Macroaxis: Sony Has 79% Chance of Going Bankrupt in the Next 2 Years

GaminRealm: "According to Macroaxis, a financial engineering tool website that analyzes companies and determines their well-being, Sony Entertainment has a discouraging 79% chance of going bankrupt in the next 2 years."

[Hellsvacancy]

Lol

[piroh]

why so much hatred against Sony these days? they should be glad Sony brought a revolution to us

[NewMonday]

if push comes to shove Sony can just sell the TV business to China, they would get plenty of cash ans no longer be dragged down by the division.

[rambi80]

From the site

"Probability Of Bankruptcy is the value between 0 and 100 indicating the actual probability the firm will be distressed in the next 2 fiscal years."

Distressed does not mean they're gonna collapse and implode. Hell, sony has been financially distressed for a while.

Most companies suffer from highs and lows over time.

The "probability of bankruptcy" term they use is just marketing. it does not actually indicate what it implies. Its just to advise investors that sony is not in good health atm, quite frankly, that's not news.

[Mister_Dawg]

I'm still waiting for that day to come.

[wishingW3L]

this is hatred?

[-Foxtrot]

I don't really think Sony is hated on that much these days...the odd comment here and there but thats pretty normal since with how much crap goes around the internet

[maddskull]

actually the truth is that sony have been losing because of the ps4 production, and now since it is out their stocks will probably go up as they are on high demand and also the ps4 is helping the vita sell so i expect a raise in sony's stocks in the next month

[Irishguy95]

Rambi

According to the firm -> Sony will undergo financial distress, with a 79% chance of actually going bankrupt. I somewhat disagree with bankrupcy. Sony have been pretty ****ed over the last 7-8 years. Dropping to nearly 1/3 of their value since 2005. It's possible they will lose the Tv's and other things, ultimately becoming a smaller company, but with regards to gaming they are in a good position right now.

Lets face it though, Sony are potentially going to fall through here, and become a shell of its former self.

This has nothing to do with liking or disliking Piroh. Despite how good Sony are in with the gamers, especially their fanboys, sony have being doing horrible money wise.

But hey, if you want to act like Sony are doing good now...go ahead. The numbers and facts are there. They started last gen at 27 Billion total. And what was it..one year ago? They were down to 10 Billion. They lost it year after year. Then they decided to change tactics. This firm the article are quoting, are predicting it won't work.

[shoddy]

I heard a lot of Sony doom articles since ps3 days..

[sonic989]

let me explain this :
according to the numbers for Sony in the last 10 years this is actually a good indication because , they used to make wrong decisions ( howard stringer era and before that a little bit ) if their data outcome continued the same way over the last 10 years their probability would have been 90 - 95 % .
and when you also calculate the KAZ era ( which is starting ) you will find that there is some turn around and thats why the probability has been slashed down .
btw Sony still has a long way to go they already sold some of their properties to cover some financial business decisions like ( purchasing a company , strengthening what is already strong for them ) knowing that in the past they used to waste money on a non profitable things for them also keep in mind that the last 10 years holds a lot of negative data and isnt based of reality which is Sony is changing right now and thats only happened like 1.5 - 2 years ago .
http://en.wikipedia.org/wik...
look at all those green arrows ( for newbies ).
their value went up again the fist time in 6 years and their income also rising .
Keep i mind they are just starting, and turnarounds usually takes up to 6 or more

[mabreu]

This bankruptcy talk has been going on for years. http://www.businessweek.com...

Just another doomy/gloomy speculation.

[Giul_Xainx]

SNE sold gracenote earlier this week. They are concentrating more on electronics that succeed instead of trying to pioneer new ideas this time. PS4 may seem innovative to Console gamers, but to everyone else in the PC Market they see them as "game and watch" toys. (I'm no PC FANBOY by the way. But it is what they see consoles as.)

I see Sony turning profits by Q3 2014. Their gaming sector is going to be the biggest push for profits. Then they dropped OLED TV's smart choice seeing how people are more than satisfied with LCD screens.

Then the mirror-less camera... It will be a hard sell.

[jgrigs09]

That's not hatred. They are just speaking the truth. Why would they lie about it? There is still a chance they might not go bankrupt. Do I want it to happen? Absolutely not. I like competition. If anything happens and a department needs to sell. I would say Playstation, not that I want that to happen. Now I could be completely wrong, but the media department is what is the strong hold for Sony.

[MrCrimson]

http://www.investopedia.com...

I mean would anyone be surprised if Sony was selling their console at a big loss?

[HiddenMission]

@Irishguy95

If you think Sony will be going bankrupt in the next 2 years then you're just as crazy as the damn metrics site that is being used as reference.

The company is worth around $87 billion dollars...with that kind of money that can make bad decisions for some time before bankruptcy is a real problem for them.

Every company no matter how big goes through rough times but when your company is worth double digit billions it takes a lot to break you.

Keep in mind Sony can spin off tons of it's departments and be worth even more. It also has a lot of bloat in the employee department so that I'm sure could be reduced as well making it easier for the company to see profit quarter over quarter.

Just saying...sounds like you want them to fail...at least from what I take away from your comment.

[P0werVR]

^

If anything, that's the sentiments that most Sony fanboys want for Microsoft but will NEVER happen. For the past 6 years the number never lie and why there have been talks of Sony bankruptcy as whole.

@NewMonday

"if push comes to shove Sony can just sell the TV business to China, they would get plenty of cash ans no longer be dragged down by the division."

...You have no clue what your on about and yet you get thumbs up for a very stupid comment.

[PurpHerbison]

Whatever is liked the most will receive hatred.

[CAB1802]

And Nintendo aswell, Microsoft deserves the hate

[Buff1044]

It's not hatred. It's business. Why do so many of you pledge allegiance to an electronics company?

[Joe913]

All the hate has been on MS lately haven't heard this type of news since before the PS4 was announced in feb I wonder if they are so close to closing down why would they buy the factory that makes the ram for the wii u.

[Ol_G]

Yeah that's not the reason Sony was bleeding money the past 5 years even if the ps4 is a success Sony as a whole lost so much money and they never recovered from that i hope it's not true but their financial situation speaks volumes

[metus]

All the negative?? Really... MS has way more! I hear more praise about PS4 than anything.

[TheRevolutionaryCafe]

What the hell revolution did they bring?

[xboxjaun]

Hatred to Sony? This is nothing compared to what hatred Microsoft gets and that's the truth

[pixelsword]

Sony's not going anywhere; the difference is that I don't believe that Sony is hiding any losses or lying about what's going on in it's corporation, so it's easy to fix or eliminate any unprofitable divisions. The TV division of Sony is weak only because it caters to odd demographics. If it made a solid, cheap HDTV for the masses, it would take a year or two to turn around that division.

[Tales RPG addict]

Give me a Friggin break Sony going out of Business making PlayStation consoles, that's highly unlikely.

I know of a few factor's why Sony won't quit the PS brand at all and why they'll be just fine financially in less than 2 years.

#1. PS4 is getting some very big releases that'll be big system sellers like inFamous Second Son, The Order 1886, GT7, Uncharted, and their other First party games.

#2. Lets not forget that PS3 still has juice left in its lifecycle. The PS3 will keep online till at least 2017 - 2018. Not to mention the PS3 has some Jrpg's coming out next year such as Natural Doctorine, and Tales of Zestiria.

#3. the PS4 has two big time Multiplatform SE RPG's that'll sell like hotcakes FFXV which is now the new FFVII, and Kingdom Hearts III. While these games are Multiplatform over 90% of sales on both games will sell far more on PS4 Worldwide cause Final Fantasy & Kingdom Hearts are bigger sellers on PlayStation consoles just like the Namco Tales series.

#4. Like Microsoft Xbox there is a huge fanbase for both consoles,and besides I'm happy that both Microsoft and Sony are doing well in selling consoles. But knowing my gut feeling PS4 is now the New PS2 if you know what I mean.

#5. Sony will likely drop the price $50-100 in less than 2 years from now.

#6. PS+ offers more for your money as you can play a buncha games for free, while they free games aren't permanently yours its like a long term digital rental.

#7. PS4 is still $100 cheaper than Xbox One to manufacture, while Sony makes $20 profit for each console even though it's a small profit and it all adds up very quickly. Just wait for Japan's release in February Next year as Pre-Orders for the console are SOLD OUT over there.

#8. Sony has multiple divisions where it can fall back on aside from PlayStation alone, but PlayStation will continue to prove rather profitable and increase even more from here on.

[showtimefolks]

NewMonday

true they can sell the TV department if needed

PlayStation brand is profitable so keep it
Cameras/phones department also profitable

if ps4 keeps p than sony isn't going any where any time soon

[andrewer]

lol revolution?

[Death]

That's the thing though, Playstation hasn't been profitable like many want to believe. It has been a very difficult segment for Sony to make a profit from. The PS4 launch isn't helping since they take a small loss on every console sold. Without many must have first party offerings it will take time to recoup the losses. If you are a fan and want to see them succeed, go buy an accessory or another first party game. This is where they will benefit the most.

Sony as a whole has been bleeding money for quite some time. They had to sell off assets to pull their first profit in 5 years recently. Their stock has had junk status for quite some time which is preventing new capital they need to repair their portfolio. What ever amount they are worth is owned by investors. If the investors do not get a return on their investment, liquidation will happen.

They are at much more risk than they should be. Sony desperately needs the PS4 to be successful and more importantly profitable. To achieve this they need to charge for their services (PS+ is mandatory for online for a reason) and also create more revenue streams from the brand. SonyTV is coming along with Gaikai just to name a couple.

PS4 is the trojan horse into peoples living room. The focus is not on gaming like they want some to believe, only the initial marketing is. This isn't a bad thing. The more the PS4 can do, the better off Sony will be.

[quaneylfc]

what hatred? i dont think has ever been any on this website

[VforVideogames]

Hellsvacancy: I was about to read the sad news and the first comment is LoL ...... That was funny LMAO

[Mosiac77]

What king of revolution? Piroh. It seem you don't know anything about what's out there.

[XenoUltra]

um wut? lol

[BattleAxe]

"why so much hatred against Sony these days? they should be glad Sony brought a revolution to us"

What hatred? If any company is experiencing hate, it would be Nintendo, and to some degree Microsoft, and deservedly so for both. The only thing I see people getting tired of are the idiots who keep saying "greatness awaits".

[RedSky]

I hope people realise:

1) Video games are a tiny portion of Sony's business. The largest is in fact their finance business in Japan which has nothing to do with electronics. If you follow their stock price, the bombing of several big budget films recently has been the largest factor in their decline arguably.

2) Bankruptcy in the sense they're talking about is liquidity (available of free cash for operation) based. It doesn't necessarily cast judgement on their profitability and viability in the long term. Either way, in the worst of cases, nothing would happen to the PS franchise. At worst, there would be a transfer of ownership with no change in name or function.

