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

[mr moose]

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 so far (end of fiscal year is in March 2014)

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:

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/

I thought as much, this means the figures I had of 5% return on assets and a 0.9% profit margin aren't far off.

[martinrox1568]

I love all the people saying sony won't go bankrupt because . . . whatever reason. What most people don't realize is that even a highly success company can go bankrupt simply from the things that happen behind closed doors/ that we don't know/understrand about. I'll admit one thing, and that is that I have  NO idea how the stock market works. Sure, I know the basics like many people, but beyond that, I'm clueless. But the people who made the article have a greater chance of being true simply because I have no idea how a company actually turns a profit/ goes bankrupt.

[Phillyphries]

They are worth waaaaay too much money and they are doing well in the console market and are getting a little bit better in the smartphone and computer department. They'll be alright.

 

EDIT: Having read all those posts... Damn they lost a lot of money the past 5 years, damn

[EricX2]

Sony as in the console market may be doing OK, but Sony itself is a huge company and their playstation division is probably a drop in the bucket as far as how many people they have and how many products they make. They are a very diversified company, like Samsung and other manufacturers.

 

I'll be honest, I don't know much about sales but from what I see on a day to day basis, it sure doesn't seem like they are doing well in the mobile market. I never see Sony phones. Same with TVs and computers. At least with the people I know, nobody goes for Sony products anymore. But that is like 5 people, so I'm just making stuff up...

[Phillyphries]

I don't know, if ever there's a product that I need, and it's a between Sony and let's say Samsung... If they are around the same price, I'd get the Sony usually. I just prefer the quality, but they are so so expensive and that's probably how they fell behind

[dizmo]

It's nice to see that some people actually follow companies and know what state they really are in instead of saying "oh, they make a good console so they must make tons of money".
I was too lazy to go find the losses they've been having lately. Sony was very close to filing bankruptcy a few times. It's been in headlines for years.

 

To those who still think that sales of PS4 and phones matter a great deal, think of it this way. You have to factor in the tens millions that it cost them in R&D, as well as the cost of the hardware itself. They make next to nothing on the hardware. I think this is the first console that Microsoft is actually making a few (literally, I think it's around $50) dollars on.

[qwertywarrior]

i really doubt japan will let a giant will fall

[Derangel]

I don't know, if ever there's a product that I need, and it's a between Sony and let's say Samsung... If they are around the same price, I'd get the Sony usually. I just prefer the quality, but they are so so expensive and that's probably how they fell behind

 

There was a time when the Sony name ment something on eletronics, when they were worth the premium. That isn't really the case anymore. Companies like Vizio radically altered the TV market, pushing good sets down into really affordable prices and helping push the HDTV boom that happened a few years ago. Sony, Samsung, and the other major plays saw huge rewards during that time and got it in their heads that they could keep charging a premium. The problem was, once everyone replaced their CRTs and rear prections they stopped buying new TVs. Sony and other companies pouring billions into failed products like 3D and OLED has not been helpful. Some companies learned, Sony continued to be arrogant across the board and still refuses to drop their premium even when the market clearly demands cheaper devices.

[dizmo]

There was a time when the Sony name ment something on eletronics, when they were worth the premium. That isn't really the case anymore. Companies like Vizio radically altered the TV market, pushing good sets down into really affordable prices and helping push the HDTV boom that happened a few years ago. Sony, Samsung, and the other major plays saw huge rewards during that time and got it in their heads that they could keep charging a premium. The problem was, once everyone replaced their CRTs and rear prections they stopped buying new TVs. Sony and other companies pouring billions into failed products like 3D and OLED has not been helpful. Some companies learned, Sony continued to be arrogant across the board and still refuses to drop their premium even when the market clearly demands cheaper devices.

 

3D, I agree, complete and utter waste. OLED on the other hand I think will sway people. It will allow for a difference you can see. Much thinner tv's. If the consumer can see a great improvement they're much more likely to purchase the product. 3D was hard to implement, didn't work with everyone (it gives me headaches, for example) and overall wasn't that well implemented. Who wants to wear glasses in the house all the time?

 

OLED will be the next important step for tv's. 4k, not so much. I read a blog someone made, and he compared it like this: 4k is like getting a shiny new set of tires on your 80's Civic. OLED 4k is like getting a brand new BMW.

I just hope they stop making them CURVED. We can't hang that on the wall, LG.

[DefinitelyNotAPedophile]

PC the dominant race

[techie]

Mo While I know absolutely nothing about their inner workings, I think that on the consumer side, they have made significant inroads in getting their act together. Their New vaio pro ultra books are slim, sexy and reasonably priced machines, their console division has been making all the right decisions in their ongoing battle against MS, especially in the new generation, and their TV's are starting to get the quality back to them, as well as a reasonable price. I walked into my local jb hi fi (AUS electronics store), and was surprised to see that their 4k sets were cheaper than the Samsung variants (off of the top of my head) had a better picture (as far as the in-store demo showed), and had a much sexier design. They are certainly acting like a company that really wants to be here for the long term. Let's just hope that the engine room can keep on going. It would be sad to see Sony go. Even then, I'm sure that they would just sell off some of their many arms, maybe their mobile, or camera divisions.

