1250°

Sony Now Predicts a $1.1 Billion Loss, Shuts Down PC Business

Entrepreneur- Sony is shuttering its computer business, refocusing its TV division on high-end units and laying off 5,000 people. It is also predicting a massive loss of 110 billion yen, or $1.1 billion, for the fiscal year, a drastic change from its prediction three months ago of a 30-billion yen profit ($294 million).

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entrepreneur.com
SJIND4140d ago

Sony never had chance with its Computers.

cell9894140d ago

Actually the VAIO was enticing, it's just that it was too expensive had they sold at HP competitive prices, the division would still exist

ABizzel14140d ago (Edited 4140d ago )

This, you can't charge macbook prices, and expect to sell when the competition is offerings $299 and $399 for the average consumer, or $99 - $199 on BF.

They needed to price their products better as a whole, HDTVs, computers, etc...

But I guess that's what happens when you try to do the right thing and pay people well instead of sending most of your jobs overseas for the sake of making a profit for the company. It's sad but consumer price comes first, and unfortunately that means people lose their job so about 10 "Chinese / Indian" employees can take it.

UltimateMaster4139d ago

Those PCs were incredible quality.
But price wasn't competitive.
They would have needed multiple competitive price.

4140d ago
fishy14140d ago

Well thats the bottom line...... Sony used to make superior products, and could charge ridiculous prices for there crap. Now that most other companies make better electronics or at least equal and far cheaper. Nobody but fan boys are buying the way overpriced products they sell. To go from a 300 million profit prediction to a 1.1 billion loss shows how stupid they still are. If only they had used the ps4 business model with the entire company it wouldnt be so bleak.

jony_dols4140d ago (Edited 4140d ago )

'Sony used to make superior products, and could charge ridiculous prices for there crap.'

Derp...That sentence makes no sense. Superior products = crap?

TechImperia4140d ago

thats what happens if you don't price your products right.

maniacmayhem4140d ago

You have to go to N4G to make that statement fly.

thezeldadoth4140d ago

this article wouldn't even get approved on N4G due to the rabid fanboys blocking it.

eferreira4140d ago

lol coming from a username with zelda in it.

thezeldadoth4140d ago

oh no i enjoy zelda, that must mean i hate all other games and companies. i better change my name to something neutral and stop having favorite games as well

sevilha824139d ago

thezeldadoth:
I´m a Sony fan (not fanboy,as an extreme)and i agree 100% with the article.
I would never buy a VAIO,overpriced for the tech it posseses,very similar to an Mac economicly speaking.they are just too expensive when such cheaper and just as good altertives exist in the market, and that was their obviuos downfall

admiralvic4139d ago

This is sooooo true. + bubbles

@ Thezeldadoth

The article would get approved and probably hit 1,000 degrees, though the comment section would be talking about crazy nonsense. Like, the PS4 will reintroduce a premium model PS4 with OtherOS (running Windows and OSX if you like), backwards compatibility, 1 year of Plus, early access to PlayStation Now, 2 redesigned DualShock 4's, a Vita (slim line) and 16 gb memory card for $450 dollars, which makes it OBVIOUSLY better than the Xbox One.

SilentNegotiator4139d ago (Edited 4139d ago )

"this article wouldn't even get approved on N4G due to the rabid fanboys blocking it"

That's because it f***ing belongs HERE. Stop whining that articles about Sony's overall finances didn't get posted on the site specifically about games, when it belongs on Techspy.

How many years are trolls going to whine about an article not being approved on the wrong site?

adorie4139d ago

Well, here is a talk bubble for the truth.

+ Show (4) more repliesLast reply 4139d ago
NarooN4140d ago

I like Sony, have for a long time, but as others have said, this is what happens when you attach ridiculous prices to your products. I remember watching one of my friends spend about $1,100 on a Vaio laptop, when in reality it was worth about $700 max realistically. It was a nice laptop, but way overpriced.

SaffronCurse4140d ago

Yep, I was interested in getting a Vaio..but they were too expensive.

caseh4139d ago

Sounds about right, I got talked into buying a £1200 Vaio a year or so back. The major selling point was the fact it was the last in stock and almost end of line so only paid £600 for it.

At £1200 they were having a laugh.

MajorLazer4140d ago

Sony needs to price their items more realistically

Kribwalker4140d ago

Watch, in 2016 sony will do 1 of 2 things. Sell playstation to save itself, or go strictly playstation

Soldierone4139d ago

To be honest, I don't see how everyone but Sony see's the issue here. The economy sucks right now, so make lower end products and compete on price. At least give Vaio a chance, but instead they just dump and run.

I remember shopping for a laptop for my girlfriend, she just needed one for basic needs. They had a Vaio at Frys Electronics that was with the other low end ones. the specs were total crap, yet it was priced at 700 dollars.... it was running a friggin single core celeron processor with 2 gigs of DDR ram.... The ASUS right next to it was like 300 bucks.... plus we ended up buying a different Vaio just because we had the money and wanted one that wouldn't break. The thing lasted maybe a month before it had software issues, then less than 6 months later it stopped working completely.... I have a Toshiba computer thats on 24/7 going on 4 years now.....

I love Sony products, but with some of their stuff they just make stupid decisions and normally its price points....

xkevmandc4139d ago

PlayStation alone can't not save Sony.

SilentNegotiator4139d ago

It made them profitable in the last quarter (the 1.1B being overall annual loss), so...you're right...it "can't not save Sony"

plmkoh4139d ago (Edited 4139d ago )

This is really old news, one week is a year in the finance world. Since reporting the news, shares have gone from ~$15 to ~$17.

The $1.1 billion dollar loss, doesn't impact investors confidence because it's a loss caused by selling the PC business, in other words Sony is forgoing money to be made to shred some fat. The loss and selling of the PC business is one and the same event.

Daoshai4139d ago

Eh, no. The stock rallied because of the selling of the PC business. It was causing them to lose money, investor confidence increased now that they got rid of it.

plmkoh4139d ago

Re-read my comment:

" SINCE REPORTING THE NEWS, shares have gone from ~$15 to ~$17."

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