I do believe Sony is making TONS of money on the memory cards, and as always, plans to make money back on the software. I really don't see there being a price cut on the vita either, just saying if they think it's necessary to hit their numbers of 10 million, it's still something they can do. I wouldn't put it past them to do that, just so they can say, "see we hit our 10million as projected, things are on track". But in all honesty I don't see a price cut coming this year, I'm guessing we'll see one early next year, maybe around end Jan or early Feb. Giving them a chance to sell a few million more units just before the end of their fiscal year. The games will come though, by my guess they'll have at least 7-10 new games out before the end of the year. That's an average of at least 1 new game every month. LittleBigPlanet Vita, Gravity Rush, Warrior’s Lair (Ruin), Persona 4 Golden, Soul Sacrifice, Ragnarok Odyssey, Final Fantasy X HD, and a few surprise titles that will be announced at E3 (not to mention PSN releases and titles I'm forgetting.
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Like3DS had a similar rough start, with the cutting of system price and a slew of new titles for it, it picked up considerably, currently sitting at over 16million sold. The vita is in the exact same boat, they did have a lot of games at launch mind you, but letting a few of the key launch titles slip is what stalled momentum, that should have carried till E3, so there would have been no slump in sales at all til the end of the year (Cause we all know that E3 will bring the goods for the vita) So I think after E3, and some of the bigger promised vita games come through, plus the ones we're still unaware of, the vita will do fine. If at it's current pace (which is crap) it is projected to sell 3-4mill, it's very well within the realm of possibility to double or triple that number with great games, and possibly a price cut. Just LOOKS impossible with their current sales. It all comes down to the hardware being capable of great things (which it is) and the software being there to back it up (which is sounds/looks like it will be)
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LikeRendermonk I don't know that there will be a price cut for a while.If there was one I think they would be losing money for every vita sold.
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Likedmcgee627 Rendermonk Actually, assuming I'm understanding correctly, they're already selling the Vita for a loss. Of course, they're making that loss back with the proprietary memory cards and software sales, but I'm also doubting that they'll cut the price any time soon.
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LikeGP Travis dmcgee627 Rendermonk I believe you're correct, Travis. They're taking a slight loss on each system sold.
Rendermonk brings up a point casual conversation often forgets: the status of the 3DS at launch. t didn't pick up that well even after the price drop, but 3D Land and Mario Kart 7 pushed it towards success.
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LikeGamePlox Actually according to http://bit.ly/KOm46d each PS Vita is being manufactured at around $160. If you want to get technical that doesn't factor in employee wages or advertisements.
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Likei honestly hope the psvita does not fail,competition is ALWAYS good
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LikeThat quote made me laugh.
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Like