As expected, Sony just announced dismal earnings for the quarter and projected year. The company expects to post a ¥90 billion ($1.2 billion) net loss for the financial year on the heels of an unexpected quarterly loss of ¥27 billion. It had expected ¥60 billion in net income for the year. Sony blames the strong yen and flooding in Thailand for its recent woes in addition to sluggish television sales in the US and Europe.
Sony cut its annual sales forecast for televisions by nine percent, down to 20 million units from the 22 million units originally projected. It also says that it expects to sell 23 million compact cameras (not 24 million) through the year ending in March. As a result, Sony is cutting its full year operating profit outlook by 90 percent. Sony did not make any formal announcement regarding the rumored dissolution of its flat-screen venture with Samsung.
When the fiscal year is done, Sony will have lost almost $8.5 billion from televisions over the last eight years. And while Sony has executed upon plans to restructure its TV business in the past, it has yet to successfully return the division to profitability. As such, there's little reason to trust management's latest "TV Business Profitability Improvement Plan" which aims to return the business to profitability by March 31, 2014.

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looking forward to a Sony firesale
Posted on Nov 02, 2011 | 3:08 AM EDT reply Recommend (3) Flag actions
$150 bucks for a 32 inch LED TV that just released within the previous month
Posted on Nov 02, 2011 | 3:16 AM EDT reply Recommend (4) Flag actions
Where? Interested…
Posted on Nov 02, 2011 | 4:11 AM EDT reply Recommend (2) Flag actions
I think he’s joking…
Posted on Nov 02, 2011 | 10:39 AM EDT reply Recommend Flag actions
No, he is talking about Google TV which went on sale due to big flop!
Posted on Nov 03, 2011 | 5:10 AM EDT reply Recommend Flag actions
they should just fire Howard Stringer. he’s been a disaster for them.
Posted on Nov 02, 2011 | 7:51 AM EDT reply Recommend Flag actions
Oh boo!
Posted on Nov 02, 2011 | 3:09 AM EDT reply Recommend Flag actions
Seriously? People care so little about Sony that no one will even comment? The greats are falling one by one.
Roll on 2012. Even if it is the apocalypse, it will still be a better year for Sony…
Posted on Nov 02, 2011 | 3:12 AM EDT via mobile reply Recommend (1) Flag actions
They were the greatest in the 80’s and early 90’s.
Posted on Nov 02, 2011 | 7:53 AM EDT reply Recommend (2) Flag actions
The Walkman and Discman were the iPods of those decades, not to mention their TVs and other A/V equipment were always seen as a premium consumer brand. I’m no Sony historian, but I’ve always thought of them as banking big on proprietary. Betamax, MiniDisc, MemoryStick etc. I suppose BluRay succeeded since Sony made the wise move to involve other companies in pushing it, however, I don’t see BluRay ever being as big as DVD now that people can stream a lot of content.
Posted on Nov 02, 2011 | 11:36 AM EDT reply Recommend (1) Flag actions
Sadly Sony’s fall started back in 2005-6 with the PS3 launch debacle. Josh and team have spoken about this at length because Sony HAD the brand loyalty and let it slip away.
Posted on Nov 02, 2011 | 11:59 AM EDT reply Recommend (1) Flag actions
It’s funny Microsoft might have made the correct choice with including a DVD player instead of a newer technology (Blu ray) in their machine. Coming out a year early gave them a nice head start. Blu ray is popular, but it will take a long while to reach DVD penetration given the other medias available now.
Posted on Nov 02, 2011 | 1:41 PM EDT reply Recommend (1) Flag actions
I’m personally still bitter about that rootkit thing, so I quietly cheer inside.
Posted on Nov 02, 2011 | 4:19 PM EDT reply Recommend (1) Flag actions
It seems only Apple, Microsoft, Google, Samsung, and HTC are making money in the tech world.
Posted on Nov 02, 2011 | 3:16 AM EDT reply Recommend (1) Flag actions
It’s a lot more on a global scale. :)
Posted on Nov 02, 2011 | 3:51 AM EDT reply Recommend Flag actions
I’d remove HTC from that list. Their share price is down 50% over the last 6 months and fourth quarter sales are expected to be less than the third quarter.
