Yahoo to masses: Don't buy a PS3 til April

[NJ5]

Slimebeast said:

 

 Yeah, restructuring and cutting measures don't have immediate effect, I know that.

But I serously believe that cash won't be a big problem for Sony. It hasn't even been a big problem for AMD despite losses for years. Yes, the shareholders are pissed off by the losses, but somehow AMD always have managed to get more loans and investments for their big development projects and for building new fabs.

Sony is much healthier than you (and others) portray. One or two years of losses (especially in economic turmoil) is normal for companies.

IMO Sony only has a little image problem, they're slightly too much of a premium brand for being such a huge company. But with strict cost cutting (lay offs preferably in the Japanese factories) and re-structuring (maybe drop one business segment or two, say laptops or memory production, I dunno) and they'll be able to compete soon.

AMD got those loans under a very different economic climate in which economic growth was expected to go on for a long time. The situation is the opposite now, and it's going to be increasingly more difficult to get loans, especially since Sony's debt rating is getting worse and worse (I remember seeing a few articles at yahoo finance about that).

I'm not saying Sony will go bankrupt or anything like that. They still have time to restructure and in the worst case I'm sure the Japanese government would save them from going under... What I am saying is that we can't apply the paradigms of the past to this situation, it's a whole new game now. A much rougher one too.