100°
Submitted by Munky 3028d ago | news

Sony moves a step closer to junk; outlook "negative"

Fitch Ratings (a company that assesses the risk level of debt) announced today that they have downgraded several types of Sony debt to "BBB+" (the debt is still three notches above the dreaded "junk" moniker, however). Fitch also slapped a "negative" outlook on the debt, indicating that future debt downgrades are possible as "Sony's financial profile [continues] to weaken in the next one to two years." (Industry, PS3)

rj81  +   3028d ago
Let's take a look
At Sony's last 12 months. Here is where its profits came from (in millions):
Electronics (262.1)
Games 74.1
Pictures 232.5
Financial Services 1,596.1
Other 137.2
Corporate (156.8)
Total: 1,620.9

98.5% of Sony's profits come from financial services. That's right. Sony isn't an electronics company. It's a financial services company that sells electronics.
calderra  +   3028d ago
Wow. Sony had 1.6B in profits for the last 12 months? I thought Sony's movie side was bigger than their entire bottom line...

To note:
"For the three-month period ending March 31, 2006, [Microsoft] had income of $10.9 billion, which yielded it $2.98 billion in profits."

...in 3 months.
DJ  +   3028d ago
o_0
Huh. That's uhh...they're a financial services company?! I don't think anyone ever realized that. Where'd you find this crazy info?
SjaakHaas  +   3028d ago
Thats why they lack in customer service, they just dont spend there money on it.
rj81  +   3028d ago
It's called reading
I read their quarterly financial reports for the last 12 months (4 quarters). I know they fashion themselves as an electronics company, but the source of their profits reveals a different story.
rj81  +   3028d ago
Description of their Financial Services division:
Financial Services segment engages in life and non-life insurance, Internet-based banking, and leasing and credit financing businesses. This segment also offers various financial services, including savings and loans.
TheMART  +   3028d ago
Lot's of financing of their audio/video stuff probably in shops. So one can't do without the other I guess. Credit financing&leasing stuff.

But still. A junk bond it became almost dropping from 160 alltime high to 120, to under 40 dollars...
Bishop  +   3028d ago
Wall Street Journal
Since when did news4gamers become the Wall Street Journal and shift its focus over to company futures and bonds?

2.1 As far as customer service goes no one has a worse track record then Microsoft not even Sony. I have had to call MS for problems with Windows and problems with my 360 and their answer always revolves around the blame for the malfunction being someone else’s fault and they cannot really help me.

If I have a problem with my Operating Systems on any my computers I do better calling the manufacturer at least they will read from their book and try to help you fix the problem.

1.1 You talk about MS's profits but news flash it isn't from their console or any true electronic device but from their horrible operating systems "aka Windows" and the fact that MS runs a virtual monopoly and once had a monopoly with windows considering it is implemented on roughly 95% of all cpu type products MS is going to make more money then Sony.

However in game news today I managed to reserve a PS3 in May at Sam Goody and at Gamestop yesterday just in case one of the two stores decides to mess with my order. If I get both before Christmas then I will give my second one to my dad since he wants one and hasn't had time to reserve it.

Many companies have felt the sting of inflation and the lack of sales that have resulted from it these past few years and Sony isn't the only one who is hurting at this point in time but Sony has taken some pretty big risks and we will see how this pans out for them in the future.

At the end of the day as a gamer all I really want is a better console and games and if Sony can deliver this then thats all that really matters but we shall see.
TheMART  +   3028d ago
bull

My PS2 broke down just after a year because of a sh!tty DVD drive and back then we didn't have 2 years of warranty by law so I was f*cked.

Now with 360 it's 2 year full warranty. AND the service is great. People that send it in get it repaired or changed for a new one within one to two weeks.

Now that is called service. Sony can do months about a repair and charge you big time
kmis87  +   3028d ago
His comment about customer service was obviously about Windows, not the 360 and the 2 year mandatory warrantee law. You can't just say "bull" about having poor Windows customer service and then give an example about the 360.
ASSASSYN 36o  +   3027d ago
LOL
Die Sony Die!

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