Stupid "Insider" news of the day: Sony has higher chance of going bankrupt vs. MS or Nintendo...

[jsgiv]

http://gaminrealm.com/2013/12/30/sony-79-chance-bankrupt-2-years/

79% chance within 2 years.... Ruh roh... Neo could be on to sumtin'.....

let the tears begin....

 

[David]

http://gaminrealm.com/2013/12/30/sony-79-chance-bankrupt-2-years/

79% chance within 2 years.... Ruh roh... Neo could be on to sumtin'.....

let the tears begin....

Jeez those comments were worse than anything I've seen on any thread on this site.
Sonys been losing $ for years. Nintendo still makes money off of handheld market, and the games they put out.
Doubt PS4 will die, as some company will buy it as long as they can make a profit.

 

[BunzHoles]

The score is used to predict probability of a firm or a fund going into bankruptcy or experiencing financial distress within next 24 months.

Companies or funds with Probability Of Bankruptcy above 90% are generally considered to be high risk with a good chance of bankruptcy in the next 2 years.

Says right on the actual site:

Sony Corporation has more than 79 (%) percent chance of experiencing financial distress in the next 2 years of operations.

Not exactly the genie of the lamp here.. Sony IS experiencing financial distress, and they aren't going to get out of it instantly.

However, they don't even mention a "good chance of bankruptcy" until you reach 90% on their metric, and actually state that anyone at 15% is probably going to grow.

It's a hyperbolic worded metric by their own admission basically. The article analysing it is just.. ignorant. Sony's biggest financial troubles have nothing to do with Playstation, they have to do with their role as a bank/lender and their failures in other markets, mainly the TV market, to stay profitable.

Huge chunk of both Sony and Nintendo's problems has been the Yen, and the fact they do so much of their business outside of their home territory. Currency exchange is a bitch.

 

[Qbert]

Bankruptcy isn't the doom and gloom people think it is. Companies go bankrupt all the time and continue ticking. Hell, Trump has declared bankruptcy several times.

 

[sharkboy1200]

$ony will be fine. Per$onally, I think they'll be able to make plenty of ca$h with $oftware alone. MS i$ eating dino$aur egg$ and Nintendough still ha$ that Wii and 3DS money on their table. It would be nice to $ee them all $ucceed more in Japan though.

 

[Kassen]

Erroneous title and troll thread am confirmed.

 

[jsgiv]

not trolling just posting the same type of "insider news" as others have posted in the past...

I agree to the comments above... Sony is far from bankruptcy and even if they did - as noted companies go in and out of bankruptcy all the time... Its highly doubtful that this would impact the electronics division at all since the "root" article is referring to Sony the parent corporation - not the division that produces consoles, etc.

if there's anything to take away from this article is that Sony is in an overall unfavorable position from a cash flow perspective compared to the other 2 companies /divisions but that's been a known quantity for quite awhile...

EDIT: next time I'll be sure to add a "/sarcasm" tag for clarity....

EDIT 2: fixed the title...

 

[David]

$ony will be fine. Per$onally, I think they'll be able to make plenty of ca$h with $oftware alone. MS i$ eating dino$aur egg$ and Nintendough still ha$ that Wii and 3DS money on their table. It would be nice to $ee them all $ucceed more in Japan though.

I don't get the dinosaur eggs reference, can you explain please. Not being sarcastic.

 

[Viktor]

$ony will be fine. Per$onally, I think they'll be able to make plenty of ca$h with $oftware alone. MS i$ eating dino$aur egg$ and Nintendough still ha$ that Wii and 3DS money on their table. It would be nice to $ee them all $ucceed more in Japan though.

 

[Andy]

Bunz picked it apart accurately. They are predicting that Sony will experience financial distress in the next 2 years. Well, duh. Sony is experiencing financial distress now and has been for some time. It's a no-brainer that they will continue to experience financial distress. It's not clear what the percentage even means, since 79% is below 90%, which is where "good chance of bankrupcy" begins, whatever "good chance" means -- they don't bother to define that, nor do they say how they calculate their figures in the first place.

 

[Ape Still Rules]

Hasn't Sony been in financial distress since the Triple released and there have been annual rumors of their demise. Stupid news is stupid does.

 

[TOPDAWG]

I remember when Sony was one of the go to names for electronics. Seems to me Sony were thinking they could cruise on their name alone till the end of time. Their prices were s*** next to other manufacturers and they just got lift behind tech wise by other manufacturers.

Having higher prices then your competitors on your electronics when their product is just as good or maybe better just won't work any more like back in the day. That Sony name just don't curry weight like it used too.

