Sony expects huge money losses after bailing on PC business

froggyboy604

froggyboy604

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Sony just issued a news alert, giving investors a heads-up that it's "revising" its earnings forecast for the 2014 fiscal year, which actually ended back on March 31st. Revising! Here's what that really means: Sony previously said it would generate 80 billion yen in operating income for the year. The company is now dialing that estimate down to 26 billion yen -- a decrease of 67.5 percent. All told, the company expects to book a net loss of 130 billion yen (final numbers to be announced later this month). Previously, it said it would lose 110 billion. Ouch, Sony.

So what happened? How could Sony's prediction have been so far off? What happened was a major restructuring in which Sony sold off its PC business. So, not only did Sony have to pay 30 billion yen in fees as it wound down its VAIO division; it also has loads of unsold computers that no one wants (can you blame people?).

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It's crazy that Sony is losing Billions of Yen even though they sold their PC department.

This bad news does not make me feel comfortable buying any Sony products since Sony with all these Billions of Yens of loses could become bankrupt, or stop supporting their warranties because they no longer have the funds to replace and fix broken Sony products which people bought.
 
I can see Sony being sick if the PC business starts to boom again, which it easily could.
 
I read Gaming PC is booming. PC Gaming now makes more money than console gaming around the world.

I feel Sony damaged its PC brand by selling over price computers which cost more than other PC brands like Asus, Acer, and Lenovo.

A lot of people these days are building their own computers, or buying PCs from local computer stores, CyberpowerPC, iBuypower, and Falcon which build their PC from faster PC parts, so people can use their new PC to play the latest video game.

Many people are also upgrading their older computers with better video cards, more RAM, etc to play more intensive PC games, so they are buying fewer new PCs.
 
The PS4 maybe as strong as a  regular computer, but it is not as fast as a Gaming Computer in 2014 built with faster computer parts like a Nvidia GTX 780 video card, 16GB RAM, and Quad-Core CPU.

I remember the PS3 was dubbed being a supercomputer because it uses a Cell Processor which has a lot of cores. I think the PS4 should of stuck with the Cell Processor which is used in supercomputers instead of the AMD Processor in the PS4.
 
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