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Outlook is negative for Sony and PlayStation

by William Schwartz on February 9, 2012


The Standard & Poors ratings agency has downgraded Sony’s corporate credit and debt ratings due to cut-throat competition and falling demand for the company’s products in their core businesses.  “The outlook is negative,” according to S&P.  The well regarded ratings agency sees a strong recovery for the company highly unlikely, and has warned that further downgrades could be looming for the electronics giant.

If you’re wondering how this effects Sony, these credit ratings play a large part in how Sony finances its projects.  Whether that be new technology in televisions, consoles, or any of the other wide stable of products that Sony offers.  It makes borrowing money for the company, much harder.  With less investors interested in the corporate debt of the company because of the inherent risk associated with buying their corporate bonds, a downgrade makes life harder for the company in an already difficult economic environment.

The company recently appointed Kaz Hirai to head up the company as the CEO.  Hirai affirms that there are many problems facing the electronics powerhouse.

“I have a very strong sense of crisis about the environment surrounding us,” Hirai said at a recent news conference.  “We cannot be afraid to make painful choices for the future of Sony.  Our rivals and the operating environment won’t wait for us,” he told reporters.

Hirai is known for his ability to right the ship.  He turned around an ailing PlayStation business, implementing cost cutting measures that put the division within Sony back on the track to profitability.

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  • blazeup

    as long as they keep making consoles and games

  • Allen

    3 things that will never happen.

    (1) Sony will never close

    (2) Playstation will always be around

    (3) Sony will always have an extreamly large presence in the film industry.

    I do think they need to make steps in cutting off unprofitable divisions; What they should do is just find a way to lower the cost of their televisions & increase the technology of their awesome playstation TV (3D; 2 seperate images for each player). I would totally splurge for a 42-46″ version but 32″ is for me at least only big enough for a computer monitor.

    Of course what Sony should do is support a mildly agressive terrorist group to start blowing themselves up in m$ lobby. That would be perfect. At least their gaming division.

    They can even start booby trapping 360 games; fking blow those dumb fking xbots up

    • Cool dude

      You seriously have to settle down, no ones talking crap about Playstation and stop talking crap about us.

      Anyway, Yeah the outlook looks very negative right now. Even though the revenue of Sony has increased YOY, the Profit was one of the worst since 2006. All I know that Sony cant take another 2 billion loss.

      Allen, relax, the gaming division is probably the last one that they would drop if they go bankrupt.

      As for your Number (1).

      Every corporation can tumble, no matter their power. Odds can turn against them.

      Take note of GM, they used to be one of the largest companies to manufacture cars back in the early 2000’s. However, the American government had to support them with $700 billion dollars just to keep them going for another year. If it werent for that funding, they could have been bankrupt.

    • RedRing

      Fear not Allen, in a stroke of great fortune, you may be able to help the company by having a Sony product probe your most private of places:

      http://www.bloomberg.com/news/2012-02-09/sony-seen-restored-using-chips-in-market-fighting-disease-tech.html

      ;-)

    • Anonymous Tom

      Awesome. First negative thing about Sony and Allen starts having a anxiety attack, and starts ranting to cover it….

  • Trevor

    Hope sony makes it, but I have some doubts after seeing Kodak, blockbuster, and blackberry, self destruct

  • troll

    Looks like poor allen is butt hurt

  • njb

    Dont joke

    Yh i Know this is Attack of the fanboy but if Sony end up dissapering then how will other companies & businesses manage to stay afloat. and the gaming industry would just flop without Sony around.

    i dont care if u dont like the playstation but without it gaming wont be the same. All the inhouse devs, all the japanese & Asian Devs would just more or less dissapear.

    The gaming industry would never be the same if Sony fell through.

    Anyone would agree

    • Cool dude

      Ohh you mean like SEGA? When they dropped out of the console industry, I dont think anything changed.

    • Allen

      Boo, fk you cool dude. Bla ha ha; na; I tell ya what. I’ll keep attacking xbox and you can STFU. you don’t got nothing against playstation and you need to accept that the console you love and cherish is a POS; everyone in the entire world gets a bigger and better deal than you. You have stuck with them through a lot of $hit and honor is a good thing but fking give it up dude. Xbox freaking sucks and you know it.

    • Max

      Well we know there will be an Xbox 720, but if Vita fails and they continue to lose billions, who knows if there will be a PS4

    • Reace

      Bla hahahaha.. what so funny about a raging fanboy?

