Why Sony needs to stop drinking its own Kool-Aid

Sony is in deep trouble. The company has been forced to slash its earnings forecast by 57 percent amid deteriorating economic conditions and its inability to compete more effectively in markets throughout the world.

Of course, Sony will still post a profit--most analysts claim that it'll be about $500 million--but the downturn speaks to Sony's issues and the fact that this once-dominant company has been downgraded to an also-ran in the industry.

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godoftime5266d ago

O YEA!!!!!!!!!!!!!

....oh, and good story.

Montrealien5265d ago

and the fantarts act like hey have won anothe stupid battle. The minute one console is the one to rule them all, we all loose, as gamers. You guys would undestand that, if you where gamers, which you are not.

Sir_Ken_Kutaragi5265d ago

Welcome to 'Negative News 4 SONY'!!!

"deteriorating economic conditions" Er YEAH!!! FOR EVERYONE!!!

NegativeCreep4275265d ago






dukadork5265d ago (Edited 5265d ago )

could we spare some ridicule and forever declare cnet as SPAM?

i know it gives xbots giggles in their pu$$ies but it also gives them premature ejaculations

GiantEnemyLobster5265d ago

More fail from you is predicted for the future? Dang. Things NEVER look good for you and your precious little ps3.

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enjoi1875266d ago


they could borrow some money from Microsoft LOL

ReBurn5266d ago

I guess that it's tough to escape the effects of this global economy.

fishd5266d ago

and we all know how that turned around...

ReBurn5266d ago (Edited 5266d ago )

I hope it does turn around. The difference is that it isn't the gaming division alone that is causing the most recent problems. At that time the PS2 had just been released two months earlier and Sony was still suffering from the hit of the R&D costs. The PS3 has been out for two years and has already gone through two price reductions.

What's happening now is that the broader economy has been slashing revenues across the whole company. If people have to choose between buying food and paying rent or consumer electronics then they are going to choose food and rent.

Also, this article was written before the severe economic downturn later in 2001. I'm afraid you're comparing apples to oranges.

sajj3165266d ago

great find fishd! Bubbles up for research! Its like PS2 all over again! Remember how that turned out?

PimpHandStrong5266d ago (Edited 5266d ago )

things will turn around

the world economy will rebound

within the next 5-10 years!

2009 is going to be very hard on the poor and the middle class! Im middle class...own my own home and stuff! I didnt want a bailout! I wanted to see what happens when it hits rock bottom!

Let those ppl on Wall street die! Let them go from making 500,000 a year to making 150,000! How hard life must be for those ppl huh! FUKN thiefs! Everyone FUKN one of them

LastDance5266d ago

wow.....maybe we should all be adult and just brush past this.......piece"journalism "..........Do the funboy's at Cnet know how lame they are?..

I dont even think 360 enthusists buy this crap.

GrandTheftZamboni5266d ago

From fishd's link:

"Microsoft has proclaimed that it has learned from Sony's PlayStation 2 glitches (for one thing, it is going to let outside companies make most of the components)"

You learned well, M$. That worked out great for 360!

SL1M DADDY5265d ago

Very similar. In fact, I remember that time so much it feels like it was yesterday. Kids like to look at all the FUD and cry fanboy when in all actuality, this will once again just show us that Sony is being run by perfectly capable leaders and in this time they know what needs to be done to make it through a global recession. Only reason it gets any press here is so that those that do not know anything about the market can shout - "Oh Sony is going down like Sega"!

Yeah, sorry but Sony is as strong today as they were then and they will be around for longer than say... Chrysler?

Montrealien5265d ago (Edited 5265d ago )

when did the PS2 launch again? In NA, 2 months prior to that forbes arcticle. How long ago has the PS3 been available wold wide with these kinds of losses?

I want all of the big consoles to be contenders and make for a competitive market so we can have great poducts from all of them, but some people here need to stop drinking Sony`s Kool-aid also. The reality is they are loosing lots of money, and unless they start outselling he competition by leaps and bounds and sell like the PS2 did in the next year or so, they will have to rethink the way their gaming division works.

GrandTheftStreetcar said..

( Microsoft has proclaimed that it has learned from Sony's PlayStation 2 glitches (for one thing, it is going to let outside companies make most of the components)"

You learned well, M$. That worked out great for 360! )

It worked great for the Xbox, the 360 was a whole other pile of sh*t mistakes though. the oiginal Xbox was a great piece of hardware, to think otherwise it simply lack of knowledge.

