Sony’s Credit Rating May Be Cut to Junk by Moody’s

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#1 Posted by thegamer00 (131 posts) -

http://www.bloomberg.com/news/2013-11-01/sony-s-credit-rating-may-be-cut-to-junk-by-moody-s-after-loss.html

Uh oh. Not looking good for Sony's long term prospects for the PS4.

#2 Edited by Sweenix (5398 posts) -

Sigh, this isn't gaming related, why don't you join bloomberg and discuss this there?

#3 Posted by always_explicit (2715 posts) -

Sony are broke. In other news the sky is blue and water is wet.

#4 Edited by _Matt_ (8868 posts) -

Hasn't their credit rating been junk for years now?

Also, really not SW related.

#5 Posted by thegamer00 (131 posts) -

People post financial stuff here all the time for companies involved in gaming. This can definitely affect Playstation. Don't understand why people are trying to hide from it or sweep it under the rug.

#6 Posted by cainetao11 (16898 posts) -

@thegamer00 because its unflattering to the majority favorite. I hope the ps4 can begin the long climb bask to being in the black for Sony. Company is a wreck

#7 Posted by thegamer00 (131 posts) -

I have a feeling though if Sony keeps bleeding money like they have. Something has got to give. How this affects Playstation down the line is anyone's guess, but it definitely can't be a good thing.

#8 Edited by kuu2 (6970 posts) -
#9 Edited by _Matt_ (8868 posts) -

@kuu2 said:

You never want bad financial news about your company on the eve of launching a new console.

Kind of to be expected though really isn't it?

Years of R&D, millions of PS4s built, yet none sold yet. PS4 will help a lot with this once it is released.

#10 Edited by tormentos (17122 posts) -

Sony are broke. In other news the sky is blue and water is wet.

Which make then having stronger hardware than MS $100 cheaper a total embarrassment..hahaha

How can a company who is on the edge,out do one that does billions upon billions,and basically getting ready to deliver a massive own sales wise this holiday.

#11 Posted by _Matt_ (8868 posts) -

@always_explicit said:

Sony are broke. In other news the sky is blue and water is wet.

Which make then having stronger hardware than MS $100 cheaper a total embarrassment..hahaha

How can a company who is on the edge,out do one that does billions upon billions,and basically getting ready to deliver a massive own sales wise this holiday.

It is a very valid point this.

Sony are in trouble financially, so they need to maximise profits, yet their machine is still cheaper than the Xbox One; which is from a company rolling in money that don't need to make profits as badly.

#12 Edited by nervmeister (15192 posts) -

Lemmings reduced to joining hands and praying Sony goes bankrupt before PS4 releases? So nothing new then.

#13 Posted by Scipio8 (618 posts) -

Oh dear, why buy a console from a company that could go bust within a year. Not good.

#14 Posted by always_explicit (2715 posts) -

@always_explicit said:

Sony are broke. In other news the sky is blue and water is wet.

Which make then having stronger hardware than MS $100 cheaper a total embarrassment..hahaha

How can a company who is on the edge,out do one that does billions upon billions,and basically getting ready to deliver a massive own sales wise this holiday.

Look we all know the PS4 is a stronger gaming machine, but thats all it it is. MS have a vision to become the entertainment centre of the living room, its a different market. They are not targeting the Tormentos of the world. They are targeting consumers like me, with disposable income a family and a social life haha.

MS know what they are doing. They are not trying to create the most powerful gaming machine to please fanboys and fuel system wars. They are trying to make a diverse and successful product that appeals to a wide audience.

Its not difficult to create a powerful console. It is difficult to create a balanced cost effective machine for a mass market. For me the X1 is the better deal.

#15 Posted by kuu2 (6970 posts) -

@always_explicit said:

Sony are broke. In other news the sky is blue and water is wet.

Which make then having stronger hardware than MS $100 cheaper a total embarrassment..hahaha

How can a company who is on the edge,out do one that does billions upon billions,and basically getting ready to deliver a massive own sales wise this holiday.

Ask Sega they did it.

