Japan is suffering from losses in the manufacturing sector like the US. Electronics development in Japan is slowly becoming unprofitable, especially with the likes of China and South Korea becoming more and more viable options to the electronics consumer.
Unless the trend somehow reverses, Sony will HAVE to focus on services to garner interest in investors. It's a very slippery slope from here. Not only does BB- status drive away a lot of investors looking for a safe place to put their money, it also forces Sony to borrow at a much higher interest rate, which in turn eats into their turnover, causing more debt, and following by a lowering of their credit rating, etc. It's all cyclic down here, and Sony are spiralling towards the financial drainhole.
If another player comes into the games hardware market, like Apple, Google (we'll have to see how the little Android game box goes. It has massive potential!), or a rival electronics company like Samsung, Sony should cut their electronics branch entirely, and become a service based business, focusing on music, movies and games. A possible move to open "Sony Stores" afterwards to sell said digital software would be a smart move. they have a lot of say in all three industries.
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