Sony 79% Chance of Going Bankrupt and Nintendo 22%

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#1 Edited by HarlockJC (25546 posts) -

“Based on latest financial disclosure Sony Corporation has Probability Of Bankruptcy of 78%. This is 182.34% higher than that of Consumer Goods sector, and 163.57% higher than that of Electronic Equipment industry, The Probability Of Bankruptcy for all stocks is 122.48% lower than the firm.”

While it wouldn’t be factual to say that SNE will fail in the next 2 years (it’s all a guess), the 78.49% figure is based off of real, actual numbers. Many will consider this number overly inflated, but it all doesn’t sound too far-fetched when you take into consideration some of the things that have been happening over in Sony Land. Last year, Sony’s market value was slashed down to “junk” status, and they’ve sold multiple HQ buildings as well.

Not to mention, Sony still hasn’t recovered from all of the money they’ve lost on the PS3, and the Vita is still not profitable and isn’t selling as well as it should.

For comparative purposes, Macroaxis is stating that Nintendo has only a 22% chance of failing in the next 2 years, which is very ironic considering the fact that the majority of gamers and journalists online are always claiming that Nintendo is in imminent danger, when in reality Nintendo is very healthy and Sony is the actually the one closest to failing out of the console manufacturers. Microsoft is sitting off to the side with only 1% chance of failure.

http://gaminrealm.com/2013/12/30/sony-79-chance-bankrupt-2-years/

the root source of the information

http://www.macroaxis.com/invest/ratio/SNE--Probability-Of-Bankruptcy

#2 Posted by crimsonman1245 (4253 posts) -

Dont know about Sony, but Nintendo has a 0% chance of going bankrupt anytime soon.

#3 Posted by freedomfreak (37947 posts) -

Well, Nintendo did very well last gen with the DS and Wii, so no, I don't think they're going anywhere.

Not to mention the 3DS is kicking a lot of ass.

Sony, on the other hand, has not been in the best shape. I hope they'll stay afloat though.

#4 Posted by Randolph (10323 posts) -

Typically speaking the financial woes Sony has had, have had very little to do with the gaming section. Despite the losses taken on the bloated initial PS3 hardware, and the Vita. I've read a lot of articles blaming sagging movie sales and the TV market hurting them pretty badly the last few years. But they've been making all the right moves lately to correct their course.

#5 Posted by jhcho2 (4366 posts) -

That's just rubbish statistics. Firstly, it's not so simple for companies which consist of several divisions, especially when some are making money, and some are not. When a company has 5 different business ventures, and say....1 has good prospect while the other 4 doesn't, the worst case scenario for that company is to shut down those 4 that aren't making money and keep the only that is, running.

A lot of these articles are only looking at Sony's overall financial outlook, which everyone knows, isn't good, because Sony is no longer the lead company in electronic peripherals like in the 90s. That's like if Microsoft Windows stops becoming the standard OS 10 years from now. You better bet Microsoft will start losing money every year at the size they are at now until they can decide on what businesses to consolidate

#6 Posted by always_explicit (2578 posts) -

Sony will just be bailed out and "re-invent". Even in a worst case scenario its unlikely we will see the SONY brand and playstation disappear any time soon. I just wish The PS4 was a more interesting product. Its the stumbling block of most Sony products. Functional but soulless.

#7 Posted by Ratchet_Fan8 (5534 posts) -

1.old
2. Demand for PS4 is highest across the globe compared to XBone and WiiU, you cant go bankrupt when the world wants your product so badly

3. Sony corp. is a huge comapny ,it's not just gaming/specific division.Many divisions like their TVS are not profitable,however SONY Music/VEVO is very profitable

4.Nobody is going bankrupt

#8 Posted by jhcho2 (4366 posts) -

Sony will just be bailed out and "re-invent". Even in a worst case scenario its unlikely we will see the SONY brand and playstation disappear any time soon. I just wish The PS4 was a more interesting product. Its the stumbling block of most Sony products. Functional but soulless.

The PS4 is a game console. Like any other gaming platform, the interest in the product should be kindled by games, not by the product itself on it's own. You must not confuse a game console's appeal with that of phones, tablets or accessories - whose appeal is based on features and aesthetics. As such, the approach to branding and marketing electronic gadgets has a lot more flash to it. In your case, you look at it as a 'soul'.