#16 Edited by XxR3m1xInHDn3D (1967 posts) -

@Sweenix said:

Sigh, this isn't gaming related, why don't you join bloomberg and discuss this there?

it's gaming related when people bring up Microsoft losing pocket change with the XBox though

#17 Edited by SinjinSmythe (789 posts) -

@Sweenix said:

Sigh, this isn't gaming related, why don't you join bloomberg and discuss this there?

Isnt gaming related????? The company that makes the PS4 is going belly up and it is not gaming related????? UHHH Ok whatever you say Cat lover.

#18 Posted by tormentos (17122 posts) -

@kuu2 said:

Ask Sega they did it.

Sega since when the DC outsold the PS2 dude.? PS2 pre-orders where higher than DC sales..hahha

Lets see the DC came on 1998,the PS2 on 2000,sony outsold the DC lifetime sales in little less than a year and out power the DC since launch.

So what again should i ask sega how did they failed miserably without hopes of winning.?

Look we all know the PS4 is a stronger gaming machine, but thats all it it is. MS have a vision to become the entertainment centre of the living room, its a different market. They are not targeting the Tormentos of the world. They are targeting consumers like me, with disposable income a family and a social life haha.

MS know what they are doing. They are not trying to create the most powerful gaming machine to please fanboys and fuel system wars. They are trying to make a diverse and successful product that appeals to a wide audience.

Its not difficult to create a powerful console. It is difficult to create a balanced cost effective machine for a mass market. For me the X1 is the better deal.

Yeah MS has a vision a vision of milking every one dry charging you for the smallest thing they give you,to the point were you have to pay to use game recording a features use by your hardware the hardware you already pay for.

Oh please that whole crap of they are not targeting hardcores is a joke,MS bet on the wrong horse and since E3 all it has been is a giant bole of spinning sh**,funny how MS change from TV TV TV to doing articles on DF to convince people that the xbox one is just as powerful as the PS4,but failing miserably all the time.

They went as far as to kill all bad policies completely doing a 180 and their whole crappy vision was gone,up clock the CPU and GPU at last minute risking hardware failures,in fact there are rumors of failures and we all know how spot on most rumors had been for the xbox one,hell 720p galore BF4 and COD ghost were rumors.

Yes maybe that is the reason why the PS4 is sold out on US and UK while the xbox one has less units available and still you can pre-order one,wait game charts on amazon and gamestop showing multiplatform games selling way better on PS4 all multiplatform games on PS4 are beating their counter part on xbox one,which is incredible and show how things have changed.

That is funny because sony has stronger hardware cheaper,there goes your price balance out of the window..lol

#19 Posted by BlastYoFace (16 posts) -

Sony is in a muddy ditch, face down right now. Who is standing over them taking a piss? Good ole MS.

#20 Edited by always_explicit (2715 posts) -

@kuu2 said:

Ask Sega they did it.

Sega since when the DC outsold the PS2 dude.? PS2 pre-orders where higher than DC sales..hahha

Lets see the DC came on 1998,the PS2 on 2000,sony outsold the DC lifetime sales in little less than a year and out power the DC since launch.

So what again should i ask sega how did they failed miserably without hopes of winning.?

@always_explicit said:

Look we all know the PS4 is a stronger gaming machine, but thats all it it is. MS have a vision to become the entertainment centre of the living room, its a different market. They are not targeting the Tormentos of the world. They are targeting consumers like me, with disposable income a family and a social life haha.

MS know what they are doing. They are not trying to create the most powerful gaming machine to please fanboys and fuel system wars. They are trying to make a diverse and successful product that appeals to a wide audience.

Its not difficult to create a powerful console. It is difficult to create a balanced cost effective machine for a mass market. For me the X1 is the better deal.

Yeah MS has a vision a vision of milking every one dry charging you for the smallest thing they give you,to the point were you have to pay to use game recording a features use by your hardware the hardware you already pay for.

Oh please that whole crap of they are not targeting hardcores is a joke,MS bet on the wrong horse and since E3 all it has been is a giant bole of spinning sh**,funny how MS change from TV TV TV to doing articles on DF to convince people that the xbox one is just as powerful as the PS4,but failing miserably all the time.

