Sony FY 2008 Q2 Results – Analysis – SONY BLEEDING – LOOKING BAD

[NJ5]

MikeB said:

BengaBenga said:

MikeB said:
Sony still generated a profit, HDTV sales and profits were up, some HDTV sales may be attributed to the PS3 which is an excellent HD gaming console as well as an excellent Blu-Ray player.

I think Sony will be able to weather through the current economic crisis without really major problems this year.

 

wow, someone hasn't been paying attention. Sony itself has already announced to have major problems, especially with the current Yen rate. There's a big chance that Sony as a whole will be in the red this Q and FY. SCE doesn't even stand a chance of being profitable over the whole year.

Besides: most HDTV's are being sold because they're flat and because the neighbours have one. Mainstream consumers don't have a clue what HD. Saying the PS3 contributes to HDTV sales is the world upside down.

The sky is falling! The SKY is FALLING!

Let me reword the above as obviously it's not extreme and absolute for you. I am 100% certain PS3 penetration has helped HDTV sales and vice versa.

If Sony does run into major losses in the future (which isn't yet the case), maybe some execs won't get their bonusses and Sony may let some workers go. The company employs over 180K people worldwide, over twice an employer than a company like Microsoft is.

Sony has huge assets and excellent wide ranging expertise, we will see other major electronics companies break down much quicker than Sony will.

Way to focus on all the wrong indicators.

There are plenty of big companies which fail. Nevertheless, I don't think anyone here is saying that Sony will suddenly go bankrupt. At least that's certainly not what I'm saying. I'm just saying they'll have to do significant changes in their business unless the economy and exchange rates start helping them instead of hurting them.

When the economy and exchange rates were good, Sony had profit margins of 1-4% (more commonly 1-2%). Now that their revenue is dropping by 10-20% (even without accounting for lower consumer purchases), can anybody tell me what miracle will allow them to be profitable without radical changes?