3) Financial analysis isn't emotional. These analysts aren't with team MS. They're simply making a judgement based on the trajectory of Sony's cash flow as a function of their investment and return on investment among other factors.

I'm of the opinion especially across electronics they have potential but haven't had much traction. A lot of it will come down to good marketing but also just plain old luck in seeing their products catch attention. Some examples:

1) Their mirrorless camera tech is strong and I fully believe full frame mirrorless will eventually replace DSLRs, particularly in the consumer market.

2) Their smartphones have generally received favourable reviews with their durability and fairly attractive design being key factors. Again though, compared to the high end juggernauts of Apple and Samsung, they're still in the high single or low double digit market share range.

[ChrisW]

Well... maybe I should hold off on buying stocks for at least 2 years?

[omi25p]

So much hatred towards Sony?

Yeah sure i guess we'll ignore the return of the prophet articles and the second coming of jesus articles when during the lead up to launch.

I guess we'll also ignore the internet Riot over DRM on the X1 and the demand for the CEO's of MS to be fired.

But yeah, Stop the bullying.

[SecondSon]

I have freaking loved Sony products all my life and I am not trying to stealth troll but when a company can go from being worth $100 billion to $0 overnight you have to be very, very naive to say a company like Sony that still produces great products but has OBVIOUSLY had huge financial problems is DEFINITELY going to be OK, without checking their full accounts.

You can't base it on whether the PS4 is amazing or not or if they have great exclusives coming up. You can have an amazing kick ass product that is selling fast and still go bankrupt!

[zag]

Sony is no where near going bankrupt.

They are in far too many pies to go bankrupt. The ps won't go away either as siny is a hardware/content producer so while they make a console they will also be making content/games for it.

The console helps to drive content selling in games and movies and tge trade off is to see the content you require a tv and sony will be hoping that's a sony brand tv. Or people want a sony brand tv to upgrade to.

I haven't looked at the site but from the comments on here they font seem to have a clue on how a business works or how they work product/brands in the market place.

Theres a greater chance of xbox being killed off as it was a bill gates idea compled via the outgoing ceo and many on the ms board arent interested in the console market so may just cut losses and kill it

[AndrewLB]

HiddenMission- Sony's net worth is $87 billion BUT that doesn't mean they have that kind of money just laying around. $20 billion of that is shareholder money, the rest is mostly non-cash assets. Sony's 2013 filings show they have about $8 billion in cash or cash equivalent. A few months back Sony was downgraded for the 12th time in the last 5 years, causing a $2 billion hit to the company.

[nukeitall]

The reality is that Sony has been on the bankruptcy trajectory for a long time. Their stock value has plummeted faster than you can say Playstation. Since 2000s the stock has gone from $150+ to around $17 right now. That is almost a tenth of what it used to be.

Playstation business isn't going to keep Sony afloat, and perhaps they will have to spin it off or sell the division in the case this is worsening.

@NewMonday:

Why would the Chinese want the liability of Sony's TV business?

Japanese don't want to work for the Chinese, and I highly doubt the Chinese would want a high end brand unless it is for pennies on the dollar.

Maybe Samsung would buy it, but why bother?

Just let it fail by itself and take the market naturally. Why pay for it?

[Chrischi1988]

Revolution? What revolution? You mean a new console with better hardware, like in every new generation? What else, than better hardware, did they bring to us? What else, then better graphics, did this new generation bring us, what else, what every generation brings us?

[Apex13]

errrr what revolution? they made a console and a decent one at that. let's not get carried away.

[mikeslemonade]

Sony is on tract to sell more than 4 million PS4s by December 31st.

[pyramidshead]

Another year, same prediction yet Sony still stands and breaks records with their new console against other console makers who are more financially stable.

XB1 is selling well but is riddled with bad ether since before May together with mixed focus.
The Wii-U has been out a full year and has yet to really 'take off'.

Says it all to be honest ;).

[DJustinUNCHAIND]

Revolution.

That's adorable.

[THEMIGHTYDOOVDE]

Nintendo brought the revolution, Sony broadened it and MS hung off there coat tails.

[Pogmathoin]

Why the Sony hatred on a Sony driven website? Cat calling the kettle black it seems....

[joab777]

In the new world economy, bankruptcy is just another step on the way to greatness. Remember, Sony is too big to fail....lol! I love Sony but the Playstation isn't their only device and Samsung is still kicking their butt elsewhere. Their smartphones aren't marketed well. All of TVs etc are more high end. And they just pulled through a tough time in which bankruptcy was probably 100%. At least for us, the playstations future looks bright!

[yellowgerbil]

Yeah sony won't fail. Just look at the moves they've made this past year, yeah they dug a hole, but they've shown they're determined to dig themselves back out of it.
And there was a time where no one saw a future for Apple, now look at them ruling the world

[Death]

It was the giant pile of cash that Microsoft sent Apple that kept them afloat.

[BDSE]

Oh look here's Sony Financial Holdings- Probability of going bankrupt 1%

http://www.macroaxis.com/in...

The ownership structure of Sony is complicated and this proves that the foundation of of the article is shaky to say the least. If he's serious and genuine about being an unbiased journalist he'll update his article.

[3-4-5]

I predict Macroaxis's reputation will be tarnished 2 years from now when Sony is bringing in millions and millions and this company is still making their "predictions" or "analysis".

[khan_saab]

why is it 79%. why not 79.1 percent or 78.9%.

[pixelsword]

The percentage is rounded up or down for our convenience.

[khan_saab]

if it is rounded, then how they get 79% and not 80%. my point was and is how do they come up with these numbers.there are so many factors that go into it, it is rediculous.

[ramiuk1]

well im afraid its us(the gamers) to make sure that this doesnt happen,because if it wasnt for sony we would be DRM deep in microshafts world.

i would even pay £10-20 more a year for psn because its worth £50 a year imo

[BLKxSEPTEMBER]

Wow...just wow

[MxRBrobaFett]

Good thing I got my waders on cause the crap is reeeeal deep around this part of the comment section

[Ps4Console]

The Sony Games & movie department are doing great but it's computing department tv department & mobile telecommunications are not doing well .

Samsung the leading brand there in Cpu & Moble phone leading the way but they are losing out in the Tv department to LG .

[r1sh12]

@NewMonday - exactly.
I do agree Sony only has 2 profit making divisions, gaming (PS3/4 vita etc..) and Xperia phones.

The rest are failing horribly, but what does Sony have in those failing divisions?
Intellectual property, and we've all seen the madness around the lawsuits. So much are those IP's worth?
They could just put an auction out for the IP's im sure many companies would like them.

But seriously, Sony should sell the TV division, its pretty bad

[Death]

Just so you are aware, neither of those divisions is doing "great". Sony makes the bulk of their operating income selling insurance.

http://www.nytimes.com/2013...

[Magicite]

Its actually not that much of ''lol'' as you think. Yes PS4 is selling out as a hotcakes, but one division is not enough to pull out whole company. If other divisions are pulling Sony down, then bankruptcy is possible.
Sony should really pull everything together if they wana stay afloat for many years to come.
PlayStation has been my favorite brand for almost 20 years now, I really wish Sony best of luck in this department.

[kenshiro100]

Analysts can't predict the future.

[SilentNegotiator]

Sony just released what will likely be the 8th generation's most prolific console...I'll eat my shoes if they go bankrupt in 2 years.

[meatysausage]

i think people need to forget the playstation side for a moment, that part is doing well. Its the other divisions like TV that have brought down sony big time. Their Tvs are no longer considered the as 'premium' as they once were. Playstation may save a lot of their fianances but as a whole there is a lot that sony needs to either, sell off, or really work through and improve.

Im not saying that they are going to go bankrupt, but there are serious financial issues in some divisions

[SilentNegotiator]

And they'll split off divisions way before they allow themselves to go bankrupt.

[BDSE]

The article is peddling BS- http://www.macroaxis.com/in...

Real figure is 45% that's less than 50/50- not great but much better than the BS figure quoted in the article.

[Mosiac77]

Yes Sony it's been in trouble for quite some time this is nothing new. They have themselves said that many times. At the beginning of the year their top execs had to give up their bonuses to save the company money. You see what we are seeing is that sony surpass MS in console sales with the PS3 but what you don't know is that the real target was PS2. Sony loss money in not selling as much consoles, buying companies, giving us presents and concentrating on the console market solely and forgetting about the rest of their products. Spending money that you don't have is not a good thing. Samsung took advantage of that and claim many of those markets. That's why I'm saying that at $399 Sony is taking a huge risk. If they don't sale as much consoles they will be going bankrupt or forced to pull out on some of the other markets. With the growing of tablets and if steam breaks into the market well sony might not archive their goal. I admired Sony a lot for trying to come up with their product in many electronic markets but they have stretch themselves too thin.

[TBONEJF]

I CALL IT B.S. with their SCE and Mobile division driving up sales. please someone really want to see them fail. I THINK NOT.

[Xer0_SiN]

for a company that "has a 79% chance to go bankrupt" they sure are buying up a lot of other companies LOL. gaikai and renesas electronics (not purchased yet, still in negotitations) to name a couple.

[IC3_DEMON]

i lol'd as well

[ape007]

LMAO, ps4 is cleaning house and u tell me bankrupt??

dat salt

[Shok]

Why would Macroaxis have "salt" toward Sony? And if you're talking specifically about me, then lol. I like Sony, and especially so right now because their current team is awesome (Kaz, Yoshida, House, Cerny)

And I know this will get mad disagrees and hate (that won't affect my daily life), BUT LET'S BE HONEST HERE people:

If the title of this said "Microsoft" instead, this would be instantly approved.

[ape007]

ooo it's shokio, the nintedo damage control master

i don't know why but sony always make nintendo fanboys or stealth fanboys like u feel so insecure and threatened

just shout "The LAST OF US" and watch them melt....

[Shok]

"it's shokio, the nintedo damage control master"

You obviously haven't watched my channel in like, the past 2 years lol.

EDIT: Funny you mention the Last of Us: https://www.facebook.com/Sh...

Lol, just throwing uneducated insults without understanding the person you're attacking.

[ape007]

^^^^^^^^

believe me im watching you, blackb0nd, doctre, gntech, zen, and the whole 9 yards

the amount of damage control that happen there is unheared of and unparalleled , never seen anything like this in my life (not you, your vids are great but i still suspect that u might be a stealth troll)

[scott182]

Sony reported earnings instead of a loss didn't they, that's pretty huge regardless of how they did it. They are selling what they need to and organizing what they want to keep, they are doing great things right now.

Tell me this like 5 years ago and I may have considered it a bit more.

[Wingsfan24]

The fact that anyone is even agreeing with ape007's comments baffle me. Half of what was said is even legible.

