-
Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
-
We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.
SONY FY2017 Q2 Results
- Thread starter Jiggy
- Start date
That's the type of thing that either goes into a press release or an earnings call, not in the written report.
Nice catch. So 70M MAU for Sony
I have the feeling that Sony is back on track to become an inovative Company again, the way they where perceived in the 80s. Just looking what they have done in the sensor marked or even the camera market is remarkable.
Now just pull out of the mobile device market and fire everything and everyone who works for Sony pictures. This place needs a complete overhaul.
Now just pull out of the mobile device market and fire everything and everyone who works for Sony pictures. This place needs a complete overhaul.
I think they can be competitive in the mobile market too if they stopped making some bad decisions.
It always feels great reading your analysis . Thnx.Coffee in hand and a decent almond croissant as well!
Lets start things off with gaming, the one that really matters. First thing to mention is that unit sales increase to 4.2m this quarter, that is a YoY increase as we can see below:
That is a 10% YoY increase in units shipped, and this can be seen in the hardware revenue increase below as well
The other area where Sony performed very strongly was network services, a key driver of revenue and income for Sony:
We can see here that YoY revenues from network services have increase by a massive 52% and in the earnings call they revealed that there are now 26.4m PS+ subscribers. Put it this way, Sony made more revenue from network services than they did from their hardware and packaged software business combined and more this quarter than they did in October-December of 2016 (which includes holiday sales). It really is the main driver of growth for PlayStation.
They also increased the unit sales forecast from 18m to 19m, so over the next two quarters they expect to ship at least 11.5m units. That probably splits as 8.5m for Q3 and 3m for Q4.
Moving onto the wider company:
Pictures - poor, but huge investment in their TV/Media Networks library which they expect to pay off in the next couple of years. Most people still don't know that Breaking Bad, The Crown and the new Philip K Dick series are SPE productions, but they make good money with their current model. It will be interesting to see if Sony decides one day to amalgamate all of their TV content into one or two premium cable channels like HBO and launch their own streaming service like Disney. I'm on the no side because their movie library is too weak, but their TV library is so strong they may overcome it and just go for it.
Music - solid, nothing to report really.
Financial services - solid as always.
Semi-conductors - undergoing a second boom because of dual camera setups on smartphones and it looks like Sony are jumping into the automotive sensor market which is going to be absolutely massive and probably a better bet for them than Li-ion battery production. The new 3D sense IR camera on the Xperia phones are a very interesting concept and could work well with VR, I expect it to take off, especially now that Apple are using a lesser version of it for Face ID on the iPhone X.
Cameras - solid, nothing to really say here. They are probably the global number one for CSCs and premium compacts, in the latter I think the RX series is pretty much undisputed in terms of sales volume. As the market moves from mirrored to mirrorless I think Sony are going to benefit even more. I'll use a wedding I went to as an example of why I think they will win in the end - I know the photographer, he is one of the top guys in London for wedding (and other) photography, my sister used him for her wedding when he was much cheaper. He has a crew of 4 and currently uses an all Canon setup, there were also videographers at the same wedding who had an all Sony setup. They got chatting and the main photographer borrowed one of the A7 series cameras that were being used to film with and he was instantly converted. I chatted to him afterwards and he's now in the process of shifting his whole setup from Canon to Sony. Just a straw in the wind, but I've seen it happen elsewhere. It bodes very well for Sony that they have invested in mirrorless technology because the market is moving in their direction.
Mobiles - shit, but in the context of other companies, merely mediocre. I understand the motivation of staying in this market for Sony because the money lost isn't exactly earth shattering, but at the same time they can and should be doing better. Rumours are that they are going to have a slim bezel phone for next year and possibly even some kind of OLED screen. There are so many things wrong with that division that it needs its own thead.
Overall, Sony are going great guns we can see from the division level forecast here:
They have increased their operating profit forecast from ¥500bn to ¥630bn, and now have a net profit forecast of ¥380bn. If they manage to meet or exceed that it will be the best year that I've ever seen from Sony. It does now feel that Kaz has got the company in a good position and they seem very well placed going forwards as well.
Last edited:
So how did the TV and mobile phone divisions perform? Those two are struggling for years even though I cannot understand this circumstances. Very happy Bravia and Xperia owner speaking here.
Only mobile is not doing great, TV is doing damn fine, it had strong profits.
