Last weekend, Sony Pictures crossed the $1B domestic gross milestone thanks to strong performers that include The Amazing Spider-Man, Men In Black 3 and 21 Jump Street. Today, the studio is a mixed factor in Sony Corp’s 1st quarter consolidated results. The movie division had a 6.2% year-on-year hike in sales with revenues at $1.94B. Still, there was a $62M loss in operating income which Sony attributes to higher marketing expenses related to such pictures as The Amazing Spider-Man which was released in June and had taken $654.8M as of last weekend. Overall, Sony Corp slashed its 2012/13 forecast blaming sluggish global economies and unfavorable exchange rates. Operating profit is now forecast to be $1.66B, down from an earlier prediction of $2.3B. Profit for the fiscal year ending in March 2013 will hit about $255M, the company said, as it downshifted from a previous prediction of $383M. For the first quarter ended June 30, sales of $19.18B made for a 1.4% year-on-year increase primarily due to the strong performance of the conglom’s Game, Mobile Products & Communications division. But, the Home Entertainment & Sound segment of the business saw a sharp decrease of 26.2% with LCD TV units moving at a reduced pace.


“Still, there was a $62M loss in operating income which Sony attributes to higher marketing expenses related to such pictures as The Amazing Spider-Man…, ”
Is that sizable loss really attributed to the P&A of Amazing Spider Man or is it because Men In Black 3 was a gargantuan black hole that sucked in money rather than light?
That production’s ludicrous overspend, on what is a tired franchise even if it is a Will Smith picture, is entirely Sony’s own fault and indicative of what’s happening at that corporation as a whole.
I really hope that Kaz can turn it around for the sake of all those jobs but at this point the entire Sony operation feels like it’s in a nose dive and Sony Pictures will be the first thing that gets jettisoned.
Sony’s dead. No pity here. The company has been incredibly mismanaged… just looking at the European territory’s home entertainment division where the business is run by idiots that came over from the electronics arm.
+3, Anonymous. I’ve had direct experience of these bozos. We were trying to throw money at them, to no effect.
I try to have hope for sony, mostly because I don’t want to rely on Miscosoft ofr console gaming, but they have made some dumb decisions recently. Removing backwards compatibility from the ps3 and vita, rebooting spider-man instead of Giving Raimi a chance to make one more film without studio interference, pretending like anyone still cared about MIB….they need to turn things around.
The company is PROFITABLE… just not as profitable as expected.
Such gloom and doom, such naysaying.