Sony has other things to sell than just games ya know. If one side of their company is doing well that doesn't mean the rest of it is. Obviously don't want to see them go "bankrupt", not good for anyone, but it'll be interesting to see their numbers in the next fiscal year.

[_QQ_]

@ape007 what is with you and "stealth trolls?"
first you say i am a "stealth troll" because i like the idea of playing steam games offscreen on the gamepad... now you are saying someone is a stealth troll because he is posting bussiness related articles,yet when someone posted an article about patcher saying PS4 will dominate, noone calls him a "stealth troll"....
You and Donald trump should get together and make sure Obama is actually a US citizen. http://www.youtube.com/watc...

I guess you just can't have negative Sony news or opinions on this site without getting called out. I watch his vids too, he definitely isn't a troll...

[Infamous298]

Oh, its shokio, the nintendo fanboy.

[Moncole]

Shok, you cant argue with these fanboys because they will never admit that Sony can go bankrupt.

[scott182]

@fendernow

And every article negative about MS is written by a fanboy trying to destroy Microsoft. This site was made because they wanted there to be a conspiracy against MS, so they hired tons of people to pretend to like sony and swarm the internet and N4G.

[fendernow]

@scott182

If your day job is anything like your sarcastic humor, you should quit immediately and venture a new career. As to your over-generalized point, I will present mine simply and clearly. Sheep tend to flock together.

[JasonKCK]

Just because the PS4 is doing well doesn't mean the rest of the company is. Sony can't survive on the PS4 alone.

[Clunkyd]

I believe it's just their poor marketing. I hardly see any ads from Sony on TV. I wouldnt know about the internet because I use adblock :P

I'm sure is not the products.

[GodGinrai]

@Clunkyd

"I'm sure is not the products"

I agree. I own a 40" D3000 bravia and the picture quality is still amongst the best I have seen on a HDTV.Never had any complaints with my x360/PS3 and X1. CG cutscenes and CG movies still look amazing on my TV. And the 120Hz motion enhancer thing makes rock solid 30FPS games appear to run at 60FPS. I know its trickery on the TVs part but damn did it make me appreciate certain games alot more.I will regret the day sony ever sells off their TV business.

[DynDasE]

I would agree.
Sony's latest fiscal years figures are green, expect game division due to PS4 development.

However, except PS4, there is not a clear sustainable future for Sony. At least, gaming division would highly likely to be alright.

[joeorc]

@JasonKCK

"Just because the PS4 is doing well doesn't mean the rest of the company is. Sony can't survive on the PS4 alone."

your right, but here is the freaking blunt truth of the matter, where was this same 79% chance posted 1 year ago, or 2 years ago when sony was in much worse position?

The real blunt truth of it all is there is the real fact is, its media manipulation pure and simple to try to lower stock share price in order to buy it far cheaper now than it will be later!

Again this only really effects the Holding company part of Sony, since the Playstation part is private Held!

for one Sony Computer Entertainment is private held! why do you think the Board or directors told Mr. Lobe 100% No on selling off the entertainment div.

http://www.linkedin.com/com...

If anything this is just bluntly Moot because at this point every other part of Sony is up for Grab except for the three pillars. the truth of the matter the Japanese avoiding a direct hostile take over by any other foreign investor group, Corp Raider Like Mr D@n Lobe has completely failed for over 40 year's. the japanese corporation would swallow the bitter pill than have that happen.

if that means Sony only is than only smartphones, and Playstation and software for those electronics than so be it, the over 160,000+ employees are the #1 priority, and the japanese Govt. will make sure its still a japanese corporation ran by the japanese if that means selling off massive parts than so be it.

there is a very clear reason why Playstation is private held, Sony may well become much smaller and leaner size company, but it will still be a corporation as long as Playstation is @ profit, which it is. So trying to imply that playstation would be sold off is pretty freaking Moot, that 8 straight year loss TV production part of the company with its sheer massive number of employed work force is more than likely to get the Axe!

[Death]

Playstation is not privately owned. They are part of SCE which is a wholly owned subsidiary of the Consumer Products & Services Group of Sony which is publicly traded and has a board of directors that answer to investors. One of their largest investors was responsible for requesting SCE be spun off so that Sony didn't have to pay for their losses. They felt Sony should focus that revenue into their mainstream markets. To me it looked like an attempt to acquire SCE prior to the PS4's release, but that is irrelevant.

[ThePope]

Sony has been struggling for YEARS. They make little money on console sales. Look at the market cap, and compare it to a competitor and you will see how bad things are. And selling stuff does not make a company healthy. It makes them cash flush for a time but costs them future earnings potential.

That said Sony is doing better, but they're a long way from being healthy. This is the biggest thing Microsoft has over Sony, a 500 billion dollar market cap, and basically unlimited funds to support their console. Not saying it's going to happen, though if it does they could really have a big advantage.

Here's a interesting statistic. Microsoft could buy Sony, and pay CASH.

[scott182]

Yes, but while MS has deep pockets that could go really fast if they can't make a windows that people like again. Just because a company could hypothetically buy another doesn't make them a better company. I hope they have a lot of money to support the xbox division, it loses billions.

[majiebeast]

Microsoft doesnt have billions to pour into the Xbone, stockholders arent happy with it and want to sell it off, or kill it. If Xbone doesnt dominate the US/UK(the only 2 markets they seem to be even relevant in) its gonna be discontinued before the end of this gen and with the PS4 domination and far higher demand worldwide. 2014 will be a make or break year for Xbox.

[Infamous298]

They only thing that made microsoft alive was their OS sales, pretty much all of their other business has failed.

[christocolus]

At a time MS almost aquired Nintendo but the late founder refused. Very few companies are actually as rich as MS. I think sony and Ms business strategy are also direct opposites. While Sony depends highly on the playstation to survive. The xbox on the other hand depends on Microsoft to survive and one thing MS will keep doing is backing up their console financially. The original xbox sold just 25mil but that didnt phase them. There have been talks of droppin the xbox business but thats all it is talks and so far Mr Elop isnt even among the top runner ups anymore so it may just remain a rumor.

With an increase in game dev cost be prepared to also see MS grow their 1st party ,secure more exclusives and pump out more big new ips this time around. Ms will make deals with devs who have big game ideas but do not have the financial capability to bring those games to light.

Sam lake of remedy said quantum break is such a huge project and that it wouldnt be possible without the backing of a corporation like microsoft.in his own words..."no way on Gods green earth would we have embarked on something as ambitious" That is just the beginning and a reason i feel the xbx one wont lack new ips this time.

Wish both consoles well but one thing i admire in sony is their in depth passion for games.i personally do not want to see sony go under.i have bought all their consoles and i like their ips(tlou,uc,infamous,hr,gow,fl ower,ico,shadow of the colussus etc) and i like them as a company very much but if Ms ever aquired sonys game division(may never happen guys).i would want sonys current execs to run the business. with so much cash,there would be no limit to what they could pull off.

[ThePope]

@ Scott Look at Microsoft's earnings. They make money hand over fist. And have a very efficient corporate culture with little waste allowing them to keep a lot of it.

@Majie share holders do NOT want to sell it, they want to spin it off. Happens a lot. You have no idea what 14, 15, or 16 will hold for the future of the Xbox division you just want to hate on a better run company, and clearly are a Sony fanboy.

@Infamous The Xbox division is on its third iteration. And I would say its doing just fine. spending money on R&D is not the same as losing money. Its costs a lot to make these systems. Money Microsoft has.

[theXtReMe1]

Exactly. Sony has been struggling for years in pretty much all of their divisions. With brands like Vizio grabbing the TV market and forcing lower prices by competitors, it is hurting everybody's bottom line. Great for consumers, but not Sony.

Sony was once considered in the upper echelon of home electronics. Now, they rate towards the middle. Unfortunately, Sony still sees themselves in that upper tier and charges prices hardly comparative to their true identity by consumers. The videogame division is one of its only decent performing assets.

The positive spin is, costs associated with research and development for the PS4 werent anywhere near that of its predecessor, due to the groundwork for the individual pieces being laid out by AMD and just tweaked as per Sonys request. Not off the shelf parts, but also not developed from the ground up. Saving hundreds of millions. It also helps that systems are selling so well, even with Sony only making an estimated $35 per. Add on that, game royalties for each sold, PS+ and accessories and I think it will help Sonys financial profile quite a bit. Of course, the more momentum they have post-Christmas... The better. So keeping that fine line of supply and demand met, is imperative... And keeping post launch hype up, via game announcements and headline news. Which Im guessing is why Sony has been slowly, still, leaking system specs and performance sheets.

As said above... the videogame division cant, alone, support the company. Though, it has been its savior in keeping the corporation stable enough to continue trying new marketing efforts and product development. I think they can continue on, as they are, but unless they find their golden goose... Its hardly worth the effort. The equivalent of sitting on a boogie board in the middle of the ocean... Just barely above water. Sooner or later, something is going to come along and either knock you off the raft... Or destroy it, altogether.

I like Sony, as a company... I think they have the means to survive and thrive. They just have to find a couple more things(beyond their videogame division) to make people stand up and recognize the name, as a leading, cutting edge corporation. Sony needs their iPod.

[joeorc]

@ThePope

"Here's a interesting statistic. Microsoft could buy Sony, and pay CASH."

Stop, just freaking Stop it.

Buy it without playstation, sure thing; go right ahead, Playstation part is private held..do you and other's not freaking get that?

So every part that's private held would than have the 17 billion on hand to fight the hostile take over not to mention the japanese govt backed loan Sony would gather for its Sony holding company.

You do know any and every HOSTILE ATTEMPT TAKE OVER A JAPANESE CORP OF THAT SIZE HAS Failed for over the past 40 years straight right?

there is a reason why, a very good reason why. you would know that

than to top it off, there is freaking 160,000+ employee's that Microsoft would be taking on.
Not to mention the over head it would be taking on as a corp, than the logstics. its not the freaking Market cap. its the cost in asset management and logistics, which seems to be what many such as yourself take into account when just claiming..

" Microsoft could buy Sony, and pay CASH."

LMAO..

@Dan_scruggs

" They have lost billions over the last 5 years. No company can withstand that for long."

Try now over 8 years of Loss in billions with the TV section Production section part of Sony!
It seems many seem to think Kaz is freaking Dumb or something, many keep trying to point out problems with the corp that Sony has no idea how to fix, but yet that's exactly what kaz and the board is doing!

SCE is private held, no Hostile take over is going to happen, and Sony would sell off the toxic holding's it has before playstation would be touched anyway. there is over 160,000 employee's and a Majority of those will go where ?

Sony would Downsize before going bankrupt, and Sony has quite a bit more area to cut and trim before there would be anywhere near that point and since playstation part is much better off now and the PSVita is @ profit, in many regions now, and in 2014 the Hardware components for the system will be quite a bit cheaper to produce than it was Two years ago.