They went as far as to kill all bad policies completely doing a 180 and their whole crappy vision was gone,up clock the CPU and GPU at last minute risking hardware failures,in fact there are rumors of failures and we all know how spot on most rumors had been for the xbox one,hell 720p galore BF4 and COD ghost were rumors.

Yes maybe that is the reason why the PS4 is sold out on US and UK while the xbox one has less units available and still you can pre-order one,wait game charts on amazon and gamestop showing multiplatform games selling way better on PS4 all multiplatform games on PS4 are beating their counter part on xbox one,which is incredible and show how things have changed.

That is funny because sony has stronger hardware cheaper,there goes your price balance out of the window..lol

Why do you bother. I prefer the X1, I am going to buy the X1 because I believe it to be the better system for myself and my family. I dont like the PS4 interface, I dont like PSN, I dont like the fact the only games I bought on my PS3 were naughty dog titles. I dont like the look of the PS4 controller.

I do like Kinect (myself and my daughters)

I do like the idea of a central entertainment system.

I do like Xbox live.

I prefer the launch lineup

I prefer the OS.

#21 Edited by tormentos (17122 posts) -

Why do you bother. I prefer the X1, I am going to buy the X1 because I believe it to be the better system for myself and my family. I dont like the PS4 interface, I dont like PSN, I dont like the fact the only games I bought on my PS3 were naughty dog titles. I dont like the look of the PS4 controller.

I do like Kinect (myself and my daughters)

I do like the idea of a central entertainment system.

I do like Xbox live.

I prefer the launch lineup

I prefer the OS.

Now take that bold part and apply it to you..

prefer the PS4 because it is a better GAMING MACHINE is cheaper stronger,but that is not the worse part you see i own a 360 since day 1,it was powerful and cheap,i see no point what so ever to buy a xbox one,unless is $299 after 3 months..

#22 Posted by always_explicit (2715 posts) -

Your the one who quoted me, and started talking about hardware. I dont hear many lems at all claiming the X1 is superior in terms of hardware yet thats all you seem to post about.

Sure the PS4 does pretty games, but it does very little else.

Fact is excluding 1st party titles im going to be playing the same games as you, the difference is I am going to be playing them on a multi functional entertainment system with an attractive multi tasking OS with an intuitive motion controller and an excellent online infrastructure with dedicated servers built for online gaming and the integration of social media. It meets the needs of my entire family unit unlike any device currently on the market.

Although PS4 does 1080...so I guess thats pretty great too.

#23 Posted by edidili (3446 posts) -

Maybe they'll sell playstation, to MS.

#24 Edited by HaRmLeSS_RaGe (1270 posts) -

Non profit organization by gamers for gamers**

**no actual games at launch

#25 Edited by dubt72 (37 posts) -

Just wait until the launch PS4's have an overheating issue.

#26 Edited by lamprey263 (23190 posts) -

At this point it's gaming related, Sony has cut so much of itself down that it's like saying McDonald's credit rating taking a hit doesn't effect the future of Happy Meals or Big Macs. Over half of the equity the company has left can be attributed to intangible assets and goodwill, and with a company nearing insolvency those asset values have no value so in a way that's like saying their equity is going to be viewed as having significantly less value. Anyhow, I can see Sony execs pacing around their phone thinking of whether they should call that hostile takeover hedge fund guy back, or weigh the option of starting to sell more what little assets they have left.

#27 Posted by farrell2k (5809 posts) -

Both Sony and Microsoft haven't made one dime in gaming for a decade. What they need to do is help out their investors and quit the hardware business to allow Nintendo, which is the only one actually making money, to keep doing to. Sony and Microsoft should go the way of Sega and do what they know how to actually do well, which is first-party software.

#28 Posted by ZombieKiller7 (6248 posts) -

@tormentos said:

@always_explicit said:

Sony are broke. In other news the sky is blue and water is wet.

Which make then having stronger hardware than MS $100 cheaper a total embarrassment..hahaha

How can a company who is on the edge,out do one that does billions upon billions,and basically getting ready to deliver a massive own sales wise this holiday.

