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Sony is struggling with falling demand for its products

Posted at 07 February 2013 18:16 CET by Jan Willem Aldershoff

Once again Sony posted  losses in the third quarter of its financial year 2012 due to the falling demand of its products. The company did benefit from a weak Yen.  The demand for consoles, PCs, cameras and LCD TVs fell compared to the same quarter a year ago.

Specifically sales of TVs, consoles and cameras of the company went down. Despite the fact that the electronics giant sold fewer  products, it saw an increase in revenue caused by a weak Yen. Sony also lowered the expectations for the fourth quarter of 2012 because the company expects to sell fewer products again. Meanwhile  the company expects that its TV division will  finally become profitable again in the next couple of years.

Compared to the same quarter a year earlier Sony made a considerably smaller loss. In the third quarter of 2011 the company posted a loss of $2 billion due to the floods in Thailand, losses from joint ventures and a strong Yen. In the last quarter the company made a loss of $100 million.  By selling an office in New York for $600 million the company expects to make a profit of $115 million over its full fiscal year 2012.

Like other Japanese electronic giants like Panasonic and Sharp, Sony is suffering from poor financial results. Sharp is known to be in trouble and has openly stated it might not survive. All three companies announced company restructuring programs which caused a lot of its employees to lose their jobs.  Also Panasonic is planning to sell real estate. Sony is reportedly planning to sell, besides the New York office, also  an office  in Tokyo.

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There are 34 comments

Blown to smitherines
Posted on: 07 Feb 13 21:00
    There's an Aussie joke ... "how do you set up a new zealander in small business? Give them a large business and wait".
    It's not that funny ... but neither is sony.
    A $500 million loss, eh?

    Saying a company is profitable, while selling major assets, and firing staff doesn't fly with me, it's just fancy accounting. They are going down the tubes.

    Here's a thought ... no one wants Sonys under-featured drm crippled products.

    Even my technologically illiterate parents mentioned the Sony cd malware/rootkit fiasco to me the other day .... it might be 5 years late, but my dad uses his cds on his laptop now, and takes his music with him.

    It's amazing how pulling stupid $hit catches up with you ... well not really. It's payback time....
    MyCE Member
    Posted on: 07 Feb 13 23:18
      Screw your customers and they will screw you back. If you fall, I shall not shed a tear. There will eventually be a revolution against big business b/s practices.
      MyCE Senior Member
      Posted on: 08 Feb 13 01:04
        Sony will go belly up before I will buy anything with there label on it including all products and Movies ect. let the big a$$ company go bankrupt and I will cheer with Joy and take a
        MyCE Resident
        Posted on: 08 Feb 13 01:26
          Think about all the companies Sony has consolidated under it's brand...
          they have a portfolio of:, consumer electronics, Semiconductors , Video games
          Media/Entertainment. Computer hardware, and Telecom equipment

          For ALL of those businesses to be losing as much money as they are around the world is quite a gross international mismanagement which crosses the line into criminal behavior most likely.

          Sony took a BIG hit to their reputation in their slow PS3 debacle.. it was like watching a 10 year train wreck..
          MyCE Senior Member
          Posted on: 08 Feb 13 02:06
            Originally Posted by debro
            Here's a thought ... no one wants Sonys under-featured drm crippled products.

            Even my technologically illiterate parents mentioned the Sony cd malware/rootkit fiasco to me the other day .... it might be 5 years late, but my dad uses his cds on his laptop now, and takes his music with him.

            It's amazing how pulling stupid $hit catches up with you.
            +1 for what Debro said. Now one wants DRM!!! And this fingerprint/retinal scan crap... NO!!!
            Senior Moderator
            Posted on: 08 Feb 13 05:55
              Sony did it to themselves. Paying to much for the name.

              MyCE Junior Member
              Posted on: 08 Feb 13 08:29
                Sony downfall started when they where bought by Hollywood and the music industry in the late 80s.
                MyCE Resident
                Posted on: 08 Feb 13 10:42
                  Great I hope they go out of business I will never buy sony anything
                  MyCE Die Hard
                  Posted on: 08 Feb 13 13:04
                    Sony is the public facade for one of the 5-family Japanese uber class, known as the zaibatsu in Japanese history.

