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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."

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piroh913d ago

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

NewMonday913d ago

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.

rambi80913d ago (Edited 913d ago )

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_Dawg913d ago

I'm still waiting for that day to come.

-Foxtrot913d ago

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

maddskull913d ago

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

Irishguy95913d ago (Edited 913d ago )

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.

shoddy913d ago

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

sonic989913d ago (Edited 913d ago )

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

mabreu913d ago

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

Just another doomy/gloomy speculation.

Giul_Xainx913d ago

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.

jgrigs09913d ago

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.

MrCrimson913d ago (Edited 913d ago )

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

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

HiddenMission912d ago

@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.

P0werVR912d ago

^

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.

LaChance912d ago TrollingShow
PurpHerbison912d ago

Whatever is liked the most will receive hatred.

QuickdrawMcgraw912d ago OffTopicShow
CAB1802912d ago

And Nintendo aswell, Microsoft deserves the hate

Buff1044912d ago

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

Joe913912d ago

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_G912d ago

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

metus912d ago

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

TheRevolutionaryCafe912d ago

What the hell revolution did they bring?

xboxjaun912d ago

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

pixelsword912d ago

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 addict912d ago

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.

showtimefolks912d ago

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

Death912d ago

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.

quaneylfc912d ago

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

VforVideogames912d ago (Edited 912d ago )

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

Mosiac77912d ago

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

BattleAxe912d ago

"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".

RedSky912d ago (Edited 912d ago )

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.

ChrisW912d ago

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

omi25p912d ago

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.

SecondSon912d ago

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!

zag912d ago

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

AndrewLB912d ago

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.

nukeitall912d ago

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?

Chrischi1988912d ago

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?

a_adji912d ago

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

mikeslemonade912d ago

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

pyramidshead912d ago

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 ;).

DJustinUNCHAIND912d ago

Revolution.

That's adorable.

THEMIGHTYDOOVDE912d ago (Edited 912d ago )

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

Pogmathoin912d ago

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

+ Show (46) more repliesLast reply 912d ago
joab777913d ago

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!

yellowgerbil912d ago

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

Death912d ago

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

ArronC07912d ago

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.

3-4-5913d ago

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_saab912d ago

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

pixelsword912d ago

The percentage is rounded up or down for our convenience.

khan_saab912d ago

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.

ramiuk1912d ago

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

MxRBrobaFett912d ago

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

Ps4Console912d ago

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 .

r1sh12912d ago

@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

Death912d ago

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...

Magicite912d ago

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.

kenshiro100912d ago

Analysts can't predict the future.

SilentNegotiator912d ago

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.

meatysausage912d ago (Edited 912d ago )

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

SilentNegotiator912d ago

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

ArronC07912d ago

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.