Aielyn said:
The numbers provided here are meaningless, and thus I distrust the claim being made. The probability of bankruptcy of all stocks can't possibly be 122.48% lower, because that would make the probability negative, and probabilities can't be negative. Furthermore, one cannot talk of a probability of an event being "182% higher" than that of another event - anybody with even a meagre grasp on statistics knows that this is a meaningless thing to say. As much as I think Sony is in financial trouble, I don't think this supposed analysis is meaningful. And, just as with any other case of analysis being released for free, I find it to be highly suspicious. |
You are misunderstanding what they are saying. These are the actual numbers:
http://gaminrealm.com/wp-content/uploads/2013/12/368f0d42aaa83d013e9719f758e2ed95-600x236.png
What they are saying is, Sony's probability of going into bankruptcy is more then double the probabibility of all equities going into bankruptcy and nearly quadruple that of the entire consumer goods sector. There is nothing meaningless about these numbers.
This is nothing new for Sony. They've been having issues for years now, and short term success with one product (that they are probably only breaking even on right now) will not change that. Sony's problems are bigger then just their gaming division. The entire company is in trouble and multiple sectors have been losing money, and it's been going on for AWHILE. The Junk rating alone should be troubling to people, because that makes borrowing money VERY expensive for any company, meaning that borrowing money is a significantly more expensive cost for Sony. People shouldn't blow this off so quickly just because the PS4 is riding high. The company is MUCH bigger then that.
| DarkD said: If they didn't point a 22% finger at Nintendo I would take this more seriously. Nintendo is as healthy as ever, they stand no chance of going bankrupt within the next 10 years.... Nintendo has turned a profit every year since since the stone ages. They made a loss one year and now they have a 22% chance of bankruptcy??? Are they high? They do know how much money Nintendo raked in during the Wii/DS years right? As far as Sony is concerned, aren't they just really really close to going into debt? Selling their headquarters was just tightening their belt a little. Sony is a deeply rooted company with branches everywhere. At worst they are going to cut a few failing divisions of their company. |
22% is actually a damn good number. See the link above.