Look we all know the PS4 is a stronger gaming machine, but thats all it it is. MS have a vision to become the entertainment centre of the living room, its a different market. They are not targeting the Tormentos of the world. They are targeting consumers like me, with disposable income a family and a social life haha.

MS know what they are doing. They are not trying to create the most powerful gaming machine to please fanboys and fuel system wars. They are trying to make a diverse and successful product that appeals to a wide audience.

Its not difficult to create a powerful console. It is difficult to create a balanced cost effective machine for a mass market. For me the X1 is the better deal.

There's alot of truth to that.

#29 Edited by danabo (2474 posts) -

I don't know why people mention Sega in these threads.


Google Sega-Sammy holdings inc profits and see how much money they're making since abandoning the console hardware market.

#30 Edited by jhcho2 (4373 posts) -

@thegamer00 said:

People post financial stuff here all the time for companies involved in gaming. This can definitely affect Playstation. Don't understand why people are trying to hide from it or sweep it under the rug.

Nobody is trying to hide from it or sweep it under the rug. Sony's financial troubles have been lingering ever since the launch of ps3 seven years ago. Sony's financial troubles are due to the fact that they are a consumer electronics company facing stiff competition from Apple and Samsung. Everyone knows this, but it is as irrelevent to System Wars as much has Microsoft's failed Windows Vista, Windows 8 and Surface RT is to System Wars or Xbox

#31 Posted by TheEroica (13315 posts) -

Meh, this isn't system wars related... And honestly, if Sony was in such dire shape the things they will be cutting back on are the things that don't make them money... The ps4 is about to make them dump truck loads. Microsoft could've squashed them like a rodent this gen, instead they basically did all the pr work for them...

#32 Posted by APiranhaAteMyVa (2869 posts) -

Killing the Playstation would be one of the final things to go, that will never happen. They are too large of an organisation to die, the PS4 has no chance of being effected.

#33 Posted by AmazonTreeBoa (16745 posts) -

@Sweenix said:

Sigh, this isn't gaming related, why don't you join bloomberg and discuss this there?

Isnt gaming related????? The company that makes the PS4 is going belly up and it is not gaming related????? UHHH Ok whatever you say Cat lover.

Cat lover? Only insecure man children are so insecure that they have a problem with people liking cats.

#34 Posted by SUD123456 (4417 posts) -

Meh, this isn't system wars related... And honestly, if Sony was in such dire shape the things they will be cutting back on are the things that don't make them money... The ps4 is about to make them dump truck loads. Microsoft could've squashed them like a rodent this gen, instead they basically did all the pr work for them...

Don't you mean about to lose them dump truck loads?

It's the great irony of the early part of the console cycle if you price under cost. Not that that will matter much as the market understands this and will discount PS4 losses as long as they move lots of units.

#35 Edited by thegamer00 (131 posts) -

I was wondering who did more damage to Sony this past gen. Microsoft or Nintendo. Both took away massive marketshare.

#36 Posted by EG101 (857 posts) -

Hate to state it but Sony has to rethink this launch. If it's $460 to build, box and ship a PS4 to retailers then Sony has to sell the PS4 for $500 at launch. Something around 3 million people will buy it any way and those $30 to $40 Profit per box would help a struggling company. That money will help pay for the development of future titles. Sony can't do business as if they are the same company from 1999 - 2000. This Sony is broke and they need to make a profit day 1 with PS4. They could then drop the price to $450 once demand slows down for it but during the Launch period demand out strips supply anyway so why not make a little profit on the box??

#37 Posted by Shewgenja (8466 posts) -

So, this is what Lems must resort to to make up for the fact they are supporting an utter shit box this gen? Too bad for them that Steambox will wipe the XBox from all recollection when it drops.

#38 Posted by Lumpy311 (673 posts) -

So, this is what Lems must resort to to make up for the fact they are supporting an utter shit box this gen? Too bad for them that Steambox will wipe the XBox from all recollection when it drops.

This is actually important, we could see one of the 3 big console makers going under, this would affect generations of gaming to come.