Meanwhile Kaz is already scale back over 60% tv production anyway. by 2015 the reduction would be in full effect this has been in the works since 2009. its about cutting overhead and cost of operating expenses.

[ThePope]

@ joeorc

Here's another interesting statistic, the only company with more cash on hand than Microsoft is Apple at $147 billion.

The point still is Microsoft could buy Sony, and not notice the money was gone.

period.

[scott182]

@ThePope

All the money in the world wouldn't make the xbox division better than sony's or Nintendo's. And neither of them would ever sell to Micro$oft, period.

[Death]

Nintendo prints money.

Sony has lost more on the Playstation brand than they have made. Check their financials.

The only reason Sony keeps Playstation around is because they feel it is a big part of their overall synergy. I agree with them. Sony has an outstanding catalog of music and movies and they need a vehicle to bring them to the masses. The Playstation is that vehicle. If they can be hooked up to Sony's HDTVs, then that is great too.

SCE is not privately owned. They are a wholly owned subsidiary of Sony which means Sony has almost complete control, but also has to burden the costs associated with it. The board determines if they can maintain the status, sell it or bring in an affiliate to share the costs. Sony is not privately held or owned.

[Dan_scruggs]

The 3DS is cleaning house far more than anything Sony has on the market right now yet everyone says Nintendo is doomed.

Sony is more than games. The rest of the company has to be profitable as well. And they haven't been for a very long time. They have lost billions over the last 5 years. No company can withstand that for long.

[mhunterjr]

Ps4 might be selling well, but I doubt the hardware is making them a lot of money at the moment. And Sony is a massive company, a single success is gaming hardware isn't going to keep the entire ship afloat.

I think their strategy "loss leader on everything strategy" is coming home to roost. Gamers might appreciate the great value, but giving everything away for free isn't neccisarily the best business model.

I truly would hate to see Sony go bankrupt, they were once known for world class consumer electronics be it with audio devices, television, gaming , you name it. Now, it seems like they've been surpassed in every area except gaming.

[monkey nuts]

Sony are still top dog in the medical electronics field too. They make major coin in that one market place alone. If you think Bravia tvs are expensive you should see the going rates for ultrasound scanners and the like lol.

[hankmoody]

You do know that they have other divisions right? Sony isn't all about games. They've lost a ton of cash on their TV division alone as well as their movie production arm.

[InTheLab]

That site probably is salty. There's a bit in there about how healthy Nintendo is and how Sony is not. Felt out of place considering the article is talking about SNE and not specifically the divisions that have not been successful.

[Cernunnos]

Sony is not only Playstation

[XenoUltra]

The last of us is pretty good but not all that

[famoussasjohn]

Sony has a ton of other departments as well, the PS4 isn't going to bring those other departments out of the red. The TV department hasn't been doing good for years in particular.

Aren't they nearly breaking even on the PS4 anyways? They need other departments to pick up the slack as well, the PS4 isn't going to pick up the slack for every other department.

[BlackWolf]

.... Yeah, I'll wait for these guys to get a more reliable source than a "financial engineering tool website". Until then, this is baseless and pure speculation.

[BlackWolf]

Checking things on my own (I'm not really in the business side of the companies all the time), Sony is not healthy. At all. For me, 79% of risk is a stretch, but they are in a tight spot. Hope next year things turn around for them. Losing one competitor does no good to the industry.

[plsburydoughboy]

You don't want to hear about this? You don't think it's true? Well, you should read it anyway. This article is definitely not flamebait, and the data about Sony's decade long financial troubles is well documented and indisputable.

[Shok]

Whoa whoa whoa, you actually READ the article to see what the author had to say?!

[plsburydoughboy]

I also checked the source, and looked up other companies and how they rated it. You can disagree with the assessment, but MacroAxis' job isn't to keep gamers happy. It's to provide guidance to investors. Don't turn a blind eye to what these people have to say.

[Shok]

Levelheadedness and common sense will NOT be tolerated here, you should know this by now.

[Silly gameAr]

Now, if only this was gaming related....

@Shok. Stop whining. So sick of all the whining.

[JamieL]

You are whining about his whining, so DON'T read your own post.

[Gabenbrah]

Not suprising, Sony have been performing terrible in the past few years, their stock was classified as junk if I last recall, I'd hate to see Sony go out of business, it would be horribile for gaming.

Unfortunately, what Shokio is saying is true and the Playstation department is less than 10% of Sony, you people can't just ignore 90% of Sony's other failing departments and say Sony is doing perfectly fine.

[InTheLab]

Shokio huh? Well that explains this...

"For comparative purposes, Macroaxis is stating that Nintendo has only a 22% chance of failing in the next 2 years, which is very ironic considering the fact that the majority of gamers and journalists online are always claiming that Nintendo is in imminent danger, when in reality Nintendo is very healthy and Sony is the actually the one closest to failing out of the console manufacturers."

Can't help himself.

[LightofDarkness]

I would say that statement refers more to the relevance of what gamer culture thinks about how companies are faring in the market vs. what actual financial analysts think. But sure, he used the word Nintendo and people call him a Nintendo fanboy, so OMG BIAS BLEULELUEL.

[jessupj]

If Sony left gaming, it would leave MS to bring back their DRM and I''m sure a lot worse.

If Sony leave gaming, I'll be going to the PC.

[whoyouwit04]

This one article will force Sony fan boys to searched the web religiously and post about 5 doom xbox one articles or post more fake xbox one problem articles wait and see.

[zugdar]

I'm no expert but Sony used to be a very diverse company with many successful products. Hard to believe but I would not be surprised if the PS4 alone could not hold the company afloat.

[wishingW3L]

well, they lost the TV market to Samsung, the laptops to Apple and Asus and the same with the MP3's, etc. Music and Video games are the only departments making them some money but the the profits are leaking through the others.

But it's not their fault. The blame's on the weakening yen and exchange rates.

[rainslacker]

Their camera division, and their professional music equipment still makes them money. Their movie division has been up as well last time I checked.

One place they're hurting is their financial division, as they are a money lender as well. Unfortunately with the weak dollar/yen ratio you mention hurt how much money they are actually making there. That was something completely out of their control.

Some parts of every division still do well, however overall, their electronics division is hurting because of the bigger losses they take from the products that aren't.

I would imagine before they claimed bankruptcy though, they would sell off divisions or properties to keep the company afloat. Seems like Kaz has been trimming the fat, so to speak, and he's been at it less than a year.

The thing is, their divisions that do well, do extraordinarily well. Their ones that do bad, do extremely bad. So it ends up being kind of a wash, or worse, a loss.

[iamnsuperman]

Music (not mp3s but producing music) /films/TV department are doing very well. Camera is a bit hit and miss and it's TV and computing department is doing appallingly. The two divisions which have done tremendously well recently is its gaming and phone/tablet division. Kaz is doing a good job but they still need to trim the fat. Bankrupt in 2 years? Definitely not (unless we have another market crash) as the company would be in a worse state if it is going into bankruptcy in 2 years.

By the comments here it is like people forget how companies look when they are two years from going bankrupt. They look bad (selling of parts and releasing failed products. Rarely do companies release popular devices and fall under. They sell the bad divisions first)

[Goro]

I could set up my own website and state some random BS, doesn't mean it's true.

[KratosSaveUs]

Sony's Playstation market/brand is safe so that's all that's matter to me.

[Goro]

Well if Sony go bankrupt, PlayStation consoles/games will stop being made and it will eventually die.

[joeorc]

@xYakuzaz

"Well if Sony go bankrupt, PlayStation consoles/games will stop being made and it will eventually die."

You cannot have it both ways, if this was such a dire situation why spend over 1.6 billion in buying stock on a soon to be bankrupt company?

you really think this man invested over 1.6 billion to see Sony go bankrupt?

http://www.gurufocus.com/St...

Many are acting like Sony is going away, and there is nothing they can do to stop the downward spiral. This is like saying the same thing about Nintendo, and many talking about Nintendo going away.

There is many people saying this is just not looking at the fact's, the fact's are Sony has lost billions 8 freaking years straight in a row just from TV section alone, has lost billions over 5 years for playstation, and yet even with all of those freaking loss'es , after the "JUNK BOND STATUS" with its market cap. being further eroded.

Sony was able to purchase Sony erricsson for over 1.6 billion. Buy GaiKai, make a more robust playstation system, sell it cheaper than many expected, and now is charging for a main section of PSN for online play!

Has trimmed down TV production by 60% by 2015 and yet Dan Lobe, how invested over 1.6 billion for stock requested a spin off of the entertainment section and they told him No! but yet he spent 1.6 billion on soon to be a Bankrupt company?

I do not think So, So why show off this new's?

The PS4 has been flying off the shelves, so buy stock low to increase value. Have a 3rd party analyst firms lower the outcome to lower stock price before hot item sells out...yeah no way would anyone do that right?

LMAO

[Lucreto]

For a company that is supposedly going bankrupt they sure like buying companies. Gaikai last year and rumoured the company that makes the an important part of the Wii U.

[Ps4Console]

Do you know anything about economics it's always better to buy other Companies when the going get's tough "Collataral" if the going get's tough sell the Collataral off .

[SpinalRemains138]

Typical consumers cannot afford SONY electronics. They're some of the best. From televisions to headphones. You get what you pay for, and SONY products are pricey. This is no secret.

Over the last decade we have seen an explosion in affordable flat screens from Samsung to Vizio to whatever else is out there. Sony's tv division has taken a critical and fatal hit.

The gaming division though, is obviously stronger than ever.
-Hell, I wish I could afford a mostly SONY electronic setup. That would be nice.

[tigertron]

That used to be the case, but actually now Sony products are priced the same as their competitors. Heck, the Xperia M I just bought was quite cheap and good value.

[dragon82]

I hope they can fix their TV division because I love my Bravia TVs. I have a 55" 3D LED and a 47" LCD. The picture is amazing on both.

[D-riders]

lol

[DoggyBiscuit]

Sony if u actually go bankrupt just give Nintendo a call

[MegaRay]

Nintendo has a more possibility of bankrupt yet I dont think they'll bankrupt, not before 2025, lol

[OtakuDJK1NG-Rory]

Nintendo has no debt but Sony do about more than 10b
Nintendo never closed or sold studios or buildings for cash but Sony did alot.
Nintendo never layed off employees or staffs to improve workforce. They trained harder or make do more work.
Nintendo only loss money in 2011. Made a slight profit following year 2012.

Need I go on.

Add-On:
Yeah thanks to the failure of the early years of PS3, PSP and Vita Sony loss a crap load of it.

[MattyG]

Apparently people don't realize that there's a lot more to these companies financial well being than how many consoles they've sold.

By that, I mean that a company can sell a ton but have poor financial management or just management in general.

