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Forums - Sony - Sony PS3 Price Cut Around The Corner (SNE)

Haggy on 15 May 2009

LOOK: MONEY=GOOD
PS3 Current price=Negative MONEY

Cheaper Ps3= More Negative MONEY

More Negative MONEY=BAD

PS3 Price Drop=Bad for Sony

IS this clear enough/ should I make Chartz?




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loy310 on 15 May 2009

The Ps3 is too close to breaking even. Why would the put themselves back into red on the hardware when their software lineup is unmatched so far for 2009?



NJ5 on 15 May 2009
KBG29 said:
After seeing the forecast of 2.2B in losses for this fisical year plus the 13M sales, I have no doubt Sony will give the PS3 a price cut. If the ugly PS3 slim does not show up at E3 for $299 I will be amazed. From their financials, it looks like the whole corperation has decided to take losses now to stay competitive, and hope for things to turn around thanks to a better economic climate, and services across their devices.

Agreed. I think Sony is doing some really bold moves, probably in the expectation that the dollar and Euro don't crash again, and that the recession doesn't last too long.

It could turn out to be a great move, but the risk is also big. Like a guy who doesn't save any money and hears about upcoming layoffs at his company, but decides to borrow money and buy a Ferrari anyway.

 



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account2099 on 15 May 2009

they are bleeding money, but will do it anyway.

from their view.......there allready loosing money, whats a few hundred million more?



Derek on 15 May 2009
account2099 said:
they are bleeding money, but will do it anyway.

from their view.......there allready loosing money, whats a few hundred million more?

 

 Actually, a $100 price-cut would likely result in 1-1.5 billion in additional losses.  As I said, Sony's board of directors would get voted out and replaced if they did this.



Stop getting so excited about a Kid Icarus remake... the original NES Icarus sucked.

 

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NJ5 on 15 May 2009
account2099 said:
they are bleeding money, but will do it anyway.

from their view.......there allready loosing money, whats a few hundred million more?

That's the kind of philosophy which can lead a company into bankruptcy. In this financial and economic environment it can quickly get hard to raise cash from investors, meanwhile Sony's cash reserves are dwindling (having dropped 16% in the last quarter and 40% year-on-year).

Of course they might get rescued by the Japanese government in the end... but a rescue like that probably doesn't come without getting rid of the company's badly performing parts.

 



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rafichamp on 15 May 2009

Guys dont be quick to assume that Sony does not know what its doing by reducing the price, no one knows what their real plan is.



account2099 on 15 May 2009
NJ5 said:
account2099 said:
they are bleeding money, but will do it anyway.

from their view.......there allready loosing money, whats a few hundred million more?

That's the kind of philosophy which can lead a company into bankruptcy. In this financial and economic environment it can quickly get hard to raise cash from investors, meanwhile Sony's cash reserves are dwindling (having dropped 16% in the last quarter and 40% year-on-year).

Of course they might get rescued by the Japanese government in the end... but a rescue like that probably doesn't come without getting rid of the company's badly performing parts.

 


I dont condone it, but they are gonna do it. They forcasted a 13 million PS3 shiopment target from March 2009 - March 2010. No way they are gonna do that with its current price. Slim rumors with the increased shipment forcast and you have Sony planing a price cut. They even forcasted a billion dollar loss for their next fiscal year. They arent even hiding that they are gonna loose money.

FinalEvangelion on 15 May 2009
account2099 said:
NJ5 said:
account2099 said:
they are bleeding money, but will do it anyway.

from their view.......there allready loosing money, whats a few hundred million more?

That's the kind of philosophy which can lead a company into bankruptcy. In this financial and economic environment it can quickly get hard to raise cash from investors, meanwhile Sony's cash reserves are dwindling (having dropped 16% in the last quarter and 40% year-on-year).

Of course they might get rescued by the Japanese government in the end... but a rescue like that probably doesn't come without getting rid of the company's badly performing parts.

 

 

I dont condone it, but they are gonna do it. They forcasted a 13 million PS3 shiopment target from March 2009 - March 2010. No way they are gonna do that with its current price. Slim rumors with the increased shipment forcast and you have Sony planing a price cut. They even forcasted a billion dollar loss for their next fiscal year. They arent even hiding that they are gonna loose money.

 

Exactly.  It looks like they are going to do it, whether or not people here think its smart or not.



"Naturally the common people don't want war: Neither in Russia, nor in England, nor for that matter in Germany. That is understood. But, after all, IT IS THE LEADERS of the country who determine the policy and it is always a simple matter to drag the people along, whether it is a democracy, or a fascist dictatorship, or a parliament, or a communist dictatorship. Voice or no voice, the people can always be brought to the bidding of the leaders. That is easy. All you have to do is TELL THEM THEY ARE BEING ATTACKED, and denounce the peacemakers for lack of patriotism and exposing the country to danger. IT WORKS THE SAME IN ANY COUNTRY."  --Hermann Goering, leading Nazi party member, at the Nuremberg War Crime Trials 

 

Conservatives:  Pushing for a small enough government to be a guest in your living room, or even better - your uterus.

 

NJ5 on 15 May 2009

@account2099: I agree that if they're serious about the 13 million forecast, a price cut is required (and earlier than the holiday season btw).

My point is that they're going against their previous promise of profitability by doing that. And that's very bold in these times, when Sony is bleeding cash faster than a drunken sailor on leave and with no one really sure about how long or deep the world recession will be.

 



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