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Deathwatch - will the Sony Empire fall in 2009?

We, at Bitterwallet, hesitated in adding a global manufacturer like Sony to Bitterwallet's Deathwatch list; it's all very well predicting the End of Days for Woolies and PC World, but not one of the best recognised brands on the planet, surely? Until you look at some of the facts and figures haunting the Tokyo-based company right now:

Sony have today announced plans to make 5% of its electronics workforce redundant - about 8,000 jobs
From July to September, the Japanese economy shrank nearly five times faster than Government predictions
Sony's profits fell by 90% in the last financial quarter, while warning that full-year profits would be down nearly 60% on the previous year
The company's share prices has dropped from over $57 at the beginning of the year, to just $20 today

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pp3266d ago

Yes Yes Yes it will fall i am so Excited and all this due to PS3.Hahahaha theirs only room for one console (xbox360)in this world.

callahan093266d ago

What a foolish sentiment. Why do you cheer at the prospect of a multinational electronics and entertainment corporation falling apart? This is bad news for the industry, not good news. This is bad news for thousands of people who will lose their jobs, for even more people who will lose money on their investments in this company. The entire notion of a one-console world will stifle innovation through a lacking of competition and incentive to push boundaries.

solidjun53266d ago

...but a group of individuals. You are efficient at your form of trolling.

3266d ago
PeptoBismol3266d ago

i hope all you 360 fanshits get raped by a horse

tomfoolery3266d ago (Edited 3266d ago )

GO SCREW YOURSELF YOU LOUSY CORPORATION.

BYEEYAYE

MS and NINTENDO FOR THE GAMING UNIVERSE!!!!!!!!!

likedamaster3266d ago (Edited 3266d ago )

PP, you should have went epic with that statement somewhere along the line of...

SONY EMPIRE DOOMED!(2009) 16,000 FIRED..CONFIRMED!!!

LOL

+ Show (4) more repliesLast reply 3266d ago
PirateThom3266d ago

Will the Sony empire (which includes numerous electronics, music and movie outlets) fall in 2009?

lol, wut?

ps3Owns3603266d ago

you guys are really stupid,this is also affecting microsoft as well.why you think 360 only have gears 2,left 4 dead,and fable2.BECause of the economy.its affecting everybody microsft cannot afford making more games in there studios.ps3 will still have its lineup 09.and 360 still will have its dead long games.

Graphics Whore3266d ago

HAHAHA, ARE YOU SERIOUS. This will only get approved by the haters.

Nineball21123266d ago

Actually, I approved it and I'm pretty sure I'm not a PS3 hater.

Both sides of this stupid flame war need to chill out. It's okay for people to have opinions.

I think the article is wrong, but people are allowed to have reasoned opinions.

Nothing bad will happen if this topic is discussed, I promise.

chaosatom3266d ago (Edited 3266d ago )

PS1????

PS2????

WTF????

Most of the Companies are going to Fall if Sony does.

Graphics Whore3266d ago

If you think the article is wrong then why are you approving this. School taught you nothing eh?

Le-mo3266d ago

Don't forget the Walkman, CD, Tape Recorder and well...you get the point. Another pointless article.

RussDeBuss3266d ago

TV's as well. even if they may not be the best, ask some1 that isn't that clued up which tv's are the best and i b et they will say a sony

Nineball21123266d ago (Edited 3266d ago )

Haha... yeah, school taught me quite a bit.

Especially about the topic of critical thinking. You know, the concept that other people might have opinions. Heck, you might even disagree with their opinions, but that's okay.

There's even a new thing out called persuasive arguments, wherein (now try to grasp this concept) people take different sides of a topic and try to change perceptions of people holding opposing views of the topic. Yeah, I know!! Pretty radical stuff, eh?

Anyways, I agree that all of the intentional FUD is reprehensible and pathetic, but sometimes people have legitimate differences of opinion and it's nice to have mature conversations about them. At least, it is to me, but then again, I try to have an open mind. Look that phrase up sometime, maybe it'll "open your mind". Oh, the irony of it all.

Edit: And just to prove my Sony fanboy street cred, I believe that Sony will be around making gaming consoles as long as gaming is a market. Sony's Empire is HUGE and it isn't going away anytime soon, and you can quote me on that.

Of course, that's just my OPINION which I hope I'm allowed to have.

AAACE53266d ago

What the hell is this?

Sony cuts a few jobs and now people have them on a death list?

Sony isn't going anywhere! They have taken some losses just like every other business during this financial rut, and are taking steps to offset the issues they are facing! It is wrong to think they are going to go bankrupt or anything!

Graphics Whore3266d ago (Edited 3266d ago )

You're clearly aware that this is fud, you're just helping stir the pot. There is no critical assessment or thinking processed here before or after the article was written. It's just flame bait.

If you are as smart as you say you are than you wouldn't have approved the article, you obviously have a goal.