[Hicken]

Nintendo pretty much only has one source of revenue, while Sony has many. Nintendo needs the hell out of the 3DS; while they wouldn't immediately go bankrupt without its current success, they'd definitely be in a pretty bad situation if it were not so popular.

As for having poor management, I'm pretty sure that's why Sony shook things up and put Kaz in charge in the first place.

Sony has multiple revenue streams, many of which are doing poorly right now; they could afford, in a way, for the PlayStation brand to die, because they have other sources of income.

Nintendo could not afford for their gaming division to die, because that's pretty much all they have.

[MattyG]

In these comments; Ridiculous damage control coming from people who don't realize that this analysis isn't from an "xbot" or "Sony hater", but from software made solely for the purpose of determining these kinds of things.

[GrandpaSnake]

for me it has always been playstation vs xbox not sony vs microsoft.

[one2thr]

Movies, music, tv shows, tv's, cameras, computers, cellphones, multiple sponsorships, video games, 3 video game consoles, sony stores, PlayStation clothing, vast amounts of sony inspired merchandise, and a new business strategy to keep customers happy and to earn new ones.

This doesn't compute...

[MattyG]

Just because they have all that stuff doesn't mean that they're suceeding. Their TV sales have been low lately, for example. Those TVs cost money to develop and produce, money that they aren't necessarily recouping in sales.

Just because a company offers a lot doesn't mean that they're bringing in enough money.

[Rzep]

Except in most of the things you have listed Sony has been lagging behind the competition. The PSP's were never a huge success, or as huge a success as for example the DS. Clothing will not keep the company going. Not sure what new buisness strategy you are talking about. So far Sony still doesn't seem to have figured out a way to get back market share from for example Samsung.

[one2thr]

I understand where you guys are coming from but it seem as though you read what I wrote as "Sony couldn't be failing/falling that'll never happen" instead of reading it as "That 78% chance of Sony going bankrupt within 2 years is a PRETTY high number/chance based off a guess" and thats where the "This doesn't compute..." statement come into play.

You guys fired a bullet, without aiming.

[crosstrigger]

You do understand what cost vs profit means right?

[one2thr]

Yeah, been selling lemonade for years, I charge people $2 for a $.05 cup of lemon flavored sugar water...

And when my homemade candy stand was costing me more than its worth, I sold it to someone that changed it into a gluten free rice crispies stand...

[one2thr]

And by a quick glance at all the comments with more agrees than disagrees it seem as though only the Sony TV line/division is failing, and is the common deciding factor people rely on as a means of predicting their bankruptcy.

And you said "most of the things (I) listed are lagging behind their competition", but even so arent they still making a profit? To my knowledge a product sold, is better than a product "rested"(shelved).

SN: I did a simple google search and found out that their music and movie division and a few other divisions are doing good, not saying they couldnt be better, but they are up a few points. It would be nice to see how that number changes (if any) with the numbers I found on google. (for the good or the worse)

[ELpork]

let the flaming comments commence.

[OtakuDJK1NG-Rory]

If the main Sony goes down all division falls with it.

[Killzoner99]

You'd like that wouldn't you troll? This Sony hating article has brought all the trolls out in full force. I guess they're all salty the PS4 is #1 in the world lol.

[G20WLY]

So you don't think there's any company in the world that would buy PlayStation if Sony fell?

Smdh at the troll. :|

[OtakuDJK1NG-Rory]

It wouldn't matter because they will be third party if they are bought.

Or they go PC only when bought.

[G20WLY]

Lol, you're missing my point, genius...

If Sony fell, it's not as simple as the games go third party - the PlayStation BRAND (software and hardware) would be sold off and continue.

It's like banks; they get sold all the time, but if the brand is strong - and the customers are loyal - you retain 'business as usual' among consumers and you are, in turn, rewarded with their money.

[Rzep]

Sony has been doing worse and worse for quite a while now. Gamers, looking at the comments for some reason do not get that Sony is not only PS4 and that even if PS4 is making a slight profit that is still not a huge success. Selling a million consoles in 24h is news worthy sure, but it does not automatically mean some huge payday for the company.

Sony a few years back got complacant and as a result lost in many areas. TV's, media devices, laptops. Sony in those fields are far behind the competition and it is not looking good. There is no sign that it will actually get better.

[Ricegum]

I like the way everyone on this site is acting like some sort of professional analyst haha. It's hilarious.

Anyway, here's to hoping for a Sony turnaround, no one should wish a company to go bust.

[jcampanozzi87]

People MS is in the same boat because of the losses with the 360 and Xbox not doing as good as hoped. So far MS would be the first to get out of the industry because of investors not being too happy with that divisions performance, add to this the lack of hype with the One in the US, we might just see this happen. Sony's home console division on the other hand had done well, other than the half of the PS3 life. Now that we know the investors are on board with the PS4 its hard to imagine Sony's gaming division going anywhere anytime soon. Also I think Sony is going to use Gaikai to branch out there game market to allow more customers to play their games. On top of that this whole Viacom rumor, if true, could make Sony a top TV subscription provider. Have some faith in KAZ people.

[Rzep]

I don't think MS would actually leave the industry. A split might happen within the comapny. One that could potentially result in a more independant video game division, but I don't think it's coming any time soon. It would completely undermine the MS strategy that they have been pushing, meaning the whole everything connected, everything in one. They aimed to consolidate all areas of the company to improve their situation. Spliting it up would not be seen as a smart move at this time.

[JasonKCK]

MS has a lot of money to spend on just about anything they want. MS has had its fair share of failures but they keep trying. They can do that because they have so much money to fall back on.

I don't think it's fair to compare the companies because they're so radically different. Other than gaming they really don't have much in common.

[jcampanozzi87]

I would beg to differ with you about about MS as a company not being affected by Xbox division. Name one product that MS has come out with, other than their Windows division, in the last ten years that has done extremely well for them. Surface tablets, Windows Phone,A slew of Motion games, and Zune. Its these kinds of products that hurt companies and MS is not indestructible to bankruptcy. Take a look at Amazon, Apple, Samsung, and Google, these companies are the top in the world. This is a position that MS once had now they are the joke of the tech industry, forcing people to use their product they was they want them to be used is what will hurt them. Windows 8 and Kinect is a prime example of this, forcing people to use touch based PC and cameras that no true gamer wants. The MS of old is gone, even with Bill Gates still there, they had lost what made them set the industry standard and that's why they might just fade out at some point if they don't change their ways.

[mhunterjr]

MS isn't nearly in the same boat. This isn't about Sony's console division, this is about Sony as a whole. You're basing your comments on the playstation brand, a brand that makes up less than 10% of Sony's failing operation, and one that has failed to turn a profit in 8 years.

Xbox on the other hand, while it may not be making investors terribly happy, it has served as a means for Microsoft to leverage it's other businesses, and to fund research and development labs. Kinect technology is being marketed to other industries, as is Microsofts Cloud compute, and Microsoft is toying with adaptive AI powered by Bing,. All this thanks in part to research validated by their gaming arm. Sony's gaming division hasn't has a similar effect on the rest of the company.

[jcampanozzi87]

I would beg to differ with you about this. Name one product that MS has come out with, other than their Windows division, in the last ten years that has done extremely well for them. Surface tablets, Windows Phone,A slew of Motion games, and Zune. Its these kinds of products that hurt companies and MS is not indestructible to bankruptcy. Take a look at Amazon, Apple, Samsung, and Google, these companies are the top in the world. This is a position that MS once had now they are the joke of the tech industry, forcing people to use their product they was they want them to be used is what will hurt them. Windows 8 and Kinect is a prime example of this. The MS of old is gone, even with Bill Gates still there, they had lost what made them set the industry standard and thats why they might just fade out at some point if they don't change their ways.

[mhunterjr]

@Jcampanozzi87

I don't know what it is with gamers these days but for whatever reason, if something isn't a runaway success at retail, we automatically call it a failure.

Before we start, let's be clear, Windows IS Microsoft. EVERYTHING they've done has been an attempt to bolster their windows offering. It may not have been clear at first, but it if it isn't clear now, you should open your eyes.

Surface Tablets alone haven't done well. But it was never about surface. It was about getting windows onto tablet devices. Windows tablets and hybrids from other manufacturers are doing just fine.

Windows phone hasn't been a runaway success, and I doubt MS expected it to be coming so late to the iOS android party. but again, MS is using it to leverage its PC offering. Now they have Xbox live which unifies content between PC, TV, and mobile. It will only get better with time and they have the cash to wait it out.

You, a hardcore gamer, may not appreciate motion games. But motion games continue to sell well on Microsoft platforms. Kinect, dance central, Zumba, and kinect sports have been huge fore MS. And one could argue it was never only about motion gaming, as MS' motion tracking tech is being used in numerous other industries.

Zune was a failure, but it's legacy lives on with Xbox music. Again, it was less about shipping hardware, and more about delivering a competitive service, which they now have.

Microsoft is first and foremost a software company. On top of that they provide services. Every side business they enter is just a means to bolster their existing products and services. The xbox has been a 13 year journey to get windows and it's accompanying services into the living room.

[Moncole]

Hope they dont go bankrupt because many people will lose their jobs. And it sucks when a company goes bankrupt.

[ssj4wolf]

thousands of people that could loose there job that's not good and especially in times like these.

[JackieCruise69]

So this is what Sony fanboys look like trying to damage control...
And you guys are such hypocrits. Quit acting defenseless, you guys attack Xbox fans all the time but when stuff like this comes up you guys act like Sony is the only one being hated on, lol.

But anyway; that'd be disappointing if Sony went down. They're an important part of the gaming industry as well. the Ps4 alone wont be able to save them so they'd need to do something big to save themselves if bankruptcy really is on the way, I'd be pretty upset if they were to drop out, they were a big part of my childhood as well and it just wouldn't feel right with only Xbox and Nintendo around.

[Silly gameAr]

Yeah Sony fanboys are trying to damage control but I don't know whats sadder, that or the dramtic comments from the N4G financial experts.

[bornsinner]

sony/N4G fanboys are also game programmers now, i seem to be learning more about how much more powerful ps4 is even though the games look the same

[cbrcsg2001]

I'll bet my left nut that NxtGen720 will do a video about this!!

[Gooch_suplex_Hold]

Oh you know he will.

[cbrcsg2001]

He already did lol.. I knew it

[Gooch_suplex_Hold]

"Bang bang" lol

[sAVAge_bEaST]

Feeding time at the astro.turfer exhibit, I see.

(lets see how it looks, after Vita-TV & Gaikai launches)

[GaminGuys]

Gaikai has yet to prove itself and if by some miracle, Valve are snapped up by Microsoft like Skype was, I think Sony could potentially be in big trouble. Who knows though? That's going to be all down to our future consumer trends and choices isn't it, regardless of all of this.

[KakashiHotake]

It seems like all the major Japanese companies that were heavily invested in TV hardware really started falling apart with the rise of smart TV's and have been having a hard time adjusting. If Sony wants to be stay competitive then it's time for something new and price friendly.

