Eurogamer

Sony has been put on a negative credit watch by financial ratings agency Standard & Poor.

As reported by Reuters, its credit rating was downgraded to A- as a result of concerns over the company's long-term corporate credit and senior unsecured debt ratings.

"There are no signs of a halt to the deterioration in the earnings of the company's core flat panel TV business," read the report.

"In addition, Sony's financial burden is likely to increase in tandem with the company's making Sony Ericsson a wholly owned subsidiary.

"Taking these factors into consideration, we have concluded that we need to review the prospects for Sony's operating and financial performance and verify the effects on the rating."

The report adds that Standard & Poor expects Sony to report net losses of ¥90 billion (around £720 million) for the current fiscal year, representing a fourth straight year in the red.

The news comes off the back of a grim quarterly financial report from Sony last week, in which it confessed to a ¥1.6 billion (around £12.8 million) loss for the last three months.

Sony isn't the only platform holder struggling at the minute. Earlier this month, Nintendo reported a loss of ¥70.3 billion (£579.3 million) over the last six months.

http://www.eurogamer.net/articles/2011-11-07-sony-put-on-negative-credit-watch

Sony needs to drop some divisions, make products people are exited about and release them on time.. the last few years they have only been playing catch up against the likes of Samsung and Apple.. If samsung can make a Galaxy S surely Sony can also..

Not really a surprise. Sony's big divisions have been hit with a lot of pressure by other companies that seem to turn out better quality or a cheaper price, or in some cases like Samsung.... both.

With their name brand being weaker and weaker, troubles in japan, the Yen strengthening and razor thin profit margins on electronics to begin with....

It's all bad news.

Doesn't help that sony seems to be one of the more aggressive "Borrow even when you don't need to" companies.

for a business major you didn't even bother to assess the situation then comment on each companies worse divisions and what you think would help improve each division. i'm persoanly not sure what Ninty does as a whole other then games consoles and software. do they still make toy's?

Ninty is pretty easy just from what i know. SkyWardSword should help Ninty get back in the green but the manufacturing of a product yet be released and the loss there taking on each 3ds sold are likely hinders of there business.

When Wiiu launches it should help Ninty get back on track as there blockbuster software will likely acompany the launch of te system leading to profits once again but you new that.

Sony has many and it seems there worst is there TV division. it seems the cost to manufacture may be the best place to start for a high end company like Sony. they have to find somway to cut those cost. i know its more then that like the $, euro, and the cost of shipping to places they don't have manufacturing plants.

also the PSN hack, natrual disasters, and the one plant that vandles set on fire and stole product from. i'd still like to know how there music, computer, and movie division's are doing. cut the salary of every employee making more then 5m a yr.

well looking at Sony they loss less then Ninty so its not that bad yet but Ninty will likely have the biggest and fastest turnaround. considering Sony lost less i'd say a few divisions helped curve an even greater loss.

Sony could go down on this.. they surfer bad.. the ps3 was not as big as the ps2, and they don't have much earning on games compered to ps2 either.. But when they start loosing on the other markets to.
Said it before.. maybe the world will never see the PS4..

Making the Galaxy is "easy" for Samsung as they don't need to buy anything, they can use their own OLED screens, ARM CPUs, NAND memory, etc., an advantage that not many others have (maybe LG).

OT: I'm so tired of these ratings agency. Standard & Poor, Moody's, Fitch... BAH! They could all GTH and no one would miss them and their "dependable" ratings.

They are being hit on all sides by bad things. Sony needs to pull its ass out of the fire.

either way you should know better.

Sony is a doom train. I wonder what will I press to open the Popit with an Xbox controller.

ok (S.A) they need to cut cost and plan to go green.