 

[starlight777]

sony has more than just games, which is a small part of it's universe
the are having problems in their other business sections
and the ps4 will not be what saves them

they sold their NY headquarters in order to get cash



http://news.cnet.com/8301-1001_3-57...st-factories-said-to-be-target-of-staff-cuts/

Sony troubles persist: Factories said to be target of staff cuts

Sony is trying to make its consumer electronics business profitable. And that appears to require more cuts at production facilities


On October 31, Sony cut its profit forecast for the fiscal year after reporting a net loss of 19.3 billion yen (about $183 million) in the second quarter and trimmed its sales forecasts at that time for consumer products such as TVs, PCs, and digital cameras.

 

[starlight777]

http://www.androidheadlines.com/201...inue-dog-sony-electronics-job-cuts-cards.html

Financial Woes Continue to Dog Sony Electronics, More Job Cuts on the Cards

Financial woes have not been leaving Sony and may have worsened over the last financial year. In April 2012 Kazuo Hirai took the helm as President of Sony and had put in his efforts to revamp their electronics product line – a business segment that has been bleeding due to a combination of a sluggish domestic market (in Japan) as well as tough competition from Korean rivals – LG & Samsung. The recent years have seen public demand move away from digital cameras, camcorders and ‘walkmans’ to smartphone devices, in which the Japanese manufacturer has been bested by Samsung.

In order to turn a profit, Kazuo Hirai had no other option but to cut operating costs and trim staff. Sony had effectively used early retirement as an option to trim costs and reduced its staff by 10000, of which around 3000 job cuts had happened in Japan alone.

Nikkei Asia reports that in its continuing efforts to turn a profit by this financial year ending, Sony will begin offering early voluntary retirement options to mid-level and management employees at its wholly owned Japanese subsidiary Sony EMCS, which employs 5000 staff and operates five production facilities. The scheme would be offered to employees above 40 years of age and have completed at least 10 years with Sony EMCS. Applications would be open from January 6th to the end of March 2014. All employees opting for the scheme will leave the company by the last week of April at the latest.

 

[starlight777]

but..

Sony eyes up Microsoft's Windows Phone: report

Summary: Has Microsoft found a new mobile partner in an old rival?
http://www.zdnet.com/sony-eyes-up-microsofts-windows-phone-report-7000024713/


Microsoft is furthering efforts to promote the Windows Phone system, and may have found a new partner in an old rival: Sony.

According to The Information, Sony is considering the launch of a new Windows Phone handset as soon as the middle of 2014. Citing a person with knowledge of the matter and another briefed on the new device, the publication says that while Sony has exclusively released smartphones running on Google's Android operating system, the electronics maker could be one of many lured to the Windows Phone front -- thanks to financial incentives. Talks have apparently progressed to the point of prototype device designs.

Microsoft is apparently luring handset makers with the promise of incentives including slashed software licensing fees, and is looking to attract partners including Sony and ZTE.

 

[starlight777]

Sony financials: game business loses $8 million, projections slashed 40%

Sony has posted its latest quarterly and half-year financial report, revealing that its game arm lost ¥0.8 billion / $8 million for the period. As such, the company has lopped 40% off its full-year projections.
http://www.vg247.com/2013/10/31/sony-financials-game-business-loses-8-million-projections-slashed/

 

[starlight777]

http://www.nytimes.com/2013/11/01/t...ox-office-trouble-for-its-quarterly-loss.html
Movie’s Flop Contributes to a Loss for Sony
TOKYO — After tantalizing investors with signs of a financial turnaround in the spring, Sony said on Thursday that it swung back to a loss in its summer quarter as strong sales of smartphones were not enough to overcome a dismal performance by the company’s Hollywood arm.


The problems in Sony’s movie unit contributed to a net loss of 19.3 billion yen, or $197 million, in the most recent quarter, which ended Sept. 30. A year earlier, Sony posted a loss of 15.5 billion yen.

While Sony was expected to post weak results in the most recent period, the company surprised analysts by downgrading its outlook for the full fiscal year, which ends in the spring. The company said it now expected operating earnings of ¥170 billion, down from a previous forecast of ¥230 billion.


Adding to the company’s woes, Sony reported weaker-than-expected sales of televisions, raising concerns that the electronics division would continue to drag down results even if the movie business, which is more volatile, bounces back


For Sony, “their electronics business is in a death spiral and the value is in an exit,” said Mr. Goyal, who downgraded his recommendation on the stock from buy to hold.



But the motion picture division did poorly. The company was also hurt by lower revenue from television licensing and home entertainment businesses.

 

[starseeker]

Whatever are their problems in other divisions, Sony PS4 is widely expected to be the market leader (& by a considerable margin) , & will do well.

Whatever happen to their other business, I am sure their game business will be ok.

 

[starlight777]

Whatever are their problems in other divisions, Sony PS4 is widely expected to be the market leader (& by a considerable margin) , & will do well.