#9 Posted by HarlockJC (25546 posts) -

1.old

2. Demand for PS4 is highest across the globe compared to XBone and WiiU, you cant go bankrupt when the world wants your product so badly

3. Sony corp. is a huge comapny ,it's not just gaming/specific division.Many divisions like their TVS are not profitable,however SONY Music/VEVO is very profitable

4.Nobody is going bankrupt

Your mixing your 2 and 4 up. Your right Sony is a large company which is why you should not base the success of the PS4 has the reason they might not go bankrupt. With that being said SOny did not make money with the PS3 and the Vita so far has failed. Your right that SOny might be able to do well with the PS4 but it may be too late to save them from going bankrupt. Your letting your feelings for the game system blind you from the facts.

#10 Posted by AzatiS (6890 posts) -

@Randolph said:

Typically speaking the financial woes Sony has had, have had very little to do with the gaming section. Despite the losses taken on the bloated initial PS3 hardware, and the Vita. I've read a lot of articles blaming sagging movie sales and the TV market hurting them pretty badly the last few years. But they've been making all the right moves lately to correct their course.

Nah , PS3 was a slap in da face. Gaming section is one of the main reasons no doubt.

#11 Edited by blackace (19544 posts) -

Dont know about Sony, but Nintendo has a 0% chance of going bankrupt anytime soon.

Same with Microsoft. They aren't going anywhere anytime soon.

We know Sony is still having money problems, especially after they sold two HQ (one in NY and one in Japan) last year. They also sold about $350 million is stocks, just so they could show a profit for their 4th quarter. Sony fanboys keep saying they profited, but it was because of those sales that they showed a profit. If they hadn't done that they have had loses for like the 9th time in a row. I have no idea how their electronic and film divisions did overall last year, but it must not have been great if they had to sell buildings. We'll know more once we get the numbers for this quarter. Also, the PS4 isn't going to show a profit immediately. Just because the PS4 is in high demand means nothing if each unit isn't make Sony a profit. They are currently losing money on every PS4 sold. So the more they sale, the more loses they will have. The software sales should help to reduce that, but Sony & Microsoft have to pay big fee for manufacturing and marketing. That's why the first year of a game console launch is usually in the negative.

#12 Edited by BluRayHiDef (10837 posts) -

This is terrible news.

#13 Edited by HarlockJC (25546 posts) -

@blackace said:

@crimsonman1245 said:

Dont know about Sony, but Nintendo has a 0% chance of going bankrupt anytime soon.

Same with Microsoft. They aren't going anywhere anytime soon.

We know Sony is still having money problems, especially after they sold two HQ (one in NY and one in Japan) last year. They also sold about $350 million is stocks, just so they could show a profit for their 4th quarter. Sony fanboys keep saying they profited, but it was because of those sales that they showed a profit. If they hadn't done that they have had loses for like the 9th time in a row. I have no idea how their electronic and film divisions did overall last year, but it must not have been great if they had to sell buildings. We'll know more once we get the numbers for this quarter. Also, the PS4 isn't going to show a profit immediately. Just because the PS4 is in high demand means nothing if each unit isn't make Sony a profit. They are currently losing money on every PS4 sold. So the more they sale, the more loses they will have. The software sales should help to reduce that, but Sony & Microsoft have to pay big fee for manufacturing and marketing. That's why the first year of a game console launch is usually in the negative.

I personally wonder about the future of the PS4. One of the key reasons the PS2 was such a success early on was the DVD player, Matrix was as much of a system seller for the PS2 as any game was. The PS3 had limited success early on because it was a cheaper blu ray player. The PS4 does not have either of these going for it. This will be the first time from the PS1 that people will be buying it just because it's a game system. As someone who loves gaming history, I am wondering how this is going to play out.

#14 Posted by Telekill (4148 posts) -

I still find it weird how fanboys post statistics of companies going bankrupt like they are hoping against hope that it happens.

What's wrong with you people? You're surely aware of the thousands of people that would end up jobless and potentially homeless from the loss of their jobs.

#15 Posted by MonsieurX (28421 posts) -

1.old

2. Demand for PS4 is highest across the globe compared to XBone and WiiU, you cant go bankrupt when the world wants your product so badly

3. Sony corp. is a huge comapny ,it's not just gaming/specific division.Many divisions like their TVS are not profitable,however SONY Music/VEVO is very profitable

4.Nobody is going bankrupt

If there's a high demand on a product that actually cost them money each time it's sold,it's not good

#16 Posted by HarlockJC (25546 posts) -

@Telekill said:

I still find it weird how fanboys post statistics of companies going bankrupt like they are hoping against hope that it happens.

What's wrong with you people? You're surely aware of the thousands of people that would end up jobless and potentially homeless from the loss of their jobs.