[skyrimer]

Sony is going nowhere. They have a good wave now, PS4 is selling great, PS3 is finally affordable with hundreds of great games and selling quite well, Vita is gaining some steam will PS4 remote play, price cut and finally a decent library of games, and even the mobile is doing pretty well with the Z1 and others.

Still, worst case scenario, Sony would be bought by whatever, Google, Disney, who knows, and then it will be business as usual. Anyone who thinks that Sony will die in two years is delusional.

[mhunterjr]

You do know that Sony is bigger than playstation, right? The playstation brand makes up a fraction of Sony's total operation. The gaming arm alone isn't enough to hold the company afloat. It would take multiple companies to buy Sony, so I'm going to assume you just talking about SCE.

I doubt Google would want in because they are a software focused company. They don't even make android phones, so I doubt they'll want to get into console manufacturing. Disney just shuttered most of gaming studios and are now licensing their IPs. It's silly to think they'd want to get into gaming hardware.

Samsung, might be a better candidate. But let's just hope Sony makes it out of this rut.

[Pancit_Canton]

They forgot to mentioned that..

-Xperia phones are doing great on sales.
-Sony Camera Sensor are biggest money maker for Sony. (Used by Major company like Apple,Samsung and others).
-Strong sales on PlayStation Brand.
-Sony growing assets like by CMOS plant, Gaikai, $100M Silicon Valley Office Building and etc.
-Sony are one of the largest Movie,Music and Games distributor in the world.

[Silly gameAr]

Let them live in their little fantasy drama.

[Sci0n]

I also seen microsoft's xbox one gaming division demoing there console off of Sonys 4k TV's.

[AceBlazer13]

Will sony fall a hero to its consumers, rise back to greatness or will they adopt the money grubbing ways needed in the modern business world? Only time will tell.

[Brodo789]

People like you. Lmao. You actually think Sony isnt about making money. goddamn lmfao

[WeAreLegion]

In his defense, if they were all about money, The Last Guardian would have been cancelled and we never would have seen Journey. Let's not forget that Microsoft turned down Heavy Rain and let go of Sucker Punch for financial purposes.

Sony is a business, but it's a business run by a humane group of individuals. Without that human aspect, a company cannot survive for long. Look at Google or Amazon. They aren't necessarily looking to make some exorbitant amount of money. That's not the style of their respective CEO's. They want to make their marks on society. Making things easier, faster, better. They aren't looking for power. They're pushing technology where it needs to go and THAT is why they have succeeded.

[JamieL]

@ WeAreLegion
Bull$hit, this whole world is about money and money only. Corporations are the head of this greed movement. Not because they are "evil" (well they are, but not on purpose), it's because this is how the system was set up. Only the strong survive, business is the only place real evolution can be observed, that other theory is just a smoke screen. It is survival of the fittest out there period, and not one of them will ever stop to think how you may be doing, I promise you that.
This world runs on one ideal, "Whats in it for me?", and we think this system is "Good" for everyone. Corporations are not good for anyone but it's shareholders, and even then only to make them more of their God, Profit.

[JasonKCK]

Every corporation in this world is about making money. Sony is not a charity.

[BABY-JEDI]

A financial engineering tool run by tools
LoL
; P

[Cable2kx]

Sony has there hands in alot of different things. If this does happen they will cut the dead weight and save what departments is turning a profit for them. Don't get why people take any news like this and turn it into flame war? Why? what is the point?

S/N
http://www.youtube.com/chan...

[saber00005]

Microsoft Fanboy: "Lets just take random numbers and lets make it look they are going to go bankrupt in two years.."

From the inventors of Blue ray players, PS+, Playstaiton, DO YOU HONESTLY THINK THEY WILL GO UNDER? Really? Give me a break.

[JamieL]

Wow, you are either extremely young, or extremely ignorant.

[SpitTake]

Wow you're dumb. A. Sony has more assets than their Playstation brand, almost all of those are falling. B. Macroaxis is a financial assistance group, they aren't 12 year old who care about a Microsoft-Sony war.

[fonger08]

This is could actually be a good thing for Sony to do long-term. Assuming their filing for Chapter 13 not 7 they could be able to get rid of a lot of their debt without folding as a company would allow them to consolidate and concentrate on certain divisons (markets) that are actually profitable to them. It's not like the Playstation brand would ever go away, if Sony decided to sell the division someone would surely buy it, or if they wanted to, decide to be their own gaming only company i.e. Nintendo.

[jacksjus]

Good to see someone with an understanding of what all of this means.

[joeorc]

@nifonge

"This is could actually be a good thing for Sony to do long-term. Assuming their filing for Chapter 13 not 7 they could be able to get rid of a lot of their debt without folding as a company"

what you stated was correct except for one thing, Playstation is private held!

thus the rest of Sony gets the axe, every thing else would go except for playstation .

"or if they wanted to, decide to be their own gaming only company i.e. Nintendo."

100% Exactly that smartphones and software for smartphones and playstation, the stuff this board cares about anyway.

[fonger08]

Shit you're right. Well that would suck if they had to liquidate everything. I know I read Sony is very interested in the Medical field, making devices for that industry too. Smartphones to me is a losing battle, unless Samsung, LG, and of course Apple go completely stagnant, I can't see Sony making up much ground in that area (hardware wise).

[joeorc]

@nifonge

"Smartphones to me is a losing battle, unless Samsung, LG, and of course Apple go completely stagnant, I can't see Sony making up much ground in that area (hardware wise)."

well you do know Sony is selling over 10 million xperia smartphones, per sales Quarter! as of OCT 31 2013.

Sony eked out about 10 million mobile devices last quarter, which is an incremental increase over the 9.6 million the sold the previous quarter. Sony sold 8.8 million in Q3 2012, so the year-over-year growth is promising, but not impressive yet.

http://androidcommunity.com...

Smartphones are not a loosing battle as you can see, over 10 million xperia smartphones sold every 3 months is no joke in market penetration.

Yes its not anywhere near Samsung, but its still a sizable chunk none the less.

[YellowTempes]

Not sure if I can post links on this site but here is their latest financial results sheet: http://www.sony.net/SonyInf...

You can also expect its gaming division to jump from 10% of company income to maybe 15%+ with the success of PS4. Shame on Macroaxis for using old data and scaring our poor souls. How could Sony make expansions such as the Gaikai and Nintendo DRAM factory if they were gonna go bankrupt?

Can't wait for new financial figures in March 2014 (^_^)

[SpitTake]

Playstation makes so little money for Sony it's to the point that they lump it in at one who topic of consumer products and services. Just because the Playstation brand does well, which it hasn't in the past 6 years, doesn't mean it does much for them.

[beereal360]

Sony has become a very slack company over the last ten years they used to make the best t.v and c.d players. Now their like number 4 and 9 in sales because they got cocky and even in the gaming world the ps4 took no risk its only a more powerful ps3 . I do like what they are doing on the movie and music side of things but that division is ran different and they have hinted in the past about cutting part or all of their ties with the electronics division.

[WeAreLegion]

They were for many years, but Kaz has turned it around.

[Brodo789]

The damage control in these comments is soooooo delicious.

[rxl209]

if you dont know what the gaming realm is, it IS NOT a legitimate gaming website, there are no journalists that work for gamingrealm, its pretty much a nintendo fanboy named shokio stealing articles and rumors from other websites

[Brodo789]

Lmao because this article has been posted by tons of other sites, right? Let me guess, every site that posted this is full of fanboys and isn't legit, right?

[WeAreLegion]

No, they don't. The company has turned around in recent years. Their phone division is doing better than ever. The PlayStation brand has regained its strength and is almost as strong as it was during the PS2 days. Their TV's are selling better than they have been, though they still have an uphill battle on that front.

Sony isn't going anywhere. As an investor in both Sony and Microsoft...I am not worried in the slightest.

EDIT: @tommygunzll - I'm with you. I'll go down with the ship. I love Nintendo and I certainly enjoy PC gaming. However, the death of PlayStation would mean the death of gaming for me. Those teams will move on and do everything, but PlayStation represents more than just some mild fun on the weekends.

[tommygunzII]

If Sony closes the door, I go with them. There is no way I will put up with the shady practices of Microsoft and I feel like I'm too old for Nintendo anymore.

PlayStation or nothing for me at this point console wise.

[snookiegamer]

The reason why there are less adult themed games on Nintendo hardware is because third parties don't have to cater to it as there are 2 other options. Should Sony disappear from the gaming landscape (highly unlikely), then that would leave only Xbox, and no sensible business would ignore Nintendo in that scenario...it would simply return to the 90's Sega/Nintendo battle back in the day.

[m2stech]

If Sony entertainment has a 79% chance then simple logic indicates 165% and 495% chance of bankruptcy by Microsoft and Nintendo respectively.

[Thepharaoh]

I think you mean Xbox division as a whole Microsoft is doing leagues better than Sony in terms of finances.

[JasonKCK]

Where does it say "Sony entertainment"?

[A LIVING LEGEND]

simply outsource to China,Pakistan,Mexico,re-paint condemned factories in Indonesia,quadruple the advertising/PR budget,lay off anyone with a shred of humanity and broker shadowy backroom deals with anyone carrying a suitcase full of money.

These steps alone reduce the probability of bankruptcy by 74.8% lead analyst for numerous American companies suggests.
Seriously though,I doubt the situation is as dire as this article suggests and at the same time doubt it is as well as some would claim either.

[modesign]

sony is going bankrupt from 70 billion dollars in revenue. haha i can tell someone never to economics classes.

[jacksjus]

Revenue has nothing to do with cash on hand or making a profit. Exxon does well over $300B in revenue annually, but they do not have the cash of let's say Apple.

[fonger08]

Economis classes... really? Revenue - Costs = profit, and profit is what counts. And it's actually more Accounting 101 than Econ FYI

[modesign]

if you look at the author (jamal), he primarly covers stories on nintendo, so im guessing he is jealous of sony's success and wants to steer away from the wiiu sinking ship.

[snookiegamer]

There seems to be a whole lot of doom and gloom regarding consoles lately.

...So much for Happy New Year ;/

[jacksjus]

Filing for bankruptcy would be the smart thing for them to do if they are strapped to pay the bills. Bankruptcy will allow them to liquidate all bad investments and just focus on what is actually making them some money. It looks like the PS4 will be their savior.

[SynestheticRoar]

I don't give a flying @#$%. I don't have stock in their company. Just keep giving me great games for another two years, & I will be happy.

[HappyWithOneBubble]

If there's no more PlayStation then I'd go full PC gaming.

[tudors]

I hope not, the PS4 is a right piece of kit.

[worldwidegaming]

One thing that would help is if fans purchased sony stock...