The article has no tangible evidence other than stock shares, OH NO, a multi billion dollar Company isn't doing the best. Guess what Microsoft was at the same place when Vista debuted, did they go any where clearly not. This article isn't in the realm of realism, it's written by an Xbox Live rodey who thought he had a shared opinion, clearly it is biased and clearly it is fud.

Light Yagami3266d ago

Poor PS3 fanboys can't accept that Sony is an epic failure this gen.

SL1M DADDY3266d ago

It's the new "news".

Is it just me or is anybody else tired of the FUD being spread lately?

Anon19743266d ago

But at the same time, not a lot of positive news out these days, is there? It's not that there isn't anything positive going on, it's just that it isn't reported by anyone.

For the record, I think this article is 100% incorrect. The job losses were part of an expected restructuring that Sony has been undertaking for awhile now. These losses don't kick in until 2010, which some would argue won't come soon enough but that's another debate.

Analysts expected electronics sales to slow but are still predicting an increase in Sony's revenue stream for 2009. Sony's stock is down exactly the same as the entire market in general, and then it's taking a hit on the foreign exchange between the yen and US dollar. The fact that this article takes that share depreciation and translates it into a reflection of Sony as a whole is staggeringly inaccurate.

Having read Sony's financials and gone through a few analysts reports just in the course of my work, I find it hard to believe that the author can take a couple of recent news articles, throw in two bits of sales data and on that predict a company's demise without actually turning to one of the many professional research articles out there that predicts Sony will simply be making a little less money this next year compared to the last two years. That's a far cry from predicting a company's demise.

bushfan3266d ago

Sony is a giant..tv, cell phones, video cameras, tv's, blu-ray, and the entertainment division where PS brand it is.
there are a lot of companys cutting jobs. everywhere, anywhere, not only sony.

JsonHenry3266d ago

My prediction on the future of Sony?

1 - They learn their lesson and develop a console with more standardized parts that is much easier to code for and less expensive to develop for.

2 - They will mimic whatever MicroSoft's current online abilities are, as well as charge for the service.

3 - They will OVERTAKE the handheld market with the next PSP due to superior graphics and online abilities compared to the DS and the next Nintendo handheld.

4 - They will make the next console so that the sale price vs price of manufacturing the console close to even. Which may mean the next console will not be such a huge leap in performance as this generation had over the last, or just charge more for a more powerful console.

5 - The Sony "empire" will not fail. It will restructure its business model to reflect lessons learned with the PS3.

Nineball21123266d ago (Edited 3266d ago )

They have some valid points (even though I disagree with their conclusion).

Here are the main points that I thought were interesting and deserved to be discussed:

* Sony have today announced plans to make 5% of its electronics workforce redundant - about 8,000 jobs
* From July to September, the Japanese economy shrank nearly five times faster than Government predictions
* Sony’s profits fell by 90% in the last financial quarter, while warning that full-year profits would be down nearly 60% on the previous year
* The company’s share prices has dropped from over $57 at the beginning of the year, to just $20 today

Now, those are verifiable facts. That's not FUD. You might not LIKE those facts, you might wish they weren't true, but they are facts.

Again, I don't believe Sony will fail as a company because of those facts, but that doesn't mean I can't hear out their view on the matter.

Grow up! The world doesn't always revolve around your view point of things.

You know if I'm pissing off both system's fanboys, I'm must be doing something right.

Graphics Whore3266d ago (Edited 3266d ago )

The only validity found in the article is stock shares and cut backs, there's a recession happening if you aren't aware, this is happening to every company. Look at Microsoft's stock low's they are lower than Sony's does it mean anything? NO it's just following trend.

There is no view to this it's just flame bait and you got trolled. I'm not a fanboy by the way but this is clearly one of the most poorly written articles and it's a god damn laugh that you got sucked in by it.

This has as much truth behind it as Hitler being a nice guy.

You know damn well you're just trying to cause restless debate on a feud that doesn't end. For future reference log off before you decide to approve crap.

BTW Last quarter Sony's Gaming Division made profit.

Anon19743266d ago

Well, that stock depreciation isn't reflective of anything. All stocks are being punished equally and this will continue until the economic data starts clearing up the confusion regarding how deep a recession we're looking at. Good companies, bad companies, they're all being hammered.

Sony's revenue drop comes from two things, slowing consumer spending and a massive change in the yen to US dollar price. Still, Sony is forecast to make over 2 billion in profit for their fiscal year ending March 09. The job cuts didn't surprise anyone (in fact, Sony's stock is up 4% today on a generally negative day) as Sony had announced months ago that they were restructuring to save costs.

Sure all these things are facts, but without context behind them they're rather meaningless.

Nineball21123266d ago

OMG!

Put on your big girl panties and deal with it. Life isn't all about what you think is fair.

If the story is so freakin' antithetical to your belief system, then don't comment on it, let alone click the link. Problem solved... Take your own advice: For future reference log off before you decide to read articles that don't match your one sided world view.

