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Sony: Now Moody's downgrade too.

Forums - Sony Discussion - Sony: Now Moody's downgrade too.

knew sony were in bad shape but not this bad



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kowenicki said:
Reasonable said:
Not a surprise and mostly deserved. Sony are a company that arguably got itself into two many areas of operation and lost focus to less diversified competitors, particularly when the economic crisis hit.

Now they just seem at a loss how to proceed despite having a lot of good core assets and a decent brand to work with.


They do now seem to have somewhat of a startegy... to shrink.. but this is in direct contradiction with their other aim of better synergy in the style of Apple.

I see they are now starting to move manufacturing abroad to get away from the ever-present Yen issue (bit of a double edged sword that one though - quality may suffer?) and they are reducing their product lines.

BUT... then they go and persist with TV's (lost cause) and buy up Sony eric.  Problem is they do need to be in all markets for theit new synery stratgey.... but they just cant afford it.  It is very difficult to downsize a massive corporation like Sony and not risk marketshare and brand.

I see them more reacting to stablize thnt having any clear way forward just yet.  They're cutting costs and slimming down, which makes sense overall but I agree how they transition during this to a clear operating model is the big risk (and challenge).  Sony arguably remain well placed to take advatange of global trends for social media and access to content/information via devices but I feel they got caught up in the hardware only side for too long - as evidenced by their strategy with PS3 for example - and are only more recently have they shown signs of getting their act together in terms of how to exploit the market and remain relevant.

It's ironic, for example, to see MS carefully executing to an "entertainment hub" message which Sony actually launched the PS3 with but seemed unclear how to proceed to make it a reality.  Strictly speaking, just looking at consoles, Sony launched with the console ready to offer the broadest entertainment hub coverage from physical to digital media but they were really slow to react and didn't have a strong execution strategy.

I do feel part of the problem - reading between the lines of some public comments - has been too little synergy between divisions and operations and too little input from their key Western based staff on what was going on in US/UK and similar markets.

We'll see if the newly emerging team can turn things around - but they've got a battle on their hands to do so.



Try to be reasonable... its easier than you think...

RolStoppable said:
You can sense the bias against Sony from the media. For Sony it's third-lowest, but for Panasonic they put a positive spin on it. Called it sixth-highest, even though its in the bottom half as well.

Sixth highest out of 10? Am I missing something here?

OT: Interesting financials coming up, wonder what they have forecast for the year ahead.



 

It's only a matter of time before Sony gets bought by a stronger company. I'm going to rejoice that! They gave me good entertainment with PS 1 and 2 but they got arrogant with 3 and all of it's products. I do hope some other strong company gets in the videogame business tho. Samsung anyone?



Sony Discussion - The Playstation lounge. Discuss the PS1 / PS2 / PS3 / PSP

Sales Discussion - Japan, North America, Worldwide sales - press releases, predictions all in here


The article fails to mention any of the Playstation devices. This would be a press release on Sony as a whole corporation. Sales Discussion is the better forum.

On topic: Just like the many others, credit ratings, are on the decline. It is sad to see how awful companies have been managing their business over the last few decades. I guess I can not just say companies when countries are following the same route.



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kowenicki said:
Turkish said:
RolStoppable said:
You can sense the bias against Sony from the media. For Sony it's third-lowest, but for Panasonic they put a positive spin on it. Called it sixth-highest, even though its in the bottom half as well.


You can't just change the bias in the media, remember all the "sony is teh doomz" articles around 2006-2008?

 

Also this is about television division, dunno why I should care about the television division on vgchartz? Do people also post Microsoft Office related news here??

You are wrong on every level.

You really dont get this company / division thing do you.  This is a downgrading of Sony Corporation, the whole corporation.  

This company has witihin it the TV division...  oh and actually... guess what?  the TV's are in the same division as Playstation now.  



Sony are the company of the big three that are hurting the most financially. I can definately see why they are not initially planning on revealing a new console. With their supposed 10 year cycle console plan, they should have released the PS4 last year. They have obviously abbandoned that plan, but of the big three, I could see them bowing out of the console race.



Monges79 said:
Sony are the company of the big three that are hurting the most financially. I can definately see why they are not initially planning on revealing a new console. With their supposed 10 year cycle console plan, they should have released the PS4 last year. They have obviously abbandoned that plan, but of the big three, I could see them bowing out of the console race.

Don't think the fact they didn't release last year means they've abandonded the PS4. This gen is just unusually long regardless of financials worries (look at MS)



 

Very,very bad for a used to be king of electronics industry.
Hope they find a way to recover ,if not I expect the same result as kodak.



It's mainly a combination of these things that caused the trouble: Sony is selling its products on extremely small profit margins (or even at a loss when it comes to gaming systems) and the company doesn't have a focus but instead tries to break into every market. That may sound like Apple in 2012 but Apple actually has a core business which is computers - they simply use computers in new ways. Sony on the other hand doesn't really have a core business just a bulk of divisions that are just loosely connected.

That being said even though they can only blame themselves for the trouble they are in I wouldn't want Sony to opt out of either the handheld or the console market in the long run. Nintendo gets pretty slow when they don't have to worry about competition and I totally expect Microsoft to be even stronger next generation so there is a need for a company like Sony that stops Microsoft from becoming overly dominant in the long run.