Sony's debt rating cut to junk status by fitch, and what effect on playstation?

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joeorc

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Sony's debt rating cut to junk status by fitch, and what effect on playstation? - Thursday, November 22, 2012 12:42 PM ( #1 )
Fitch cuts Sony, Panasonic debt ratings to "junk" status
http://www.chicagotribune...121122,0,4593208.story

Opinion

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>
NeverEnding1989

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Thursday, November 22, 2012 12:54 PM ( #2 )
Wow. I've been predicting this on the main page for some time now (mostly to scare the fan girls), but its hard to believe it's actually happening. I think you're right that we'll start seeing other credit rating agencies following suit. 

They can sell off certain divisions, but I wonder how far away the shareholders are from selling off completely or from another company attempting a hostile takeover. Yahoo was in a much better spot when Microsoft tried to buy it.

Just to throw it out there, if Microsoft were to one day buy SONY we'd have a software and hardware giant perfect storm. But somehow I don't see the Japanese government allowing that.

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joeorc

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Thursday, November 22, 2012 1:10 PM ( #3 )
"They can sell off certain divisions, but I wonder how far away the shareholders are from selling off completely or from another company attempting a hostile takeover" 


In my opinion is very unlikely they would try that due to all the debt  and assets they would have to sift through. if anything this may bolster Sony to rebuy its shares from share holders and what shares are out there due to credit ratings view that Investing into Sony stock is not really viable.


thats the thing about downgrading the stocks value it has a negative outlook on the companies worth outside of the company themselves, many times the company will invest right back into itself, due to this very fact. if Sony turns things back to the black the value of the stock could be worth quite a bit more than when the credit agency's devalued the company.


thats what happens when you have to go at it alone, sink or swim, hostile take overs pretty much happen if there in not such a shape, in sony's case the market cap is way to low with the assets to value higher even though Sony has all of these asset's. but on the same token where would a company be if they had no faith in their own company. this bond sale was uptil 2017 that say's alot right there they raised the money because with 8 straight years of Loss Kaz already stated the TV biz, for Sony is no longer a core part of their company. Thus you can bet their reductions of 60% and then further sale of production lines and workforce are going to be done. with all the bad, the good part is Kaz will have less resistance to keep these cuts from not going through.


the playstation has not lost 8 years of profit in a row and is profitable. i doubt very much its taking anywhere near the brunt of these drastic cuts.
<message edited by joeorc on Thursday, November 22, 2012 1:15 PM>
NeverEnding1989

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Thursday, November 22, 2012 6:54 PM ( #4 )
It's a shame there aren't more responses to this thread. I was looking for this news on the main page and discovered that the community failed the story

LOL @ PS3 fans trying their best to ignore bad news. Oh, N4G...
<message edited by NeverEnding1989 on Thursday, November 22, 2012 6:55 PM>

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caseh

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Thursday, November 22, 2012 10:38 PM ( #5 )
NeverEnding1989


It's a shame there aren't more responses to this thread. I was looking for this news on the main page and discovered that the community failed the story

LOL @ PS3 fans trying their best to ignore bad news. Oh, N4G...


Thats because the article is about Sony as a company, it has sod all to do with the Playstation brand. If Microsoft started posting big losses or changes to their credit status would N4G really be the place to post the article just because Xbox is a Microsoft product?
 
theunleashed64

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Thursday, November 22, 2012 11:01 PM ( #6 )
NeverEnding1989


It's a shame there aren't more responses to this thread. I was looking for this news on the main page and discovered that the community failed the story

LOL @ PS3 fans trying their best to ignore bad news. Oh, N4G...


 
wasn't really gaming related.  i fail to see why it failing to be approved was a shame considering it was being or was going to be used for your trolling shannigans i'm glad it did.
and they say the gods of hell can't fall...yeah right
Tewi-Inaba

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Thursday, November 22, 2012 11:11 PM ( #7 )
theunleashed64


NeverEnding1989


It's a shame there aren't more responses to this thread. I was looking for this news on the main page and discovered that the community failed the story

LOL @ PS3 fans trying their best to ignore bad news. Oh, N4G...


 
wasn't really gaming related.  i fail to see why it failing to be approved was a shame considering it was being or was going to be used for your trolling shannigans i'm glad it did.

