Sony shares tank to 31-year low

Following record annual loss, company's shares tumbled on Tokyo Stock Exchange; firm facing "a lot of difficulties" in time ahead, says analyst.

Sony shares on the Tokyo Stock Exchange have tanked to a 31-year low, dipping as much as 6.7 percent to ¥1,132 ($14.16), reports the BBC. The news comes after Sony this week announced a record annual loss of ¥456.7 billion ($5.71 billion).

Sony is seeing red, and analysts aren't hopeful.

Sony and newly appointed president Kaz Hirai have forecast a return to profit during the fiscal year, but analysts are not betting on the firm being able to turn the ship around.

"Sony is facing a lot of difficulties and the new president has not been able to produce a clear plan as to how he will turn around the company," Yuuki Sakurai of Fukoku Capital Management told the site. "Even the little that investors have heard, they are not very impressed with."

Last month, Sony outlined its "One Sony" plan to revitalize the company, which will look to the firm's gaming business unit to help spur sales. Outside of gaming, the plan aims to bolster sales by restructuring its television sector, creating all-new businesses, realigning its portfolio, and optimizing resources.

Written By

Eddie Makuch is a news editor at GameSpot, and would like to see the Whalers return to Hartford.

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Discussion

486 comments
LFDOG
LFDOG

Sony lost it when they gave up the portable music market.  Add to that their forays into devices that were locked to odd media formats, throw in their adventures in the worst business in the world (TVs) and you have a perfect storm for consumer abandonment and a company that beings to sink.  It's not a matter of turning the ship around - it's a matter of keeping it afloat!

 

They need to get a WAY better content delivery system that creates a single consumer identity so that when you buy a TV show on PSN, you see games, music, movies and books. Then, that content needs to "magically" appear on your entire Sony library - PS3, SmartTV, Vita, eReader.... everywhere.

 

They are trying to sell niche products when they need to develop a niche relationship with each and every consumer.  They need to make owning Sony a sign of status and hipness - not quirkiness and being behind the times.

 

The idea of a media hub would be good, if they had the software/marketplace to support it - better than the PSN.  Also, they need someone to work on the idea of human-tech interface.  The XML bar is great, but navigation in PSN is clunky.  It also doesn't "respect" my own media and seems very piece-meal.

 

Finally, look at something like "NEAR" of the Vita.... it makes absolutely no sense... what the heck is going on?  Nintendo is simple... hey, you met someone, swap a puzzle piece and play a game.  "NEAR" is doing something, but I have no idea what.. it's completely messed-up.

 

dave_fox
dave_fox

I wanna know what PLAYSTATION's contribution is. Is this the fault of Sony's games sector or their TVs not selling well, or the phones, TV programmes etc etc... Where are they losing money. Just because this news is blogged about on Gamespot, it doesn't mean that the Playstation and Vita are doing badly. Could easily be, and I'll hazard a guess it is, their other product lines doing badly.

johnson206
johnson206

Oyyyy... c'mon Sony! Get your s*** together! I'm still pulling for you!

nonfanboygamer1
nonfanboygamer1

No, no, no the ps2 did so well because of the groundwork the psone did. The psone built a fanbase. The ps2 continued that.

flyer4057
flyer4057

It's been a while since I've been around since I've been here on Gamespot and I can't believe how many people still care about this stupid "console war".  Does knowing the system you have sold most units this generation actually affect you in anyway? Sony being in trouble is bad for the gaming industry. If they were to go under that means less competition. Less competition is bad for the consumer. 

endorbr
endorbr

Sony's money issues are complicated.  Trying to blame it all on the PS Vita or them using proprietary memory is just narrow minded and short sighted.  Of the big three console companies Sony is the one with it's fingers in the most pies.  They do a lot more than just make games.

BillyColeman
BillyColeman

this is why sony needs to stop makeing junk like the PlayStation Vita hell did thay think it was going to compete with the nintendo 3ds? sony cant do everything and its time thay start geting there ass in gear i bet a lot of this loss was due to that hacking crap sony let happ. well at this rate thay may just drop out of the console game ps4?? guess time will tell but jeez

N7_Drake
N7_Drake

Is it just me, or does it always seem like Sony's launches are terrible with little games and then close to next generation releases, they kick into high gear and start doing great stuff. Like, right now I want to trade in my 360 for a PS3 as there is more games coming out for it that I want than the 360. In fact, the ONLY reason I decided to keep my 360 is because of Mass Effect, and now its no longer exclusive lol and Uncharted still is. WHAT SHOULD I DO???!!!

Helitons
Helitons

I just didn't buy the PSP vita because of the memory card. There's not built in memory!!! Not even for save games!!! Come on!!! I've always got all my consoles at the launch day. Nintendo Wii, Psp, Xbox 360 and PS3... I also got a 3d camera from sony that cost $1499,00 last year, but I doesn't play on my ps3 in 3d neither on my 3d laptop, unless I use Sony Vegas witch cost $600 and edit it first. Lacks updates. I was so disappointed with PS3 graphics. Besides God of War III, Killzone 1 and 2, and a couple more games,everything else looks better on the xbox 360 in witch was released in 2005 compared with 2006 playstation 3.