      Anyway to the point of this reply already, Ill no longer argue with you because theres no point. Try arguing with a person who copy and pastes.

      And if I know that Xbox sucks and I still support it, does that match? No. I support Xbox because I prefer it and I dont think it “sucks”.

      I dont even know why you waste your time here when you can just play with your all mighty playstation.

    • Cool dude

      Reace makes a point there.

      I mean, why would I support a system that “sucks”?

      Well I wont.

      I support Xbox and I will continue to pay for premium services whether you like it or not. I support Xbox because I dont think it “Sucks”.

      Or whatever you want to copy and paste with….

      You can continue to waste your energy to convince me or ,anyone if that matters, that Xbox sucks but like you, I dont think we can convince each other.

      You can continue to rage if you want, but I actually enjoy seeing you waste huge amounts of time and energy on to trolling.

      Xbox All the way!!! More Features!!! Better ONLINE!!!!

      Did that make you angry?

      Well, be my guest and write a freaking book if you want to.

      Or just copy and Paste XD

    • Allen

      it doesn’t affect me at all that you are a blind supporting dumb fk. You are the one that gets pissed on. superior my fking ass; think that all you want. You are the dumb fk stuck with it.

      No exclusive, no blu ray, no browser, pay to play, no features, expensive upgrades, crappy controllers, less of everything

  • crapBox_PleaseFixMe

    with the economy and everything not so good right now, it could happen to anyone. the only reason ms is getting by is because the wallet rape every year from xbots every year for something that’s free, faulty hardware sales, and the lack of games, and hardly no features (until you to pay $50-60 for year haha then you’re allowed to get netflix). they scam kiddies out of their money and what’s there to show for it? there’s no quality, cheap hardware, lack of features. i know this is attack of the fanboy too and this will most likely get deleted like any other non xbot comment but it’s sad to see businesses like microsoft getting by scamming people of features, games, hardware, etc

    • Raven

      Wow, so PSN costs nothing for Sony to run? All the tech support, security, and features are free?

  • SKIN503

    Microsoft should stick to windows

    • Allen

      Fk n A to that

    • Reace

      Hrmm microsoft should stick to windows because Xbox has slashed the Playstation brand by 46% since the last generation?.. Dont bother with your Copy and Paste Allen. Bla ahahahaaa

  • troll

    Get out of your moms basement and take a look at the world around you Allen. I hope Sony doesn’t go under, but if they do its because the of the state world economy, not ms charging for xbox live. Idiot.

  • Trevor

    I know there will be a 720, ps4 though, starting to look doubtful

  • AllOfYouAreDumb

    All of you guys shut up. XBOX and PS Fanboys. Both products are failing. MS scam kids for useless features with XBL and their failing consoles and PS’s software support is not as strong as PS2. Sony and MS will still be here…but internationally Sony still has the edge.

  • IHATEHIPSTERS

    Looks like xbox finally beat the playstation. Its the law of the jungle, the top dog survives. How are those skyrim lag and bf3 voice issues treating you allen?

  • njb

    @cooldude

    SEGA messed its fanbase and consumers around. they released 3 consoles in quick succesion. If they stuck with one and supported it then it would have worked. The Genesis, Saturn and Sega CD in less than 10 years.

    Thats why the Dreamcast flopped. Not because its terrible but because the fanbase was pissed. The Dreamcast was lightyears ahead. People to this day still lay PSO(Phantasy Star Online) and its a MMO thats played on a 56kb connection. Dreamcast was amazing but Sega couldnt even give them away for free.

    Sony make a Console and stick to it for years. PS1 & PS2 10 years each.

    I can see what you mean if Sony do what Sega do. But it wouldnt work. The playstation is good for games that wouldnt normally do well or seem different. Lil big planet and for example.
    Plus Sega have rap3d Sonic to death. Nintendo deliver with practically any Mario game because its good. So many recent Sonic games are just Bad in every way. Especially design.

    Il take the old skl Sonic’s anyday

  • Lacerz

    I hear Sony’s putting the funding for the next PlayStation on Kickstarter.

  • Raven

    It has to be stressful being a sony fan, negative articles almost daily and the only good articles are ones about fixing issues like skyrim or battlefield.

  • abc

    i dont give a sh!t about these “HATERS” ill support sony as it has been good to me and thats it. no long boring list allen used to do. bottom line there are people like me who support sony and not really b!tched about anything else. haters gonna hate and talk trash but it wont matter. ill would still be playing.

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