Fitch cuts Sony, Panasonic debt ratings to "junk" status http://www.chicagotribune...121122,0,4593208.story
what this may mean is if the other credit rating agency's also fall in line with this outlook on Sony , this will give kaz hirai more ammunition to make the changes he and the board of directors to put forth to fix their debt. the TV department has soaked 8 years of straight loss, the good news if you want to talk about any good news out of this is Sony will be quicker to cut off more areas of their company and that less resistance from the old guard to keep those cuts from making deeper trimming in short order of time, because the Credit rating companies are not waiting, and kaz hirai and the board of directors i doubt will be shuffling their feet after this
I think Sony is expecting further downgrades from the other credit agency's.
I would expect the other credit rating agency's are well on their way to downgrade the stock. that one advantage about this is, you know where you stand in the eyes of the public for lending, and you have to pretty much go at it alone, and that is exactly what they are doing.
the Viability of Sony platforms in game market to compete with The Nintendo offerings and Microsoft's offerings will be tough for Sony make no mistake about this, but on the same token it will bolster Sony's resolve for 1st party support efforts into their platform due to 3rd party publishers will see playstation as a more of a risk option for development.
With more with cutting off of areas where brand strength has taken such a massive hit in Sony's Value in this market Sony will concentrate on area's where there is profit, which Playstation is one of them.
What many may not want to hear is Sony may extend their wait now to release further the next playstation, and may now bundle the PSVita in with the PS3 in the mean's to extend time to release the next playstation.
Iin order to extend the PS3's and PSVita time on the market together in the market as a greater chance for increased profit over viability in the long run, In the market for Sony's outlook. Credit agency's may Down grade may have a negative effect for publishers to see Sony as more of a risk aside from 1st party efforts. Due to that rate downgrade, will lower some of that risk only for Sony 1st party because 3rd party development may see Sony as a risk.
In waiting to release the PS4 with reduced Hardware investment over time instead of all at once that may mean, waiting to further split money over time to cover R&D and release the next machine later instead of sooner now with this cut and by the same token expecting the other agency's to follow suit..
Sony can concentrate on their current platforms longer for 1st party efforts due to 3rd party may not.
<message edited by joeorc on Friday, November 23, 2012 4:00 PM>