                    Locally, Sony has earned its reputation as one of the biggest thieves of artist royalties, ripping off perhaps hundreds of millions from performers, composers and writers, and then willing to settle in the tens of millions. Even in settlements, the smart money says Sony comes out smelling like roses. With gold-filled pockets.

                    (Of course, they didn't invent that 'accounting strategy' - they bought up the companies and personnel that kept this trend alive.)
                    MyCE Resident
                    Posted on: 08 Feb 13 16:21
                      Originally Posted by professor_nova
                      Sony downfall started when they where bought by Hollywood and the music industry in the late 80s.

                      Sony has too much RIAA and MPAA blood running through their veins. They think that they can shove all this DRM crap at people without repercussions. They also think they can run an Apple model in that people will pay more just to have the "Sony" name on the product. Sony is in a downward spiral and I doubt they can reverse it.
                      MyCE Rookie
                      Posted on: 09 Feb 13 09:55
                        Sony are hopefully going down the pan. they brought this on themselves with the removal of the 'other o/s' option, the suing of geohotz, the continuous drm, the data leak, the rootkits, the 'always on the internet' bit and the 'stop the 2nd hand market' bit. had they have concentrated more on supplying a good product in the way customers wanted, catering for the needs and giving the experience, rather than trying to sell at top dollar, whilst keeping complete control of what people bought, maybe the situation would not be as dire for them as it is. concentrating so much on that control and 'stopping piracy' has led to the poor performance. they need to get customers back. doing what they are doing is definitely NOT the way to do it!! serves your right, Sony. you asked for this, now you have got it and good riddance!!!
                        Blown to smitherines
                        Posted on: 09 Feb 13 14:20
                          Sonys paranoia over their content has resulted in under featured players and tvs, for political reasons rather than technical reasons. Add the fact that typically their products are technically superior, and that makes them much more expensive, and that means that they're been actively searching for ability to make them cheaper, skimping on quality control, and all this has made their products extremely unappealing to consumers.

                          Add on the bullshit drm and rootkits that have caused problems and the bad publicity affecting their content, and Sony is actively deterring consumers from buying anything Sony.
                          MyCE Resident
                          Posted on: 10 Feb 13 09:41
                            Well the Sony LED 42" TV I was given for X Mas was made in Mexico and doesn't really use any leading edge tech at all. They have a very few sets in the local dimming range that are mostly leading edge, everything else they sell is just whatever is current made by somebody else for them and they are counting on non techy people just to pay extra because of their name and rep for high tech goods they no longer make, pretty sad.
                            I do have to say the TV looks surprisingly good after tweaking on it a bit and the MEH tech it uses but that's probably more luck then anything special about it.
                            I certainly wouldn't buy one of their sets except for the few truly leading edge ones they make and they usually are so overpriced I can't consider them.
                            They do occasionally make something that truly has great tech and bang for buck, and when they do I'll buy it but I research any gear before I jump in and will not buy just because of a name. They DID make a truly leading edge HD radio reciever a few years ago that was even reasonably priced and I bought one of those, still works great too but of course they no longer sell that model and not sure if they maker another one now that is as good.
                            They need to stop playing politics and games with their products and get back to what made them what they are, leading edge stuff that worked well and lasted a long time.
                            MyCE Resident
                            Posted on: 10 Feb 13 14:22
                              This trend of Sony being corrupted is not an isolated issue.. slowly many Japanese corporations are being changed to this style of doing business-- to their long term downfall. Hydrogen cars are supposed to be released into the US market in 2015... now that is being pushed back by 2 years and could be further delayed or scrapped altogether. Meanwhile the oil companies manipulate people's behavior to profiteer in the billions of dollars.

                              You'd think after the nuclear disaster in Japan hydrogen would be a slam dunk for conversion, but no... the politicans are being bought out one by one to tripling down on OIL based products.

