Well, if Sony’s not doomed, who is?
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.
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