Could be gaming related if MS takes an extremely aggressive stance and announces their next gen console, although it has to be truly next gen; and force a new gen early. I mean, with limited resource that may force them to make a weaker next gen console maybe something close to the wiiu
OR a cell 2 console for 699.99 



Also
explain this
http://n4g.com/news/11260...by-gaming-on-batteries
<message edited by Tatsumaki on Thursday, November 22, 2012 11:15 PM>


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NeverEnding1989

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Thursday, November 22, 2012 11:23 PM ( #8 )
caseh


If Microsoft started posting big losses or changes to their credit status would N4G really be the place to post the article just because Xbox is a Microsoft product?


Of course! I'd want to know if my favourite gaming company were going out of business, wouldn't you? Not to mention these articles are routinely approved. Below are two articles from 2 weeks ago and from last February, completely different from the article that failed.

Sony's credit rating drops just above junk status
S&P Downgrades Sony’s Financial Rating

Now that this thread has appropriately highlighted the issue hopefully the mods will rectify. Seems clear the the community can't always be trusted. 






<message edited by NeverEnding1989 on Thursday, November 22, 2012 11:24 PM>

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Tewi-Inaba

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Thursday, November 22, 2012 11:32 PM ( #9 )
no wait...seriously wtf is this http://n4g.com/news/11260...by-gaming-on-batteries


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caseh

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Friday, November 23, 2012 12:25 AM ( #10 )
NeverEnding1989


caseh


If Microsoft started posting big losses or changes to their credit status would N4G really be the place to post the article just because Xbox is a Microsoft product?


Of course! I'd want to know if my favourite gaming company were going out of business, wouldn't you? Not to mention these articles are routinely approved. Below are two articles from 2 weeks ago and from last February, completely different from the article that failed.

Sony's credit rating drops just above junk status
S&P Downgrades Sony’s Financial Rating

Now that this thread has appropriately highlighted the issue hopefully the mods will rectify. Seems clear the the community can't always be trusted.

 
To be honest those articles shouldn't have been approved unless it specifically highlights the gaming division of the company being in the sh*t.
  
 
As for mentions of hostile take overs, not gonna happen. Sony will merge with another company before it goes that far. Sega, Tecmo and Namco have all done so in recent years to stay afloat.
 
Tatsumaki


no wait...seriously wtf is this http://n4g.com/news/1126071/scrubs-review-by-gaming-on-batteries


Scrubs the game for IOS by the look of things, oh yah mobile gaming is really decimating the console market with some hardcore titles yo! :D
<message edited by caseh on Friday, November 23, 2012 12:27 AM>
 
Tewi-Inaba

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Friday, November 23, 2012 12:29 AM ( #11 )
caseh



Scrubs the game for IOS by the look of things, oh yah mobile gaming is really decimating the console market with some hardcore titles yo! :D

Should I be more surprised that this is a game?
or that it scored surprisingly high?


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theunleashed64

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Friday, November 23, 2012 12:52 AM ( #12 )
Tatsumaki


no wait...seriously wtf is this http://n4g.com/news/1126071/scrubs-review-by-gaming-on-batteries


 
lol i have no idea what i saw but it's a head scratcher thats for sure.
and they say the gods of hell can't fall...yeah right
caseh

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Re:Sony's debt rating cut to junk status by fitch, and what effect on playstatio - Friday, November 23, 2012 2:35 AM ( #13 )
Tatsumaki


caseh



Scrubs the game for IOS by the look of things, oh yah mobile gaming is really decimating the console market with some hardcore titles yo! :D

Should I be more surprised that this is a game?
or that it scored surprisingly high?


A bit of both really 
 

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