Sony falls to a new 30 YEAR low. Markets just dont believe them.

[Stefan.De.Machtige]

Dodece said:
I think the hyperbole in this thread is getting just a tad thick. Sony isn't going to be dead, and buried in a decade. This isn't a fly by night outfit we are talking about here. This is a large multinational corporation that is heavily diversified. When a entity gets this big it dies slow. The inertia alone should see this being a viable company even twenty years from now. Even if it is a much smaller player due to attrition.

This drop in stock price isn't a reflection of whether, or not Sony is going to survive. This is a market correction, and it simply means that investors are recognizing that Sony is no longer a top tier electronics company anymore, and doesn't have a reasonable chance of reversing those fortunes. The investors have just accepted the reality of the situation as opposed to buying into optimistic assurances from management. It isn't so much that Sony will never be profitable again, but it will probably never enjoy the massive profits that were gleamed from electronics.

Now whether Sony is a electronics company in ten years time is another story. I can totally see Sony as being one of those rare exceptions of a company that jumps industries. With their diversification it is easy to see them being pushed out of one market only to focus themselves into a new market. Maybe in twenty years time when you see Sony you may be thinking of a clothing line, insurance, or construction. Paradigm shifts do happen. A company that starts out doing one thing a hundred years later is doing something entirely different.

You do make a good point about how a company can change its market. Even Nintendo did this. Many companies did this.

But the big problem sony has now, is it's management and since those would instrumental to such a change skepticism isn't unwarrented. If Sony is gonna pull themselves out of this negative spiral, they will need the kind of management they had in the 80's and 90's: bold and refreshing.