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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 estimates $3.2b loss this year, $171 million cost for PSN breach
It has not been a good year for Sony, which was affected both by the massive earthquake in March and the PSN outage that spanned from April into May. There couldn't be any doubt that those things would have a drastic impact on the company's bottom-line, and it's now taking the time to give investors an idea of just how big an impact that could be -- even though the financial issues lie largely elsewhere. Sony is set to announce its full financial report for its fiscal year this Thursday and, to soften the blow, estimates have been revised steeply downward. Previously Sony predicted a ¥70 billion ($855 million) profit, but now thinks a ¥260 billion ($3.14 billion) loss is rather more accurate -- a ¥360 billion non-cash charge taking the wind out of ¥200 billion in operating income. The earthquake was directly blamed for a loss of ¥22 billion, but that figure could certainly grow as this estimate is only through the end of March. Additionally, Sony has provided a early guess of a ¥14 billion (about $172 million) total cost for the PSN breach. That's less than two bucks per exposed account, but again we wouldn't be surprised if it's a figure that increases through the year. You know, once the lawyers start having their fun.
The Daily generated 800,000 downloads, $10 million loss in first quarter of operation
It's still too early to pass judgment on News Corp's daring venture into tablet-only newspapers, The Daily, but at least we now have an idea of how much it costs to get a project like this off the ground. Having spent $30 million developing the concept before launch, the company's latest quarterly reports indicate another $10 million loss was incurred on the early operations of The Daily. That's resulted in 800,000 total downloads of the iPad-only app, though a breakdown of how many of those were just trying out the free trial and how many have stuck around for the paid version hasn't been forthcoming. News Corp stresses that The Daily is still a work in progress, one that we've heard may also be making its way onto Android tablets, and looks very much committed to seeing its plan through to the end. So if this digital-only, subscription-paid news idea fails, it won't be for lack of trying.
Sprint reports Q1 2011 results, adds 1.1 million subscribers
It's financials time and the word hasn't always been rosy for Sprint of late, but this time the company has some good news to share. In this, the first quarter of 2011, Sprint added 1.1 million total subscribers, 846,000 of those were prepaid, the other 310,000 postpaid. Churn was down too, 4.36 for prepaid and 1.81 percent for postpaid, lowest in five years for the former and lowest ever for the latter. Operating income was $259 million on $8.3 billion in revenue, which is up three percent from this time last year, but factor in taxes, lunar landing rights, and all the other fun stuff and the company posted a net loss of $439 million. CEO Dan Hesse called this "slow but steady progress," and the addition of subscribers "a tough streak to keep going as the bar keeps getting higher." A tough streak indeed, but the launch of phones like the Nexus S 4G might just help keep it alive for another quarter.
Fiat will lose $10,000 on every 500 EV it sells, still intends to bring it to US in 2012
Any new technology generally costs an arm, a leg, and a bit of your sanity to adopt early, but that's a luxury that the well settled auto market cannot afford. In light of its elastic economics, car makers looking to go electric have had to be extremely aggressive in cutting their own profits, an aggressiveness that's now been estimated by Fiat's CEO Sergio Marchionne to cost them as much as $10,000 per unit sold. Fiat's famed little car, the Cinquecento, is going to be hitting the US in a new EV configuration in 2012, in spite of the fact it'll be causing a ding to the company's bottom line. It's not actually clear whether Mr. Marchionne is factoring in research and development costs or whether he's talking purely of material costs, though Fiat's fate is hardly unique -- the Nissan Leaf isn't expected to generate a profit for a good couple of years yet. The Fiat 500 EV's likely price was indirectly revealed, too, by the company chief's assertion that it'll retail for about three times the cost of its gas-powered version. So about $45,000. Yikes!
