"Sony has 78% Chance to Go Bankrupt in Two Years, says Macroaxis"

[TopWargamer]

http://www.technobuffalo.com/2014/01/02/sony-has-78-chance-to-go-bankrupt-in-two-years-says-macroaxis/

 

 

Here’s a quote from their bankruptcy probability tool for Sony Corporation.

Based on latest financial disclosure Sony Corporation has Probability Of Bankruptcy of 78%. This is 181.53% higher than that of Consumer Goods sector, and 168.71% higher than that of Electronic Equipment industry, The Probability Of Bankruptcy for all stocks is 121.29% lower than the firm.

 

I don't see this as a realistic number. Sony is doing pretty well, especially with the launch of their PS4. I just can't see them going bankrupt in 2 years.

 

Do you think Sony will go bankrupt in 2 years?

[Excon]

Yeaaaa, that's not going to happen.....

[Luc401]

Maybe

[helping]

uh, I can't really understand why they would

 

 

seem to be doing fine, they might downsize, liquidate, and contract, but not go flat out bankrupt. 

 

it sounds like one of those sensational clickwhoring articles 

[Altecice]

Remember that everything except the PS4 isisnt selling well for them

Each PS4 is sold at a loss (yes they make some back via online but remember they give away games left right and centre)

 

all possible

[AlwaysFSX]

Macroaxis is full of shit, since the PS4 launched Sony is just going to make money unless they really, really screw something up.

[naca1227]

If Japan can save companies like we can then no. I don't think Japan would let that happen

[ViruZ_HUN]

SO PS4 failed them?

[dlf]

And yet it's all doom and gloom for Nintendo regardless of what they do . . . .

[CoolBeans]

It is not going to happen, it might with everyone switching over to PC

[TheBLOODYTOXIC]

so Sony has a lot of patents like blurays, alots of tvs, lots of cameras, lots of things, why they would go in bankrupt?

[lufihengr]

so Sony has a lot of patents like blurays, alots of tvs, lots of cameras, lots of things, why they would go in bankrupt?

Exactly. They make money on every xbox one sold too don't they?

[dlf]

Exactly. They make money on every xbox one sold too don't they?

 

They probably make money from Xbox 1's sold through the blu-ray drive of the system.

[SSOB]

I can maybe see why , because the Japanse YEN is worth so much nowadays , the dollar in comparison isn't , sony recieves most of it's payments in dollars so if they have to convert that to YEN they have a big problem.

Also sony is in fact selling the PS4 at a loss , same concept with that they did with the PS3 , why do you think you get an immediate ban on PSN and Xbox LIVE if you try to hack the console to play illigaly copied games , that's where the money's actually in , that's another reason why console games are so expensive in comparison to PC games. We shall see. Very interesting tho.

[EChondo]

it sounds like one of those sensational clickwhoring articles 

Nail on the head...

[mr moose]

The numbers are good, the math is good, what most of us fail to understand is the mechanism behind what keeps a large company afloat.  For the most part it is a large and healthy multi-billion dollar profit. most of us are used to working with thousands even tens of thousands and for the odd business owner hundreds of thousands in turnover. but when you are trying to balance an electronic sector in the millions and billions, one under performing product can cost you almost as much profit as that entire sector makes so it can get quite precarious.

[JAKEBAB]

Quick sony make a 4k tv with a ps4 built in for 2k or less

[algoat]

I believe it. Sony as a whole is in horrible shape. Their gaming division is doing ok, but not great. They make the most profit from selling insurance, and that's a fact. Last year their credit rating got downgraded to junk status. Last year they sold their Tokyo and US buildings for about $1.2 billion each and barely turned a profit those quarters. They've been in the red for over 5 years in a row now. I'll get more into it when I get home.

[mr moose]

I believe it. Sony as a whole is in horrible shape. Their gaming division is doing ok, but not great. They make the most profit from selling insurance, and that's a fact. Last year their credit rating got downgraded to junk status. Last year they sold their Tokyo and US buildings for about $1.2 billion each and barely turned a profit those quarters. They've been in the red for over 5 years in a row now. I'll get more into it when I get home.

were did you get your info from? stock market reports?

[James_AJ]

you know something is seriously bullshit (I know I didn't sensor the word) when the same report indicates that Nintendo has only 22% chance of failing within next 2 years. Yeah... they weren't there to predict RIM falling down, their name is seriously small and their reports most likely not credible and why are we trusting a shady company's report based on obscure, unknown research, if any, in which they are just posting BS to get attention and money?

