[QUOTE]article: [url]http://www.examiner.com/article/sony-credit-rating-set-to-junk-status[/url]
The finances of the Playstation house are in dire straits following a credit rating reduction to "junk" status Thursday.
International credit agency Fitch dropped Sony three notches to BB-. This is the first major agency to strip the Japanese company of its investment-grade ratings. For Sony, it is another hit in a long line of disappointments and failures over the last year. Its shares dropped to a 19-year low over the summer, and have continued to drop. Much of the company's financial woes can be blamed on its struggling consumer electronics sales -- specifically televisions, which have been overtaken by Korean manufacturer Samsung in recent years.
Fitch said the decision to drop Sony's rating was not taken lightly.
“This wasn’t an easy decision,” said Matt Jamieson, Seoul-based head of corporate research. “But their reputations have been hit so much that it’ll take a long while to crawl back.”
According to Fitch’s spectrum, BB ratings indicate that companies are vulnerable to defaulting on debt over time, but have sufficient flexibility for now to keep servicing that debt.Sony has a solid buffer of cash a profitable, cash-generating units. But the downgrade will still have a major impact on the company. The new rating will make it more difficult for Sony to borrow capital from lending institutions. It will also make it more difficult for investors to buy into Sony long-term -- not a good prospect for a company drowning in debt with mounting losses each quarter.[/QUOTE]
Whoa! Dang. Sony!! I think their slow demise started when they lost the TV War to Samsung and LG. I wonder what the future holds for Playstation though. Please don't die, PS!
Yeeesss..... YEEESSSS..... Sony shall fall under our mighty 3DS and WiiU! I'll show them what 'Junk' status REALLY is!
[img]http://www.blogcdn.com/www.joystiq.com/media/2010/06/e3-2010-miyamoto-interview.jpg[/img]
Damn this isn't good.
i hope they don't go under if only for the sake of micro$hit not shitting over everything with almost complete freedom
Please don't say Micro$oft, it makes you look like a child.
[QUOTE=Zambies!;38556550]Please don't say Micro$oft, it makes you look like a child.[/QUOTE]
i believe he said "micro$hit"
[QUOTE=DeeCeeTeeBee;38556546]i hope they don't go under if only for the sake of micro$hit not shitting over everything with almost complete freedom[/QUOTE]
It's not like Sony has been any better
Proprietary memory sticks, complete disregard for customer data security, removing features from the PS3 through mandatory updates, etc.
why are more and more consumer electronic companies making such questionable marketing decisions
[QUOTE=OutspokenGolf;38556634]why are more and more consumer electronic companies making such questionable marketing decisions[/QUOTE]
Blinded by greed
So, it has come down to Nintendo and Microsoft.
[QUOTE=Emperor Scorpious II;38556706]So, it has come down to Nintendo and Microsoft.[/QUOTE]
i dunno i think the ps3 could get a little slimmer
Isn't it funny how xbox seems like more adult console, but it caters to children, while the Wii appeals more to actual adults, even though it was made for children?
Junk status? Wern't they downgraded to just above junk status two weeks ago?
[QUOTE=DrLuckyLuke;38556727]Isn't it funny how xbox seems like more adult console, but it caters to children, while the Wii appeals more to actual adults, even though it was made for children?[/QUOTE]
It's more to do with the current generations of users. The adults who use the Wii tend to be the ones who didn't grow up with consoles, or had old consoles as kids, but that was it. Where the XBox and PS3 are used by kids and teens who are surrounded by technology, so they understand it (mostly), and tend to have the reactions to still play the kind of games published on those consoles.
But this isn't great news. The SEN and Playstation divisions of Sony seem like the only things just about keeping them afloat right now. It's a shame, their other products aren't exactly bad, just not competitively priced or strong enough competition for others.
[QUOTE=DrLuckyLuke;38556727]Isn't it funny how xbox seems like more adult console, but it caters to children, while the Wii appeals more to actual adults, even though it was made for children?[/QUOTE]
A certain quote by C.S. Lewis comes to mind.
[QUOTE=C0linSSX;38556581]It's not like Sony has been any better
Proprietary memory sticks, complete disregard for customer data security, removing features from the PS3 through mandatory updates, etc.[/QUOTE]
yeah but atleast I don't have to pay a fee for the privilege to play the games I bought on the console I bought over the internet I bought.
Bring out PS4, dominate console market?? Not hard.
Hey, if Sony does fall, maybe we'll see someone new jump into the ring to fill to void. Probably won't do well, but it could be interesting.
it's about time
[QUOTE=Reds;38557129]Hey, if Sony does fall, maybe we'll see someone new jump into the ring to fill to void. Probably won't do well, but it could be interesting.[/QUOTE]
Welcome Back, Atari!
Steam Entertainment System (SNS)
[QUOTE=RoflKawpter;38556473]Yeeesss..... YEEESSSS..... Sony shall fall under our mighty 3DS and WiiU! I'll show them what 'Junk' status REALLY is!
[img]http://www.blogcdn.com/www.joystiq.com/media/2010/06/e3-2010-miyamoto-interview.jpg[/img][/QUOTE]
[IMG]http://3.bp.blogspot.com/_HTHKFI0iTO0/TKUdsd_udMI/AAAAAAAAAi4/YfWSD-ygrUQ/S1600-R/Unbenannt-3.png[/IMG]
one down, two to go, and PC gaming will finally be free to evolve!
Aww, I actually like Sony. The PS3 is a great console and I prefer it over the 360. I wonder how they'll pull through this? The TV war is gone and they'll be competing with the next Xbox whenever they try for the PS4.
Do they still do mobile devices? Sony has to have something left. I don't imagine such a huge company going down like this.
Glad I didnt buy sony stock over the summer like I planned to, then. :v:
[QUOTE=Orkel;38556655]Blinded by greed[/QUOTE]
Except it's not that simple.
There's thousands of shareholders for every company that don't care for anything aside from the net profit the company is making and the current value of their shares.
They bought shares simply to make money, not because they had a "passion" for electronics or anything. If the company is too nice to its consumers, shareholders will complain despite them not having any care for the industry or work produced.
The Sony internal designers and president probably care about the products they make, not just how much money it makes them, but they can't do as they wish because their shareholders have power over the company despite not having any individual dedication to electronics design, tech, programming and the like.
In a perfect world the people who have power over the company would be just as passionate for their work as their employees are, which now we really only see in privately owned companies. (i.e. Valve)
More like blinded by the system around which their company works.
Blame the shareholders? They're doing what everyone else does with an economics degree.
Blame the executives? They're just pleasing the shareholders.
Blame the employees? They're just pleasing the execs.
What's up with all these tech companies going under? AMD, now Sony... crap.
This is what happens when you let Reggie blow 3bil USD on hookers and blow with the company credit card.
[QUOTE=Naaz;38557608]What's up with all these tech companies going under? AMD, now Sony... crap.[/QUOTE]
Sony still has a large amount of assets, technologies and branches to sell. Just because they can't get credit doesn't mean they'll go under.
[QUOTE=MrEndangered;38557716]Sony still has a large amount of assets, technologies and branches to sell. Just because they can't get credit doesn't mean they'll go under.[/QUOTE]Yes, I was wondering about that. They're just so shitty at running the PlayStation branch.
[editline]22nd November 2012[/editline]
[QUOTE=RenegadeCop;38557675]If Sony goes under, I'll just start buying decent computers. Never getting that "pay to use your own internet" bullshit.[/QUOTE]It's not their computers that really matter here.
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