AMD sees a tablet chip in its future, and an end to the core-count wars
AMD told us that it wasn't terribly interested in the iPad market, and would wait and see if touchscreen slates took off, but CEO Dirk Meyer changed the company's tone on tablets slightly after reporting a $118 million net loss (on $1.62 billion in revenue) in a Q3 2010 earnings call this afternoon. First revealing his belief that tablets will indeed cannibalize the notebook and netbook markets, he later told investors that he actually expects AMD's netbook parts to start appearing in OEM slates in the next couple of years, and that AMD itself would "show up with a differentiated offering with great graphics and video technology" when the market becomes large enough to justify an R&D investment. Elsewhere, AMD CTO of servers Donald Newell prognosticated that the number of individual CPUs on a chip won't go up forever: "There will come an end to the core-count wars," he told IDG News. Just as the megahertz race was eventually defeated by thermal restrictions, so too will the number of cores on a chip cease to increase. " I won't put an exact date on it, but I don't myself expect to see 128 cores on a full-sized server die by the end of this decade," he said. So much for our Crysis-squashing terascale superchip dreams, we suppose.
Sprint reports $760 million net loss for Q2, slightly less than expected
Well, it looks like Verizon has a bit of company at the negative end of the earnings spectrum -- Sprint has now also reported a loss for the second quarter, although it's a slightly smaller one than expected. Specifically, the company posted a $760 million net loss for the quarter that's just ended, or 15 cents a share, which isn't exactly great, but is better than the 17 cent loss analysts had predicted. That gain is at least partly attributed to strong sales of the HTC EVO 4G, and by the company's best ever year-over-year improvement in net postpaid subscribers, which helped boost the number of wireless subscribers by 110,000 (for a total 48.2 million customers). Looking for some more hard numbers? There's plenty to keep you busy at the link below.
AMD has record $1.65B second quarter, still loses a little money
First, the good news: AMD pulled in $1.65 billion in revenue -- a record for the second quarter! Now, the bad news: the company still lost money. Just a (relatively) little bit, though, with a net loss of $43 million or $.06 per share. That's five percent more revenue than the first quarter of 2010, and a massive 40 percent boost over the second quarter of 2009, in which it lost $330 million net. What changed? Sales of graphics hardware in particular, up eight percent over last quarter and a huge 87 percent from last year, driven by success of the Radeon HD 5000 series graphics cards. Likewise, sales of mobile processors were up 18 percent over last quarter. Net profitability? Keep this up, AMD, and it's not far off.
The Daily Grind: How much would you pay to keep your character?
Over time, things change. More often than not, the list of "things" in an MMO includes accounts, characters, mains, and any number of other elements. We change servers, we buy new accounts, and over time you inevitably wind up with a character sitting and accumulating dust. They might have a special title, or an unusual item, or even just a great deal of sentimental value. And while you might give up the option to use them for a while, you still want them back. In a game like Final Fantasy XI, losing access to an old character can result in a huge loss of time and effort. Luckily, most games offer server transfers, account reactivation, or other services to help you regain your former avatar. But how much is it worth? A month's subscription? The price of an expansion? How much would you pay to get back an older character for whom you've lost access? Does it vary a lot depending on the resources the character possesses, or do you just want to get back what you lost, even if it's only a little?
Verizon lost $653 million last quarter in spite of increasing revenues
91.2 million total customers, 2.2 million of whom joined in Q4, $27.1 billion operating revenue in the quarter, and you still make a loss? Well, in fact Verizon made a tidy profit, which may be considered comparable to Google and Intel's latest results, but its culling of jobs at the end of last year cost it a whopping $3 billion (presumably in redundancy settlements). Still, the company looks buoyant with that quarterly revenue number growing by 9.9 percent year-on-year, and CEO Ivan Seidenberg noting that significant costs were incurred in setting up for a 4G network deployment in 2010. Our favorite nugget of info? The "cash expense per customer" per month number: $27.62, which presumably includes Droid subsidies and the like. How does that compare to what you're giving VZW each month? [Thanks, Josta]
Nokia posts $834 million quarterly loss, smartphone share down to 35%
Nokia just posted a net loss of 559 million euro (834 million dollars) for the third quarter -- its first quarterly loss in a decade according to the AFP. The loss comes after a reported 20% drop in sales and 1.17 billion euros in write-downs, mostly for impairment charges on Nokia Siemens Networks. Nokia also said that its smartphone market share dropped to 35% versus 41% in the previous quarter. With fierce competition from Apple and RIM, and Palm just launching its Pre into Nokia's European stronghold, well, it's a good thing Nokia's branching out into untapped markets like single-core Atom-based netbooks. Read -- Smartphone slip Read -- First loss in a decade Read -- Nokia Q3 statement
Argent Tournament gains will not transfer between factions