Again, I don't even disagree with you that the conclusion of the article is wrong and full of crap, but if you can't handle opposing views, you're in for a rough time in life. Good luck with that.

Sony will be fine. This conclusion of this article is wrong.

Now, you can stop holding your breathe because you didn't get your way.

Killjoy30003266d ago

No company, Microsoft nor Sony. will all of a sudden just "Die." It's not that simple. If they were backing out of the game, why would they throw so much resources at PS3? It just doesn't make any sense. This article is worse than the idea of Microsoft buying Sony Computer Entertainment.

Nineball21123266d ago

Darkride posted: "Sure all these things are facts, but without context behind them they're rather meaningless."

Right you are, bro. And look, you were able to refute/add context to the points that were posted in the article. And, based on your responses, now other people have that information available to them.

Thanks for the information.

Anon19743266d ago

Helps me get through the work day.

XxZxX3266d ago

if Sony is going down, like Fujitsu, the Japan government will bail sony out. So Sony will not go down in flames, IDIOT!!. If you think you are smart to write a death watch, at least do some freaking research first.

Danja3266d ago

wow So because Sony decides to cut a few jobs and close a few factories they're on there death bed...

Every major corporation has been feeling the effects of this crappy economy..

I guess EA is gonna close down soon since it's cutting alot of jobs also..

this article fails...so badly

acedoh3266d ago

Probably nothing... Because despite the PS3 losing on the consoles produced they are still making a profit. The PSN is a massive profit center and is an incredible revenue maker for this generation. Along with continued success of the PS2 and PSP I don't think SONY will hurt it's shining light. If you look at game sales they have been continuing to rise which shows that the game market is still a safe bet in this harsh economy. I think SONY will probably refocus some of it's efforts and in the end run be a much better company...

Lombax3266d ago

You beat me to it... but anywho.

"Sony simply isn’t famous for anything in particular, and hasn’t been for years."

Pfft...

I guess being famous for everything is bad for a company.

phosphor1123265d ago

called "report as f**king stupid"
..honestly...

LeonSKennedy4Life3265d ago

No, they won't charge for the online service. That's a HUGE draw to the PS3...and it will be for the PS4 as well.

prowiew3265d ago

Like I said in other post. The layoffs will continue through 2010. Sony really is not the company that was before. In this tough times, people are looking for alternatives. Sony is still selling their electronics stuff at premium prices. You can buy a Vizio with the same quality as a Bravia $500 less. You can buy a HP or Acer laptop with same specs as a Vaio at much less money. Mp3 player they cant compete with apple, not even 2nd or 3rd place. The two things they are doing really well lately, is playstation brand and blu ray. Of course they will not go out of business, but the future is looking tough for them. My opinion is they really need a change of focus at their electronics, dropping prices and make it more accesible to regular consumers. My2cents

+ Show (24) more repliesLast reply 3265d ago
Daver3266d ago

loll another useless article.. why would it takes 1 year to one of the biggest electronic company to fall?

Capital G3266d ago

no it took 2 year

november 17 2006.

Anon19743266d ago

Man. Get informed. You're embarassing.

Pennywise3266d ago

Is he embarrassing because he is an uninformed troll or because of what he looks like in his avatar? I think both.

ElementX3266d ago

I think Capital G is cute :)

phosphor1123265d ago

why aren't your bubbles gone yet? you are dumb..I swear, all you do is flamebait

+ Show (3) more repliesLast reply 3265d ago
LittleBigKillzone3266d ago

I know most here are worried about the gaming division but dont worry, sony's gaming division as a whole is one of the most profitable divisions for sony so its not going anywhere. Sure they will struggle for a few months or so but I say once the Obama administration takes office Jan 20th and gets to work, i say by late summer to early fall we will see some improvements in the economy and Sony will be just fine.

Think about it, usually when a game company fails they dont announce huge upcoming titles coming out the next year. I mean they are heavily pushing Killzone 2 for release in a couple months, they heavily announced Uncharted 2 and God of war 3 for next year. So sony knows that the Gaming division is still very profitable. Now if they didnt announce any games for next year then id be worried, but the fact they are announcing all these great games is a sign there is no need to be worried about the gaming division

snakeater33266d ago

why do you think obama can save the world ? not even jc can save us now ....we have to endure the pains as the financial crisis permeates in the real economy....id say we need another 12-18months to see thiss mess through

majorsuave3266d ago

Yep, they will be fine once they are sold to some North American corporation, be it Activision, EA, Microsoft or Google

LeonSKennedy4Life3265d ago

You think Obama's going to do something to improve the economy? He's been destroying Illinois with Rod Blagojevich (who was arrested earlier today) for a couple of years now. What makes you think he's going to be a good president?

Wait...don't tell me...The Daily Show made fun of Bush so much that it seemed like Obama was a super-intelligent human being? Obama's a tool for the democratic congress. We're EFFED!