Whatever happen to their other business, I am sure their game business will be ok.

but the issue at hand is the overall company.. not one tiny part of it
the ps4 is just a very small part of that
it will not, cannot save sony

 

[Andy]

but the issue at hand is the overall company.. not one tiny part of it
the ps4 is just a very small part of that
it will not, cannot save sony

Is anyone claiming it will?

I think what people are saying is that, even if Sony has to get out of a few sectors, the PS4 won't be one of them. They are more likely to get out of motion pictures, TVs, etc.

 

[Qbert]

but the issue at hand is the overall company.. not one tiny part of it
the ps4 is just a very small part of that
it will not, cannot save sony

It won't "save" Sony, but neither do these finincial issue mean the "death" of Sony either.


20 years from now, people probably will be saying the same thing, and Sony will still be around.

 

[Fools-Emissary]

20 years from now, people probably will be saying the same thing, and Sony will still be around.

Just like all the other companies that existed 20 years ago that don't now? Everything that lives, dies, it's the natural order of things, everything is just on a separate timeline. Sony might well be around in 20 years, but they could be so small and declined as to become largely irrelevant in the grand scheme of things. It's death by a thousand cuts.

Hey, remember Atari:

On January 21, 2013, Atari Inc., Atari Interactive Inc., Humongous, Inc. and California US Holdings, Inc. (collectively, the "Companies") filed petitions for relief under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. With this move, the U.S.-based Atari operations sought to separate from the structural financial encumbrances of their French parent holding company, Atari S.A. (formerly Infogrames S.A.) and secure independent capital for future growth, primarily in the areas of digital and mobile games]

All the time, fading away 'til no-one gives a sh1t anymore. Just like Sega. just like Kodak.

Sony could well turn it around, but most likely not by doing what they're doing now. Looking at their quarterly statements, the only thing that I can seem to take away from it is that Sony would be a healthy company if all they did was sell insurance, problem is, is that the other stuff they do, ie. consumer electronics is what they're known and have been renowned for.

 

[Qbert]

But that's neither here nor there. For every company that failed in the past 20 years, I can list others that went bankrupt several times and did poorly for some time and are still alive and kicking today.

Sony can fail, or they can prosper...no one here knows what the outcome may be.




In the grand scheme of things, MS could fail 20 years from now as well.

 

[jsgiv]

agreed... Companies must diversify or die nowadays as they will have some divisions and subsidiaries that will lose money from year to year... This is expected as long as the losing division actively contributes to the overall goals and healthy growth of the company (though ideally they'd at least break even.. ) ...

Kodak and Atari are examples of companies not acting quickly or having the foresight to change (or just were unfortunately caught in a bad position quickly)...

Sony unfortunately is losing cash on all fronts.. While the PS4 obviously won't go anywhere anytime soon... Sony will have to make some hard choices in the near future to ensure continued success..

all this hoopla about Sony vs MS when, essentially, MS could effectively buy out Sony if market conditions continue to worsen for Sony in the near future (though I doubt THAT would ever happen... )

it'll be very interesting to see where Sony lands in just 2-3 years, much less 20...

 

[Z A C K]

I honestly don't think it should come as a surprise to anyone that Sony would have a higher chance of going bankrupt than MS. That should be a no brainer.

 

[Fools-Emissary]

But that's neither here nor there. For every company that failed in the past 20 years, I can list others that went bankrupt several times and did poorly for some time and are still alive and kicking today.

What's neither here nor there? That a company can fade into irrelevance and die over time? That's the here and there. Sony existing (in 20 years) as a similar entity as they do currently seems rather unlikely to me.

I'm not going to try and divine when each company makes it's inevitable final death rattle. Microsoft don't have financial issues so it's a kinda nothing to see here on that front.

 

[Li Tan]

Big corps like Sony often split up or sell off departments. The Playstation brand is one of Sony's strong points. I think you'd see them sell their TV set division before we see Playstation axed.

 

[Qbert]

What's neither here nor there? That a company can fade into irrelevance and die over time? That's the here and there. Sony existing (in 20 years) as a similar entity as they do currently seems rather unlikely to me.

I'm not going to try and divine when each company makes it's inevitable final death rattle. Microsoft don't have financial issues so it's a kinda nothing to see here on that front.

What I'm saying is that people are crying doom and gloom right now, and I'm sure a good part of it is fanboyism from certain people.....Sony could fade into nothing, or maybe they won't....same goes for any company. Using "possible" bankruptcy as a reason for this makes no sense, as companies declare bankruptcies plenty of times and still continue to flourish.

You don't know what state Sony will be in 20 years from now. I'm sure people with a better understanding of the inner workings of the business also don't know what state Sony will be in 20 years from now.

 

[amigaengine]

 

[hrudey]

I was going to comment, but I'm still trying to process the stunning news that winter days have a higher chance of being cold as opposed to summer days or spring days. My world am rocked.