Just a heads up that the Sony Pictures Division will not be doing so hot next year. This year they had Spiderman Baby Driver and Blade Runner all 3 were great, next year I couldn't even begin to tell you one film that may do well at the box office. At least they have their Playstation brand to lean on, next year will be amazing for them.
Man. What a turnaround, not just for PlayStation, but for Sony in general. Hirai really did it. Awesome stuff.
What an awesome post! Thanks zomgbbqftw!Coffee in hand and a decent almond croissant as well!
Lets start things off with gaming, the one that really matters. First thing to mention is that unit sales increase to 4.2m this quarter, that is a YoY increase as we can see below:
That is a 10% YoY increase in units shipped, and this can be seen in the hardware revenue increase below as well
The other area where Sony performed very strongly was network services, a key driver of revenue and income for Sony:
We can see here that YoY revenues from network services have increase by a massive 52% and in the earnings call they revealed that there are now 26.4m PS+ subscribers. Put it this way, Sony made more revenue from network services than they did from their hardware and packaged software business combined and more this quarter than they did in October-December of 2016 (which includes holiday sales). It really is the main driver of growth for PlayStation.
They also increased the unit sales forecast from 18m to 19m, so over the next two quarters they expect to ship at least 11.5m units. That probably splits as 8.5m for Q3 and 3m for Q4.
Moving onto the wider company:
Pictures - poor, but huge investment in their TV/Media Networks library which they expect to pay off in the next couple of years. Most people still don't know that Breaking Bad, The Crown and the new Philip K Dick series are SPE productions, but they make good money with their current model. It will be interesting to see if Sony decides one day to amalgamate all of their TV content into one or two premium cable channels like HBO and launch their own streaming service like Disney. I'm on the no side because their movie library is too weak, but their TV library is so strong they may overcome it and just go for it.
Music - solid, nothing to report really.
Financial services - solid as always.
Semi-conductors - undergoing a second boom because of dual camera setups on smartphones and it looks like Sony are jumping into the automotive sensor market which is going to be absolutely massive and probably a better bet for them than Li-ion battery production. The new 3D sense IR camera on the Xperia phones are a very interesting concept and could work well with VR, I expect it to take off, especially now that Apple are using a lesser version of it for Face ID on the iPhone X.
Cameras - solid, nothing to really say here. They are probably the global number one for CSCs and premium compacts, in the latter I think the RX series is pretty much undisputed in terms of sales volume. As the market moves from mirrored to mirrorless I think Sony are going to benefit even more. I'll use a wedding I went to as an example of why I think they will win in the end - I know the photographer, he is one of the top guys in London for wedding (and other) photography, my sister used him for her wedding when he was much cheaper. He has a crew of 4 and currently uses an all Canon setup, there were also videographers at the same wedding who had an all Sony setup. They got chatting and the main photographer borrowed one of the A7 series cameras that were being used to film with and he was instantly converted. I chatted to him afterwards and he's now in the process of shifting his whole setup from Canon to Sony. Just a straw in the wind, but I've seen it happen elsewhere. It bodes very well for Sony that they have invested in mirrorless technology because the market is moving in their direction.
Mobiles - shit, but in the context of other companies, merely mediocre. I understand the motivation of staying in this market for Sony because the money lost isn't exactly earth shattering, but at the same time they can and should be doing better. Rumours are that they are going to have a slim bezel phone for next year and possibly even some kind of OLED screen. There are so many things wrong with that division that it needs its own thead.
Overall, Sony are going great guns we can see from the division level forecast here:
They have increased their operating profit forecast from ¥500bn to ¥630bn, and now have a net profit forecast of ¥380bn. If they manage to meet or exceed that it will be the best year that I've ever seen from Sony. It does now feel that Kaz has got the company in a good position and they seem very well placed going forwards as well.
Thanks! I've just seen zomgbbqftw post (see above) which is also elaborating on this.
Coffee in hand and a decent almond croissant as well!
Lets start things off with gaming, the one that really matters. First thing to mention is that unit sales increase to 4.2m this quarter, that is a YoY increase as we can see below:
That is a 10% YoY increase in units shipped, and this can be seen in the hardware revenue increase below as well
The other area where Sony performed very strongly was network services, a key driver of revenue and income for Sony:
We can see here that YoY revenues from network services have increase by a massive 52% and in the earnings call they revealed that there are now 26.4m PS+ subscribers. Put it this way, Sony made more revenue from network services than they did from their hardware and packaged software business combined and more this quarter than they did in October-December of 2016 (which includes holiday sales). It really is the main driver of growth for PlayStation.
