Analysts Change Their Mind, Reckon Sony May Not Be Doomed After All

Well, if Sony’s not doomed, who is?

Posted By | On 27th, Nov. 2014 Under News | Follow This Author @Pramath1605


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For the better part of a decade now, we have been hearing one refrain, over and over and over again- Sony is doomed. News surrounding the company has been bleak and negative, suggesting a dismal outlook for the company- their businesses are failing, their major product launches, such as PlayStation 3, PlayStation Vita, their smartphone line, or their new flagship TVs, fail to make a mark, analysts and credit firms lower their rating for Sony, the company continues to hemorrhage money…

There’s just no end to the bad news. Even when we are told that the PlayStation 4 is doing well, it is with the qualifier that it alone cannot after all carry the entire company by its own, as it is mostly having to.

Recently, Sony announced a plan to counter its current issues, and the market responded positively to it, with stocks trending up. Now, it seems analysts, too, may be sold on Sony’s strategy to save itself from doom.

Jeffries released a report called “Grounded in reality,” following Sony’s latest investor relations event; in it, analysts Atul Goyal and Yuki Maeda said Sony’s pledge to deliver earnings over market share won them over. Indeed, it seems like Sony’s concession to its new place in the market, and its lowering of its own ambitions, seems to be going down well in general.

“We left Sony’s electronics IR (investor relations) day impressed,” the report said. “All forecasts look fairly conservative… This makes us believe there is sustained upside in Sony.”

Sony’s new plan isn’t rocket science, but it is something that was thought impossible inn a company of Sony’s size and inertia just a few years ago- the company is doubling down on its core competencies, it is not aiming to be first place in every segment as much as it is looking to simply make money with everything it does, it is attempting to unify all its divisions at Sony and have greater coherence and consolidation among them (Sony’s division are famous for warring against each other, and trying to constantly sabotage each other), and perhaps most importantly, it is now going to be holding each division accountable for its own financial results. That’s particularly good news for us, because it basically means that PlayStation, which is among Sony’s most profitable segments right now, should be safe even if other parts of the company start floundering.

Stay tuned to GamingBolt for more.

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  • Starman

    Yeah but for how long ? That remains to be seen .
    I for one don’t think it will last very long , it’s sad to say …but, at the looks of things “yes ,they are doomed”

  • Mark

    That’s good news that the Playstation division will be more safe because of this………more likelyhood investment in games and services.

  • DougLord

    Sony makes no sense as a business. Their are no synergies in its various markets. The Insurance piece needs to be a separate company, as do the movie studios. The consoles and TV and phones and computers at least shared common components and technology and design elements. But those are low margin businesses that can’t handle Sony debt load. A restructuring would be best for Sony, shareholders and consumers.

  • Donovan Tull

    Sony is clearly the most in danger of financial collapse- Microsoft can chuck money at Xbox for centuries (although I think they may exit shortly) and Nintendo has enough money in the bank to last 60 years with no profit. I don’t think Sony can last a poor generation. The next time a playstation fails, it’s probably game over for Sony. And I have a feeling that if NX has backwards compatibility, it can take out PS4…. lots of people don’t want the Wii U but want certain games that were great successes on the console. I don’t like Sony systems, haven’t seen any good exclusives since PS2, but if Sony can keep making people get playstations, they should be fine.


 

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