Here's a more informative article at NYtimes on this story, and some of the expected moves sony is planning on making:

http://www.nytimes.com/2008/12/10/technology/companies/10sony.html?_r=1

I think alot depends on this holidays season, and how sony brand sells. If they take a beating, with consumers looking for price over brand identification, we could see deeper cuts by the next reporting period.

If their TVs never turn a profit then why even sell them? They could even make up some money by increasing the PS3 cost. That is why the 160 GB bundles are even around---to test SKU liability with increased price.

They are going to have to do something.  If I were at the board meetings, I would recommend slashing the Sony Insurance, getting rid of Sony BMG, and prioritizing that money into electronics.  Sony was founded on electronics.  If they shift so much around and can't carry their weight enough to support their founding products, why even bother?  Sony should leave the PS3 on the table for 15 years with optimization kits to all devs for that platform.  

Also, put the green TV initiative on the forefront in, shall I say it, hippie markets.  Saturate the Bay Area w/ ads on this TV and regulate all other expenditures by weekly review.

In addition, leave the Discman and Walkman to obsolence.  MP3 is here to stay.

While we're on the topic of Sony divisions which shouldn't exist... I find it absurd that Sony has a financial services division, which among other things invests in the stock market. They lost $270 million in the last quarter due to the drops in the stock market.

For a company whose products don't do well during recessions, that's really pushing it in terms of risk.

Sony is already splitting with Sony BMG...so they have been t aking steps, that why I think this is jsut another step in a slew to hit next year.

A look at their subsidiaries for further reference:

Shareholders

(As of March 31, 2007)

1. Moxley & Co. (Depositary Bank for ADRs) (17.6%)
2. The Master Trust Bank of Japan, Ltd. (Trust Account) (4.8%)
3. Japan Trustee Services Bank, Ltd. (Trust Account) (4.1%)
4. State Street Bank and Trust Company (3.9%)
5. The Chase Manhattan Bank N.A. London (1.7%)
6. State Street Bank and Trust Company 505103 (1.7%)
7. Japan Trustee Services Bank, Ltd. (Trust Account 4) (1.5%)
8. Sumitomo Trust & Banking Co., Ltd. (Trust Account) (1.0%)
9. Investors Bank and Trust Company (West)-Treaty (1.0%)
10. Mitsubishi UFJ Trust and Banking Corporation (Trust Account) (0.9%)

Major Holdings/Subsidiaries

Japan

* Sony EMCS Corporation
* Sony LSI Design Inc.
* Sony Global Solutions Inc.
* Sony Enterprise Co.,Ltd.
* Sony Energy Devices Corporation
* Sony Chemicals Corporation
* So-net Entertainment Corporation
* Sony Computer Entertainment Inc.
* Sony Supply Chain Solutions Inc.
* Sony Siroisi Semiconductor Inc.
* Sony Financial Holdings Inc.
o Sony Life Insurance Co., Ltd.
o Sony Assurance Inc.
o Sony Bank Inc.
* Sony Semiconductor Kyushu Corporation
* Sony Pictures Entertainment (Japan) Inc.
* Sony PCL Inc.
* Sony Human Capital Corporation
* Sony Finance International, Inc.
* Sony Facility Management Corporation
* Sony Broadcast Media Co., Ltd.
* Sony Broadband Solutions Corp.
* Sony Marketing Co., Ltd.
* Sony Manufacturing Systems Corporation
* Sony Miyagi Corporation
* Sony Music Entertainment (Japan) Inc.
* Sony Computer Science Laboratories, Inc.
* ST Liquid Crystal Display Corporation (50%)
* ST Mobile Display Corporation (80%)
* START Lab Inc. (50.1%)
* Sony NEC Optiarc Inc (55%)
* FeliCa Networks, Inc. (57%)
* Plazastyle Corporation (Sony Plaza) (49%)
* AII Inc. (60.92%)
* Frontage Inc. (60%)
* Field Emission Technologies Inc. (36.5%)