[mr moose]

you know something is seriously bullshit (I know I didn't sensor the word) when the same report indicates that Nintendo has only 22% chance of failing within next 2 years. Yeah... they weren't there to predict RIM falling down, their name is seriously small and their reports most likely not credible and why are we trusting a shady company's report based on obscure, unknown research, if any, in which they are just posting BS to get attention and money?

The numbers are good, Macroaxis is an investment and analysis  company and as such have to make sure any figures they publish are accurate or they leave themselves wide open for litigation.   Having said that, the interpretation of these figures and what they mean are as open to debate as the meaning of life.  According to the fine print the figure 78% is not solely for bankruptcy but is the chance of getting into financial trouble including bankruptcy.  it's like a worse case scenario for nervous investors.

[kuddlesworth9419]

uh, I can't really understand why they would

 

 

seem to be doing fine, they might downsize, liquidate, and contract, but not go flat out bankrupt. 

 

it sounds like one of those sensational clickwhoring articles 

It's only Playstation that is keeping Sony going. All of their other products are not doing very well.

[Derangel]

They probably make money from Xbox 1's sold through the blu-ray drive of the system.

 

No, they don't. Why do people still have this silly notion that Sony invented and owns Blu-Ray? They did not and do not. Blu-Ray is owned by the Blu-Ray Disc Association. The format was created and funded by a number of companies including Sony, Panasonic, Samsung, Hitachi, and others. The BDA controls everything to do with blu-ray, including licenses. Sony is but one of 18 other controlling members of the BDA. Sony does not see a single cent from royalties on blu-ray players or BD-ROM drives, they get royalties on the discs themselves which very likely only amounts to a few cents per disc sold. It is a large amount of money, but nowhere near enough to save Sony. Sony is actually paying $50k per year to maintain it's position in the BDA.

[algoat]

were did you get your info from? stock market reports?

Actually for some of it, yes I did.  You can check their reports here: http://www.sony.net/SonyInfo/IR/financial/fr/.  You can pick almost any quarter from the reports and see a loss.  Pick almost any quarterly report for the last 5 years and look at the operating income (loss).  Fortunately they did make a profit in the latest quarterly report.  If you don't want to go through all of that financial mumbo jumbo, then here's a little snippet

 

2013 $435 million profit actually $167 million loss so far

2012 $1.01 billion loss

2011 $3.13 billion loss

2010 $439 million loss

2009 $1.01 billion loss

 

Here's references to their buildings that they sold:

New York building sold

Tokyo building sold

 

Sony credit rating being downgraded to junk status:

http://online.wsj.com/news/articles/SB10001424127887324352004578134442734112194

Junk status again...

 

Here's an excerpt leading up to the final article:

 

Total Liabilities as of June 2012:  (Source)

 

Total liabilities are the total amount of all financial obligations (short term and long term) of a company.  This includes all creditor claims on company assets.

 

Electronic Arts Total Liabilities: $2.27 Billion

Google’s Total Liabilities: $21.33 Billion

Apple’s Total Liabilities: $51.15 Billion

Microsoft’s Total Liabilities: $54.91 Billion

Sony’s Total Liabilities: $135.61 Billion

 

Sony has more total liabilities than Microsoft, Apple, Google, and Electronic Arts combined.

 

Total Assets as of June 2012: (Source)

 

Total assets include cash in the bank, property, accounts receivable (money owed to the company), equipment, and inventory.

Google’s Total Assets: $86.05 Billion

Apple’s Total Assets: $162.90 Billion

Microsoft’s Total Assets: $121.27 Billion

Sony’s Total Assets: $166.22 Billion

Now these results are over a year old, Sony is actually closer to $127 billion in liabilities but assets have gone down to $151 billion today.

 

If you want a good read of the dire straights that Sony is in, then this article sums it up: http://www.notenoughshaders.com/2012/09/08/the-ten-year-decline-of-sony/

 

edit:  I made a big mistake in the 2013 profit.  Sony actually has a loss of $167 million so far

[algoat]

It's only Playstation that is keeping Sony going. All of their other products are not doing very well.Actually

Actually, Sony's most profitable division is their insurance department.  Next is Devices then Sony Films (sometimes) and then music and then gaming division.