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Sony: PS4 costs are 'much, much smaller' than PS3
Sony Computer Entertainment CEO Andrew House said the company "will not generate anything like the losses we did for the PlayStation 3" in regards to its forthcoming PS4 launch, Bloomberg reported. Sony lost more than $3.5 billion in 2007 and 2008 thanks to the PS3's initial cost; it launched in November 2006 for $599 and didn't become profitable until late 2011. Even after the company cut manufacturing costs with the introduction of the slim model, it still lost roughly $40 per system as of December 2009. Sony's plan this time around involves lower development costs at the outset. "The amount of investment is much, much smaller," Chief Financial Officer Masaru Kato said, pointing to Sony's PC-like design decisions for the PS4. The system was announced in February, and will hit retail shelves this holiday season for $399.
Sony's TV reform to begin 'immediately,' could involve partnering with other firms
It's been a year. Particularly if you're Sony. The same company that's staring at a $171 million price tag due to an unforgettable PSN breach and a gamut of bad news detailed in its most recent earnings report is now facing the daunting task of reforming its flagging TV division. 'Course, Sony's still moving gobs of panels, but according to Chief Financial Officer Masaru Kato, "markets are maturing and price competition is stiff" in advanced nations. Mr. Kato recently spoke candidly with The Nikkei (linked below; subscription required), noting that the company is aiming to turn its TV business "into one that can be profitable even if we do not pursue volume." In order to do so, the entire platform is being looked at -- "no stone will be left unturned" -- and he even mentioned that partnerships with other companies will be considered. Oh, and if you thought you'd have to wait a quarter or two to see any changes, have a listen at this: "Even though we haven't yet decided how to announce the plans, they'll be implemented immediately." Attaboy!
Sony loses $3.2B, spends $170M in response to hacker attacks
Sony's bad year is getting a smidge worse. The company, which had previously predicted a healthy profit for the past fiscal year, is now expecting a loss of $3.2 billion for the period of April 2010 through March 2011. The reverse in fortunes is mostly due to writing off a $4.4 billion tax credit, although the company has been struggling with both the recent earthquake and hacker attack that disrupted operations of both its physical operations and online services. Sony CFO Masaru Kato doesn't beat around the bush: "In the first quarter, we saw quite a major impact on our manufacturing activities." Sony also has spent over $170 million in response to the hacking intrusion last month. These funds went to rebuilding the network, providing identity protection coverage, investigating the attacks, free game time, and customer support. This is the second straight year that Sony has operated at a loss, although last year's $439 million wasn't nearly as severe as this promises to be.
Sony to announce 'new PSP product' when 'the timing is right,' VP says
Is the PSP Phone real? Sony isn't directly commenting on it right now, but a recent earnings call reveals one of the strangest non-denials we've ever seen. "As for the new PSP product, as mentioned, I know that you are not asking me to tell you when we will be coming out with a new product, but there is a gaming market based on [the] cellphones," a Sony VP (presumably CFO Masaru Kato) stated during the call. "It's not that we are not looking into those markets as well. We will look into those markets in trying to develop strategy for the future." Essentially, Sony isn't not making a gaming phone. Although the Sony representative repeats that he cannot talk about specific products in development, he does note that the planning and development of the "new product ... we are making right now" would come from under a single Sony "umbrella" that combines various branches of the company -- like Ericsson and SCE. But when will we find out more about this mysterious device? "When the timing is right we can probably announce [to] you about the new product that we have." For Sony's sake, we hope the "timing" is before Engadget gets another scoop on this not not in development phone.