They also increased the unit sales forecast from 18m to 19m, so over the next two quarters they expect to ship at least 11.5m units. That probably splits as 8.5m for Q3 and 3m for Q4.
Moving onto the wider company:
Pictures - poor, but huge investment in their TV/Media Networks library which they expect to pay off in the next couple of years. Most people still don't know that Breaking Bad, The Crown and the new Philip K Dick series are SPE productions, but they make good money with their current model. It will be interesting to see if Sony decides one day to amalgamate all of their TV content into one or two premium cable channels like HBO and launch their own streaming service like Disney. I'm on the no side because their movie library is too weak, but their TV library is so strong they may overcome it and just go for it.
Music - solid, nothing to report really.
Financial services - solid as always.
Semi-conductors - undergoing a second boom because of dual camera setups on smartphones and it looks like Sony are jumping into the automotive sensor market which is going to be absolutely massive and probably a better bet for them than Li-ion battery production. The new 3D sense IR camera on the Xperia phones are a very interesting concept and could work well with VR, I expect it to take off, especially now that Apple are using a lesser version of it for Face ID on the iPhone X.
Cameras - solid, nothing to really say here. They are probably the global number one for CSCs and premium compacts, in the latter I think the RX series is pretty much undisputed in terms of sales volume. As the market moves from mirrored to mirrorless I think Sony are going to benefit even more. I'll use a wedding I went to as an example of why I think they will win in the end - I know the photographer, he is one of the top guys in London for wedding (and other) photography, my sister used him for her wedding when he was much cheaper. He has a crew of 4 and currently uses an all Canon setup, there were also videographers at the same wedding who had an all Sony setup. They got chatting and the main photographer borrowed one of the A7 series cameras that were being used to film with and he was instantly converted. I chatted to him afterwards and he's now in the process of shifting his whole setup from Canon to Sony. Just a straw in the wind, but I've seen it happen elsewhere. It bodes very well for Sony that they have invested in mirrorless technology because the market is moving in their direction.
Mobiles - shit, but in the context of other companies, merely mediocre. I understand the motivation of staying in this market for Sony because the money lost isn't exactly earth shattering, but at the same time they can and should be doing better. Rumours are that they are going to have a slim bezel phone for next year and possibly even some kind of OLED screen. There are so many things wrong with that division that it needs its own thead.
Overall, Sony are going great guns we can see from the division level forecast here:
They have increased their operating profit forecast from ¥500bn to ¥630bn, and now have a net profit forecast of ¥380bn. If they manage to meet or exceed that it will be the best year that I've ever seen from Sony. It does now feel that Kaz has got the company in a good position and they seem very well placed going forwards as well.
zomgbbqftw Love your insight on sony financials. I would love you to do a post on Sony Mobile division or just post a detailed tought on it with rumors and predictions.
Why did you include Blade Runner it's not like that movie did well at the box office (Great movie, so it not doing well sucks).
On topic great results for Sony.
Because Sony and Warner Bros are attached to that film and I don't know how much Warner bros spent to distribute the film in NA. I'd love to see a breakdown of the financials for that film if anyone has it. I also anticipate that the home release will do pretty well and it should release this fiscal year.
I don't think the marketing budget is going to be half as much as it cost to make the film itself. Maybe I'm wrong. Either way, people involved with the film said they need $150m to break even, which they have now smashed, and that's 4 weeks at the box office, to say nothing of future Blu-Ray sales and TV licencing deals. Critics were simply too fast to call this a commercial flop after 2 days.
Usually on these big films the marketing is the same or around the same as the budget for the film.
Still if the film budget is €150m then they are absolutly not breaking even just on that.
Interesting didn't know that, then sony are not losing much probably are about breaking even.
Last edited:
Hmm interesting I didn't know this. Seems that they're going to at least break even then.
as long as they don't pull another PS3 they should easily transition to PS5
Mis -conception...the media is awful. Yes Blade runner did not open well, but after domestic and overseas it is profitable..not the disaster the headline seeking media are pushing.
It's not profitable yet, and it may never get there. Theater owners get at least half of the total box office. General rule of thumb is that blockbusters have to make more than 2 times their production budget to break even, and Blade Runner isn't there yet.
Is this a fact? I am pretty sure I read otherwise, i will google that article, maybe I mis-read/
What are you talking about ? Spiderman/Marvel already did that lol
I believe Sony is doing really well in the high end sets and pretty good in the mid end sets and have started leap frogging a lot of their competitors.