Posted on Nov 02, 2011 | 7:41 AM EDT reply Recommend (1) Flag actions
Sorry Sony… i <3 my Vizio.
Posted on Nov 02, 2011 | 3:19 AM EDT reply Recommend Flag actions
Thy need a major streamline. They seem to of woken up and are sorting out their tvs, but they still make loads of models of radios, portable cd players, digital photo frames etc. Surely these can’t be profitable? And they have way to many models of cameras, vaio tvs etc. it’s confusing to the customer
Posted on Nov 02, 2011 | 3:20 AM EDT reply Recommend Flag actions
Surely these can’t be profitable? They actually are. People see the Sony brand and pay premium for Sony products to this day, Not saying that that “premium” is there, but the brand still has a strong image.
Posted on Nov 02, 2011 | 3:52 AM EDT reply Recommend (1) Flag actions
You must have a different definition of profitable than Sony does, given that we’re here discussing a big fat loss..
Posted on Nov 02, 2011 | 2:58 PM EDT reply Recommend (1) Flag actions
I feel like the tech world is squeezing out any tech company without its own ecosystem in place to keep customers coming back. (Apple, Microsoft, Google). Weird. Or maybe it’s just the economy. Who knows! hahaha
Posted on Nov 02, 2011 | 3:22 AM EDT reply Recommend (2) Flag actions
Maybe it’s that the other companies are keeping people in their ecosystems SO firmly that this is the result :(
Posted on Nov 02, 2011 | 3:34 AM EDT reply Recommend Flag actions
I think that’s why you’re seeing Sony and Google getting chummy. Android phones, Google TV and I’ll bet pounds to pence that if MS plans to have Windows 8 on Xbox 3, then Sony will plump for Chrome OS on PS4.
Sony are also trying to build up their own ecosystem with PNS/Music & Movies Unlimited, and if there’s any good news for them amongst these results, it’s that sales of PS3 are stronger than I think anyone was expecting.
After seeing how Kaz Hirai turned the PS3’s disastrous launch around, I think he’s absolutely the man needed at the top of Sony, to see if he can pull the same magic off for the company itself.
Posted on Nov 02, 2011 | 4:54 AM EDT reply Recommend Flag actions
Ican see Sony using Android but there’s no need Chrome OS.
Posted on Nov 02, 2011 | 7:38 AM EDT reply Recommend (2) Flag actions
No one’s going to put a full operating system on their next console. And definitely not Chrome OS on anything. That thing’s already as good as dead.
Posted on Nov 02, 2011 | 11:00 AM EDT reply Recommend Flag actions
This is going to be the way it goes. Sony has been relegated to an OEM which is a race to the bottom market. It’s why they are selling less products. The only place where they aren’t is the PS and I’m willing to bet that Sony will be using Android there when for the PS4.
Posted on Nov 02, 2011 | 7:43 AM EDT reply Recommend (1) Flag actions
I really doubt Sony would use Android in the Playstation 4.
Posted on Nov 02, 2011 | 10:14 AM EDT reply Recommend Flag actions
I doubt it too.
Posted on Nov 02, 2011 | 10:41 AM EDT reply Recommend Flag actions
Eeep. Sony and Nintendo both reporting billion dollar losses. Not good.
Posted on Nov 02, 2011 | 3:25 AM EDT reply Recommend Flag actions
Good gravy! I’d love to have an omniscient supercomputer model Steve Jobs cleaning house at Sony for a few years.
Posted on Nov 02, 2011 | 3:29 AM EDT reply Recommend (1) Flag actions
Keep up the great work Sony! sarcasm
Posted on Nov 02, 2011 | 3:35 AM EDT reply Recommend Flag actions
Sony needs Kazuo Hirai at the helm,
Sony needs to sell fewer products & generate more profit.
Sony should understand that the cool factor of the 80s does not fit the 21st century.
When a customer is faced with fewer choices, he’ll choose the most convenient regardless of the cost, you want proof? Look at Apple.
Posted on Nov 02, 2011 | 3:36 AM EDT reply Recommend Flag actions
That works for Apple because its products are so differentiated from the competition. For Sony the products are mostly in commodity markets, where one could substitute a Samsung product very easily.
