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Sony's reputation is taking a few hits

The Japanese electronics company has been hit with a string of embarrassments that have dented its reputation for quality.

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MoonDust6267d ago

I'm still waiting for the stock to fall all the way down. It's at 37 and still going down.

tatical6266d ago

Its 37, wow! I remember when it was 330, talk about slip 'n slide!

dantesparda6265d ago

Um its called "splits", you should look it up! When stocks split they their prices and cut in half or more! Sony has done it at least twice since 1985. Though the stock is down from the 40's where it has been all year. The battery reports really started to hurt it as more companies started issuing recalls on those batteries. But that's how Wall St. works

TheMART6267d ago

Once the stock was on 120... Imagine that. A company in problems I smell

kmis876267d ago

Well once Microsoft's stock was at 60, but now it's well below 30 if my memory serves me right. MART, you're no business analyst; you're not a stockbroker. You don't know what you're talking about.

TheMART6267d ago

Ah and you do?

Man you don't even know what I do in stock and what not.

Let's say this. Yeah the shares of both companies had an old time high around the year 2000. Sony's stock even was worth 160 dollar once. MS at that time 60 dollars indeed. But falling from 160 to less then 40, or from 60 to around 30 that's a whole other story. Sony's share has 25% of it's original value back then, MS still has 50%.

You want to have info about how they're doing my friend? Here you are:

Sony:
Financial HighlightsSales 64.40 Bil
Income 1.36 Bil
Net Profit Margin 1.80%
Return on Equity 5.34%
Debt/Equity Ratio 0.36
Revenue/Share 59.90
Earnings/Share 1.36
Book Value/Share 26.65
Dividend Rate 0.21
Payout Ratio 15.00%

Microsoft
Financial HighlightsSales 44.28 Bil
Income 12.60 Bil
Net Profit Margin 28.45%
Return on Equity 28.56%
Debt/Equity Ratio 0.00
Revenue/Share 4.21
Earnings/Share 1.20
Book Value/Share 3.99
Dividend Rate 0.40
Payout Ratio 29.00%

Now there you go. Satisfied? Also knowing that Sony is loosing about 600 million dollars every quarter already for years now? Just took a multimillion dollar bank loan for the first time in 10 years because they couldn't finance the PS3 adventure and the BR gamble? Do you? I know more about it all then you will ever know mate

kmis876267d ago

I know that if Sony was "loosing" [sic] money every quarter that financial statement wouldn't show a profit of any kind. I made no claims to be any sort of business analyst, all I said was that you are definitely not one. You're just an idiot fanboy. Get over yourself, go play your 360, and stop with this all of this pointless hating that you do.

TheMART6266d ago

Did I ever say I was a stockbroker? But I do have some insight in it actually.

Did or didn't I was right that Sony is a company in distress? The company is having problems never seen before AND:

BluRay as well as PS3 are both big gambles. The biggest gamble is having BluRay IN the PS3. That's gamble on gamble.

If both turn out to not bring up what they predicted (and loosing another massive 3 billion dollars on every 10 million PS3's sold and yes I know they have to make it up by selling games and so, but still they have to invest first. And you know the attach rate of the original PS2? 1.9 games per console at launch? 360 had 4.5 games per console at launch? See what I mean?), Sony is not doing well.

If they ever were on the edge of a cliff, it's today. And you'll agree. If not, you're just plain dumb

kmis876266d ago

Do you even read your comments? "Did or didn't I was right that Sony is a company in distress?"....What?

First: "The company is having problems never seen before" There have been recalls before, recalls that were much more detrimental to business, in fact. Remember Bridgestone-Firestone? They had to recall millions of tires that KILLED people. And yet, somehow their company survived? And they're company's not even nearly as diverse as Sony; they make tires that's it. So, for some reason, I don't understand your recall=inevitable collapse point.

I also don't agree with you that the ps3 is a gamble. It has an enormous prior install base, and if half of them return to the playstation brand then Sony will be perfectly fine. Also, bluray in the ps3 isn't really a gamble. Even if bluray isn't adopted it's not like it suddenly makes it worthless. It's still a GAME console, that can play GAMES and the format wouldn't make a difference.

