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PS4 won’t solve Sony’s wider problem, say analysts

The city remains largely unimpressed by Sony’s prospects as an investment after this week’s PS4 announcements.

Seeking Alpha advised its readers against buying Sony shares, saying: “What investors really need to consider is what they are getting when they purchase a share of Sony. A very poor balance sheet, and a chain of losses reveal that not even the PS4 can stop Sony’s slow decline.“

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majiebeast1248d ago (Edited 1248d ago )

Again with the mobile and tablet bullshit taking over the market dont make me laugh. If that does happen i quit being a gamer cause i dont see shit like temple run 2 and angry birds as games, and neither do a lot of pc/console gamers.

Analyst=Crazy homeless person who gets put in a office to make up bullshit for Crack and Meth.

CyberCam1248d ago (Edited 1248d ago )

Are these the same "ANALysts" that have been helping Wall Street rape the US & the world of all it's wealth? Yeah, like I'm going to listen to these idiots!

They're the same ones that tell you to put your money here and six months later your investment capital has magically vanished, and they have bought a new Ferrari!

nukeitall1248d ago

That is because people are ignorant enough to listen to the wrong advice. Do you listen to everything the sales agent tell you in the store?

That said, I think it is pretty much universal that Sony is in deep sh!t and PS4 will only bring them closer to that with even more ongoing losses while they make it a loss leader as an investment into the future.

Same type of investment will happen to MS, but they have a very profitable gaming division and plenty of cash in their coffers.

@majiebeast:
"Again with the mobile and tablet bullshit taking over the market dont make me laugh."

The article if you would have read would have known they don't talk about tablet/mobile at all. The analyst didn't specify, but their point was that Sony narrowly marketed their console towards core gamers, while the industry has moved forward.

My guess is they are talking about broader strategy encompassing casuals, core and hardcore, as well as other forms of entertainment than gaming.

Basically, they are saying hardcore gamers are a niche market relatively speaking.

dcbronco1248d ago

These are the same analyst that trick people into losing their life savings in the market. But that doesn't mean you have to ignore the information you are getting. There is some truth to what they say about Sony's problems. Short-term. But long-term the PS4 goes a long way toward making things right again.

Analyst usually rip a company in the press to chase the Average Joe away from it so that their insider friends can buy it cheaper in a couple of months. Then they tell the truth, the stock price goes up and they sell the stock back to the Average Joe at a higher price.

Sony still may need to sell off some things. Maybe even a division. But the PS4 should bring in a billion plus a year profit in a couple of years. There's no way they can say that's not a plus.

Cupid_Viper_31248d ago

But Sony also makes tablets and Smarts phones, plus the PS4 is specifically made to interact with Tablets and smart phones. So I'm not sure I get where those so called analyst are coming from.

kwyjibo1248d ago

No, the drug of choice for the analyst is cocaine, snorted off a stripper's body.

None of that downmarket crank nonsense.

fluffydelusions1248d ago

I'd hate to live in a world where the only games to play are toilet games on a touchscreen.

MikeMyers1248d ago

They won't be but it's evident that you can no longer release a system that only caters to the hardcore crowd and expect huge financial returns. The console business used to be a very lucrative deal but now it seems they have to support all kinds of applications and other social revenue sources. Why do you think bluray was such a big deal on the PS3? It was to make sure bluray was the new format which could have trickle down effects for Sony. They also have their hand in the movies, they also sell TV's and so on. Trouble is other companies like Samsung came in and took over the TV department while Sony lost lots of money.

So it's true, the PS4 may not solve all their financial troubles but Kaz is taking the right steps in making sure Sony doesn't go under. He knows that Gaikai has to be a key partnership that has the potential to have a great reveue stream. He also knows having Playstation on more devices ups the chances of returns. That's why they partnered with Android too. They are looking to expand gaming.

user39158001248d ago

People dont get it and most of them never will, if you dont have stocks and have a healthy portfolio into the upfront future, than its all failure.

Its what happened to sony, they invest on competition market that has too much entry and therefore, the market become saturated.

Sony has products that many companies are building up with better products, Trademark of sony its no longer a most have and the reason their shares are garbage.

I see sony loosing ground every year for the past 7 years, and they are correct even with the so call gaming division been healthy or not, they will loose revenues.

Out of the major gaming divisions, MS, Nintendo and sony, Sony has the most potential for chapter 11.

dcbronco1248d ago

I think Nintendo would be the most likely to file for Chapter 11 if we're talking gamin only. Microsoft is making a ton on gaming. Sony should be fine over the long run with the PS4. But the Wii U doesn't look like a good option. Not only will it look outdated almost immediately by the PS4 and 720. But as the years go on the others will distance themselves even more. The pad doesn't really offer anything the others don't have, but the others have power that can't be overcome.

+ Show (1) more replyLast reply 1248d ago
cleverusername1248d ago (Edited 1248d ago )

Yeah best they just quit now and declare themselves bankrupt huh? Sony stock went up after the show!!

Gimmemorebubblez1248d ago (Edited 1248d ago )

No it didnt, it sled nearly 2 percent because as, majiebeast said, those stupid analysts kept bringing up mobile games as the future.

Why do you guys disagree with fact!
http://www.tradingroom.com....

cleverusername1248d ago (Edited 1248d ago )

Up 2.42% I read , also up 26% over last year!

Zefros1248d ago

if you had done a bit research you would know that it was a false article. It was reported a increase not a decline.

Anon19741248d ago

I knew it was only a matter of time before some analyst popped up to take swipe at the PS4.

And you know what, it's all true and should surprise no one. Just like Microsoft, Sony's game's division generates such a small portion of each company's overall revenue, the entire division could disappear overnight and investors would hardly blink. While new tech is sexy to focus on for articles because it attracts public attention, a new console cycle doesn't amount to squat in the face of Sony's larger problems. The truth is the game division contributes something like 5-7% of Sony's overall revenues. The camera division generates more.

Sony's doing what they need to do in terms of restructuring but they're still only halfway through this process and it'll take years before we will see the end results.

A win for one division isn't going to turn the company around, and no one said it was going to. That's why I'm surprised to see analysts pissing on the PS4 announcement like this. "The PS4 won't save the company!" Who said it would, jackasses? Of course it's not going to single handedly reverse Sony's fortunes.

If Sony announced a new stereo receiver line or camcorder series, really any new, single product line you'd never see analysts weighing in on that one product by saying "That camcorder won't save the company!" The difference is the PS4 has people's attention and has people excited, and where there's a party, there's always a pooper.

d0nT wOrrY1248d ago

Here we go again. It's the doom days again. I don't get it, why we have to listen to those "ANALysts" all the time?

clintagious6501248d ago (Edited 1248d ago )

I hope the ps4 sells well like the ps2 so these guys can regret it.

Edit: Could u imagine if angry birds was the kind of games the gaming industry turned into. Id quit gaming.

contradictory1248d ago

now we have Wii U, PS Vita, AND PS4 doom articles.
i really hate these...

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