Sony Skids in Second Quarter, On Pace to Lose Over a Billion Dollars in 2011

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News Posted: Wed, Nov 2 2011 3:05 PM
Sony took somewhat of a beating today in afternoon trading after the company reported consolidated financial results for its second fiscal quarter ended September 30, 2011. Shares of Sony dropped nearly 7 percent earlier in the day, based in large part on Sony's warning that it could be staring at a fourth straight year of losses.

The Japanese electronics and entertainment firm isn't talking about chump change, either. Sony reckons it could lose as much as $1.2 billion by the end of the year, which is a tough pill for investors to swallow after Sony had previously forecast a net profit.


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Nothing has come easy for Sony in recent months. The company's TV business is on pace to lose $2.2 billion all by itself, and Sony cut its forecast for sales of cameras, DVD players, and Blu-ray players. That's not good, and Sony is fully aware that it needs to turn things around.

"The TV business is an essential part of Sony's growth strategy. We, as management, feel a great sense of crisis after seven straight years of losses," Kazuo Hirai, Sony's executive deputy president, said during a briefing, according to Reuters.
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AKwyn replied on Wed, Nov 2 2011 11:43 PM

It's kind of obvious why it has come to this. Brand reputation for Sony has taken a huge hit and well, because of that not many people are willing to buy into Sony anymore. It's hard to get sales when your known as the company known for the rootkit scandal, the PS user information leakage, various other leakages and the handling of the subsequent situations revolving those controversies.

Don't get me wrong, they make good products but why should you buy into a company that does all that bad stuff?

 

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jonation replied on Thu, Nov 3 2011 10:28 AM

Not to mention the loss of revenue from the PSN farm.

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jonation replied on Thu, Nov 3 2011 10:28 AM

thats what happens you conduct bad business (or at least what should happen....)

CPU: e6400 @ 3.2 (H-50'd)
MB: MSI p6n
RAM: 4G adata
GPU: GTS-450 and 8800GTS for Physx
HDD: WD 500G Black
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Case: 900-2 with 7 cathodes and AP-15s
OS: W7 and Ubuntu

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KreepyK replied on Thu, Nov 3 2011 4:06 PM

That's to be expected from a company that lasted that long. They are getting close to the point where they fall into the slow deathbed and need a miracle to bring them back. Perhaps they should spin off the TV business they are tenaciously clinging to Like IBM did with the PC business.

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It's too bad. Thy do make an awesome product.

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