Where do you see a post that people are happy that Sony going bankrupt? I see a number of posts talking about the chances of it happening. No one wants people to loss their jobs or going homeless.

#17 Edited by Opus_Rea-333 (882 posts) -

I really hope Nintendo stays, Sony should start developing for Xbox One and ditch Pauperstation 4. (PS4 is hurting them)

hope Sony get well soon.

#18 Posted by always_explicit (2578 posts) -

@jhcho2 said:

@always_explicit said:

Sony will just be bailed out and "re-invent". Even in a worst case scenario its unlikely we will see the SONY brand and playstation disappear any time soon. I just wish The PS4 was a more interesting product. Its the stumbling block of most Sony products. Functional but soulless.

The PS4 is a game console. Like any other gaming platform, the interest in the product should be kindled by games, not by the product itself on it's own. You must not confuse a game console's appeal with that of phones, tablets or accessories - whose appeal is based on features and aesthetics. As such, the approach to branding and marketing electronic gadgets has a lot more flash to it. In your case, you look at it as a 'soul'.

Well I feel MS and Nintendo have created gaming platforms that are equally functional but are infinitely more soulful. Of course thats entirely subjective opinion. I just dont get excited about Sony products. Their televisions I do enjoy, but tablets, games consoles and mobile phones...not so much.

#19 Edited by farrell2k (5023 posts) -

Despite what happens with Microsoft, I doubt the world will see another Microsoft Xbox. After 11 years and $7 billion in losses from it, investors are begging Microsoft to sell it off.

#21 Posted by blackace (19544 posts) -

Despite what happens with Microsoft, I doubt the world will see another Microsoft Xbox. After 11 years and $7 billion in losses from it, investors are begging Microsoft to sell it off.

One investor was begging Microsoft to have it managed outside of Microsoft's other divisions. Same thing happened with Sony. An investor wanted the playstation brand seperated from Sony's electronics division. XBox has been profitting for almost 5 years now. Where have you been? Sony lost over $5 billion with the PS3 and they are still trying to recoup their loses. Selling those HQ buildings only made a small dent in their debt.

#22 Posted by farrell2k (5023 posts) -

@blackace said:

@farrell2k said:

Despite what happens with Microsoft, I doubt the world will see another Microsoft Xbox. After 11 years and $7 billion in losses from it, investors are begging Microsoft to sell it off.

One investor was begging Microsoft to have it managed outside of Microsoft's other divisions. Same thing happened with Sony. An investor wanted the playstation brand seperated from Sony's electronics division. XBox has been profitting for almost 5 years now. Where have you been? Sony lost over $5 billion with the PS3 and they are still trying to recoup their loses. Selling those HQ buildings only made a small dent in their debt.

Off the top of my head I now that one large, very influential investment capital firm and Paul Allen are asking for the losses to stop. Microsoft will not make one dime in profit on the Xbox until their $7 billion in losses is covered. The 360 is just not losing money right now. Net profit on Xbox is ZERO.

#23 Posted by Muffin2020 (527 posts) -

That looks like some kind of joke site or something? They say there is a 1% chance of Apple going bankrupt even they have more cash than 50% of the countries in the world.

#24 Posted by GrenadeLauncher (3070 posts) -

Old as the hills.

@blackace said:

@farrell2k said:

Despite what happens with Microsoft, I doubt the world will see another Microsoft Xbox. After 11 years and $7 billion in losses from it, investors are begging Microsoft to sell it off.

One investor was begging Microsoft to have it managed outside of Microsoft's other divisions. Same thing happened with Sony. An investor wanted the playstation brand seperated from Sony's electronics division. XBox has been profitting for almost 5 years now. Where have you been? Sony lost over $5 billion with the PS3 and they are still trying to recoup their loses. Selling those HQ buildings only made a small dent in their debt.

Are you still ignoring the $3 billion black hole Xbox has gifted MS since 2001?

Also SCE has always been separate from Sony's electronics business. Get some facts, please.

#25 Posted by GrenadeLauncher (3070 posts) -

I really hope Nintendo stays, Sony should start developing for Xbox One and ditch Pauperstation 4. (PS4 is hurting them)

hope Sony get well soon.

lmao lemmings begging for games on the Cablebox 720p never gets dull.

#26 Edited by Newhopes (4434 posts) -

@Ratchet_Fan8 said:

1.old

2. Demand for PS4 is highest across the globe compared to XBone and WiiU, you cant go bankrupt when the world wants your product so badly

3. Sony corp. is a huge comapny ,it's not just gaming/specific division.Many divisions like their TVS are not profitable,however SONY Music/VEVO is very profitable

4.Nobody is going bankrupt

Playstation brand is frankly inconsequential to Sony as a whole, it's nothing more than pocket change be it profit or losses.

