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

[BengaBenga]

*~Onna76~* said:

Squilliam said:
In an economic crisis like this, I wonder if Sony is suffering from substitution of its goods for other inferior brands.

The basic principle of inferior/normal goods is that when the consumers income goes down they tend to buy more inferior goods and when their wealth increases the opposite.

So instead of buying a Sony, someone might instead buy a Sanyo and save a few hundred $$$.

Am I right?

 Its kinda what I said and couldn't agree with you more. I hate to see the PS3 failing in sales, but Sony has completely overlooked of how sales can end up that badly. Not sure about the US but in Europe in some countries we had a recession. In the Netherlands there's been a recession for like 5 years and still going on. That's why our economics isn't growing nor falling but people have less money to spend every year as things are getting more expensive, but we don't get a dime extra.

I hate to correct you, but our fine country is one of the few European countries that's actually NOT in recession. We do have lower growth though and probably negative growth next quarter.