Sony Exec: Lower sales = less financial loss

T

Technoob

Supreme [H]ardness
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Jun 21, 2006
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Sony finding the silver lining for the win :)

"Every cloud has a silver lining, they say: Sony's CFO Nobuyuki Oneda has revealed the recently reported financial losses experienced by the company's games division were less than expected because the number of PS3 sales were lower than hoped."

It's a pretty amusing catch-22. And yes, the same thing probably happened at some point to MS. And yes, the wii is printing money :)
 
Technoob said:
Sony finding the silver lining for the win :)

"Every cloud has a silver lining, they say: Sony's CFO Nobuyuki Oneda has revealed the recently reported financial losses experienced by the company's games division were less than expected because the number of PS3 sales were lower than hoped."

It's a pretty amusing catch-22. And yes, the same thing probably happened at some point to MS. And yes, the wii is printing money :)
Click to expand...

Even though it sounds pretty stupid, he's actually technically correct.

PS3s that have been manufactured but not sold [or shipped to retailers] are tracked differently according to accounting principles; these are considered finished goods but not cost of goods sold.

In layman's terms - Sony is not recording a profit [or loss] on a console until it has been actually sold. Furthermore, this is pretty standard principle that is shared by both Nintendo and Microsoft [or any other firm, for that matter].
 
deception`` said:
Even though it sounds pretty stupid, he's actually technically correct.

PS3s that have been manufactured but not sold [or shipped to retailers] are tracked differently according to accounting principles; these are considered finished goods but not cost of goods sold.

In layman's terms - Sony is not recording a profit [or loss] on a console until it has been actually sold. Furthermore, this is pretty standard principle that is shared by both Nintendo and Microsoft [or any other firm, for that matter].
Click to expand...

College student, eh?
 
What's odd about this is that they said the PS3 was selling as expected by their internal targets... so why didn't they base their financials off them? Dubious.
 
deception`` said:
Even though it sounds pretty stupid, he's actually technically correct.

PS3s that have been manufactured but not sold [or shipped to retailers] are tracked differently according to accounting principles; these are considered finished goods but not cost of goods sold.

In layman's terms - Sony is not recording a profit [or loss] on a console until it has been actually sold. Furthermore, this is pretty standard principle that is shared by both Nintendo and Microsoft [or any other firm, for that matter].
Click to expand...

I understand the financial reporting principles, what was amusing to me was the positive spin on lower than expected sales.
 
CopyCat said:
I don't think Rancid thinks much of Sony, lol
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Nor does Technoob lol. He’s got some passion to see the PS3 fail. :p Very anti-Sony.

I'm a Sony man lol, I got me a Sony LCD for my PC, got me a Sony 7.1 Digi Camera, got me a Sony PS3. I wish I could of afforded the Sony LCD HDTV... but I think the Sharp Aquis is doing me just fine. Now I just need a Sony tattoo and I'll be set :p :p :p :p :p
 
Baker said:
Nor does Technoob lol. He’s got some passion to see the PS3 fail. :p Very anti-Sony.

I'm a Sony man lol, I got me a Sony LCD for my PC, got me a Sony 7.1 Digi Camera, got me a Sony PS3. I wish I could of afforded the Sony LCD HDTV... but I think the Sharp Aquis is doing me just fine. Now I just need a Sony tattoo and I'll be set :p :p :p :p :p
Click to expand...

Actually I have a Sony HDTV, a great sony dvd player, and often buy sony products. If I could choose, I'd rather see the wii fail and the ps3 and 360 trade blows and push the limits this generation.

It's amusing to see many of their arrogant PR though in the last year or so.
 
deception`` said:
Even though it sounds pretty stupid, he's actually technically correct.

PS3s that have been manufactured but not sold [or shipped to retailers] are tracked differently according to accounting principles; these are considered finished goods but not cost of goods sold.

In layman's terms - Sony is not recording a profit [or loss] on a console until it has been actually sold. Furthermore, this is pretty standard principle that is shared by both Nintendo and Microsoft [or any other firm, for that matter].
Click to expand...

It wouldn't help their operating cash flow though. Ouch, $1.1 billion dollar operating deficit in the first quarter (ended june 30)
 
Technoob said:
Sony finding the silver lining for the win :)

"Every cloud has a silver lining, they say: Sony's CFO Nobuyuki Oneda has revealed the recently reported financial losses experienced by the company's games division were less than expected because the number of PS3 sales were lower than hoped."

It's a pretty amusing catch-22. And yes, the same thing probably happened at some point to MS. And yes, the wii is printing money :)
Click to expand...

ROFL! If I owned stock in that company i would sell it for a sandwich right now! :D

"Hey, we are selling less products, but that means we are losing less money!" <- Thats the way to do business right there, they might as well open a day care.
 
I actually have a PS3 and I like it... but this kind of PR is just lame.
 
It was lost in the translation, lol.

What he meant to say was "ummm...look over here! :eek::eek:, oh nm:confused: " hahaha
 
CopyCat said:
I don't think Rancid thinks much of Sony, lol
Click to expand...

no.. i'm just facing the reality..

i don't have a hate for sony

i even got a PSP.. which i will be selling soon though.. cause it was a disappointment..

seriously.. you can paint the numbers how you want.. but the plain fact is. .they aren't selling well. PERIOD
 
Technoob said:
Actually I have a Sony HDTV, a great sony dvd player, and often buy sony products. If I could choose, I'd rather see the wii fail and the ps3 and 360 trade blows and push the limits this generation.

It's amusing to see many of their arrogant PR though in the last year or so.
Click to expand...

I wouldn't mind seeing Sega making another console even though it would be hard to get back into it. The Dreamcast was one of my favorite systems.
 
Maybe they are just waiting for more 3rd party games to be written for the PS3 before it starts selling well so their profits will be more even, instead of taking a large dump in money on the sales then recover it later in game sales.

meh who knows, he might of said it with a grin on his face or joking matter and the article writer decided to not notice ? :confused:
 
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