Macroaxis: Sony Has 79% Chance of Going Bankrupt in the Next 2 Years

[Asdrendeluxe]

JWeinCom said:

Asdrendeluxe said:

It would be easy to say "oh well then just stop making TVs", but that isn't really an option.  TVs are high profit items, and provide the best opportunity for Sony to make the kind of money that they need to repay their creditors.  Even if the PS4 is wildly successful, that isn't going to generate the revenue they need.  They would basically need to make as much money as Nintendo since 2006 off gaming.  Considering weaker first party software sales, and a failing portable, there is no way Sony can do that with the PS4 alone.

I agree in a lot of points but another not.

First Sony have not 15 Billion debt what i hear they have 100 Billion Dollar debts. When i am wrong i will appreciate when you can say me the numbers with a link. 15 billion is not a high number for Sony.

Second the TV Division are not high profitabel. Where have you get this???? Hell even a Samsung Manager say the profit are realy realy small. And they are the kings of this Buisniss.

The PS 4 will be not so high profitable then the Sony Fanboy will have but they will make profit with this. The bigger Problem is what will change when the Smartphone Division when Samsung release his new Samsung Galax? Or Apple with his new IPhone.

Sony have not this cool feeling from 15 Jears then everybody has have Sony Products and are cool (TV, VAIO Laptop and PS2). This is abig problem.

1.  I believe there is some short term debt that Sony has, and some long term debt.  Long term debt might be from something like issuing bonds.  Debts that exist, but aren't going to come due for a while.  Short term debt is something that needs to be paid off in the immediate future.  That may be where the distinction comes from, but I could be wrong.

2.  Right now, TVs are a tough business to make money in as many recently upgraded their TVs to HD, among other factors.  However, an individual TV is a high profit item.  Sony could make a few hundred dollars off of a TV sale, while they make next to nothing, or lose money, on a console sale.

The problem of course is that TVs are more costly to make, so the cost of not selling a TV is far greater.  Fierce competition also can drive down prices.  So, while it's a hard division to make money in right now, it also has a pretty high potential profit.

Think of it this way.  Let's say Sony dropped the TV division now.  In about 2 years, TVs start broadcasting in 4K and movies come out in 4K.  Everyone wants a 4K TV.  Sony gets none of that sweet 4K money while Samsung, LG, and maybe even Panasonic make a mountain of cash.

That's just a hypothetical, but that's the situation.  The potential to make profits is pretty high with TVs, which is why so many companies are sticking with it through this tough time.  If Sony bails out, then they're severely limited if TVs become hot items again, which may happen once the smartphone hooplah dies down a bit.  That's why companies keep all of these divisions that aren't necessarily making money at the time.  Because it allows them to maintain a presence in the field and make money off of it when the conditions are right.

Think of it like this, Sony has gangrene in their arm.  They could cut off their arm to save their body, but if they do that, then they have to go on without an arm.  If they can heal the arm, then they'll be healthy with two arms.  Obviously, two arms are better than one... assuming the gangrene doesn't kill them first.

Thank you very much i have enjoy, then you have me answer with respect. Realy enjoy what you have say. And this point with 4k is not stupid.