More analysts say "Sony brand in trouble" (we're confused)

Posted Oct 15, 2006 at 10:48PM by QJ Staff Listed in: PS3, PSP Tags: Sony
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Run for your lives! Here come the sales analysts!We told you in a previous article that we keep seeing "Sony is in trouble" articles wherever we look. When will it end? Run for your lives! Here come the sales analysts!

"The struggling company can no longer rely on its brand name to charge customers a higher price than its competitors," says our source. Ah, struggle, Sony, struggle. As Abraham Lincoln said, "The probability that we may fail in the struggle ought not to deter us from the support of a cause we believe to be just." We say, "The probability that you may fail in the struggle ought not to deter you from the support of a cause you believe will make you tons of money in the long run."

But wait, is everything gloom-and-doom? Fitch Research analyst Tatsuya Mizuno thinks so. The PS3 delays have weakened the brand's reputation, and the battery recall has really hurt Sony. Analysts also say that Sony's leadership in the LCD TV market is slipping. The analysis from Fitch Ratings looks bad:

Fitch expects Sony would need a longer time to restore its underperforming electronics operations, while its game segment will likely incur large losses over the next three to five years given the huge investments and intensifying market competition.


We may just be a bunch of simple gamers, but aren't these analyses starting to drive you insane? One day they say Sony's down. Another day they say Sony's up. Then they say Sony's in deep doodoo. Then suddenly we find out that Sony's stock prices go up. Yes, we reported a 3.7% increase. A commenter (with data from another source) said it was a 4.1% increase. So is Sony up again?

What does the all-wise QJ bloggers say? Do we think that Sony is in trouble? Or do we think that Sony is doing fine? Well, if the analysts can't even be sure, we doubt that you or I know exactly what's going to happen. As Abraham Lincoln said, "Better to remain silent and be thought a fool than to speak out and remove all doubt."

 
 
 

Comments [refresh]

by prime - 2006-10-15 18:01
» What's even worse

Is that their stock is at the same level it was in 1997. 9 years and no growth! That's a terrible return. Find me one other electronic/media giant that's trading at the same level today as it was in 1997, you won't find one.

by nic - 2006-10-15 18:38
» !

define TROUBLE - they still bring in billions of dollars

by iorkara - 2006-10-15 18:58
» Sony 4-Life

Sony is smart, they think long term. Blu ray is taking over, PS3 will take over, PSP taking over. The people who complain are those who dont save their money and complain the stuff is too expensive. LOSERS!

I have had enough of this crap!

SONY will never fail!! Ever!

I mean, whos gonna buy a BluRay DVD player 1,500+ AUS when you can get PS3 1,000 AUS which also can play games, online and all those features?

And those stupid DS fans who hate PSP, get a life and save your cash for a real machine you P***Y's.

I hate people who hate Sony!

I hate them allllllllllllll lllll



Anyway, have you guys got the PSP Links Page yet? No?

get it here:

www.iorkara.recoding.net

You will not be disappointed!



ok i need to poop now.

by Chris - 2006-10-15 19:46
» Really :|

Max Fs articles are really starting to bother me now. It seems like you are posting these just to make fun of them. Please find something better to do with your time.

by anonymous stranger - 2006-10-15 19:56
» yea

I guess.. but I hope sony stays alive.. I don't wanna microsoft to take over the world...

by lavino - 2006-10-15 20:00
» let the stock market be the judge...

If the fact that Sony is coming out with PS3 in Nov is what ppl think that has a deciding factor in it's stock price (which personally I kinda doubt that but it is just my opinion) we'll see the next 2 Q that starts after the triple-witch day. It might even take more than 2 Q to reflect it. But then PS3 sales is not likely gonna control the SNE stock price. Sony is a huge cooporation and it has so many divisions. Even PS3 sells like hot cake it is not gonna bring in a huge long term gain unless it can sustain the growth.



Note: current SNE stock price has not changed much compare to 10 years ago. As a matter of fact besides the 2000 period it has been pretty flat. It hit a record low around 03-04. The 2000 blip really has nothing to do with PS2 or anything but rather just a ride with the whole dot com trend. Pick any technology related stock and check out 2000 it might look like that. Good thing is that it looks like it pays 1.30 dividend. 52 weeks high is ~50, low is ~30 and now it is sitting at ~40. It is at a cross road but doesn't seem like it is likely to break the 52 weeks range.



And no, I am not holding SNE stocks now.

by Anon - 2006-10-15 21:14
» Not in their Games Division

They actually make a loss every year.

by robert - 2006-10-15 22:36
» ..........

They do anything just to see sony fail, the more close to luanch the more bad newes. Y dont they understand that stock has nothing to do with playstation, i been hearing this $hit since playstation2 sony stock falls pricing too high, dvd is not good format, dont buy playstation. Yah i can see analysis predict the future u worthless piece of $hit, whatever happen to 1000 dollar PS3 u all predict dumb@sses

by SHADOWZ - 2006-10-15 23:01
» the way i figure

i wont believe anything til the ps3 comes out. that is sony newest addition and im sure that willl raise sony's stock

by freehunter - 2006-10-16 01:13
» What. In. The hell...

