business

Sony first-half net profit doubles, forecast revised up

4 Comments
By Kazuhiro NOGI

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© 2020 AFP

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The only disappointment for many American investors in this foreign-supermajority Japanese company is that the net profit is not high enough. There have been various funds pulling out of Sony before this result announcement.

For many American investors, $6.65 billion in profit is a huge failure for $76 billion in revenue. That's just an unfortunate aspect of Anglo-American capitalism, NOT HIGH ENOUGH!

In the realms of gaming, Microsoft's purchase of Zenimax will turn deadly against Sony in the next decade. Zenimax possesses the Orion gaming technology that allows one to play and stream video games uninterrupted with ultra graphic - you can technically play Skyrim on a smartphone now if Microsoft develops it furthermore. Zenimax also has Bethesda Softworks who owns the many gaming franchises that enthrall gamers for decades to come. With all the odds at hand, Sony gaming division will face massive challenges in the next decade, while Microsoft has all the upper advantages.

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I'm sorry I couldn't find the figure of $76 billion you mentioned. The revenues and net income for the first half ended Sep.30 are JPY4,082 billion and JPY 692 billion, respectively. If JPY 692 billion is $6.65 billion, JPY 4,082 billion is $ 39.2 billion, isn't it ? And the revenues of Sony include the one of financial unit, whose profit rate to revenue is normally low. Excluding the financial unit, revenues is JPY 3,268 billion ($ 31 billion) and net income is JPY 660 billion ($ 6.34 billion). The profit rate increased slightly.

However, I agree the foreign investors consider the profit rates and ROE of Japanese companies are very low.

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I'm sorry I couldn't find the figure of $76 billion you mentioned. The revenues and net income for the first half ended Sep.30 are JPY4,082 billion and JPY 692 billion, respectively. If JPY 692 billion is $6.65 billion, JPY 4,082 billion is $ 39.2 billion, isn't it ? And the revenues of Sony include the one of financial unit, whose profit rate to revenue is normally low. Excluding the financial unit, revenues is JPY 3,268 billion ($ 31 billion) and net income is JPY 660 billion ($ 6.34 billion). The profit rate increased slightly.

Sony official website releases the financial data. I may have wrongly taken the data of 2019 instead of now.

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Times are currently hard for Cinematic Media Studios, Microsoft may well enter such a Market and take on Sony head to head through the outright purchase of a well known "Studio"....

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