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    Since its 1946 founding, Sony has risen from an innovative Japanese electronics company to one of the leading mass media conglomerates around. Like its movie studio and music biz sister-corps, the SCEI divisions (and the PlayStation family) have been huge successes for Sony and its brand recognition worldwide.

    Has 78% Chance to Go Bankrupt in Two Years, says Macroaxis

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    borodin

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    Without having even a vague picture of what their program looks at this seems like meaningless news to me. Is it a generalised thing that looks at various high-level stats about a generic company (by generic I mean it's not geared specifically towards games companies) and compares that against similar companies histories? Because if so I'd be surprised if that were going to be anywhere near smart enough to take into account all the financial craziness of a console launch year (especially considering the historical examples of other companies doing that are pretty fucking slim on the ground)

    Also has anyone heard of this thing before now? Lots of companies going bankrupt at the moment yet I've not heard of this thing accurately predicting any of them? Move along?

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    AlexGBRO

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    #52  Edited By AlexGBRO

    sony is fine not great but fine

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    Darji

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    #53  Edited By Darji
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    Carryboy

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    Yeh The Strokes need to get paid.

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    Arjailer

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    #55  Edited By Arjailer

    @darji: In May? Before they'd announced the price?

    Here's a more recent article (the first google hit I found) with "quotes" (though not really) from Sony execs:

    http://news.cnet.com/8301-10797_3-57603901-235/playstation-4-to-sell-at-a-loss-but-sony-expects-profit/

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    shinjin977

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    This is an analyst's prospect on it. Meaning, take it with a big chunk of salt. These companies are not just going to up and blow up. Quite frankly they are too big for that. Looking at the profit margin of sony, if they were to cut TV, Movies and laptop division right now, with just the insurance business alone they would be making a pretty nice profit. What this means is that those divisions will get rolled out pretty soon.

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    Darji

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    @arjailer said:

    @darji: In May? Before they'd announced the price?

    Here's a more recent article (the first google hit I found) with "quotes" (though not really) from Sony execs:

    http://news.cnet.com/8301-10797_3-57603901-235/playstation-4-to-sell-at-a-loss-but-sony-expects-profit/

    I am pretty sure they knew the price in may already. But despite that I also said that this may include the belief that this person will also buy a game with a PlayStation which sounds pretty plausible. So this article seems to say the same thing.

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    lennyy

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    @darji: The people on these forums. I'm no expert, but it seems they know what they're talking about.

    @hailinel said:

    @xyzygy said:

    Apparently the PS4 only costs 382 bucks to make. But I have no idea what other factors come into the whole "selling at a loss" thing, does anyone know if they are selling each unit at a loss or profit?

    EDIT: Just looked it up and apparently they are selling PS4 at a loss. So that's not good. Hopefully the company will get back in shape at some point but it's been going pretty downhill for them over the past decade...

    There's a lot more to the costs than manufacturing. You also have to take into account aspects like the number of consoles produced, shipping costs, financial costs of storage space, the retailer wholesale price versus the consumer price (retailers are not buying each console for $400), and other extraneous costs. The cost of assembling and packaging a console is just one piece of a financial jigsaw puzzle.

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    MikeJFlick

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    Considering I have no idea who Macroaxis is, I want to say this is a publicity stunt, sony has too diverse of a market to simply collapse onto itself out of nowhere.

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    veektarius

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    I just want to point out to the people pointing out alternative avenues for Sony are probably underestimating the sophistication of the underlying model - you don't predict bankruptcy when the actual outcome is going to be sale of assets. I'm in no position to advocate on behalf of this particular source, however.

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    Budwyzer

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    #61  Edited By Budwyzer

    I can't wait for Sony to have to start selling off pieces. My shell corporations will buy them up and I will put them on the shelf next to my chain of El Poyos Locos restaurants

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    EXTomar

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    #62  Edited By EXTomar

    The chances a company this large goes into bankruptcy in two years without making one visible change and without having the share holders revolt is not 78%. It is more like 0%.

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    spraynardtatum

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    So who the fudge is Macroaxis?

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    Hailinel

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    #64  Edited By Hailinel
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    senrat

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    Maybe they will go bankrupt if they follow their current course. They arent stupid so they will most certainly adjust course.

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    Jeust

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    #66  Edited By Jeust

    Isn't that an old prediction? I could swear I had seen it before. Also apparently the prediction was made because of the losses Sony had experienced until two semesters ago, from when they actually start getting positive net profits. So I call it damaging speculation.

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    monkeyking1969

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    And, when it snows the possibility of me suffocating under a blanket of snow increases 10,000%.

    At this point, Sony's revenue is up, operating income is up, net income is up, total assets are up, and total equity 'of what they are and what they own' is up for the calendar year. That does't mean they are okay, but up is better than down. Most of the news you see about Sony are of two kinds : things it is selling well and subsidiary companies it is selling off. That tells me Sony is doing all it should to not go bankrupt.

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    ch3burashka

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    A percentage to 2 decimal places smells like bullshit to me. I ain't no fancy economologer, but this seems panicky to me. Granted THQ dissolved rather quickly; I knew of their problems, but I assumed they were big enough to pull through. Sony is also a hardware company at least, so they'd have to fail really hard on a lot of fronts to dissolve in two years.

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    Mr_Skeleton

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    They have a lot of devisions, brands and copyrights they can sell before they can sell I really doubt they will go bankrupt any time soon.

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    Rowr

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    #70  Edited By Rowr

    Their new phones are great. Unfortunately they don't seem to have any deals to actually carry them as far as i've seen in the USA, so you won't walk in and see one in a store.

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    extintor

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    #72  Edited By extintor

    In spite of being broadly accepted as having the leading console platform, both in terms of overall sales and game performance, their credit rating is, still classified as 'junk' by Moody's at 'Ba1' (one level below investment grade).

    In part this has to be because they've posted losses in 9 out of the last 10 previous fiscal years and they have let go over 100,000 employees in the past decade.

    Kaz Hirai has been breaking up the company to cut loose all failing parts of the brand.

    If Microsoft hadn't dropped the ball so profoundly at the beginning of this gen, Sony might have been in its death throes by now. As it stands, I think they're almost at the stage where they are being forced to go 'all in' with the PS4.

    EDIT: I missed the news that came out last month that Fitch upgraded Sony's short term financial outlook but downgraded its long term overseas prospects slightly.

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    ThePanzini

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    @donderpants: Financial year 2014 Sony's gaming console division which includes Vita had profits of $250m / £148m, what planet are on? Their stock and profitability is going to rise over the next two years.

    http://www.bbc.co.uk/news/business-28578788

    http://www.bloomberg.com/news/articles/2015-02-04/sony-narrows-annual-loss-forecast-on-image-sensors-playstation

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    DocHaus

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    #74  Edited By DocHaus

    @donderpants: why are you necro-ing year-old threads to argue about Sony? Did they murder your family or something?

    This edit will also create new pages on Giant Bomb for:

    Beware, you are proposing to add brand new pages to the wiki along with your edits. Make sure this is what you intended. This will likely increase the time it takes for your changes to go live.

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