I can't see Sony going bankrupt but I can see them losing there status as a major company and been forced to sell off major parts of the company, you can't keep on losing $4-5 billion a year.

Despite what happens with Microsoft, I doubt the world will see another Microsoft Xbox. After 11 years and $7 billion in losses from it, investors are begging Microsoft to sell it off.

Xbox last 4-5 years has been doing reasonably well, started 360 gen $6 billion in the red finished $3 billion down so made about 3 billion profit off the 360.

#27 Edited by farrell2k (5023 posts) -

@GrenadeLauncher said:

Old as the hills.

@blackace said:

@farrell2k said:

Despite what happens with Microsoft, I doubt the world will see another Microsoft Xbox. After 11 years and $7 billion in losses from it, investors are begging Microsoft to sell it off.

One investor was begging Microsoft to have it managed outside of Microsoft's other divisions. Same thing happened with Sony. An investor wanted the playstation brand seperated from Sony's electronics division. XBox has been profitting for almost 5 years now. Where have you been? Sony lost over $5 billion with the PS3 and they are still trying to recoup their loses. Selling those HQ buildings only made a small dent in their debt.

Are you still ignoring the $3 billion black hole Xbox has gifted MS since 2001?

Also SCE has always been separate from Sony's electronics business. Get some facts, please.

$3 billion? More like $7 billion. It's $3 billion for the original xbox and the 360, $3 billion for the XB720 APU design, and $1 billion for selling the XB720 at a loss so far. Oh, and $100,000,000 for the controller re-design. I can't believe that people actually think the Xbox is going to make Microsoft money. lol.

#28 Posted by samanthademeste (1087 posts) -

Sony is doomed!

#29 Posted by Solid_Max13 (3466 posts) -

1.old

2. Demand for PS4 is highest across the globe compared to XBone and WiiU, you cant go bankrupt when the world wants your product so badly

3. Sony corp. is a huge comapny ,it's not just gaming/specific division.Many divisions like their TVS are not profitable,however SONY Music/VEVO is very profitable

4.Nobody is going bankrupt

This ^^

#30 Posted by tymeservesfate (1464 posts) -

Sony crumbling like most have been saying while the ps4's launch has no real effect on the company's over all success like most thinkers thought and realized....

#31 Posted by bbkkristian (14644 posts) -

Inb4 Heil's sputtering of nonsense.

#32 Posted by Zelda187 (480 posts) -

Anyone who honestly thinks Sony is going out of business...I've got a bridge to sell you.

#33 Posted by nervmeister (15125 posts) -

And I was wondering why the mods never stepped in when off-topic "Company Wars" threads reared up....

#34 Edited by heretrix (37226 posts) -

Sony will be just fine. Even if they had to sell off everything the Playstation brand will probably still survive on it's own.

It's too valuable a brand and branding is everything.

#35 Edited by clr84651 (5269 posts) -

Sony has done very well with the cost of the PS4 & with revenue it's bringing in. This can help them regain profitability in their gaming division.

#36 Edited by Ratchet_Fan8 (5534 posts) -

@MonsieurX: They get 0.10 cents or 10 dollars out of each unit sold i believe. i think its 0.10 cents,but not entirely sure

#37 Posted by blackace (19544 posts) -

@blackace said:

@farrell2k said:

Despite what happens with Microsoft, I doubt the world will see another Microsoft Xbox. After 11 years and $7 billion in losses from it, investors are begging Microsoft to sell it off.

One investor was begging Microsoft to have it managed outside of Microsoft's other divisions. Same thing happened with Sony. An investor wanted the playstation brand seperated from Sony's electronics division. XBox has been profitting for almost 5 years now. Where have you been? Sony lost over $5 billion with the PS3 and they are still trying to recoup their loses. Selling those HQ buildings only made a small dent in their debt.

Off the top of my head I now that one large, very influential investment capital firm and Paul Allen are asking for the losses to stop. Microsoft will not make one dime in profit on the Xbox until their $7 billion in losses is covered. The 360 is just not losing money right now. Net profit on Xbox is ZERO.

Dude, did you even do any research? Xbox division has been profitting since late 2007.

http://www.techspot.com/news/23612-microsoft-makes-tiny-profit-on-xbox-360-hardware.html

http://www.gamasutra.com/view/news/36011/Microsofts_Xbox_360_Division_Sees_132_Billion_Profit_For_Fiscal_Year_2011.php

http://www.vgchartz.com/article/250485/microsoft-profits-531-billion-xbox-rampd-up-70m-xbox-360-shipped/

They have been proftting on XBox for awhile. Now step away from the podium.

