My simple theory as to why the "analysts" are always rooting for Sony.

[WEWdeadeye]

largedarryl said:

Deeds said:

largedarryl said:
That theory is pretty complex, and I believe could be called illegal by many international courts.

I don't completely agree with Maelstorm's conclusion either, but I think his is more likely than yours, IMO.

Sony has billons in debt. Debt is money owed by borrowing or the selling of bonds. Who does Sony sell bonds to? Remember these bonds have an expiration date and have to be paid off in full plus interest. In order for Sony to pay off their obligations the need to generate revenue and profit. If the PS3 (which is a huge potential revenue generator) fails, Sony's bond holders, banks that provide credit to Sony and Sony itself will be in deep trouble. Analysts are paid to (a) prevent investors from dumping Sony's stock and (b) create an environment where the consumer has "hope" that their investment (PS3) wont go to waste.

Note that these analysts do not support Microsoft (Little or no debt) and Nintendo (Little or no debt) and release these charts after NPD data shows that the PS3 is in trouble.

 It's too bad a majority of Sony's operating income isn't through its Playstation branch.  You do know that Sony owns at least 1 record publisher, 1 movie publisher and another very lucritive electronics line (TVs).  Sony by no means depends on a profitable playstation division.   Once again, I also belive this conspiracy theory is illegal in many countries.

It might not depend on a profitable Playstation brand, but as of right now with the Playstation brand contributing over     $3 billion in losses since its launch, that is going to hurt any company's bottom line, NO MATTER WHAT!!  The OPs theory doesn't actually sound too far fetched to me, whether it has any validity or not.  You have to wonder why the analysts keep putting stock in Sony, despite the fact Sony has consistently been coming up short over the past few years.