The Yen is Killing Sony - Is a PS3 Price Cut Even Possible for 2009??

[amirnetz]

Facts:
1. Sony's expense line is heavily loaded with Yen based expenses.
It has 10s of thousands of highly paid employees in Japan (most of its management ranks) and some of its manufacturing is done on the island. In the gaming division you will find a good number of Japan based studios, all getting paid in Yens. Therefore Sony is very sensitive to the strength of the Yen.

2. No central bank is in control of the situation these days.
If they were, the recession would not be happenning. Any news of what the BofJ is going to do must not be taken as anything but wishful thinking.

End of facts.

I am no financial expert but I am pretty sure that they Dollar will continue to weaken faster than any other currency. The reason: The US goverment is flooding the market with Trillions of newly printed dollars for TARP, Auto Bailout, Low Mortgage rates and the Trillion Dollar public works project of Obama.

No other country can depreciate its currency as fast as the USA. A weak dollar is great for the battered US economy. It makes exports more profitable and makes the imports more expensive thus protecting American jobs. It also devalues the hugh national debt of the USA. This is exactly what the doctor ordered for the US economy.

I don't have any clue on European echonomics but I am willing to put a wager that at least the Dollar is not going to turn out stronger compared to the Yen in the next year.