Sony doubles annual profit expectations

Japanese publisher cites weak yen and asset sales as a reason for better-than-expected earnings.

Sony has doubled its predicted earnings for the fiscal year ending March 2013, doubling its net profit forecast to 40 billion yen ($403m/£261m).

The Japanese firm cites the weakening performance of the Yen as a major factor to the increase, which increases the company's earnings when its revenue in other currencies is converted.

The BBC notes that, since December 2012, the yen has lost roughly 15 percent of its value against the US dollar.

Sony's original forecast assumed a foreign currency exchange rate of 88 yen to one dollar, whereas the average rate over the past three months has been 92.4 yen to one dollar.

The company also said its financials would get a boost from the sale of office space in New York and Osaka.

Sony will announce its full earnings report on May 9.

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Discussion

55 comments
jsmoke03
jsmoke03

sony should just work from home...lol

MooncalfReviews
MooncalfReviews

I think the reason might be that xbox fans are switching sides.

carolino
carolino

Still not as good news as xbox Pizza on demand ap ..





tionmedon
tionmedon

they must b confused with the buildings they r selling..................fap it..........

hadlee73
hadlee73

Send a Japanese guy US$11,000 and you'll make him a millionaire :P

lamprey263
lamprey263

Sony without the sale of their M3 shares, which got them $1.2 billion, and the $2.3 billion they got from just the sale of their two headquarter buildings, they'd still be in the red quite a bit. There still exists a gap in expenses versus revenue generation that's going to be there next year, and that gap is still $3 billion in the red.

bubba_1988
bubba_1988

While I have no idea of how much this profit is related to Kaz or the Yen (prob the former), it's good news none the less. I'm happy Sony is doing well and hope they continue to do so as they have always made top quality (maybe a bit too expensive ) electronics. I think somewhere  along the line when Sony became less innovative it became cool to hate Sony you know like it's cool to hate Apple now and Blackberry before that. I think that comes with being a leader within the industry. I'm sure it will be pretty damn cool to hate on Samsung in a couple of years.  

mark_unix
mark_unix

Sony in the end just understands it's customers better, and that's being rewarded (it learned from it's past disasters and isn't repeating them, you can cry and bitch all you want about a lack of Linux support but at the end of the day THAT doesn't matter)

Sorciere_basic
Sorciere_basic

Sony: "MS is releasing an always online console" 

Sony Marketing: "LOL what?!?" "Double our profit forecast!!"

experience_fade
experience_fade

This is because of all the RRODs. I calculate over 70% of their profits this year will be because of that.

Wait, wrong article.

Oh, this is Sony? They're just smart, they worked hard, they deserve it.

Wait, this is mainly because the performance of the Yen is weakening? A currency is losing its value, so they're just adjusting their numbers in relation to its weakening?

Nahhhhh. Definitely Sony being smart.

cosades2002
cosades2002

This proves that if you make good products you will turn a profit.

chyng85
chyng85

Not a good news for local company of Japan~

Incubus420
Incubus420

Glad this isn't entirely based on what the believe to be expected revenue from the launch of the PS4.  They really need to stop over forecasting.  

snova9308
snova9308

I think they decided to double it after orth opened his mouth

kuda001
kuda001

Let's not start sucking each other off, the rise is a result of asset sell offs and currency fluctuations NOT Sony's own performance. An indication as to how well Sony are doing must not include these, lets wait and see the full earning report.

warhawk-geeby
warhawk-geeby

Dayyyyyyyym son.

The Yen may have played a part, but it's certainly nice to see Kaz is turning that company around to its old ways.  The phones seem to be selling well, just need to up their game in electrical appliances again (marketing).

Hurry up and release the PS4 so I can give you my money!

bj91x
bj91x

And it may happen again in 2014.

1) The next Xbox will require an always online connection

2) The next Playstation will not

3) ???

4) PROFIT!

Saladudo
Saladudo

Out of nothing, everybody's exceeding profit expectations nowadays. How curious.

wdma
wdma

I am gald that things is going well for Sony, i am Sony fan at heart and i will support their products always.

Queuing_returns
Queuing_returns

Where are the Sony haters now?

I told y'all... the future is all about Sony. :D

OJ_the_LION
OJ_the_LION

The yen is a major factor. It's great for companies I like, such as Sony and Nintendo. Not so good for foreigners trying to send money back home though. Ah well. I'm still glad to see Sony finally turning a profit again, and a pretty healthy one at that, as of the big 3 I think they've done the best job of listening to their consumers in the past few years.

steelmouth
steelmouth

its about damn time you turned a profit Sony but did you reali have to ruin it by saying its because of the weak Yen not your hard work

2bitSmOkEy
2bitSmOkEy

PS4 launches this year, it's to be expected.

dussan2
dussan2

This is what happens when you listen to your consumer base.  Nothing but positive things coming from Sony's camp.  Doesn't hurt that every other company SOny seems to be competing against is talking out of their ass.

jcr8
jcr8

And more is yet to come. Now that microsoft have shot themselves in both feet (several times) by allowing all the rumormongering and all the bad press around their upcoming release, Sony is likely in for a profitable run.