Both PS3 and Xbox 360 have 512mb ram, but PS3 uses 96mb of ram for the operational system and the xbox 360 uses only 32mb of ram, leaving more memory for the game where they can apply heavier textures for example.

blue_francis14
blue_francis14

Quit selling stuff with proprietary tech! What the hell is wrong with you? Are trying to market your wares on the elitists? Well guess what, there aren't many of them left! a$$holes...

Aentikraist
Aentikraist

and you want to Block used games  make emo devil may cry matrix mets residente vil gee maybe if you could give fans a decent RE story instead morpheus and Neotized Alice you could win a loooooot but mainstream mainstream zombie mainstream eaters.......

bluespire1
bluespire1

My PlayStation Has failed me Twice now at least Microsoft fixes theirs for free when it comes to next gen hardware its X-box for me.... 

perrytails
perrytails

its depressing to hear this! i'm really a Sony fan boy, for me they're products are the best, well not all of them but i dunno they're always innovating but right now are loosing lot of costumers, why? ill never know, but a think its too harsh to say, they charge too much just for being Sony. i think 90% of all the electronics i have are from Sony. just keep it up Sony. i know you'll come out of that hole!!

ecurl143
ecurl143

Yes, it is remarkable how well the PS2 is selling - it's insane.

PS3 has found it's legs now and they're shifting units off the shelves at a decent rate.

I think the Vita was a good move as well actually, no one else is going to go head to head with Sony on that front other than Nintendo and even though I keep hearing that mobile phones will equal the Vita in power, I've yet to see a phone that comes close to what the Vita can push around and feel right when playing the game- you try and fit the Vita into a mobile phone and it would cost an absolute fortune as well as a billion compromises on power, features and quality.

I doubt Nintendo will invest in the handheld market again - Vita has the better specs and when the unit comes down in price and the memory cards are slashed, that thing will explode, I guarantee that.

R2BDSi
R2BDSi

Sony should stop manufacturing the Vita, and primarly focus on PS3. There best when it comes to home consoles, portable systems they try to out do themselves, and result in selling it a loss. Which don't get the numbers from red to greenl

steelmouth
steelmouth

but like some analyst once said the problem with sony is sony is competing with everyone including sony its self, just how many sony TV's are out there all competing with each other, and the ps2 is still selling millions every year sales that could have went to the ps3

steelmouth
steelmouth

whoa!! 31 year low? thats like being paid what your grand parents used to get paid when they where your age but you have to live with at today's price and inflation costs

zowbaid
zowbaid

E3 is in another month. Let's see what Sony's got planned for us :) Blow us away SONY!

Nintendo_Man
Nintendo_Man moderator

Gone are the days of people paying premium prices for Sony products because of the company's name and reputation (these days it is Apple). One analyst was right when he said that Sony has not developed a hugely popular new product in years (such as Apple has done with the Ipod and Iphone) like back in the past when they had Walkmans and released the PS1.

They are now getting beaten in games, tvs, music and phones. I was amazed to read Samsung is now worth 9.5 times more than Sony and Apple over 30 times more.

roleplayer2004
roleplayer2004

Sony has to start taking risks. They haven't evolved over the past ten years and they are low on creativity. If Sony don't do something soon the company wil fall apart very quickly.

ChibiXRiku
ChibiXRiku

So do you want to lower the PS Vita memory card prices now, or should I just pull up a chair and watch Sony plummet even further into this Abyss they've gotten themselves in to.

Stryder_18
Stryder_18

So what you guys are saying is that now is the time to buy some shares of the company while they are cheap. That way if or when they get back on their feet I can sell them for a profit.....hopefully :) 

 

servb0ts
servb0ts

U win some, U lose some, and you really Lose some.

WCK619
WCK619

Why do I get the feeling this means more DLC?

mario-nin-freak
mario-nin-freak

Sony makes products too good, and therefore too expensive. They make good products, they just don't know how to market.

Gen-Gawl
Gen-Gawl

They need to be more competitive as far as pricing goes. Their stuff isn't markedly better that the competition but they charge like it is. Consumers are getting smarter about tech.

shadowhunter0
shadowhunter0

lol you Sony haters are still here and going at it

rbrwebber
rbrwebber

 @nonfanboygamer1

 I don't think that's true. I never owned a psone, nor did any of my friends. We did however all get ps2s.

 

magusat999
magusat999

 @Reuwsaat The PS2 wasn't easy to pirate, nor was piracy rampant. It wasn't piracy that made the PS2 popular - it was titles,, backwards compatibility, and Sony's price control. When the PS3 came out Sony abandoned all of that, and started trying to be an entertainment center with technology that wasn't even ready yet (Blu-ray). They didn't make a profit for what was the longest period in gaming history They were abandoned by developers and lost their exclusivity contracts with many publishers - most notably Square, probably their biggest lost.

