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Sony shares slide as investors look beyond cost cuts

Sony Corp (6758.T) shares fell nearly 7 percent in their biggest tumble in a year after the electronics maker disappointed investors with a cautious forecast and worries mounted the euro could dull the pace of its recovery.

Sony, which once ruled the game and electronics industries with the PlayStation console, Walkman music player and Trinitron TV, is also struggling to regain its reputation as an innovator of hit products, clouding its long-term prospects.

Chief Executive Howard Stringer receives high marks from investors for cutting much of the fat out of the sprawling conglomerate through a series of major restructurings since the former journalist took the top job in 2005.

"It seems to me they're barely managing to keep up," said Takeshi Osawa, senior fund manager at Norinchukin Zenkyoren Asset Management. "In the past they often developed new products with which to compete.. but at this point it seems they're just sort of making one product after another."

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fantasygamer2651d ago ShowReplies(8)
ravinash2651d ago (Edited 2651d ago )

The troubles with the Euro will effect everyone, so its not surprising that Sony would take a hit.
But this news is more about the investors returns. As long as PS3 is making money from either its console or the games, it think its safe to say they will keep the games coming.

NJShadow2651d ago

Man, this when I should be buying shares of Sony stock because I know they're gonna bounce back big time, especially with the PS3 really starting to hit its stride. Plus, with the new management, I think the company is finally going to take control of what has been a rather sporadic past couple of years.

RageAgainstTheMShine2651d ago

...things will be a okay.

Believe.

divideby02651d ago

down one day up the next day, the markets are very volalite even with companies with good financials and outlooks, I dont read to much into this varainces if the company has a good finanicals

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