-
Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.
SONY set to JUNK status
- Thread starter noobie
- Start date
Agreed the whole Japanese electronics industry has problems. But compare Sony's loss with Panny's: 15.5bn yen vs 700bn yen loss in the previous q.Degrading Sony's credit is a bit unfair since they were forecasting to return to profitability by the end of FY, the cut will make the way for recovery more difficult.
Sony forecast a lot of things, like 10 million Vitas.
I agree it needs to come from the outside. I used to work for a company that got restructured by outside consultants, and it was a huge improvement. There were deep cuts at the time, but years later the company is twice the size it was before the cuts.
iamshadowlark
Banned
They don't really have that much power over someone like Sony. Sony has billions of its own money to spend.
Yeah, you have no idea what you are talking about do you?
Palette Swap
Member
I'm in the market for a TV and was looking at Sony / Panasonic displays. I guess I should avoid them if I can't currently tell how these will be supported 2 years from now?
PSP Go and PS3 SuperSlim are also under Kaz's, right?
Playstation 4 will be the death of them.
Really?? they only use the Kuro stuff on the VT series?too bad they drop the 42" size model.
bigtroyjon
Member
Then why did they recently float convertible bonds due to having limited access to regular markets and cut shareholder value?
Nothing incorrect about that statement. 10 million Vita's is 2-2.5 billion in sales. Cut that down to 6 million and they are going to be down roughly $1 billion in hardware revenue alone, not even counting software and accessories.
Canis lupus
Member
The tvs from these companies are so expensive. I was in the market for a high end tv 2 years ago but with every model in every pricerange Samsung and LG were beating them with +200. If they get off their archaic price model for their tvs they might sell me on them.
Its not the time to rely on your premium brand name anymore.
zomgbbqftw
Banned
Yes. The PS3 slim was forced through by Kaz in early 2008 according to our sources within the company. He had to fight all the way and eventually just used his own authority to order the manufacturing and killed the phat.
He said that the PS3 wouldn't be successful until they cut the price and presented a whole new image, which required a new unit to be designed built on the success of PS2.
PSPGo, I'm not sure, I think that comes from the US division.
CadetMahoney
Member
So if Sony where to go all those PS+ games and stuff wiped out right?
Brera buying stocks will complete the circle.
Schlachtor
Banned
Wrong!
KillerTravis
Banned
This is true. They were losing a whole lot more before, maybe they will stabilize soon.
zomgbbqftw
Banned
Yes, the revenue forecast has already been cut to reflect that, but given that Vita is a break even device it probably has a positive impact on their operating margin.
Increasing liabilties, declining ROA, declining ROE, declining market cap, declining stock price, and declining credit rating is considered progress?
frankie_baby
Member
10 million x $200 (guesstimation of vita wholesale price) = $2billion, now I'm assuming approx break even on hardware so wouldn't make any difference to profit, however as hardware sales are so low far far less software will be sold and less profit will be made
Sssshhhh, keep common sense and logic out of this thread!
While Japan as a whole is suffering it seems like Sony have tried to realise profits by cutting the work force and making savings where they can. But clearly this just isn't enough.
And while streamlining an operation is always a good idea (apart from people losing their jobs obviously) Sony's problems are far deeper than that.
But this move will buy Kaz some time at least. Let's see if he's actually able to do anything with it.
Canis lupus
Member
They were on the VT20/25, not sure if they use it on the current ST series.
frankie_baby
Member
Sony's forecast for vita sales is still far too high
Panasonic make (arguably, depending on your stance on Plasma) the best new TVs that money can buy right now, and considering aftermarket support isn't really a relevant issue for a TV after a couple of years I don't see the problem.
Can't really see any point buying a Sony TV currently though.
SirIgbyCeaser
Banned
He still stood by while it happened. He announced 599 USD out loud on stage for gods sake. And felt that PS1 ridge racer on PSP was an E3 worth announcement.
Kaz was there, maybe he wasn't the one with full authority but if he's a man of business strength and smarts, I don't see it. Maybe I should give him credit for cutting down on the PS3 maybe making decisions like cutting PS2 backwards compatibility.
KillerTravis
Banned
I have a question. Has there been a corporation as big as Sony that went down recently?
Which is why they're selling bonds to raise cash......
I feel like articles like these never mention that maybe one of the biggest reasons why Japanese companies are floundering is because the yen is stronger than both the dollar and the euro. They can't afford to lower prices because they already get screwed by the exchange rate as is.
iamshadowlark
Banned
They sold the bonds because they credit rating was already low and trying to finace their equity would cause their shares to plunge even further. Doesn't change anything I said.
Revenue was not what I was disputing....
Super slim just launched, im pretty sure its still been selling pretty nicely so what is your point.
zomgbbqftw
Banned
True, but it is not of great importance as Vita is not a profitable device or ecosystem so in the short term fewer sales makes little difference to the end result. It's why their revenue forecast was reduced and the profit forecast stayed the same.
Sony's problem with Vita is something they will need to work out over the next year or so and by not aggressively cutting the price to hold up sales was a good decision as Sony can't afford the hit. Vita is a device released in 2012 made for 2008 audiences, Sony need to work out how to fix that and not just cut the price and hope for the best.
radioheadrule83
Banned
They've been getting their shit in order despite not doing as well in some areas as they might have liked. That's good progress... but they need to get the PS4 equation spot on. If they overprice themselves again, I think it'd be worse for them in this climate than the PS3 was. There are just so many other things that people are prepared to buy.
It sure looks like it: http://ycharts.com/companies/SNE/debt_equity_ratio
The value of the yen is a problem. But only a problem for Panny, and not the consumer.
he was talking about being unsure whether to buy one or not
zomgbbqftw
Banned
They are selling zero coupon convertible bonds. It's not a regular kind of placement. We'll see what the demand is like but I would guess it is going to be decent.
Chuck Norris
Banned
I'm guessing becaus accessing their cash reserves to fund projects will be considered a last resort for Sony
what was Sony's rating in 2004 when the ratio was higher?
Canis lupus
Member
Nope, haven't seen any multi billion dollar company going bankrupt recently, guess they're just too big to fail lol.
Whitebison
Member
Soo....Last Guardian??
iamshadowlark
Banned
No, cbottoming out losses is considered progress. How far has liabilities even went up from 2011?
Spending your reserves are like the last thing you do. Like business 101...
Chuck Norris
Banned
A good question is why the Japanese Government is allowing it to happen. Surely you'd try better to take care of your export industry
zomgbbqftw
Banned
This situation is actually what has caused the latest in a string of elections in Japan. Shinzo Abe has called for the BoJ to spend unlimited amounts of money to weaken the Yen, if he wins it will give Japanese industry a lifeline, but nothing more than that. They will still have to carry out root and branch reform of their business practices to ensure that they can take advantage of growing markets by being swift.
Canis lupus
Member
BB- is worse than BBB-
ultimately those patents will still be worth money, it might just be that it's Samsung implementing them (and maybe they will do a better job, as most people say the Kuro displays are still unmatched).
Similar threads
- Poll