to answer question if sony lost more in ps3 then ps2 ANSWER INSIDE

[NJ5]

DarkNight_DS said:

NJ5 said:

DarkNight_DS said:

 

I could have swore that there have been reports of Sony borrowing money from the banks.  You don't borrow money unless you need to.  Can someone dig up how much money Sony has in loans from the bank?

It's all here:

http://www.google.com/finance?fstype=bi&q=NYSE:SNE

Long term debt: 685 billion yen ($7.18 billion)

Total debt: 1.2 trillion yen ($12.6 billion)

As of the end of 2008.

 

If last year was the first year they lost money for 14 years.  How bad were the years prior?  I find it hard to understand why all of these companies posting profits have such huge debts when we don't see the losses until just recently.  I'm really scratching my head over the GM issues.  How do they go from making record profits every year until this past year and then go bankrupt?

That's a pretty big hole that Sony is going to need to climb out of.

 

The debt has likely been used to make Sony a bigger company and expensive things like building factories (some of which are being shut down now).

It's just like a person who has a job and was paying a mortgage, not saving much money. If they lose their job, it's pretty likely they'll have to cut a lot of expenses and/or say goodbye to the house.

Companies like Microsoft and Nintendo have zero to little debt and a lot of cash stored away for moments like these. Sony has the opposite.