[Aleppi]

it sounds like one of those sensational clickwhoring articles

^^This

[kuddlesworth9419]

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

I didn't know that Sony did Insurance. Maybe they should stop everything and just focus on that and game consoles.

[Derangel]

3D, I agree, complete and utter waste. OLED on the other hand I think will sway people. It will allow for a difference you can see. Much thinner tv's. If the consumer can see a great improvement they're much more likely to purchase the product. 3D was hard to implement, didn't work with everyone (it gives me headaches, for example) and overall wasn't that well implemented. Who wants to wear glasses in the house all the time?

 

OLED will be the next important step for tv's. 4k, not so much. I read a blog someone made, and he compared it like this: 4k is like getting a shiny new set of tires on your 80's Civic. OLED 4k is like getting a brand new BMW.

I just hope they stop making them CURVED. We can't hang that on the wall, LG.

 

The big problem with 4K, 3D, and OLED is simply that most people are not going to buy them no matter how they look. The reason for the big HDTV boom was because it was time for a lot of people to replace old TV sets. Costs were down to incredibly cheap levels, "HD" cable was widely avalible, and the economy was having a little rebound. Companies like Sony, Samsung, and LG seem to believe that if they push hard enough people will rush out and buy expensive new TVs to replace the ones they just bought, but the average consumer really isn't going to do that. Maybe in 5-10 years we will see another TV buying boom, but right now all this new tech and changes in screens aren't going to make much of an impact.

[ACatWithThumbs]

They're doing really bad with TV,Tablets,Phones, and Computers.

But there is no way that they're going bankrupt.
They still have Playstation.
They own Columbia Pictures that makes movies like The Amazing Spider Man.
They are on of the leaders in movie equipment as well as 4K equipment.
And they are doing pretty well with they're sound equipment.
And they own a part of Blu-Ray.

[ForsakenLive]

This numbers could be accurate, but they talk about how Sony is doing today (loosing money for each PS4 sold). But you have to see Sony on 2014, the earnings of their new console start now. And there is also many products from them coming this year.
Sony will not go Bankrupt.

[Canoas]

The problem is that big companies like sony are not interested in the short-term gain, it's the long-term that matters. Losing 3 billion now to make 5 billion in the next 10 years is a viable startegy.

[Derangel]

This numbers could be accurate, but they talk about how Sony is doing today (loosing money for each PS4 sold). But you have to see Sony on 2014, the earnings of their new console start now. And there is also many products from them coming this year.

Sony will not go Bankrupt.

 

The attach rate for the PS4 would have to be huge for that division to make up for the losses in other areas. The ONLY divisions of Sony doing well right now are insurance sales, movies, music, and gaming. Everything else is failing or just not pulling the profit they need. They have good smartphones but their name isn't Apple or Samsung so it really doesn't matter. Their consumer electronics division is not doing so hot, TV sales are kind of abysmal and have been for a few years. Sony put huge amounts of money in home 3D development and that has been a massive flop. Their pushing of OLED displays hasn't done much either outside of the Vita (which that have ceased using OLED in now) and some smartphones. Sony could very easily go bankrupt. They are in danger of it and they need to make some big changes and big cuts.

[Mooshi]

If Sony goes down, I wouldn't care.

 

Samsung makes better displays, if you want the most gaming muscle you play on PC, disc media is dying so blu-rays are whatever. It's not the 90's anymore when Sony was literally everywhere and all the cool kids had Walkmans.

[flibberdipper]

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?

But remember, Nintendo has been around since the early 1900's, so they have been known about for a longer period of time.

[JAMlE]

Can't see them going bankrupt any time soon

[Tocsin_786]

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.

i read a Article back when the PS4 was released. sony has a $18- $23 profit on each PS4. unlike the ps3 where they lost hundreds

[SSOB]

i read a Article back when the PS4 was released. sony has a $18- $23 profit on each PS4. unlike the ps3 where they lost hundreds

Yes profit in dollars , but due to the Japanese Yen ( Currency) being extremely high ( 100% growth over a period over 1 year : 2012-2013) But still , sony wont go bankrupt.

[mgsstar]

I think in terms of TVs Samsung seems to be taking over Sony so if they don't sell enough consoles ( this being their main thing imo) they will be bankrupt.

[Yasri]

To the people wondering why Nintendo has such a lower % chance of going bankrupt. It is because they are sitting on a eight billion or so dollar warchest, and are posting profits quarterly. They only had one quarterly lose in over 30 years, and while it was in the last few years, it paled comparing to the profits from the quarters before and after it. So while the WiU has been weak for them, it will not kill them.

To put that into perspective, Microsoft is somewhere in the neighbor hood of five to ten billion in the red from the original xbox thru to the xbox360. And they are still throwing more money into that blackhole now with the xbox one.

 

Sony for the PS3 is several billion in the red overall still. Add in lots of loses in almost every other department. While the company may not burn down, there is smoke coming out of the windows.