Posted on Nov 02, 2011 | 7:47 AM EDT reply Recommend (1) Flag actions
The issue is obvious Clayton Christensen.
(a) Sony could charge a premium when their manufacturing skills added value to a product (eg a TV) over what other manufacturers could achieve. But those days are gone now. There’s precious little value Sony adds to a flat screen over what anyone else adds.
(b) Sony have pissed away the value of their brand so that it is no longer trusted
-even if Sony do have, say, better de-interlacing circuits in their flat screens than Samsung,- in the first place I won’t believe any ads that claim this, I’ll have to check it out with my own eyes
- in the second place, Sony probably reserve this feature for their highest end TV
-the one that sells in the thousands per year, rather than using quality engineering to show off their mid and low-end TVs as clearly better than the competition.Compare with Apple.
Apple also put together items (screens, flash memory, CPUs, etc) made by others. But Apple add something
-design and software-that are widely valued, and so Apple can charge for these. Sony have no uniform design language, and no-one’s buying a Sony TV (or camera, or BR player, or anything else) because of it’s UI. Apple can charge more for what they are adding, Sony are adding nothing anyone wants to pay for.Secondly, Apple don’t pollute their brand by shipping crap. (Yeah, yeah, spare us your stupid observations that everything they ship is crap. The adults are talking.) As we all know, Jobs refused to ship a $500 netbook PC that he thought was lousy. You don’t get Apple slapping their logo on third party hard drives or printers just so that Apple can skim $1 off the sale of each such item. Apple sticks to a very limited range of items, and provides the implicit guarantee
-yes you will (sometimes) pay more for something we make, and yes, it will do things our way, which is sometimes not the standard way; but in return it will work well, it will delight you, it will probably last a long time, and we’ll stand by it, fixing problems and upgrading it to a reasonable extent. Most people believe this implicit guarantee, and most people feel that Apple has lived up to its end.As Christensen would say
-Apple drove the company to where the money WOULD be. Sony drove the company to where the money WAS in 1990-and haven’t changed a damn thing since then.Posted on Nov 02, 2011 | 4:27 PM EDT reply Recommend (3) Flag actions
Can I just say something? The commenters on The Verge are the smartest and most informed I’ve come across on any tech news site. ^perfect example :)
Carry on.
Posted on Nov 02, 2011 | 5:55 PM EDT reply Recommend (1) Flag actions
Honestly my dad still loves Sony and he even bought a Vaio laptop but I can’t feel help but feel that Sony is just putting lipstick on a pig.
Posted on Nov 02, 2011 | 4:04 AM EDT reply Recommend Flag actions
In my household we only purchase Sony TV’s and LOVE them! We just got a new 52" Bravia a few weeks back and it’s amazing.
Posted on Nov 02, 2011 | 10:43 AM EDT reply Recommend Flag actions
This is kind of a shame, and yet at the same time it’s not. Sony has been digging their own grave for years now. It feels like they’re always on The Verge of making something truly transcendently great, but it just hasn’t really happened in a while.
They have the talent, and they have the technology! Their designs are secondonly to Apple, and it’s just a shame.
Posted on Nov 02, 2011 | 4:05 AM EDT reply Recommend (1) Flag actions
Agreed. What a waste of a once-great brand. Next time I’m shopping for a TV and I come across Bravia, I definitely won’t say This Is My Next tv. It’s a shame.
Posted on Nov 02, 2011 | 5:58 PM EDT reply Recommend Flag actions
If the next Playstation isn’t amazing compared to xBox they will be in even more trouble
Posted on Nov 02, 2011 | 4:50 AM EDT reply Recommend Flag actions
They will be dead – that’s all they have left.
Posted on Nov 02, 2011 | 5:56 AM EDT reply Recommend Flag actions
We are witnessing the slow decay of a once great powering in consumer electronics. Sony was the Apple of the 80’s and 90’s – they were untouchable. Now, when I look at them….it’s like I’m seeing the final days of some gigantic dinosaur…..after the astroid hit…….so sad……
Posted on Nov 02, 2011 | 5:56 AM EDT reply Recommend (1) Flag actions
P.s. "Sony is on the “Verge” of collapse….."
