Sony posted in their financial results for the first quarter of this year, and the numbers were bad, just plain bad. Sony’s profits dropped 68%, from $1.88 billion to $596 million, almost entirely due to the poorly performing games division, which produces the PlayStation 3. Their games business lost $1.9 billion, being singularly responsible for Sony’s misfortunes, and Sony sold 3.6 million PS3 consoles. Sony produced 5.5 million PS3s, which means 1.9 million are sitting around unsold, most likely due to their extremely high price.
I’m still convinced Sony will turn it around, but results like these leave me with no idea how. Sony’s in an awful situation, and they need smart management to fix it, and I’m not convinced they have it.
Amazingly, Sony stock shot up to a five year high, as they countered these forecasts with claims that they will cut PS3 costs by 80% this year and have record profits. This from the same company that lied and said it was selling every single PS3 shipped, a company that issues bald-faced lies to make it look better in the media. I’m not convinced Sony is doomed, but the shareholders are dopes for buying into this crap.