Outside Japan

* Sony of Canada Ltd.
* Sony Computer Entertainment America Inc.
* Sony Corporation of America
* Sony Electronics Inc. (USA)
* Sony Latin America Inc. (Florida, USA)
* Sony Magnetic Products Inc. of America
* Sony Music Entertainment Inc. (USA)
* Sony Pictures Entertainment Inc. (USA)
* Sony Argentina S.A.
* Sony Comercio e Industia Ltda. (Brazil)
* Sony Componentes Ltda. (Brazil)
* Sony da Amazonia Ltda. (Brazil)
* Sony Chile Ltda. (Chile)
* Sony de Mexico S.A. de C.V.
* Sony de Mexicali, S.A. de C.V. (Mexico)
* Sony Nuevo Laredo,S.A. de C.V. (Mexico)
* Sony de Tijuana Oeste, S.A. de C.V. (Mexico)
* Sony Corporation of Panama, S. A.
* Sony Puerto Rico, Inc.
* Sony Austria GmbH.
* Sony DADC Austria A.G.
* Sony Service Centre (Europe) N.V. (Brussels, Belgium)
* Sony Overseas S.A. (Switzerland)
* Sony Czech, spol. s.r.o.
* Sony Berlin G.m.b.H. (Germany)
* Sony Deutschland G.m.b.H. (Köln, Germany)
* Sony Europe GmbH (Germany)
* Sony Nordic A/S (Denmark)
* Sony Espana S.A. (Spain)
* Sony France S.A.
* Sony United Kingdom Ltd.
* Sony Global Treasury Service Plc (UK)
* Sony Computer Entertainment Europe Limited (UK)
* Sony Hungaria kft (Hungary)
* Sony Italia S.p.A. (Italy)
* Sony Benelux B.V. (Netherlands)
* Sony Europa B.V. (Netherlands)
* Sony Logistics Europe B.V. (Netherlands)
* Sony Poland Sp.z.o.o. (Poland)
* Sony Portugal Ltda. (Portugal)
* Sony Slovakia s r. o. (Slovakia)
* Sony Eurasia Pazarlama A.S. (Turkey)
* Sony (China) Ltd.
* Beijing Suohong Electronics Co., Ltd. (China)
* Shanghai Suoguang Visual Products Co., Ltd. (China)
* Shanghai Suoguang Electronics Co., Ltd. (China)
* Sony Electronics (Wuxi) Co., Ltd. (China)
* Sony Corporation of Hong Kong Ltd.
* Sony International (Hong Kong) Ltd.
* PT. Sony Electronics Indonesia
* Sony India Limited
* Sony Electronics of Korea Corporation
* Sony Korea Corporation
* Sony Electronics (Malaysia) SDN. BHD.
* Sony Technology (Malaysia) SDN. BHD.
* Sony Philippines, Inc.
* Sony Electronics (Singapore) Pte. LTD.
* Sony Magnetic Products (Thailand) Co., Ltd.
* Sony Mobile Electronics (Thailand) Co., Ltd.
* Sony Semiconductor (Thailand) Co., Ltd.
* Sony Siam Industries Co., Ltd.
* Sony Australia Limited
* Sony New Zealand Ltd.
* Sony GULF FZE (UAE)
* Sony Vietnam Ltd.
* Sony Ericsson Mobile Communications AB (50%) (Sweden; head office in UK)
* S-LCD Corporation (50% minus 1 share)
* Sony Wonder (USA)
* Sony Creative Software

Film and television production and distribution

* Sony Pictures Entertainment, including:
o Columbia TriStar Motion Picture Group
+ Columbia Pictures
+ TriStar Pictures
+ Screen Gems
+ Sony Pictures Classics
+ Destination Films
+ Triumph Films
+ Culver Entertainment
+ Stage 6 Films
o Sony Pictures Home Entertainment
o Sony Pictures Television
+ Sony Pictures Television International
# Animax
# 2waytraffic
o Mandalay Entertainment (partial interest)
o Phoenix Pictures (partial interest) *
o MGM Holdings, Inc. (20%)
+ Metro-Goldwyn-Mayer Studios, Inc.
# Metro-Goldwyn-Mayer Pictures, Inc.
# United Artists Corp.
* United Artists Entertainment LLC.
# Orion Pictures Corporation
# MGM Television
# MGM Home Entertainment

Music business

* Sony/ATV Music Publishing (50%)
* Sony Music Entertainment Inc.
o Columbia Records - popular music
o Epic Records - popular music
o Legacy Recordings - rare and collectible in many genres
o Sony BMG Masterworks - classical music
o Sony BMG Nashville - country music
o Zomba Label Group

Video and online games

* Sony Computer Entertainment - PlayStation, PlayStation Portable
* Sony Online Entertainment - Everquest, Star Wars Galaxies

Foundations and schools

* Sony Foundation for Education
* Sony Music Foundation
* Sony USA Foundation Inc.
* Sony Foundation Australia Trustee Ltd.
* Sony of Canada Science Scholarship Foundation Inc.
* Sony Europe Foundation
* Sony Gakuen Shohoku College

Might mr financial svcs to invest cash on-hand from profits...back in stock market heyday, it was turning in $1 bln a qtr for M$...which provide a heavy freaking cash flow off interest.

According to bloomberg, Sony is going to try to raise money by selling bonds.

The reason is that $2.7 billion of their existing debt has to be paid back by Dec. 18. They have enough cash to pay back that debt, but it would eat one third of their cash reserves. Their credit rating has also been downgraded.

I'm glad I don't work for Sony.