Forum - View topicNEWS: Dentsu to Post Y5 Billion Loss on Geneon's Downsizing
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rankothefiremage
 Posts: 523 Location: Michigan |
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can anyone with an econ degree translate this for thous of us who don't have one?
-Gabe |
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starcade
Posts: 204 |
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Dentsu lost a ton of money with Geneon, and posted about a $40-45 million loss (depending on how it's calculated) as it had to downsize Geneon. |
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cloud1989
 Posts: 274 |
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so did the fall of geneon cause the loss or was it geneons existance that caused the loss.
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Dargonxtc
 Posts: 4463 Location: Nc5xd7+ スターダストの海洋 |
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Thing is how much of this cost was incurred by just the fact of them pulling out. You have to figure that they haven't come close to making any of there money back from all there licenses that are still mid-stream or even started.
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Heretic
Posts: 177 Location: Laurel, Maryland |
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Downsize its scope and increase business efficiency? Sounds like they are about ready to sell off their licenses to other US anime companies. Unless some announcement is made beforehand, at conventions I will be (politely) asking the companies is it possible for them to license "rescue" the shows that Geneon left unfinished. I think it is extremely unlikely that Geneon will hold those shows in license limbo, even if they are shows that they themselves helped to produce.
I'm not upset at Dentsu for doing what they did (its business afterall), and the fact that Geneon is not completely dead offers to me some reassurance that the titles they have are not dead either. |
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VORTIA
 SubscriberPosts: 944 |
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The part I'm not understanding about all of this, and mind you, I am not an economics wiz, is that if downsizing Geneon resulted in massive losses then why did they do it? Was it to avoid even larger potential losses?
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HitokiriShadow
 Posts: 6251 |
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Yeah, they apparently figured that leaving Geneon as is would have resulted in much larger money losses in the large run. Now, I'm not sure how Japanese law works, but this loss would make a nice tax write off, no? Maybe they'll take the hit now and take advantage of that and then try to recoup losses next year. |
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Dargonxtc
Posts: 4463 Location: Nc5xd7+ スターダストの海洋 |
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Mind you that if they did not shut down Geneon that they probably would not have lost 44 million in the next year. However if they have been taking, or expecting 10 million or higher losses over the next five years, with no expectation of recovering, due to there vision of the market, or there own lack of effort, than it is cheaper to pull out now and start seeing black again on there next years earnings report. Edit: HitokiriShadow beat me to it. Still though I agree with Porcupine, they could have done this much more gracefully. Last edited by Dargonxtc on Sat Sep 29, 2007 2:30 pm; edited 1 time in total |
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Mohawk52
 Posts: 8202 Location: England, UK |
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A business that is "down sizing" is not adding a profit to itself, or to its parent company simply because they are not concentrating on selling a product, they are concentrating on the downsize, but running costs are still being accumulated in the process. Therefore there is a loss in profits. Most of it is administration, removal of office equipment, and redundancy packages for the unfortunate staff that will be laid off. Yes it is a lot of money to lose but it will be worth it if the long term gain is a better more efficient business with lower overheads and outgoing costs. Short term pain for long term gain. If it works they will have made back all that money and more. If not they will hit the mud three miles down.
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Splitter
 Posts: 1276 Location: Knockin' on Heaven's Door |
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That's what happens when everything you license is either loli-moe, softcore hentai or something that would feel right at home in an arthouse, and NOTHING THAT WOULD ACTUALLY SELL TO THE MAIN CONSUMER DEMOGRAPHIC All that aside, thank you Geneon for forsaking profits in the interest of the little guy ^^ |
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Kruszer
 Posts: 7994 Location: Minnesota, USA |
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So I suppose this is good news since they're just downsizing and not going belly-up just like that. From how I interpret what's been said it means that they'll either become a middle-man liscensor like Kadokawa or just severely limit the titles they have and will liscense.
I personally, wish they'd think about their customers who are effected by this a little more though and give us a status report on whether or not we'll need to expect some series to get totally dropped or whether they plan to sell their inventory to other companies. |
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CCSYueh
 Posts: 2707 Location: San Diego, CA |
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I've been suggesting at least some of this is a cold business deal & less a reflection of
One can view this as in fat times companies dip into enterprises not in their main product line but they cut back in thin times. Maybe it's a reflection of their own issues. Maybe it's a reflection of their internal estimates of the Japanese economy for the next few yrs. And maybe like a lot of us they're expecting a recession in the US which means if Geneon USA has been breaking even or making a modest profit, it's likely to slide downward & if Geneon USA has been losing money, it would probably only get worse. |
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grgspunk
Posts: 136 |
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Does this mean that license rescues are more than likely? They did just say that they're losing a total of 85 million dollars...
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kitsunelady
 Posts: 37 |
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Hey, hey. Geneon held the licenses for a LOT of stuff that I like, and I find moe distasteful in the extreme, and own no "softcore hentai" either. =( What about Samurai Champloo? How can you not like Samurai Champloo?! :0 Or the Hellsing OVA? Or, or...Sailor Moon! Cardcaptor Sakura! Last Exile~! Well, the list goes on. t.t I'm pretty depressed by this, personally. There are a few series from them I haven't had the $$ to buy yet, and now they'll just get even MORE expensive. SIGH. |
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VanGosroth
 Posts: 299 |
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Hellsing OVA.... Karin... nooooo
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