                              Somewhat less corrupt are South Korea products & companies.. Samsung in particular seems to be taking the place of Sony. I wish they would release a gaming console. Watch how fast Sony would try to sue them like apple did.
                              MyCE Resident
                              Posted on: 11 Feb 13 01:19
                                The fact is that fossil fuels cost less to produce, transport and use than green energy. The politicians pushing green energy are trying to make fossil fuels artificially expensive in an effort to make green energy a viable alternative. It won't work and it isn't working. All this manipulation of the energy markets is causing severe economic hardship on the people that can least afford it. It is also raising the price of food world wide to the breaking point. People are starving because we here in the USA are shoving corn into our gas tanks. It borders on the criminal, IMO.

                                Also, the nuclear disaster in Japan is a result of incredibly stupid engineering and not a damnation of the nuclear energy industry. If they had moved the emergency generators and pumps 10-20 feet higher in elevation the meltdown would not have happened. They never anticipated a Tsunami event in the original design and after the 2004 Indonesia Tsunami moving vulnerable generators and pumps should have been Job One for a nuclear plant on, or near, the coast.
                                Senior Moderator
                                Posted on: 11 Feb 13 03:13
                                  Please stay on topic. This is, after-all, a thread about Sony's declining sales.
                                  MyCE Resident Commenter
                                  Posted on: 11 Feb 13 18:27
                                    Originally Posted by debro
                                    It's amazing how pulling stupid $hit catches up with you.
                                    Exactly. I'm so feeling the Sony hate right now.

                                    Like I've said before, I bear no ill-will against Sony's employees. It's management that has led Sony to their doom.
                                    MyCE Rookie
                                    Posted on: 14 Feb 13 14:40
                                      Sony doing bad? WoW that must be a new revelation I mean since their DRM crippled PS3 works sooooooooooooo well lmao.
                                      MyCE Member
                                      Posted on: 15 Feb 13 04:20
                                        Word has got around, IMO the underhanded dealings of Sony.
                                        Not many geeks like them.
                                        Then geeks tell general public what all sony has done.
                                        Then general public decides to buy elsewhere.
                                        MyCE Resident
                                        Posted on: 15 Feb 13 15:16
                                          Put this way doing a MPIAA/RIAA/DODD back hand stab at consumers is bound to reap what you sow. And guess what they reap what they sow.... lmao..... All this corporate GREED and let's bendover the consumers and shove it up where the shines don't shine and they will still buy from us. Get a CLUE Sony you lost your consumer confidence and that isn't coming home anytime soon.
                                          MyCE Resident
                                          Posted on: 15 Feb 13 16:16
                                            Sony Centre in Sweden goes bankrupt as competition in the Swedish electronic sector claims another victim
                                            In Norway, two Sony centre will also close.

                                            MyCE Member
                                            Posted on: 17 Feb 13 21:22
                                              New Member
                                              Posted on: 18 Feb 13 07:40
                                                Sony need to update their products or samsung will take them over!
                                                MyCE Resident
                                                Posted on: 18 Feb 13 11:43
                                                  Sony may have created alot of evil DRMs such as
                                                  root kit, ARCCos protection, just to name a few.
                                                  (which hackers have taken care of)
                                                  but at the same time...there is no point of seeing Sony go.
                                                  one of the problems regarding the debt is poor TV demand as well as poor
                                                  selling computers...(and there are a lot of cheap computers out there)
                                                  When I was a kid, Sony was like the porche of electronics...
                                                  Sony was the # 1 choice...if it was a TV...the brand was Sony...if it was
                                                  a wasn't even a question...99% of the time when it came
                                                  to electronics it was Sony without questions but times has changed.
                                                  When it comes to affordable TV's there's Vizio...which is a great
                                                  TV and its the equivalent to Sony.
                                                  at a more affordable price...price has always been the major concern issue that the company
                                                  fails to address...if you see all the Sony products out there, they just seem to be like
                                                  copycats...its like Sony isn't a leader anymore...a product like tablets gets popular
                                                  they just throw a tablet out in the market and hope people will buy it.
                                                  On a serious note, I don't want to see Sony fail... they make damn good products...I don't think
                                                  the whole company will fail but, there will be a lot of changes.
                                                  MyCE Die Hard
                                                  Posted on: 18 Feb 13 12:50
                                                    If only Sony wouldn't have mentioned they were dropping the MiniDisc! Boy - that probably could save their entire organization!!

