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Forums - Sales Discussion - Forbes: Sony is Screwed...Is this article accurate?

Seneque said:
feico865 said:

I agree a little with those who said all this is flaming against Sony. Just because it is not an economic website. Anyway is good to discuss this things to know about the future of the companies that offer digital entretainment, just don't make doom predictions without foundations. (I'm not attacking anyone just an advice)

What are you saying ? If the study of (video-game) sales in not economy, what is it ?

 

This web focus to gamers. Thats what I mean



I know... my english sucks

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Snake said:

2.why would I care if THEY were losing money on music products or TV or multimedia products. I am talking about gaming products.

Wah? They are going to blow up the foundation of this building? I don't care I am on the roof.



alephnull said:
Passenger57 said:

 

Actually this bad news has more to do with Sony as a whole company, not their videogame sector. This is obviously much more serious than you are fathoming. This is not bash Sony, this is real trouble not fanboy videogame sales bashing.

This is all true, however one should expect MS to start a whisper campaign implying Sony is going to drop the PS3 any day now if it hasn't already. This is one of their favorite strategies. The Lotus guys at IBM hate it as MS has successfully been using it against them for more than a decade now.

 

They already did that a week ago:

http://www.vgchartz.com/forum/thread.php?id=55786

edit - oops, I thought you meant drop PS3's price.

 



My Mario Kart Wii friend code: 2707-1866-0957

i would assume that a operating profit of -$2billion would wipe out any retained profits from last year. Its gunna be really interesting to see what there dividend payout is. too much and you leave yourself with too little working capital for next year. too little and your gunna see a rapid fall in share price. plus with an $11 billion debt im guessing they company is already too highly geared to be thinking of borrowing more money



 nintendo fanboy, but the good kind

proud soldier of nintopia

 

alephnull said:

This is all true, however one should expect MS to start a whisper campaign implying Sony is going to drop the PS3 any day now if it hasn't already. This is one of their favorite strategies. The Lotus guys at IBM hate it as MS has successfully been using it against them for more than a decade now.

 

I wouldn't be surprised MS wants to start a price war. They know Sony is in no financial shape to take further losses. In a war of attrition, the side with the most resources (money) wins.

 



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feico865 said:
Seneque said:
feico865 said:

I agree a little with those who said all this is flaming against Sony. Just because it is not an economic website. Anyway is good to discuss this things to know about the future of the companies that offer digital entretainment, just don't make doom predictions without foundations. (I'm not attacking anyone just an advice)

What are you saying ? If the study of (video-game) sales in not economy, what is it ?

 

This web focus to gamers. Thats what I mean

What? This sight deals with sales numbers, which definately falls in the economic realm. And as a gamer myself, I would like to know the future of the game systems and the games that will be featured on these systems. If the companies that either make games or hardware are suffering financially, this will affect me as a gamer. Please explain how this is "flaming."

 



Sony have been having to lay off alot of jobs lately, but the same goes for microsoft. Everybody is being hit by the recession. But I bet sony and microsoft are thanking their lucky stars that they have such a large foot in the only market that is doing so well in this time of recession.



Snake said:
so what? this is their first maybe second year where they lost money. 1)Microsoft lost 6 billion on entire Xbox family but you didn't see that on vgchartz. I am not trying to defend Sony here i am just saying Sony its not screwed if it had two bad years. every company in the world has some bad period. 2)When Game Cube was dying did anybody told Nintendo is dead? i think they did, and look at Nintendo now. They are definitivly winning this generation. Some people( (4 actually)on this we site are acting like they were waiting Sony to lose money for their entire life.OMG Sony is losing money!!!!!!!

Note: the last sentence describes only those 4 people

Wow, so much is wrong with this post.

1) The amount of money MS has lost on the X-box brand has been brought up on this forum several times. Usually in comparison to the profits Sony made on the PS1 and PS2 in contrast with the losses on PS3. Your point is immaterial regardless. Sony as a company is posting these losses. MS as company was posting huge profits in spite of their losses on teh X-box.

2) Nintendo made profit on the Gamecube. So your comparison is ridiculous. Anyone predicting Nintendo's demise didn't have sense enough to look at their balance sheet. No matter what their marketshare is, Nintendo has always posted a profit. Nintendo does not use the "loss leader" strategy that Sony and MS employ. So they don't have to dominate the market to make profit.

If the information on Sony was fabricated, I could understand people being upset. However this is factual information on the financial status of the company. Should this information not be posted because a few fanboys don't want to face up to reality?



Dont Sony have enough assets to see them through if things potentially get alot worse?



SMcc1887 said:
Dont Sony have enough assets to see them through if things potentially get alot worse?

 

Sure they can sell their assets. However the problem is that the buyers will be very stingy in a bad economy. Like the housing market, there are few buyers and many sellers which devalues the assets immensely.