This isn't a Lemming circlejerk, it's an important thing to consider.

#39 Posted by HalcyonScarlet (4041 posts) -

I was wondering who did more damage to Sony this past gen. Microsoft or Nintendo. Both took away massive marketshare.

All three of them, Sony spent the beginning of the gen shooting their feet off, MS capitalised and Nintendo did some sort of fluke magic rain (on Sonys parade) dance.

#40 Edited by Lumpy311 (673 posts) -

@thegamer00 said:

I was wondering who did more damage to Sony this past gen. Microsoft or Nintendo. Both took away massive marketshare.

All three of them, Sony spent the beginning of the gen shooting their feet off, MS capitalised and Nintendo did some sort of fluke magic rain (on Sonys parade) dance.

Yup, the console launch certainly didn't help.

#41 Edited by Bruin1986 (1236 posts) -

@dubt72 said:

Just wait until the launch PS4's have an overheating issue.

Now that is one possibility I am legitimately concerned about.

As soon as I saw just how small the PS4 was, overheating was an immediate concern to me.

The Xbox appears to have significantly more ventilation but I guess we won't know until a few weeks after launch.

People seem to care a lot about the physical size/shape of a console. Personally, I could care less. All I want is a well built console that feels solid and durable. This is why I loved the original Xbox. That thing was a tank.

#42 Edited by Suppaman100 (3777 posts) -

@tormentos said:

@always_explicit said:

Sony are broke. In other news the sky is blue and water is wet.

Which make then having stronger hardware than MS $100 cheaper a total embarrassment..hahaha

How can a company who is on the edge,out do one that does billions upon billions,and basically getting ready to deliver a massive own sales wise this holiday.

Look we all know the PS4 is a stronger gaming machine, but thats all it it is. MS have a vision to become the entertainment centre of the living room, its a different market. They are not targeting the Tormentos of the world. They are targeting consumers like me, with disposable income a family and a social life haha.

MS know what they are doing. They are not trying to create the most powerful gaming machine to please fanboys and fuel system wars. They are trying to make a diverse and successful product that appeals to a wide audience.

Its not difficult to create a powerful console. It is difficult to create a balanced cost effective machine for a mass market. For me the X1 is the better deal.

So you just admitted that MS is targeting casuals with the Xbone.

LOL

#43 Posted by Lumpy311 (673 posts) -

@dubt72 said:

Just wait until the launch PS4's have an overheating issue.

Now that is one possibility I am legitimately concerned about.

As soon as I saw just how small the PS4 was, overheating was an immediate concern to me.

The Xbox appears to have significantly more ventilation but I guess we won't know until a few weeks after launch.

People seem to care a lot about the physical size/shape of a console. Personally, I could care less. All I want is a well built console that feels solid and durable. This is why I loved the original Xbox. That thing was a tank.

Yeah, i don't care about it's size either, i'd rather it don't fit in a shelf or whatever than it overheating.

#44 Posted by EG101 (857 posts) -

@Lumpy311 said:

@Shewgenja said:

So, this is what Lems must resort to to make up for the fact they are supporting an utter shit box this gen? Too bad for them that Steambox will wipe the XBox from all recollection when it drops.

This is actually important, we could see one of the 3 big console makers going under, this would affect generations of gaming to come.

This isn't a Lemming circlejerk, it's an important thing to consider.

I would much rather see Sony raise the price of their console and be profitable then see Sony go under. Sony keeps M.S. honest just as M.S. keeps Sony honest. Both companies have their place in the industry and domination by either company in the gaming sector will be bad for gaming.

#45 Posted by Lumpy311 (673 posts) -

@EG101 said:

@Lumpy311 said:

@Shewgenja said:

So, this is what Lems must resort to to make up for the fact they are supporting an utter shit box this gen? Too bad for them that Steambox will wipe the XBox from all recollection when it drops.

This is actually important, we could see one of the 3 big console makers going under, this would affect generations of gaming to come.

This isn't a Lemming circlejerk, it's an important thing to consider.