#38 Edited by kemar7856 (11506 posts) -

sony is a much bigger company though

#39 Posted by Floppy_Jim (25357 posts) -

Dony is soomed!

#40 Posted by Gue1 (8971 posts) -

I pray for Sony's resurgence every night because it is in the hands where the future of gaming lies. By gamers for gamers, #ThankYouSony.

#41 Edited by Newhopes (4434 posts) -

sony is a much bigger company though

They maybe a big company but they're not a money black hole, they can only lose money for so long before something has to give.

#42 Edited by lamprey263 (22267 posts) -

I'm surprise this is making news now, I checked SNE on Macroaxis months ago and got the same results.

Anyhow, one only need look at a balance sheet to see they're drowning in debt, probably too much to realistically pay off.

It's funny some of these sites talking about this bring up they pulled off a profit last year, I mean I'd imagine they'd of pulled off a profit after selling several billion in assets just to pull off a marginal profit. Will they'll be able to make profits this year without selling assets remains to be seen.

#43 Posted by HarlockJC (25546 posts) -

@Zelda187 said:

Anyone who honestly thinks Sony is going out of business...I've got a bridge to sell you.

I am not sure how bankrupt works in Japan, but in the US it does not mean the company going out of business. However it will mean a lot about the company will have to change. This has already been happening for a long time now, but it would be much worse if they go bankrupt.

#44 Posted by RossRichard (2286 posts) -

@HarlockJC: That is Sony ENTERTAINMENT, as in the music and movies division. If you are going to try to claim ownage, at least read your sources first.

#45 Posted by HalcyonScarlet (3664 posts) -

1.old

2. Demand for PS4 is highest across the globe compared to XBone and WiiU, you cant go bankrupt when the world wants your product so badly

3. Sony corp. is a huge comapny ,it's not just gaming/specific division.Many divisions like their TVS are not profitable,however SONY Music/VEVO is very profitable

4.Nobody is going bankrupt

In theory if things got really bad for them, they could be foced to sell off some of their divisions.

#46 Posted by ReadingRainbow4 (12632 posts) -

Sony won't be going anywhere, as much as some of you hate that realization.

#47 Posted by Bigboi500 (28782 posts) -

Sony can always go third party.

#48 Posted by handssss (1575 posts) -

@Ratchet_Fan8 said:

1.old

2. Demand for PS4 is highest across the globe compared to XBone and WiiU, you cant go bankrupt when the world wants your product so badly

3. Sony corp. is a huge comapny ,it's not just gaming/specific division.Many divisions like their TVS are not profitable,however SONY Music/VEVO is very profitable

4.Nobody is going bankrupt

If there's a high demand on a product that actually cost them money each time it's sold,it's not good

they've stated awhile back that they only need to sell about 1 game per ps4 sold to make up for the loss. considering prices for manufacturing should drop within the year, that's it's not really so bad.

#49 Posted by B_rich84 (26 posts) -

Nintendo will not go bankrupt. Even though the Wii U might not be selling well, if you COMBINE all of Nintendo's sales for the month of December, they pushed over 200,000 more consoles than Sony and an absurd amount more than Microsoft.

#50 Posted by lamprey263 (22267 posts) -

@Ratchet_Fan8 said:

1.old

2. Demand for PS4 is highest across the globe compared to XBone and WiiU, you cant go bankrupt when the world wants your product so badly

3. Sony corp. is a huge comapny ,it's not just gaming/specific division.Many divisions like their TVS are not profitable,however SONY Music/VEVO is very profitable

4.Nobody is going bankrupt

In theory if things got really bad for them, they could be foced to sell off some of their divisions.

If they reach insolvency, being that they're drowned in debt their remaining divisions and assets will have to be sold off to pay the debts. But that's not likely to happen as a block sale like someone will just outright buy the gaming division and all the assets, after all companies want to acquire assets they can turn around and make a profit on. Everything will be sold off in little bits and pieces, rights to franchises will be sold off to individual bidders, probably different publishers will want to pick up a franchise or few each, and the ones that won't be entrusted to some holding company awaiting a substantial bid to acquire them. Studios might be rescued or might not be. The companies manufacturing facilities and equipment and buildings and intellectual property and all types of assets will be sold piece by piece different interests. In the end they'll probably discover that Sony overvalued their assets and won't be able to pay off all their debts, Things have already gotten bad for Sony, but they can be worse.