Just a heads up for you faction transfers, though you've probably already realized this if you have made a transfer: many of your faction reputations will transfer over just fine, but not so for any Argent Tournament progress you've made. Argent Tournament reputation and gains will not transfer over if you change factions. Kisirani says that Blizzard couldn't think of a way to do it technically, and so (as we understand it), anyone who transfers factions will lose all of their current Argent Tournament standing, and have to make their way back up through the ranks to Champion. Many other reputations have changed just fine, and you can find a list of all the changes as you cross over from one faction to another on the faction change FAQ. You will bring items over with you -- any seals earned on one side are still valid on the other. But if you want to grind out more, you'll have to go through the ranks again.Seems like a bummer for faction changers (especially those who didn't know about the problem before they did the transfer), but on the other hand, I don't believe Blizzard would have let this go if they had any way to fix it. Short of just granting ranks to all players who transfer, assuming they have no way to track where players were at in terms of which cities they'd champion-ed for, I don't know what other solution there would be.Update: A little more information: you also lose all of your Silver Covenant or Sunreavers rep as well, so you'll have to re-earn that from the beginning, too. As players have said in the thread below, it's not a huge loss, but it's an annoyance for sure.
Sony Ericsson posts $299 million Q2 2009 loss, PlayStation-integrated phone (probably Aino) coming Q4
The good news, if you want to call it that, is that Sony Ericsson's most recent quarter loss is not as bad as its epic $382 million tab prior, and at this point there's no talk of further en masse job cuts. That said, this new report isn't exactly sunshine, and the Q2 results show a 213 million Euro ($299 million) net loss. Product shipments were around 13.8 million, down 43 percent compared with last year. Some blame is attributed to the focus on mid-tier feature phones in lieu of a greater smartphone push -- SE says it's working to correct that direction, but its higher end devices won't hit until fourth quarter. One interesting note is that one of those late-year handhelds is said to "integrate with PlayStation," but before you get excited over the oft-rumored PSP phone, we'd venture to say it's more likely that description's referencing the Remote Play-supporting Aino. From what we can tell, there's no indication of what's in the cards to improve Q3, so we won''t exactly be surprised if the story repeats itself three months from now.
Nokia cuts market share targets as Q2 profits plummet
Ok Nokia, this is getting serious. The world's largest cellphone maker just announced a 66 percent yearly drop in Q2 profit while lowering its 2009 market share target for its cellphones. Originally, Nokia had expected market share to rise in 2009, presumably based on a successful launch of the N97 flagship device. However, outside of a core group of S60 diehards, the N97 has been universally panned in both reviews and user forums alike. And with nothing but rumors of an Atom-based Nokia netbook on the immediate horizon, well, let's just say that we're suddenly concerned about the health of our friends from Espoo.
Sony posts $1b loss, first in 14 years
Here's the good news: Sony's ¥98.9b ($1.03b) loss is slightly less than the $1.1b the company told us it would lose in January. Sadly, all of the other news is bad, starting with the fact that the company just lost a freaking billion dollars, its first loss in 14 years, and it's predicting a similar $1.1b loss next year. Electronics sales were down 17 percent, the Sony-Ericsson phone partnership is struggling, and game division sales dropped 18 percent primarily due to Sony's continued reliance on falling PS2 sales. As for the PS3, it's actually a dim bright spot: hardware cost reductions and increased game sales slightly stemmed the tide, but Sony's still expecting the division to lose money in the coming year. Sony also says it has "extensive measures" in store to try and turn things around after that, so we're hoping Sir Howard's plans to embrace open formats and listen to consumers are kicking into gear, but we'll see.Read - Sony financials [Warning: PDF]Read - Reuters reportRead - MarketWatch
Sony reports continued loss, expects games division to remain unprofitable
It's no secret: Sony has lost a lot of money. Unfortunately, the troubled times are far from over for the Japanese conglomerate. Sony is now predicting a 110 billion yen ($1.15 billion) loss for the financial year to March 2010, due to losses at many of its divisions, including PlayStation. Sony has been affected by the recession, with dampened sales of its cameras, phones, and televisions.The company is aiming to boost its games division, with a 30 percent increase in sales of the PS3, to 13 million units for the fiscal year. However, although Sony plans on selling more PS3 systems, Reuters notes the company expects "its games division to stay unprofitable."Expecting the games division to stay unprofitable may seem strange in light of lowered production costs and increasing PS3 and PSN software sales. Perhaps, this could be a sign of the oft-rumored price cut. A price drop would help accelerate PS3 sales, while reducing the profitability of the PlayStation brand. However, with a projection as grim as a billion dollar loss, we wouldn't be surprised if Sony holds back on loosening its wallet a bit more.