Posted on Nov 02, 2011 | 5:58 AM EDT reply Recommend Flag actions
Why is Sony losing this much money, does anybody know? Does Sony know, they are blaming floods in Thailand?
Posted on Nov 02, 2011 | 6:53 AM EDT reply Recommend Flag actions
@caked: The Sony decline started when they started owning the content as well as the medium. They started making decisions based on how to manage and control the media. This hurt the medium and allowed others to take their place. This is how MS got into place with the xbox, how they lost the portable market to Apple, and how they have been hit hard in other areas by companies like LG, Sharp, and Samsung to name a few. They’ve also shown a great lack of ability to adapt to the market changes.
It is a shame because Sony still makes some really nice A/V gear. I like their TVs and their receivers are still good.
Posted on Nov 02, 2011 | 8:13 AM EDT reply Recommend (1) Flag actions
Is typing “@caked” really easier than clicking the Reply button?
Posted on Nov 02, 2011 | 3:00 PM EDT reply Recommend (1) Flag actions
I would say a big reason for the terrible year was the Playstation outage and their treatment of it Has everyone forgot about this already? Sony would sure be happy to hear that.
Posted on Nov 02, 2011 | 9:16 AM EDT reply Recommend Flag actions
Oh Sony… I’ll miss ya’
Posted on Nov 02, 2011 | 9:23 AM EDT reply Recommend Flag actions
OH my lord, how can a company fall so far…?
At what point are they going to rethink things?
Posted on Nov 02, 2011 | 9:24 AM EDT reply Recommend Flag actions
Howard Stringer bet big on 3D TVs, and I don’t think that panned out well. Not must else left in the bag-o-tricks. Plenty of talent and hard work, but little in the way of a coherent strategy at Sony these days.
Posted on Nov 02, 2011 | 9:32 AM EDT reply Recommend Flag actions
I used to really place Sony on a pedestal when it came to consumer electronics. I owned Sony computers, tvs, cameras, and more. But one too many times I’ve had a bad experience with this “premium” brand. I had the screen on my Vaio All-in-One computer completely die on me. My 60-inch LCD rear projection tv only last five years and the plastic began to melt from the inside out. Sony has simply fallen from the ranks of my perception ladder, and I realize that other brands create just as good if not better products.
Posted on Nov 02, 2011 | 10:04 AM EDT reply Recommend Flag actions
Did Sony ever make money on the PS3?
Posted on Nov 02, 2011 | 10:11 AM EDT reply Recommend Flag actions
I think they said they make money on it now. The hardware got cheap enough for them to make and somehow Playstation Home makes them money as well.
Posted on Nov 02, 2011 | 10:25 AM EDT reply Recommend Flag actions
The next big thing is integrated experiences. It’s no surprise that Sony’s island-like approach to their products and software is hurting them.
Seriously Sony, make the Playstation Phone already. It doesn’t even have to be that good, it just has to play PS1 and PS2 games from an online store, and ideally, integrate with the Playstation Home experience. You will make bucket-tons of money.
Posted on Nov 02, 2011 | 10:52 AM EDT reply Recommend Flag actions
I love my PS3 and I want to love the new Bravias, but I don’t truly trust the brand anymore. Melting TVs, the hacking debacle, their insistence on using proprietary formats, and their stubborn refusal to make products backwards-compatible… it’s just a mess.
If it weren’t for my addiction to ModNation Racers, I’d probably ditch the PS3, too.
Posted on Nov 02, 2011 | 10:57 AM EDT reply Recommend Flag actions
They’re an analog company trying to live in a different world. Where people differentiate with software, Sony has to make different with hardware and screw everything up, lose tons of money, and end up alone.
Posted on Nov 02, 2011 | 11:02 AM EDT reply Recommend Flag actions
sony over price every electronic they have it suck
Posted on Nov 02, 2011 | 11:10 AM EDT reply Recommend Flag actions
I love Sony (for reasons I can’t explain), but they haven’t really mastered the importance of software yet. They haven’t done a lot for user-friendliness either. I hope they get their act together because I still love the SONY brand.