 

Sony's PS3 didn't begin to make inroads until about two years ago - b y this time it had already lost the console war. Now it remains a great console - but a second option that people will buy after they have exhausted their time with the Wii and the Xbox 360.Also compounding the problem is it took way too long for the price of the PS3 to come down.

 

Sony basically fell on its own sword with their bad business decisions, and let the game world fall to pieces. It had full control when the PS2 was out, and they let that slip away by becoming stupid and greedy. There was another dvd technology they could have embraced that was almost as big as Blu-ray, but more established at the time, and cheaper. They decided to destroy it instead, and drive up the price of the PS3 with the included (and mandatory) Blu-Ray player. The prices of games has doubled from when they were the leaders, and nintendo has gone crazy with stuff they would have never pulled if they had Sony to contend with. Sony wrecked the gaming world and its just right that it all comes home to roost.

 

I'd like to see Sony fix this mess - they still have a chance - but can they do it legitimately - or will it be a PS4 cop-out that they will utilize? We shall see.

thepope21
thepope21

 @N7_Drake my two cents, the Uncharted trilogy alone is worth the price of a ps3. best multiplayer for ps3 and the story modes are always amazing, especially Uncharted 2.

abbasreza
abbasreza

 @bluespire1

 Wow unlucky people lol. Ive had the original 60 GB since it came out and it still works perfectly

rasterror
rasterror

 @bluespire1 Hopefully you didn't have the nightmare I did with my PS3.  It was bricked twice due to firmware updates and on the second one they held it hostage for three months and insisted on me giving them $150.  I just sold my 3rd PS3 because I was just plain done with Sony.  I hope Sony gets back on their feet but the y just lost a long time PS fan here.

Sigil-otaku
Sigil-otaku

 @perrytails Sony's real problem is just no focus. They want to be the 'me too' company that copies everything every other company is doing (at least with the gaming division) such as not needing the motion controls that they barely even supported but making them anyway and with the Vita they increase the costs of the hardware by having loads of touch controls that they only tack on to each of there first party games half heartedly. This is talking about the entire company of Sony though so it's got a lot to do with the other divisions failing more than the gaming division which generally does well enough at least.

 

thepope21
thepope21

 @ecurl143 i agree. one good price drop and (i hate to say it) a call of duty game and that thing will sell like hot cakes!

endorbr
endorbr

 @R2BDSi Vita just needs more games in its catalog and the things will be flying off the shelves.  Sony is going to be showing up to impress with the Vita at E3 this year.  Their money issues are complicated and not just a result of them coming out with new tech.

hadlee73
hadlee73

 @R2BDSi Actually when Nintendo found themselves in a rut many years ago it was their handheld device that pulled them out of the fire (the Gameboy series). It should be interesting to see how well the Vita does if Sony work out how to market it properly (and get some more games out for it of course).

godzillavskong
godzillavskong

 @Nintendo_ManYeah, Samsung is really one of the top players, especially in the LCD/LED/Plasma market. Every other week it seems like BestBuy has a add in their brochure with a Samsung LED on sale, or bundled with a additional product. I used to prefer Sony, especially for LCDs, but after investing in 3 Toshiba flat panels(26in,55in LCD, 55in LED) Ichanged preferences. I still have my 46in Sony Bravia LCD in my son's room, which still works great after 7 yrs. I have two Samsung products, a 32in LCD, and a Bluray player, which also work fine, so it's hard to say which is the more reliable brand. At least from my experience anyways. I hope Sony gets out of this funk their in, but with the way the economy is I doubt it will be likely , at least right away.

ender707
ender707

 @Stryder_18 Solid plan, but keep in mind they have only dipped a little over 6%.  Look up the average market return for a diversified portfolio and you may think twice before dropping all of your coin on Sony. 

antunesaa
antunesaa

 @magusat999 You guys speak like if the US is just the center of the world. In Europe, except for the UK, no one has an Xbox. None of my friends has one. And the PS3 will still sell more  than Xbox 360 by the end of this console generation, within a couple of years.

abbasreza
abbasreza

 @magusat999

 The PS2 was extremely easy to pirate lol what are you talking about XD. I dont know about Europe but in the Middle East everyone I know got their PS2 pirated simply due to the fact that there were no non-pirated games on sale. I mean you could go down to the local mall and get 10 guys over there to pirate it for you

thepope21
thepope21

 @BillyColeman i would agree. if i had to pick just one honestly i would pick  the ps3. however if you can you should have both. so that you can play all their exclusives and you can pick your favorite genres for a preferred system. for example, i personally prefer fps games for xbox, however i prefer tps, action adventures, and rpgs for playstation.

shadowhunter0
shadowhunter0

 @JasPlun not a fanboy just because I prefer to play on the ps3 doesn't make me a fanboy I don't hate the other consoles just not interested in them