Sony Ericsson posts epic quarterly loss, adds another round of job cuts
Some good news, please, Sony Ericsson? Anything? Perhaps a surprise Idou ship date? You desperately need something to counter this dismal quarterly report you just dropped on a bad news-saturated public, showing a net loss of €293 million (about $382 million) in the three-month period ending March 31 -- more than €100 million more than the amount you shed in the quarter prior. Despite reassurances to the contrary, we suspect that neither Sony nor Ericsson are prepared to tolerate red ink out of their joint venture forever, and it doesn't help that you've put Android on the back burner indefinitely. What's more, we thought your staff might be able to exhale now that the "cost saving program" to curtail spending by €300 million by cutting 2,000 jobs is complete, but you've coupled the bleak report with the announcement of an additional 2,000 cuts. Your shipped units are off a staggering 35 percent year over year, to boot; maybe the "good" news -- and we're really reaching here -- is that your European rivals are sharing in your pain right about now. Chins up, guys, and get some quality product out of the labs.
Nokia's profits drop 90% in Q1 2009
So, there's good news and bad news here, and we're opting to go against tradition by dishing out the positive first. Nokia just pushed out its Q1 2009 results, and while many firms have been struggling to stay afloat, at least it managed to turn a profit of €122 million ($160 million). That said, it's still looking at a staggering 90 percent drop in profits compared to its first quarter of 2008, where it raked in a mind-boggling €1.222 billion ($1.6 billion). Not surprisingly, sales were also down 27 percent to €9.28 billion ($12.2 billion) from €12.7 billion ($16.7 billion). Of course, Nokia's far from being alone in having to showcase less-than-beautiful Q1 numbers, but in reality, the damage could've been much worse; in fact, shares of the company's stock inched up by 8 percent following the reveal, as many had feared an even more significant decline. All in all, Nokia's still holding strong to a 37 percent market share worldwide, and if CEO Olli-Pekka Kallasvuo has anything to do with it (hint: he does), things should be on the up and up here soon.[Via BBC]
Breakfast Topic: Losing stuff in World of Warcraft
I won't mention the actual story so as to avoid spoiling fellow current or future fans, but in a certain non-Warcraft related story I am reading, a character seems to have died in the latest chapter I've read. It happens, but this character was easily my favorite in the series, so I'm sort of bummed more than usual at seeing a fictional character die. I've queued up my melancholy song playlist on Winamp and everything.Now in World of Warcraft, loss is a pretty apparent them as well. The loss suffered by nearly every sentient race to the scourge, the fall of the High Elves, the fall of the Broken, it seems like every PC race on WoW has experienced some loss or seen some great hero fall. In addition, sometimes there's the smaller losses as well. Like, say, giving up Archeus for a weapon with an inferior backstory and proc. So what losses in World of Warcraft have left a mark on you? Is there a certain story of loss in the lore that especially resonates with you, or do you still mourn the loss of a certain item or NPC as you've leveled up, or even some NPC or Quest that's been removed?
Chinese online game market operating in loss
When many of us think about MMOs, we think about companies who rake more money than we could dream about. Enough money to put together a scale model of Paris made out of 20 dollar bills.Yet the truth is that many of these companies are operating in loss, as a recent article published in the Beijing Times has shown. Over 70% of Chinese online game companies are spending more than they are earning, while only a few notable names, like The9, the operators of World of Warcraft in China, stand to even make a profit.Many games spend more in development and marketing costs than they stand to make in monthly subscriptions, leading to these problems occurring in many companies in the market. Analysts say that for every 10 online games made, only one stands to be a profitable venture.For the full report on this, check out the article over at TradingMarkets.com.
