I know we like to think our little gaming addiction takes place in a bubble, and larger world events don't affect our hobby, but it just isn't so. Example: The collapse of the Euro. While it's great for Americans who want to vacation in Luxemborg, it's terrible for Sony. The company expects the fall of the Euro to have a "huge impact," which means losses. Big losses. This is bad.
Sadly, there's nothing that can be done to offsets these losses, beyond a sympathy card to your favorite Sony executive.
"There are no countermeasures that we can take for the moment,” Hiroshi Kurihara, corporate treasurer at Sony, said. “There is a huge impact on our earnings.”
If you want more detailed information, I suggest you read the below paragraph from Bloomberg. There's a kind of poetry to it, honestly.
"The euro’s slump to a decade low against the yen compounds the challenge for Chief Executive Officer Howard Stringer, eroding the value of sales in Sony’s biggest export market just as a weakening won helps South Korean competitor Samsung Electronics Co. Stringer has shut factories and focused on new products such as tablet computers in a bid to end losses."
Source: Bloomberg
All of the best people are following Stephen Johnson's twitter feed. Also, email me if you wanna.
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Comments
Displaying 1–16 of 16
CrackpipeSymptoms
not good. i know the economy, this is will hurt us here in the U.S. too. the dollar will soon see an end and the end of the dollar as the worlds common currency
guerillap1mp
sony makes alot of high quality electronics. i dont think this will shut them down. it seems like alot of people hate sony for some reason but they love reading every article g4 posts on them and putting comments talking bad about them. DPsx7 should not be a spokesperson for sony. he has problems.
7xsPD
People are probably going to downvote me, but Sony is losing a lot of money off of the ps3 because the parts in the ps3 are more expensive than the ps3 itself(mainly the blue ray player), and not a lot of people are buying them any more either because they already have a ps3 or don't want a ps3. The ps3 might still be selling, but the numbers are decreasing and before you know it, the sales are going to be less than the Wii's are per year. Sony would probably close Playstation before they lose too much money, but that won't be very soon.
that70sdudes
i hope sony will bounce back. it always makes me cringe when i see a game company close down or in deep finical trouble even if i dont buy their games or consoles.
scorpian876
I do believe Sony will bounce back knowing that the X-Box 360 will not be the top selling console in Japan,Sony Play Station will be the best selling console in Japan because of the games coming out for it.
Worl wide the Play station 3 sales a lot .In America the X-Box 360 does sale more in America though.
BrianC6234
This should talk about Nintendo too since they're a Japanese company. This isn't a Sony only problem.
rifleshoot
dpsx7's comment was first... and defending sony when no one was even attacking it.... imagine that
DPsx72
DPsx72's comment is abusive and has been removed.
VincibleBoss
Sony is on its way out the door.
cwbys21
Here is a solution, all you Euros, go out and preorder Uncharted 3.
nvserg
im sure Sony is losing a lot of $$$ but im sure they will come back. its not like Sony is gonna file for Ch13 or 11 or what ever the # is.
clark025
I guess hedging currency risk is a little too complicated for Sony.
UltraViolence74
huge sony factory got destroyed during the london riots last month. that can't help either.
GrimGalore
After reading this, am I to say, "Poor Sony"? Really? The world economy is going down the toilet, unemployment is rampant, and I'm supposed to give a rat's tail about "Poor Sony" who's loosing out on trillions of Euros?
Why don't you blog about actual poor people getting government subsidies to be able to buy games who might not be able to otherwise because they're unemployed?
vole182
Sony I'll save you! Right after I finish playing gears of war 3
WhiteheadNellie
WhiteheadNellie's comment is abusive and has been removed.
Displaying 1–16 of 16