Sony sell Tokyo office building for 1.2 Billion dollars.

[outlawauron]

kowenicki said:

Chandler said:

happydolphin said:

Chandler said:

outlawauron said:

Chandler said:
Looks like Sony is betting everything on the PS4. Good luck.

Why does this news mean they're putting everything they have into the PS4 basket?

Because sell and lease back is most of the time just a short term relief. Right now, their business model is not profitable. But nonetheless they sold their buildings for liquidity and added another source of running costs on their balance sheet in form of rent. I don't think rent in Manhattan and Tokyo is cheap.

 

I think because Sony's credit rating is pretty bad they had to do this to get some liquidity because they probably only get shitty deals from banks right now. 

That's not what he asked you though. He asked why you think they'll use that money purely on the PS4, or betting on the PS4. What about their other businesses?

I'm just not aware of anything big in the pipeline at Sony despite the PS4. Of course they can spend that money elsewhere but PS4 is where the buzz is right now so I don't think it's far fetched to think that this is their horse.

To be fair they have a lot of new tech coming out this next  9 months.

Lots of new phones, lots of new tablets and lots of new hybrid laptops.

Thye have to be succesful with them.

This is absolutely true. While the PS4 will be a big part product and they're counting on it to be successful, it isn't by any means the last gamble Sony has.