5 replies to this topic

[Zinix]

Ratings agency firm Fitch has downgraded struggling firms Sony and Panasonic, citing "weakness" in both businesses.
Reuters reports that the New York and London-based agency has cut the debt ratings of the Japanese electronics giants due to weakening businesses, caused by fierce competition from rival firms including Apple and Samsung, as well as poor consumer demand.
In Asia, a strong yen, slowing growth in China and a volatile atmosphere between China and Japan -- where factories and goods have sometimes been targeted in political protests -- have also weighed in when downgrading both firms.
On Thursday, Sony was downgraded three points, from BB-minus to BBB minus. The credit ratings agency said that recovery, if attainable, is likely to be slow for the floundering firm.
"Fitch believes that continuing weakness in the home entertainment and sound and mobile products and communications segments will offset the relatively stable music and pictures segments and improvement in the devices segment which makes semiconductors and components," the firm said in a statement.
Panasonic has been downgraded by two notches, and has gone from BB to BBB minus due to poor cash flow and poor consumer demand for its display panels and television sets.
Sony's Q2 earnings showed the firm is slowly recovering, after losing $5.7 billion last year and $312 million in the first quarter. Panasonic may have a chance at recovery -- even though reports suggest it will let go a further 10,000 workers by March 2013 -- as it expects tablet sales to put the firm's display unit back into profit.
http://www.zdnet.com/ratings-firm-downgrades-sony-panasonic-to-junk-status-7000007777/

Slowly Sony continues to die.

[Press]

I hope they don't die. I want to see Sony change first, like Darth Vader. I have too many memories with Playstation and it would hurt if Sony stopped gaming production.

[Tricky Sonic]

I hope they don't die. I want to see Sony change first, like Darth Vader. I have too many memories with Playstation and it would hurt if Sony stopped gaming production.

The problem isn't with the Sony gaming brand...well...ok the Vita is hurting them....but these problems have been going on for a while thanks to weaker sales in Televisions and other electronics. Sony is notoriously over priced and in their restructuring they are focusing on a few top areas. I think they will bounce back...but worst case scenario if it really came down to it...if they had to shut down the consumer electronics division...and I doubt it would happen..they would probably keep the Playstation brand alive.

[CUD]

Sony's just a little sick but it isn't dying.

[SoldMyWiiUAndLeftTheForums]

They really need to sort themselves out, if it came down to it do you think they would stop thier consumer electronics or the PlayStation brand?

[Jeremygts]

I would think they would sell their PlayStation brand before shutting down their consumer electronics.
My reasoning is they have more to offer with TVs, computers, CD/MP3 players, and bluray players than they do with Playstation. Vita isnt doing anything to help. PS3 i suppose is doing well enough, PS4 might bankrupt them if they have to sell it for a loss. Why not sell it to someone else or... haha why not pick up that joint business venture with Nintendo where it left off back in the SNES days... That was a joke.