Sony makes money on every game sold for the ps3, and on every bluray disc sold. Also, the ps2 and 360 launch attach rate depends on the games not the hardware. The ps2 is generally regarded as having a very weak launch lineup, while the 360 had a fairly strong launch lineup. Wait until November to draw conclusions about ps3 software sales, MART.

So I don't really agree with your premise, MART, that Sony is teetering on the edge of a precipice, ready to plummet to their bankruptcy. I just don't see that happening here.

SomeAnalyst6266d ago

developers will lose half of their incentive to release and optimize games for the PS3. The real problem with Blu-ray for gaming is that PS3 will lose half the titles that could be released if PS3 was around $400. Kissing off 1000 to 2000 game titles is a problem even for those who can scrape up $600.

dantesparda6265d ago (Edited 6265d ago )

People if you look at the companies stock (Sony's and MS's) they are both flat/sideways (or if you prefer, in a "trading range") since 2001! So both companies have been performing on par stock wise with each other. The Sony stock is more volatile than the MS stock, but that also makes the MS stock more boring. If you want a very slow moving, but fairly safe stock than go with MS, but dont expect to make much money fast. If you want a stock that could yield you more money, but is also potentially more risky than go with Sony's. But that's how stocks usually work. If you go with the safer stock than you tend to make less money. If you go with the riskier stock, then you then to usually make more. MS is basically a monopoly too, in its field, where it virtually has no competiton and controls its field. Whereas Sony does not! they have real competitors. So of course Sony is in a more volatile situation. But MS can also get hurt too. Just look at the last earnings report where MS dropped from $27-29 to $23, and has since slow clibed back up there (to $27, but mind you has taken about 3 months), because of the loss of money from the XBOX360. Yes thats right, because of the XBOX360. Remember that these companies sell you these systems at a loss, and the more they sell the more they are losing, but they make up the loss through the sale of games. But they still reported a loss and said it was due to the cost of producing the XBOX360. So I guess that they werent able to sell enough games to make up for the loss on the system.

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PS3 Ultimate6267d ago

I remember going to GameStop, I went with my friend because we saw a rare PS1 game we wanted to buy. ''And I played it before and it ROCKS!'' ''Valkyrie Profile'' And when I showed the cashier the case of the VP, he said ''Dude, that game sucks! Get an X Box with Halo! Are u gonna buy that crappy PS1 game?'' The thing is my friend had ALREADY owned an X Box with Halo and he got bored from it and pawned it at a pawnshop. So my friend took the dude's word for it and returned the game. After we exited GameStop. I told my friend ''Why the f*** did he listened to him?! I told my friend that I had played the game for myself and that the guy was BSing him! So my friend went back in there and bought the game. After we were leaving, the guy was whispering stuff behind our backs sa that we are complete morons for buying a PS1 game? That I have played and enjoyed? My friend was angry at them for trying to FORCE products that my friend does NOT have enough money for and does NOT have any interest in. And all of this happened in 2 years ago which was in 2004! And this was before I knew about fanboyism. I never knew about fanboyism at that time. You see we Sony fans may defend and say our product's better, but atleast we don't try to FORCE people to buy it. We don't go in a store and tell someone, dude that 360 game SUCKS! And this is TRUTH!

DEIx15x86267d ago

That's the key word! They will always try to sell you something that costs more no matter what it is. If you walk into a store to buy a max $20 game from years ago of course he will try to convince you that you are dumb and should buy a whole new system for one higher priced game. That is his job! Go to Best Buy if you don't want that!

Mikey_Gee6267d ago

I can't wait for my PS3, but for real ... that picture IS FRIGGEN' AWSOME !!

Hahahahahahahahahahaha

PS3 Ultimate6267d ago

Do you have a Yahoo, MSN or AIM screen name? If so, let me know. My sn for Yahoo is LinkinSwordMaster and for AIM its LinkinFury2005