I was really bothered when I heard talk that Sony would probably go bankrupt and theres a 79% chance of it happening. Then I went to research it for myself and found out that it was just exaggerated. There are actually quite a few reasons this whole thing is BS, such as:

1. That percentage thats been hovering around was generated Macroaxis. Which is basically a financially engineering tool website which is pretty much just a robot that generates predicitions based off company history. This pretty much throws all credibility through the window.

2. Those predictions were made with impression that Sony would keep their PC and TV divisions which they axed. They were also the only unprofitable sectors, every other division makes big profit. Even Kaz's vision of Sony didn't include them which means he knew they were beyond saving.

3. Sony is overemployed with 160,000 employees and has assets scattered everywhere. If they so desired then they could just simply sell off what isn't necessary.

4. The gaming division is the best it's ever been and even broke their records form the PS2 days, not to mention PS Now. They'll easily generate billions here.

Thoughts?

Even if they did all that, debt doesn't magically disappear because they sold their TV division. They will have to pay off their debts.

Also, "axing" the TV division isn't as simple as people think. The TV division is dear to Sony, it's the central pillar of their company heritage, it would be like Nintendo giving up on consoles entirely or Honda giving up on automobiles. There may be an argument for it, but it's not as simple of decision as you think. It would be an extremely painful loss of morale for Sony and end of an era.

Its simply really, until they turn a legit profit and not one that involves selling off buildings and divisions then people will start to think differently. However, for them maybe going bankrupt are still greater in number than the ones against going bankrupt.

btw, I thought they had more then two money losing divisions? Don't they cell phones use them money too?

Not so true anymore when Kaz took over he stated there 3 core pillars were Gaming, Mobile and Digital Imaging, these are the 3 things that they will concentrate on to make them money, other things like TV will be reduced or gotten rid of.  Like the already are doing. 

Link here axeing computers and seperating TV

http://www.engadget.com/2014/02/06/sony-sells-vaio/ 

EDIT copy and past link clicking it seems to get a redirect

He can say that, but people need to understand one of the main reasons Sony has taken so long to do this is because the TV division at Sony is simply not just any division. Beyond that I don't think a lot of people here understand the corporate politics of a Japanese company, particularly one as old as Sony. 

Simply put

Bankrupt ? Too early to tell, but I wouldn´t bet it.

Smaller? For sure. They already closed the PC division and they need to do some serious re-structuring

Dunno what more you want, i gave you a link that says there sperating TV into a seperate Company, it will no longer be part of Sony very soon. Even tho they will probably own a controlling stake in the new company.

There gaming division will not pull billions into there bank account. You forget that it costs them billions to make a new system every time. Xbox and PS brands tend to fight to break even let alone make billions in profits.

I don't have a full understanding on the current state of things at sony, but I do know that they aren't doing well.

And more bad news - I saw this on n4g:

http://japandailypress.com/sony-continues-to-lose-cash-will-sell-its-birthplace-property-2845039/

http://gamrconnect.vgchartz.com/thread.php?id=177187&page=1

TV actually made a positive operating income for the last quarter, but not much.

Mobile phones were negative

Devices (PC I assume) was also negative.

3 divisions with negative income, 6 divisions with positive income. If you take out the TV and PC divisions from that result you get a much better operating income. Sony probably sees a pathway for mobile to get into profit, but it probably doesn't have a vision for how to bring PC around.  And they are not ditching TV, they are just putting it at arm's length, which means they do see a way for it to return to profitability. But it has to stand on its own, which means there's a pretty high risk it will fall over.

Also debt in itself doesn't matter, as long as your creditors believe you can service you debt then debt can hang around for years, provided your cashflow positive. And shareholders don't want you paying off debt too quickly because that reduces profits in the short to medium term without much tangeable benefit. Debt only really becomes a problem when it exceeds assets, which then puts you in a negative equity situation, (like in the GFC when people's hose values plummeted so that their mortgage was 120% of the value of the house) that's when creditors start getting really nervous.

Sony's in a better place right now than it has been since 2007.