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Forums - Sales Discussion - Forbes: Sony is Screwed...Is this article accurate?

one question, how long can big companies like sony go on with these kind of loses without declaring bankruptcy????



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largedarryl said:
@Jordahn, I think investment into OLED technology is the type of thing that put them here now. Unless there have been leaps and bounds in the technology, OLED will only be adopted by technophiles. OLED suffer from a short life and drastic cost increase when compared to traditional LCD and Plasma technologies.

@darth, I think when Sony invested in the Ericsson name they took on a large amount of debt that the company carried before hand (someone correct me if I'm wrong as I'm not well versed on this).

@Wiibox, do you actually think the PS3 and Bluray was a good investment for Sony, my current opinion on consumer electronics industry is its usually detrimental to focus on high end products, ala PS3/Bravia/Ericsson/Bluray. Where companies that produce products that produce non-luxury products tend to do better when their customers are targeted by competitors.

 

Well, there has to be a company that needs to push the envelope, and SONY is one of the few of them.  Of course it doesn't mean it will always be succesful.  So far, several other companies are also looking into OLED technology as I've read in Sound & Vision IIRC.  So this could benefit SONY in the long run.  And I do agree what OLED's are more expensive, NOW.  But all Tv technologies have its pro's and con's.  Both LCD's and plasmas have come a long way so I don't see why the same cannot be applied for OLED.  Remember, LCD and plasma was not "traditional" at one time.  But regardless of what succeses that SONY might benefit, I don't think anyone predicted such a recession.  So I have to agree with Wiibox3 that Blu-ray was a good investment because of the increasing demand, but the current recession is making it harder.



Hackers are poor nerds who don't wash.

Sony have been too expensive for too long and we all know it. What the hell was with those Memory Sticks anyway? They just had to be different.



“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.

@everyone who replied bout SONY ericsson

wow....I never knew it was in such a dire situation

why does SONY always mess up good brands they have.....Bravia is the only safe for now & relatively Playstation



All hail the KING, Andrespetmonkey

So... let me get this straight. If a media outlet releases "financial information" about a company, which they calculated without the actual company's data, to the public, which may influence its stock due to the media outlet's "reputation" (even though any information it obtained is either through underhanded information exchange, or violation of agreements with companies that the company in question deals with... hmm) that's "okay", even though insider trading is illegal?

Fascinating.  So if you jump through a lot of hoops, you can lose the "rumor" tag, and everyone believes what you say is true?  Wall Street is like a game where the rules are made to be bent, eh?  Who here believes you can "win" in Vegas, if you have the "technique" down?  Just curious.



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This is relevant because if Sony has major financial difficulties, its support for products (or delivery of new ones) could be imperiled.

It has already talked about shifting to software R&D. That does not sound good for a new console any time soon.

And the potential for greater losses (overall) will probably keep a PS3 price cut from happening for at least six months, if not longer.

Mike from Morgantown



      


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@largedarryl - That's why I said partially right. The inovation that went into the PS3 and Blu-Ray were the right way to go. Sony put too much into the PS3 at the time and thus the price alienated many PS2 supporters that could not afford their new product. If the Blu-Ray did not have to deal with the competing HD-DVD it would have done much better.



They could start charging people to play online like Microsoft, that would definitely help some.



@Jordahn - I am also happy that Sony put money int OLED. It is a bad ass product. My co-worker just bought a Nokia phone with an OLED screen and it puts LCD to shame.



@Groucho - If the information is released to the public first then anyone can trade on it, but if you trade the stock based upon knowledge about the company that has not been released to the public then it is illegal. This law is an effort to create a fair trading environment. But yes there are a lot of people who create rumors to drive the price of the stock one way or another to benefit them.