                                                    Sony isn't a single company, though. It's an umbrella with a kajillion contractors supplying piece-work products, and a kajillion sales departments pushing for newer ones. They could lop off half of any side and the other side wouldn't even know it.

                                                    It's not like they need to install suicide-nets in their slave camps. Er, dormitories. I do understand they still have blade sheaths, though.

                                                    Like the old saying goes, "You can't start to spell Seppuku without starting to spell Sony, too!" Well, it goes something like that...
                                                    MyCE Resident
                                                    Posted on: 18 Feb 13 12:59
                                                      Sony used to produce some very good products way back when engineers ran the company and it was profitable. Now the bean counters have been in charge some time and the company's decline is plain to see.
                                                      Remember a bean counter knows the cost of every thing but the value of nothing. They are only interested in the bottom line for this year and do not look forward for future prosperity and products.
                                                      No longer with us
                                                      Posted on: 18 Feb 13 13:07
                                                        Sony did serve us for years & years, but they are falling coz of Overpriced & underfeatured produts & their goods are also becoming unreliable now.
                                                        MyCE Resident
                                                        Posted on: 18 Feb 13 19:13
                                                          What is happening to Sony is more the rule rather than the exception. Once RCA, Philips, etc. were dominant in the electronics industry too. With many corporations huge success usually leads to ultimate failure.
                                                          MyCE Resident
                                                          Posted on: 18 Feb 13 21:30
                                                            Most people won't shed a tear for Sony, they've been causing their own demise for at least the last decade. They've earned this coming bankruptcy and they'll have to tough it out or die trying.

                                                            If you will, imagine a stagnant innovative world had not Intel & Microsoft changed the world.. now look at our last dozen years of stagnant innovation (excepting tablets & cellphones) and you see what the post tech hype era looks like. Companies looking in all directions for excuses why we don't see innovation like the 80s, 90s and early 2000s even though they've grown 4 to 20x their original size.
                                                            MyCE Resident
                                                            Posted on: 19 Feb 13 01:57
                                                              Saw a piece about the new PS4, and went "WHAT" - can't run the old games (other than vague talk of a game streaming system), and looks like a mobile-class solution.

                                                              Will the PS4 have a "Wow factor" - with the PS3, it was a Blu-ray player that was also a game console, or a game console that was also a Blu-ray player (before players got cheaper).
                                                              MyCE Resident
                                                              Posted on: 19 Feb 13 05:01
                                                                Saw yesterday a list of the top 10 most liked company and Sony was number 5. Just proves that things like this list have no truth in them.
                                                                MyCE Resident
                                                                Posted on: 19 Feb 13 05:58
                                                                  It all depends on who paid to compile the list. Just like it isn't prudent to trust reviews from entities that collect advertising revenue from the companies that sell the products being reviewed.
                                                                  Blown to smitherines
                                                                  Posted on: 19 Feb 13 11:00
                                                                    This is what happens when the Japanese send their children to the USA, to attend business schools to get MBAs, and Harvard Law School to get all legalese on the world ...
                                                                    Short sighted profits, over long term longevity ... investment in protection of old technology, rather than develop new ...

                                                                    Here's the thing, engineers and technical designers build new stuff to sell ... lawyers spend all your money in courts arguing over technical stuff that they don't understand, with the sole aim of earning themselves prestige ... Business men find creative ways to outsource different parts of your company, and selling anything of value to some else to pump up the value of their own stocks before they sell out and move to another company. Both activities are detrimental to the spread of and development of a broad range of talents ... therefore no breakthrough products.
                                                                    MyCE Junior Member
                                                                    Posted on: 19 Feb 13 11:48
                                                                      And don't forget the RIAA ans MPAA lawyers that got into Sony after Sony bought music companies and movie studios in the 80s.

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