I would much rather see Sony raise the price of their console and be profitable then see Sony go under. Sony keeps M.S. honest just as M.S. keeps Sony honest. Both companies have their place in the industry and domination by either company in the gaming sector will be bad for gaming.

Pretty much yeah, having competitors makes it so that they fight to have the better games, the better hardware and the better support.

Seeing Sony go down would probably lower the quality of the Xbone by a lot.

#46 Posted by Lumpy311 (673 posts) -

@always_explicit said:

@tormentos said:

@always_explicit said:

Sony are broke. In other news the sky is blue and water is wet.

Which make then having stronger hardware than MS $100 cheaper a total embarrassment..hahaha

How can a company who is on the edge,out do one that does billions upon billions,and basically getting ready to deliver a massive own sales wise this holiday.

Look we all know the PS4 is a stronger gaming machine, but thats all it it is. MS have a vision to become the entertainment centre of the living room, its a different market. They are not targeting the Tormentos of the world. They are targeting consumers like me, with disposable income a family and a social life haha.

MS know what they are doing. They are not trying to create the most powerful gaming machine to please fanboys and fuel system wars. They are trying to make a diverse and successful product that appeals to a wide audience.

Its not difficult to create a powerful console. It is difficult to create a balanced cost effective machine for a mass market. For me the X1 is the better deal.

So you just admitted that MS is targeting casuals with the Xbone.

LOL

Jesus christ dude, the fate of Sony can affect entire gens of gaming and you don't seem to care at all..

#47 Posted by blackace (20289 posts) -

http://www.bloomberg.com/news/2013-11-01/sony-s-credit-rating-may-be-cut-to-junk-by-moody-s-after-loss.html

Uh oh. Not looking good for Sony's long term prospects for the PS4.

I don't think it'll effect the PS4's launch or it's games, but this still isn't good news for Sony. They will need to start showing some real profits in 2014 to start turning things around. Only time will tell.

#48 Posted by kuu2 (6970 posts) -

@jhcho2 said:

@thegamer00 said:

People post financial stuff here all the time for companies involved in gaming. This can definitely affect Playstation. Don't understand why people are trying to hide from it or sweep it under the rug.

Nobody is trying to hide from it or sweep it under the rug. Sony's financial troubles have been lingering ever since the launch of ps3 seven years ago. Sony's financial troubles are due to the fact that they are a consumer electronics company facing stiff competition from Apple and Samsung. Everyone knows this, but it is as irrelevent to System Wars as much has Microsoft's failed Windows Vista, Windows 8 and Surface RT is to System Wars or Xbox

The DC is awesome in this thread.

Sony Fan: 'Sony going broke as a company has nothing to do with the PS4s success going forward.'

It also means Sony can't take out a fat loan like they did at the launch of the PS3 to stay afloat.

#49 Edited by Lumpy311 (673 posts) -

@kuu2 said:

@jhcho2 said:

@thegamer00 said:

People post financial stuff here all the time for companies involved in gaming. This can definitely affect Playstation. Don't understand why people are trying to hide from it or sweep it under the rug.

Nobody is trying to hide from it or sweep it under the rug. Sony's financial troubles have been lingering ever since the launch of ps3 seven years ago. Sony's financial troubles are due to the fact that they are a consumer electronics company facing stiff competition from Apple and Samsung. Everyone knows this, but it is as irrelevent to System Wars as much has Microsoft's failed Windows Vista, Windows 8 and Surface RT is to System Wars or Xbox

The DC is awesome in this thread.

Sony Fan: 'Sony going broke as a company has nothing to do with the PS4s success going forward.'

It also means Sony can't take out a fat loan like they did at the launch of the PS3 to stay afloat.

If MS was going bankrupt i wonder how cows would be reacting, would they be saying "this won't affect the xbone" or would they be saying "lmao have fun console being retired"?

#50 Posted by treedoor (7648 posts) -

Even in Playstation's best years it was still just a very small part of Sony's overall business, so it's not really surprising that investor's still predict a gloomy outlook for Sony even on the verge of PS4's release.

Maybe if Sony could pull a Wii, and sell a few hundred million first party titles, but I doubt that happens.