SQWERCH5265d ago

The author of this article is a JACK A$$, every single article talks about the bad points of Sony. He does not understand that Sony made the market to what it is today simple as that.

moparful995265d ago

Mont I think you need to quit drinking your own damn kool-aid... This sudden earnings downsize isnt because of the ps3.. This is prime example of a story being spun out of control and turned to fill the agendas of sony hater... It was stated that sony's earnings forecast was reduced because japan depends on export to run their economy and with americas being the largest consumer its hurting the economy so every major company in japan is hurting.. I like how this and other articles are blaming the ps3 solely for these problems....

Montrealien5265d ago (Edited 5265d ago )

Youre right Moparful99 the PS3 is recuperating its cost, 2 years in...

The PS2 was making money 2 years in, if not, feel free to prove me wrong. The PS3 and the playstation brand as a whole is a big part of sony now, has been for a while. I wan t it to succeed, and honestly, I believe that in the long run it will, but I won t turn a blind eye to the fact that it is not selling 200k more in NA a month over is competitors like the PS2 was doing.

ultimolu5265d ago

...Not this f*cking site again...

CNET should drink their own Koolaid, take a backseat and kindly shut the hell up.

RemmM5265d ago

Nothing is going wrong with the economy. Its just that there IS evil out there, and that evil is those rich bankers. They are the ones who control the money and want to collapse all economies of the world so that they can draw us into THEIR new economic system which is a microchip implant. The illuminati are the ones who are destroying the economy. More Americans will be losing their homes from now and so on. Its because our OWN fear will make us slaves. We keep believing these stupid leaders. Its OUR fault for letting this happen. WE are ALL screwed unless we stand up and do not comply with the system. The illuminati control everything. Tv is only a mind control box. SNAP out of it people! And don't go saying that I'm paranoid because you're only going to become a slave if you deny the truth. Companies are going bankrupt. EVEN Microsoft will go bankrupt and people will have NO choice but to accept the new world economy of slavery and mind control. SO STAND UP!

ravinash5265d ago

It covers a lot on industries from electronics, entertainment and even finance.
I think if any company can come out the other side, its sony.
It did have a bit of a hard time in recent years in its general trade but it had been turning things round.
And with its new technologies like the Cell and Blue ray, the electronics part of Sony have positioned them selves as best a possible going into the current climate.


gamer journalists are retarded.....everyone knows you must spend some money to make money.

1st ps same thing happened.
ps2 same thing happened.
its not a surprise that its happening now.

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Mr_Potato_5266d ago

CNET is owned by Microsoft. Next article, please.

navyguy215266d ago (Edited 5266d ago )

CBS owns CNET!! NOT Microsoft!! Why does everyone think MS does??

La Chance5266d ago (Edited 5266d ago )

Here you go

This article is from a site not owned by MSFT.

ruibing5266d ago

I don't care about who owns CNET, but I am sick of this Don Reisinger guy. A good majority of his articles are either biased against Apple or Sony.

kevnb5265d ago

except nintendo and sony

HowarthsNJ5265d ago

"Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET."

SL1M DADDY5265d ago

He is just a blogger so take his word with a grain of salt and nothing more. I would have to say that his more positive review of the Flowbee Haircut System slightly tarnished his reputation as anything credible... lol

Electricear5265d ago (Edited 5265d ago )

Cnet owns ZDnet as of 2000:

Microsoft formed a, "Online and Print Media Alliance" with ZDnet in 2006:

That means Cnet formed at least a partial alliance with Microsoft. So it doesn't matter if CBS owns Cnet. As long as Microsoft has an online alliance with Cnet, Cnets agenda has to be called into question. This also creates a problem with Gamespot and Metacritic as they are also owned by Cnet. Again as long as Microsoft has a, "Online and Print Media Alliance" with them none of these sites can be wholly trusted to be unbiased.

here is a Quote:
"'We believe Ziff Davis Game Group is the ideal industry partner for Microsoft as we advance the Windows platform and Games for Windows initiative,' said Rich Wickham "

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Silogon5266d ago

Yup, yup and yup... Can't argue with logic and intelligence when you're in a sea of stupidity. Why, cause it's so radically different it's gotta be right.

5265d ago