[Djinn]

I use to love Sony but I don't like the regression of the PS4. The PS3 is a better system and thus I don't think I'll be too miffed if Sony collapses. AT LEAST MARVEL WILL GET SPIDER-MAN's MOVIE RIGHTS BACK. SPIDEY ON THE AVENGERS, BABY.

[tudors]

Are you kidding me, the PS4 is a beast! the PS3 is a great console and I will buy a great back collection of all the games that I have not played but Next Gen is looking fantastic, even the games that have just had a little Next Gen polish like the new Assassins Creed while not truly next gen still look much better, the water alone looks special.

[Thomaticus]

No problem, if Sony goes Bankrupt, we'll do a kickstarter to bring them back.

[CAB1802]

Guys, this is not me, ok, this is someone on YouTube
BANG BANG, AWWW DAMN DAWG SONY GOING BANKRUPT IN THE NEXT 2 YEARS, MICROSOFT IS THE KING - Zaire nxtgen720

[Mexxan]

They're going because the computer says so.... Whatever happens the gaming side will always be successful.

[MultiConsoleGamer]

If you know what has happened to the company in the past 8 years you will realize this correction is not only correct but also a bit generous. However I'm not going to laundry list all of Sony's financial woes because trolls will just use it for ammo.

[Angerfist]

Everyone knows for Years that Sony is in trouble, but they are gaining ground again with their new Xperia Z Phones and the PS4 if they get to ship as much consoles as there is a demand for it right now.

[Indo]

So I guess I just buy another PS4 to throw my two cents in, and another tablet for the hell of it.

[Joe913]

For all the Xbox fans who think this is a good idea uh did you all forget that without Sony your Xboxone would have DRM and a mandatory connect Kinect even if you do not like the competition you need competition or these companies would screw us over if MS DRM did not leak and had such a negative outcome then Sony might have made PS4 DRM as well we need both companies to do good or we all lose.

[Sci0n]

they wouldn't have had those super old games for free neither with games with gold lol.

[OpieWinston]

No one said Sony going bankrupt was a good idea, because competition creates balance for all companies. But I think we can all agree that especially on N4G some people need a good reality check for Sony's money issues. And the recent success of the PS4 won't save this sinking ship. Since they won't turn a profit from them for a while, off exclusives & PS+. Yes PS+ profits will be put into offsetting the costs of PS4 production NOT improving the services on PSN, anyone who was foolish enough to believe that rubbish clearly isn't going into economics.

DRM is only good if you can build a digital service like Steam, and I don't think Microsoft or Sony is anywhere near there quite yet.

[Ps4Console]

That is the way of the world now it's all cut throat industries in a capital society the company with the most innovation moves forward while the company with less innovation goes down plus pricing & value for your buck on numours occassions .

I have seen new Sony hardware failed up against there competitors not in the console market but Tv , CPUs & Mobile phones on the gadget show & on many tech websites beaten by cheaper brands on battery power & on value for money there tv department are struggling to LG & Samsung the Japanese electronic companies so dominat in the 80's & 90's are now being beaten by the Malaysian companies who are better on price due to the Japanese currency .

[JohnS1313]

Sony needs to start coming out with cheaper TVs. Samsung is always cheaper. That seems to be one area they haven't figured out yet.

[bboyblast]

I absolutely Love Sony Products .. Mostly The Home Electronics Like TVs And Sound Systems.. I couldnt possibly imagine Sony going bankrupt. But reading that still havent made a profit from the PS3 is shocking.. They should ditch the hand helds though I cant ever see them come close to Nintendo

[JohnS1313]

Sony started making money off of the PS3 a few years ago.

[bboyblast]

well if you read the article it says other wise

[Dan_scruggs]

That doesn't make up for all the years it wasn't making money and TV's weren't making money and the Vits is still a huge flop and millions were going into R&D for the PS4. In 2012 they lost 6 billion and had to sell their headquarters. That's not good no matter how you look at it.

[JohnS1313]

I never heard of these idiots. I doubt anyone who wants to actually make money on the stock market uses them. I'm sure they'll be broke years before Sony is.

[kenshiro100]

Sony will be fine. The company is in capable hands.

[Armadilo21]

I don't know about you but I want Sony to join Apple and together just dominate the world

[ArmyWarrantOfficer]

Apple has no need for Sony. Apple would not join together with Sony either. If Sony had something that could help Apples bottom line they would just buy the company as whole. Apple has more cash reserves than any other company on earth. They could buy Sony many many times over. Not an Apple guy either i like android.

[kevnb]

79% eh

[purp13m0nk3y]

Bha ha ha ha... oh wait they're serious!? Ahh ha ha ha haaaa.... that was good.

Seriously though. Wtf.

[Mister_G]

I think the PS4 will help a bit :)

edit: Just seen the latest sales figures, and if this site is accurate the PS4 is 1 million ahead of Xbox One now.... http://www.vgchartz.com/

[lkc32]

I hope they stick around, but the denial and lack of intelligence on this site are mind boggling. Being borderline special and insecure must be prerequisites for a fan-boy. This site is only good for a laugh, nothing news worthy.

[Gooch_suplex_Hold]

They'll be fine...

[PudgeySan]

I call bullshit. Just google it. 2 websites Crave and this site got there info from some other no name site... clearly speculation with a side of lame sauce.

[corvusmd]

Sony has had financial problems over the last decade or so, so hearing this isn't actually all that surprising, going bankrupt doesn't necessarily mean the ending of the company either, but they would most likely be forced to sell off some of their assets....imagine how confused and pissed off some fanboys would be if MS bought Sony Gaming....everything they said was positive about Sony would have to turn into a negative about MS overnight....180s all over the place.

[Gamer666]

I don't think this is going to happen, and if it did, someone would buy them out in no time.

Sony has a lot of very valuable patents in electronics and IPs in gaming/movies.

No one has anything to fear by buying Sony products.

[parentsbasement]

It wouldn't be a "go out of business bankruptcy " it would most likely be a "screw over the employees , they make to much " bankruptcy.....

[ps4lifesucka]

lmao it's so sad and it's funny no one goes to the normal articles or talks on this site.

[Pennywise138]

Maybe than can sell the spiderman rights back to marvel and we can get the spiderman and spiderman/avengers movies we want.

[Killzoner99]

Are you serious troll? The best video game company in the world is in financial trouble and all you care about is the Spiderman rights? You're not a gamer. A real gamer would realize how it would destroy the industry if the Playstation brand was shutdown. Plus it's been stated many times that Sony will NEVER sell the Spiderman rights.

[Pennywise138]

Troll? I can count on 2 hands how many posts I've made. Not to mention I'm a huge PlayStation fan. Take it down a notch turbo.

[Inception]

Really? Some people keep telling us that sony will go bankrupt when they released PS3 and that is seven years ago. I think this people need to fix their crystal ball or stop with their stupid prediction ^^

[Kriandis]

They have had financial problems pre-dating the original Playstation.
It also good to note that the only time Nintendo has ever issued a loss to their stockholders was before the 3DS price drop.
People want to hate on Nintendo, but they sell 5 to 6 3DS's for every one Xbox One or PS4 sold...just saying.

[trouble_bubble]

5-6 3DS's for every xbone and ps4? Umm, the xbone and ps4 are sold out everywhere. You can't buy a ps4 to save your life. Meanwhile in wii-u news...

[Harmonizer]

The electronics division is doing bad, however the playstation and entertainment divisions are doing just fine and making more than enough money if they were to be split from eachother.

[zombie78rock]

PlayStation has not sold record numbers for years cough ps2..... PS3 and vita both combined can not sell what PS2 did that's a fact jack... PS4 who knows how well its doing?

[SoulSercher620]

LOL at people thinking Sony is going bankrupt. Hate to break it to you but Sony ain't going anywhere.

[RAGE91]

I call BS and i play on an MS system.

I love SONY and I think that they are far from going bankrupt...

[XenoUltra]

they have been selling buildings and they went junk status like last year or so. Well just hopefully the Ps4 continues to sell well.

[XenoUltra]

Wow this Comment section..lol

[Godmars290]

All I got is if it happens it happens.

[e-p-ayeaH]

That would very surprising i must say.

[Unlimax]

We just enter 2014 to hear this :\ ?

[blakstarz]

Sony bankrupt?

Here is what I think: https://www.youtube.com/wat...

[MxRBrobaFett]

Nah man they're good.. The last of us

[KingDadXVI]

The problem with most of the comments here is that they are by Fan Boys who live in their own little universe that for some reason does not interact with the real universe.

Sony is and has been for over 7 years in a boatload of financial shit. They have no way of raising capital other than selling off properties. Their credit rating is in the toilet and having junk bond status means they can't raise shit on the markets either. They didn't sell their global headquarters in Japan and North American headquarters because they are rolling in the dough. Every cent that Sony is currently worth is owed to investors and they are currently living on the sufferance of those investors.

As most of the people on here don't seem to understand that this is about more than the PS4 I will lay it out for you. Sony stock is dirt cheap and their only real value is in their assets (IP, patents, and physical property). Due to the low valuation on their stock this means that a large investor or group of investors may at some point decide to buy enough stock that they can decide to break up the company and sell off those assets as they are actually worth more than the stocks themselves. There are many organizations out there that specialize in just that thing. They wait for a company to become worth less on the market than its actual asset value and then swoop in buy controlling shares and sell of the assets for a tidy profit. Leaving customers, employees, and small investors holding the bag.

The reason bankruptcy is mentioned is that if they declare bankruptcy before the situation I mentioned above happens then Sony Corp itself can potentially control the sale of assets to raise capital and try to become profitable again via restructuring.

Bottom line is that even with the PS4 selling at a breakneck pace it is not making them any money right now. They are still losing money on every console sale. They will make money on PS+ and software sales but it is unlikely that it will offset their huge losses. Remember N4Gites that PlayStation is a small part of Sony Corp.

If this happens then the best we can hope for is that the PlayStation assets are broken off and bought out by someone who wants to continue it as a separate company.

[plmkoh]

"Fan Boys who live in their own little universe that for some reason does not interact with the real universe... Their credit rating is in the toilet and having junk bond status... "

Really, because in this universe their stocks have risen by 55.2% year-on-year comparison and have since had their credit rating lifted to BB-.

I pray you're aren't in investments.

[MultiConsoleGamer]

In 2010 Sony stock peaked at $40 a share.

In 2011 Sony stock peaked at roughly $35 a share.

In 2012 Sony stock peaked at $21 a share.

Today Sony stock is worth roughly $17.50.

https://www.google.com/m/fi...

In 2001 at the company traded for an all time high of $150 per share. Credit rating is still junk status and was recently lowered again.

http://businessweek.com/new...

[plmkoh]

@MulticonsoleGamer

What use does quoting 2001-2010 historical data prove? Did you not consider the economical momentum pre-GFC? Did you not consider the changes in consumer taste in that decade?