Did a moneky take over your computer?

by suedeface - 2006-10-16 01:59
» Remove all doubt indeed

Wasn't that las quote Mark Twain?

by godfather - 2006-10-16 02:33
» business cycle

I believe sony is just experiencing a normal business cycle where you have periodic fluctuations of economic activity about its long term growth trend. The cycle involves shifts over time between periods of relatively rapid growth of output (recovery and prosperity), alternating with periods of relative stagnation or decline.

church

by D1zzl3 - 2006-10-16 05:31
» Slump has been going on for too long...

And what do smart GM's on big time pro teams do with players with aging "slumps"? The stock market is the same many times.



Sony's decline has been going on way before the PS3. It's just that all the recent events (battery recalls, PS3 shortage and delays) are just making their slump much more apparent.



And everyone that Sony competes with is taking advantage of it (see Samsung, Canon, Microsoft, etc).

I think the analysts are right on one thing: "...(Sony) can no longer rely on its brand name to charge customers a higher price than its competitors"



Sony is not going to crash or fall face flat, but I don't think it's ever going to be the corporation that it was before...

by Stone Cold Steve Austin - 2006-10-16 06:58
» relax...

i agree but no need for that typ of language

by BJ02 - 2006-10-16 07:13
» yeah

people complain and worry too much



no matter what, sony has always made high quality products and will continue to do so regardless what some people say



ps3-expensive, but arent decent computers and laptops "expensive" as well? People still buy em though and they are not nearly as supperior to the ps3's hardware (cell processors, remember? blu ray player? specialized graphics card? Hidef playback?)



psp-more expensive then a nintendo handheld, but people want it because of all it can do, its more then a handheld (much more like a pc)



people need to stop worrying and whining

by metalspector - 2006-10-16 09:32
» well I've had it....

with people who say sony is immortal , sony has taken big mistakes this last years and they're investing money on projects like playing poker everyday at the casino , the psp is a failure , the ps3 is a failure , the plasma sony tvs are a failure , sony lcd television are not a failure , sony laptops are a failure , sony cameras are still doing well , sony software investment are failures , sony being sued everyday makes them more of a failure. Conclusion? Sony , leave the gaming industry while you can cause just because you did well with the ps1 and ps2 doesn't mean you'll keep doing well , many factors are against your gaming competition in the present , instead invest on better lcd televisions and cameras cause is the only grounds were you have power to keep the industry alive and making money.



Also the guy who said: people buy expensive computers so they'll buy the ps3 which is superior.



The truth is that my computer from Dell from 2004 which my father bought it 2 years ago for 700 dollars is superior to the xbox 360 and even the ps3 , also blu ray dvd players can be found at google for less than 200 dollars and beleive me that elder scroll oblivion 4 on my pc is not the same as the xbox360 or the coming ps3 version, it actually has better graphics ( at maximun video capacity ) on my computer than on a hi def. tv. Also my computer has another feature , pcsx2 , I can download ps2 games on my computer and burn them to data dvds to play it on my computers ps2 emulator , the amazing pcsx2. In fact, I downloaded FF12 4 days ago but still haven't had timeto play it.

by wilhel1812 - 2006-10-16 10:06
» Scream

Scream!! that picture is from norway!!!

Norway for the win!!

by Max F. - 2006-10-16 11:37
» Are you really a staffer?

I think you registered your name as "iorkara (QJ. NET Staff)" with a space between the QJ. and NET to make it look like you are. Could have fooled me, but next time, try capitalizing your name.

by Max F. - 2006-10-16 11:44
» :)

I understand why my articles of this kind (with this kind of tone) would bother you. But as a gamer with gamer buddies, I can tell you that we are all bothered by the articles we read - there's too much sensationalism and too much gloom-and-doom. I guess I just snapped and had to write a reaction.Don't worry, though, I'll stay away from articles like what I wrote here, and I'll focus on the other blogs for now (and please don't let your disgust for my writing style prevent you from appreciating the articles of other writers here - they try really hard to walk that fine line to satisfy the wide range of readers that come to QJ).

by Scotteee - 2006-10-16 19:06
» Pfft

You are kidding yourself if a "2 year old" "Dell" is better than a PS3 ;)



Or Any "Dell" or Any computer from 2 years ago.

by ***** Juice - 2006-10-16 22:12
» Kinda Cool

PS3 WILL ROCK!!!!!!!!!!! !1

by lansingone - 2006-10-17 18:21
» i don't think so

your computer cost $700 two years ago? what are the specs in that dam thing? cuase the PS3 has power then that, it's already been shown that the GPU is more powerfull what thay had in 2004. what i think is that you have all settings on high and you just don't mind running games at low frame rates

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