Sony's Stock Plunges 11% Overnight

[algoat]

 

Sony shares plunged 11 per cent in Tokyo overnight while ratings agency Moody's has placed the Japanese firm's debt on review for a downgrade that could take it to junk status.

 

Sony said yesterday it was cutting its full-year profit forecast by 40 per cent after another disappointing quarter in tellies and game consoles.

 

http://www.theregister.co.uk/2013/11/01/sony_profit_stock_debt_rating/

http://www.theguardian.com/technology/2013/nov/01/sony-stock-tokyo-playstation-4

 

Sony is on the verge of getting their credit rating downgraded to junk status after they posted a net loss of  $197 million last quarter and because their forecast for the end of the year was cut by 40% which equates to $305 million in profit for 2013.  I just wonder if this profit includes the sale of their 2 buildings for $2.3 billion earlier this year.

 

http://www.theverge.com/2013/2/28/4041092/sony-sells-sony-city-osaki-tokyo-office-building-for-1-2-billion-as-part-of

http://www.reuters.com/article/2013/01/18/sony-building-idUSL4N0AN1NL20130118

 

Kind of surprising that their gaming division lost $8 million last quarter as well.  Sony claims that this was due to the cut price of its PlayStation Vita, although I'm thinking that it is most likely due to marketing and R&D for the PS4.  The gaming division might turn a little profit once they start selling games for the PS4, but it will be nowhere near enough to save the company as a whole and especially since they are selling the console at a loss.  They hope to sell 5 million units by March, hopefully there are enough good games released in that time to at least get the gaming division out of the red.

[Youbetternot]

Hmm looks like the PS4 Launch titles were not so good?

[Xorbot]

Sure, blame it on the PSVita.  Remember, Sony, you were the ones who decided to make it.

Better yet, how about you actually promote and support the PSVita from the beginning.  I am still never going to let go of the fact that you spent over 10 minutes on "Wonderbook" during E3 2012.  Please recall that you made a statement that the PSVita coverage was minimized because the conference was too long.  Yet you spent 10 minutes which equates to at least 10% of your entire conference coverage on Wonderbook.

 

http://www.youtube.com/watch?v=qFbYrN1bPJg

 

People mock and ridicule the PSVita, and you don't like it?  You deserve that treatment after how much you neglect things for other worse things.