Hell I don't even think you know what 'Junk status' even means. Here this is taken from your own links:

"Moody’s Investors Service Inc., meanwhile, threatened to cut Sony’s credit rating to junk."

How do you cut a rating to 'junk' if it's already 'junk' LOL, you make me laugh.

Apparently you know something we all don't, because the stocks are still on 'hold' at $17.50. Even Moody places Stock on 'hold'.

Please enlighten us with your investment guru-knowledge.

[KingDadXVI]

Yes, they have gone up but not due to increases in performance or earnings. This is little more than an indication that large investors are buying their stock. Namely Daniel Loeb who wants to spin off the Sony Entertainment division. Just watch as his company buys more junk bond status stock to get a controlling interest in Sony. As investors like him get into the game it always bumps up stock prices as other investors see the potential to make a quick buck. PS4 sales as I said have done well and also increased the stock value but as the console is loosing money at this moment and will for the foreseeable future this stock increase is not due to earnings and consequently fundamental value in dividend returns.

Basically what you are getting now is that the vultures are no longer circling the corpse but landing and taking bites out of the company.

If Sony does not turn things around very quickly and start paying back investors they will decide to recoup their investments by selling portions of the company off.

In case you did not know BB- for a credit rating is not good at all. It means that it is a noninvestment speculative stock. Translation - do not buy if you want to receive dividend payments or expect a return on your investment. The only reason to buy at this level is either on the hope that a miracle will happen and the company suddenly returns to massive profitability or the company is going to be broken up and sold off at a profit for the investor.

I pray that you aren't in investments as you have no clue what you are talking about. I personally have maintained a 17% average over the last 15 years on my investments. How about you?

Here a couple of links for you to view on Mr. Loeb's opinion of what should happen to Sony.

http://money.cnn.com/intera...

http://www.hollywoodreporte...

Sony has refused his advice and due to that he has purchased more stock and is in the process of getting control of votes on the Board of Directors. If the ship sinks to far he will just break the company up and sell its assets for a profit to other companies.

So you sir are not living in the real universe.

[MultiConsoleGamer]

Well first I proved that you were completely wrong, and possibly lying, about their stock rising "55.2%." When you compare year over year stats you always compare the peaks for each consecutive year. The fact that you did not know this proves that you do not know anything about the market.

Secondly, credit ratings have levels such as BB- etc. You can be at junk status and still drop to a lower degree within the range of "junk status."

There are also three credit bureaus, Moody, Fitch and S&P. Until recently only two of these groups had Sony listed at junk status. Now all three have the company listed as junk status with little chance of economic recovery.

Junk status is a term usually applied to bonds, but it also applies to a company that offers stock. it means that their stock is not investment grade, and therefore not worth buying because of major risk of default. Junk status is the literal end for a company unless there is a major turn around in their financial fortunes.

The good news is some companies have recovered from both bankruptcy and junk status. Just ask Apple, which was nearly bankrupt when Steve Jobs returned to the company in the late 90's.

I hope this has been enlightening for you.

[kenshiro100]

Pretty interesting that anyone who says anything remotely positive gets a bunch of disagrees. Analysts have been preaching doom since the PS3 and Sony is still here.

If they make necessary changes, they'll be fine. But I forget, there are so-called analysts on N4G these days

[Kingoftherodeo]

you guys are banking on playstation as if thats all sony is. sure they could sell everything else and become just that a video game company but how many share holders want that. ps4 will do very well but that couldn't save the company. just like how the xbone could bomb and not sell well it won't kill microsoft. sure might kill the xbox division but it won't kill microsoft. sony isn't just ps doubt it will go down only time will tell

[jmtstan]

speculations bla bla.... here they said something about bankruptcy there pachter said Sony PS4 will dominate... who to trust?? besides I think Xperia phone is improving a lot nowadays....

[Setzer007]

If this happens my life will be ruined.

[mediate-this]

Sony will be fine, they need to cut what is hemmorraging them money. Ps4 is doing great they need time to to get to the black.

[OpieWinston]

Sonys entertainment division is bleeding them money. And they aren't stopping but investing further into it. Assuming they don't mess up future films like Amazing Spiderman 2 and X-men Days of future Past/Apocalypse.

Doesn't Sony lose around $60 off each PS4 console that is sold? They aren't gaining income from those systems YET but they aren't in the financial status to be playing this gamble with their finances. Their credit status is junk and they still haven't made a profit back on the PS3/Vita.

I don't mean to twist the truth at all, I'm just saying that PS4 has been successful. But it'll take sometime for that success to turn into profits especially since they still need to get it to all global markets @ a better mark up for profitability.

[Dannycr]

Wait... Am I on a gaming news site or is this Forbes? Why is this considered gaming news?

That's the whole problem with today's gaming, everyone is so concerned about numbers, sales, stocks, etc that they forgot the joy of gaming

[Tigan]

Goodbye Sony! Slowly but surely.

[Flames76]

No doubt everyone knows this.The PS3 has lost over 5 billion and the PSvita has lost over 2 billion.Now the PS4 takes a $60 lose on every consoel sold.Thats not even adding in the 3DTVs they took a hit on.Sony is in trouble they wuill be lucky to be around after this gen

[OpieWinston]

This isn't news. Sonys entertainment firm has been bleeding money and has made poor backing of films and has been losing a chunk of it's Television market to Korean retailers.

Playstation 4 has sold remarkable well, but they haven't made a profit off it. They haven't made a profit since PS3/Vita yet, and the PS4s success hasn't helped catch Sony up.

Their credit status has been "junk" and they literally won't have the financial backing to continue to support the PS4 with large AAA funding. This is one of the big things Mark Cerney wanted to push Indies being the future. Indies are cheaper and require less support then your average AAA. The only problem is the general appeal and profitability off a large indie basis of games points towards lots of micro transactions to compensate losses.

I just don't know about picking up a PS4 tbh, I know one day I will but I still haven't seen ANY games that pull me in. And this "news" further pushes me away from picking one up.

[kenshiro100]

Are you a gamer or an investor? Pick one.
Analysts predictions aren't set in stone.

[Cuders]

this is nothing to worry about, when push comes to shove sony will file for bankruptcy and the company won't end they have investors these banks can't afford to lose sony. Microsoft might even pick sony up if they fall (which I'm pretty sure they won't) Sony is a TV,Movie,Music,Gaming, Entertainment company!

[insomniacgamer]

lol

So, things like the PS4/XB1 selling 1k/minute on Amazon alone mean Sony is in trouble? I know they reported lower earnings and had some issues not long ago but you are this is hilarious.

Sony is a megacorp that has it's fingers in so many products that it boggles the mind. The PS4 is a huge success for them and has even boosted Vita sales. This article is straight garbage.

[Cuders]

Yes, All they need is a little bit of management consulting

[DoubleM70]

PS4 plays a small role in over all profit to Sony. Remember they also own a Major Studio company. I don't think it's hilarious they have been selling major things the past few years to stay a float such as Sony Headquarters in New York.

[insomniacgamer]

I read a bit more and found out about this as well as I was curious. I think though that no matter what the outcome of Sony is, the PS4 should remain safe. I say this because the launch was so good for it that if Sony did go belly up, I am hopeful that another company would snatch both it and the team up. This is coming from a guy that owns a XB1, but I plan on also buying the PS4 as well.

I hope Sony sorts whatever issues they are having out because competition in the industry is great for us as the consumer. I just do not want M$ to end up monopolizing the industry is all.

[mixelon]

Ooh, can we make bets? I bet Sony are still around, not bankrupt and doing fine in two years.

Remember Apple before Steve returned? Everyone was predicting it's doom too, and they were in terrible shape. The changes Kaz is making at Sony will go a long way to steering the company in the right direction, but it obviously wasn't going to be a rapid process. In 5 years Sony will be in a much better place than they are now, i suspect.

I should be an analyst.

[Mister_Dawg]

It's the way of the world. Only the strong survive.
Dreamcast says hi :-)

[dafegamer]

Sony was doomed since 2006 am i rite? /s
Seriously vidijagames journalism at a new low, always hating on both japanese companies for no reason

[MonkeyOne]

Sony and Microsoft have been losing billions since the end of the PS2 era on their respective entertainment ventures.

Many PC gamers were scratching their heads as to how Sony and Microsoft could release very powerful hardware (Xbox, Xbox 360, PS3)at such low prices and make money.

Now we know.

post-PS2 console profits are a myth.

[meday354]

Sony is in a twilight zone hope they pull through i wouldn't want then to go out like Sega.

[Dirkster_Dude]

Bankrupt isn't the same as out of business. And even if they do go bankrupt there is bankruptcy court, insurance, and so on. I doubt the average consumer will even notice unless told by news reports. And keep in mind this is only a possibility not a guarantee.

[amnalehu]

Further proof that just because it's on the internet, doesn't make it true. I DARE anyone to use this crap to actually help manage your investments.

[EffectO]

Sega was once deemed invincible too.

Times change...

[DoubleM70]

Sega was never deemed invincible. Believe it or not, but the introduction of Sony doomed Sega with the PS1.

[DoubleM70]

Sony problems over the years was high priced electronics and it still is. Stiff competition in Televisions computers and phones. Samsung LG and others have been making a better product. At a cheaper price. Instead being the Video game leader they split that with two other companies.

[TRGMatt]

It is worth noting that macroaxis.com used to hover around the 20,000 area on alexa's rankings and has recently taken a nosedive into the top 100,000 area. Alexa is, of course, a traffic data collector (among other things).

[STORK]

Wonder if assets in Sony's freezer making factory will be frozen

[Dfooster]

Not accurate as these figures don't factor in a forecast based on the projected success of the ps4 and the disaster of the wiiU as far asd nintendo are concerned for that matter.

[wannabe gamer]

Sony has been in this kind of trouble for years this is nothing new. their tv division and others are dragging them into the dirt and they refuse to give up. it has nothng to do with the playstation but everything else they sell

[Stevino321]

Sony may be lose money with the PS4 (60$) but that is countered with Ps Plus, Accessories, and Shares. Sony's stock is gonna sky rocket anytime soon, if the sell one of their divisions they'd be swimming in money. Give this a year and see how many PS4's are put out, then PS Vitas. Sony is going back to PS2 days.

[DinoNYC]

Sony makes their money as a conglomerate company through film and television...shows including big hits like Breaking Bad...I think they'll be fine. Playstation is a division that was slumping for the company but we all know the PS4 is killing sales and is the fastest selling console in history. So with that if playstation is the weakest link to Sony, then Sony will live forever.

[blakstarz]

Sony is way too diverse to even succumb to such a thing they are a electronics, game, movie entertainment and financial services industry.

[titans9999]

After the idiot writers typo in this article, I stopped reading and called bullshit!

[GoldPunch-TR]

No! Please, No! We love Sony :(

[tommygunzII]

.