RPG_Fan_I_Am
RPG_Fan_I_Am

I don't really see how the Yen is falling in value. The dollar is rising in value to everything atm, not just the yen. I mean, hows it been doing with say the Euro? Then again, I'm horrible with economics.

robertcain
robertcain

I'm not sure whether profit expectations should be boosted just yet; this sort of expectation can put pressure on developers to deliver and Sony doesn't really know the full scale of anticipation for the PS4 at the moment. Personally I would have done it after E3 when more customers might register their interest in the new system.

okassar
okassar

Most of it is the weakening yen part, not so much other reasons. Shinzo Abe is the first prime minister of Japan in a while to (seemingly) reverse deflation. Doing so of course requires weakening the yen, which is really hard when you get stuck in the terrible cycle that Japan has been in for the past 20-30 years. Expect most major Japanese companies to skyrocket if Abe continues to do a good job. It's impressive that they've been able to remain dominant/somewhat dominant in their respective industries despite the terrible currency and economic situation. Expect a tech boom from the east soon. It'll improve the lives of everyone :)

blackace
blackace

About time. We'll see how profitable they stay after launching the PS4. It's a good way to kickoff 2013 though.

Sefrix
Sefrix moderator

Awesome job Sony! Goes to show that any company can bring itself back into profit with the right focus and changes. 

jsmoke03
jsmoke03

@MooncalfReviews it has more to do with cutting divisions, and selling 2 of their corporate buildings. the switch really has nothing to do with it.

Warlord_Irochi
Warlord_Irochi

@tionmedon 4th comment you put in 4 different articles in less that 3 minutes. Which means you didn't even read them. Pretty sad...

mark_unix
mark_unix

The Xbox360 also never truly tried anything new like linux/folding@home so at least sony tried to change shit up (microsoft will just always do the same disaster over-and-over-and-over-and-over-and-over)

mark_unix
mark_unix

@Sorciere_basic also: you're forced into a 2 year subscription at $10 a month with the xbox720, so Microsoft is doing everything it can to make the trollbox720 a really big success at failing...

 Microsoft is trying to grab every little penny it can as it goes down the drain.


Bregzeinkul
Bregzeinkul

@kuda001 ppl just want to hear good news about Sony and bad news about Microsoft XD

ArabrockermanX
ArabrockermanX

@warhawk-geeby Don't jump the gun, they are selling off assets, cutting staff(LBI for one), and on top of that the Yen got weaker... There's only so long a company can go on selling and cutting(General Motors is the best example of this). If Kaz isn't careful they'll end up in a much worse situation. 

cuddlyfuzzle
cuddlyfuzzle

@Queuing_returns there are no sony haters. They make wonderful electronics products. Albeit a bit pricier than their competitors.

hardeddie
hardeddie

In short Japanese goods becomes cheaper, thus more attractive to foreign market with a slight burden in the domestic economy of Japan. Example, price drop of Vita which can only happen in Japan and no where else. Games in Japan costs ¥ 9000-10000 thats roughly US$ 90- 100. Now with the weaker Yen you get more Yen with every $. FOREX market depends on each country. ¥v$ €v£ £v$ etc. Anywaynnothing to worry about, it just means it will costs Sony less to produce.

fatee
fatee moderator

@Sefrix I think you fail to see the reason as to why their profit has a higher projection. ALL Japanese companies that export products at an exchange rate will have increased profits. 

Let me explain:
 
Let's say Sony makes X and sells for 5 yen in Japan.
Let's say 5 yen equals to $2.50 of today. So a product at 5 yen is worth $2.50 in North America.

Now tomorrow the yen is weaker, the yen is now worth 4 yen, the product is still being sold for $2.50 in North American.
Sony being an international company is now making MORE profit because cost vs profit is more favourable towards profit, IE they can manufacture at a lower cost then the day before, yet sell at the same price.

warhawk-geeby
warhawk-geeby

@ArabrockermanX Don't even talk to me about LBI :'(

Sony abandoned that group of developers, and barely advertised their game.  Never going to forgive them for that.

They've now moved on to games for mobile phones and tablets.. Gutted.

MooncalfReviews
MooncalfReviews

@cuddlyfuzzle There are plenty of Sony haters. Sony didn't always have such a good reputation (and it's still not as amazing as some of you think). The PS2 broke down a whoooole lot, and Sony customer service wasn't very good in the past.

Personally I prefer them to Microsoft as of about a month ago, but I used to prefer the vastly superior Xbox original to the PS2.

pcty
pcty

@hardeddie PS3 games cost something around 6500 while PSVITA games runs around 5000.

fatee
fatee moderator

@Sefrix PS. this is why a same model Japanese car is cheaper or more expensive the year after which is the most noticed price influx via end consumer. Large Japanese car manufacturers actually try and predict the yen fluctuation and produce and sell accordingly to maximize profits. Very common practice.

fatee
fatee moderator

@Sefrix @fatee Surprised you can make anything out, the damn thing is so small (and I can't seem to change it) Glad to hear you know what it is, a true gamer!

Sefrix
Sefrix moderator

@fatee Oh no I understand. Still, doubling profit expectations is good regardless :) By the way I LOVE you're avatar. I still have my original and it stand as the only RPG I've played through completely more than once.