Posted on Nov 02, 2011 | 11:21 AM EDT reply Recommend Flag actions
Completely agree – what is missing from Sony is an integrated operating system that will bring their many divisions and technologies together. There is no other company (OK, may be Samsung) that can in theory do everything that Apple does and more; portable music players, phones, tablets, laptops, computers and add on TVs + home theatre, cameras, etc…
Posted on Nov 02, 2011 | 11:57 AM EDT reply Recommend Flag actions
Even if Sony hadn’t messed up with PSN they would still lose billions of dollars. They just don’t have “top of the line” “cutting edge” products anymore. Their design and production quality use to be top notch but now they seem just like everyone else. I think they are trying but just don’t now how to execute a well devised and unified plan across the company.
Posted on Nov 02, 2011 | 11:46 AM EDT reply Recommend Flag actions
This is bad for Sony.. their channel is buying contracts for stupid soaps and shows( In India) they have to choose really gud shows for viewers at the same time.. I really love their way of presenting gadgets with simplicity and guaranteed performance
Posted on Nov 02, 2011 | 11:49 AM EDT reply Recommend Flag actions
Just imagine if all Sony products ran iOS. Just image if they were all intuitive to use, worked seamlessly together and were open to third party apps. Just imagine if Sony meaningfully leveraged their music and entertainment divisions into the mix. Just image how amazing that would be.
Instead, Sony (like Apple) make great hardware but are missing the interconnectivity that Apple has with their software. May be, just may be, Sony could break down their intra-company divisional walls, integrate Android or some other OS across all their products are become something greater than the sum of their parts.
Posted on Nov 02, 2011 | 12:25 PM EDT reply Recommend Flag actions
And another thing…….
Sony’s TV division is being split up to better focus on future opportunities, cut costs and may be sell off some of the less desirable bits.
Apple is rumoured to be developing a TV set (undoubtedly that will completely integrate with every other Apple device).
Are these two things a coincidence? Is there a natural partnership or marriage to be had?
Posted on Nov 02, 2011 | 12:30 PM EDT reply Recommend Flag actions
I’m sure they’ll be able to bounce back to some extent…
Posted on Nov 02, 2011 | 12:32 PM EDT via mobile reply Recommend Flag actions
I still have faith that Sony can start making interesting products again. Maybe when some new blood is put in charge.
Posted on Nov 02, 2011 | 2:56 PM EDT reply Recommend Flag actions
Damn. That’s a lot more than Nintendo’s losing.
I hope they can still afford to launch and support the Vita.
Posted on Nov 02, 2011 | 3:24 PM EDT reply Recommend Flag actions
Its pretty sad to see the global economy in this chaotic state, however I guess the old adage “what goes up must come down” fits here.
Perhaps the market is reaching a type of saturation point in the developed nations?
I certainly don’t know, but one problem I see now, is the big manufacturers (Sony, Sharp, Panasonic, Samsung etc. ) all cut prices; to drive sales numbers (lower profit per unit I’m assuming).
That’s fine, we all get more affordable televisions, but now small no name brand A,B, and C are just getting into the game, and offering the same, if not better features & similar quality, at an even more affordable price & are available at the local pharmacy/supermarket (OK I exaggerated).
If anyone remembers what happened with the Pioneer Kuro Plasma screens & monitors; Sony’s woes are just an additional fallout from what happened to that wonderful high quality product.
I feel bad saying this but, a lot of consumer goods are now cheap (in price & quality) thus making them very disposable, all in the name of driving sales.
What happens when your inkjet/laser printer runs out of ink/toner? did you see that printer for $20? I bet that caught your eye as soon as you learned your ink/toner cost about $40+ :)
Posted on Nov 03, 2011 | 7:34 PM EDT reply Recommend Flag actions
I noticed the parallel with Apple as well… Sony was like today’s Apple from 1975 to 2000 or so — the consumer electronics company with the best design, technology and brand loyalty at the time.
Here’s my post about it: http://straypixels.tumblr.com/post/12482263975/sony-apple-samsung
Posted on Nov 08, 2011 | 6:47 PM EST reply Recommend Flag actions
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