What is Digg?76 Comments
- Lumiras, on 10/12/2007, -4/+39Well, I'm sure money won't be a problem for Sony, I mean, it appears that they don't care about it, seeing that they have actually said that the PS3 is "too cheap"................God, Sony is acting like a spoiled rich kid that just stole his dad's credit card
- furtwan1, on 10/12/2007, -4/+24will 80 billion Yen give me Toy Story on a PS2?
- thenativeraver, on 10/12/2007, -2/+21That's a LOT of money.
I hope they can put it where their mouths are. - Lumiras, on 10/12/2007, -4/+22umm, that's what we were getting at in the first place
- attractivetb, on 10/12/2007, -16/+31In the world of Sony, 80 billion yen (700 million dollars) isn't a lot of money. The company has cash reserves of over 800 million yen (7 billion dollars) and assets worth over 9 trillion yen (80 billion dollars).
This is not a volatile equation, and Sony's finances are not on shaky ground. This is not a major transaction for a company of Sony's size - please refer to their financial highlights:
http://www.sony.net/SonyInfo/IR/financial/ar/2005/index.html - cal01, on 10/12/2007, -6/+21@attractivetb: I wholeheartedly agree with you. There seems to be the widespread misinterpretation around here that loans are a bad thing. Like I said in a previous digg article (and promptly dugg down for it), I have never seen a large corporation or company not take out a loan. No sane company would have that much liquid capital on hand. Hell, I'm betting nearly everyone on digg (of a legal age) will take out at least one loan in the future.
- inactive, on 10/12/2007, -9/+21thats how much it cost them to put a rootkit in the PS3
- tehJR, on 10/12/2007, -2/+13Pocket Expansion Plus+
- elnerdo, on 10/12/2007, -1/+12If anybody's anal about exact numbers. 80,000,000,000 yen = 692,254,519.80 USD = 543,803,699.56 EUR
- moshguy, on 10/12/2007, -3/+13They're polishing the brass on the titanic
- DonJuanMAC, on 10/12/2007, -3/+13I do not think Nintendo, and I know MS does not need any loan for their next-gen consoles. I hope it busts!
- JDOG, on 10/12/2007, -3/+11"Diversifying funding sources" is pretty much plain English for "we need more money" but then again, English according to Sony has taglines like "Magicgate","Emotion Engine" and "Dual Shake"
What's Sony-speak for loan? - RazorElite, on 10/12/2007, -7/+14Wow, now what if the PS3 bombs?? How're they gonna pay that back.
- SnapETom, on 10/12/2007, -3/+10After they've seen the public reaction, maybe they're going to use it to fund a PS3 price drop. The cynical side of me says Sony's not that smart, though.
- Kusgam, on 10/12/2007, -13/+19Only morons see any racism in their marketing.
People need to grow up. - thenativeraver, on 10/12/2007, -2/+8I'm still wondering when the PS3 will be making it's final debut, maybe this money is to start heavy production.
- techmonkey4u, on 10/12/2007, -9/+15After seeing their latest ad, they might want to diversify their marketing department rather than their funding sources.
- ffingers, on 10/12/2007, -5/+10Even more so...
"Sony's credit rating was cut one level to A2 in December by Moody's Investors Service, which said a recovery in earnings and cash flow would take longer than some analysts had forecast.
The electronic maker's net income for the year starting April 1 may rise 5.2 percent to 130 billion yen from the previous year, the company said in April. Sony is in the second year of a three-year plan that eliminates 10,000 jobs and cuts 200 billion yen in costs. "
So their credit rating dropped AND they are in a 3 year plan to eliminate jobs and cut costs. If you think Sony is doing okay, you're blind. Look past your nostaligic fondness for them and see, this is not a company to be banking on for the future. - haloevo, on 10/12/2007, -9/+14Can't wait to see it.
Digg's top story of the Year.
"SONY shuts its doors, for good. BANKRUPT." - attractivetb, on 10/12/2007, -8/+13@ffingers
Debt is not bad. Debt does not mean a company is failing, nor is it a harbinger of doom. A 5% increase in debt is not a HUGE increase.
Sony may be having problems, the PS3 launch may be a complete failure. DS is killing the PSP right now, but the issuance of new debt is a simple financial decision (and one that companies need to make).
/emotionally preparing myself for the inevitable digg down. - ffingers, on 10/12/2007, -7/+11How, on this green earth, after seeing indications like this, coupled with the fact that this is the most money they have borrowed in ten years and the hit they stand to take on the PS3 whether it does well or not (standard loss) AND their heavy investment into a format that has yet determined to be the standard can ANYONE look at Sony and think things are going okay?
Besides the PS3 having all the makings of a catastrophe, betting on a format which has had more delays than, hell I don't even know what to compare it to, and them losing marketshare in other sectors, they just seem to mucking themselves up everyday.
Whether you want to take this as signs the PS3 launch is worrying them or that they are just not in a good situation now, either way, Sony looks to be in trouble. That being said, they have soooo much riding on blu-ray and PS3. The old addage, "Don't put all your eggs in one basket" is something Sony should seriously examine. They are banking on a slam dunk and from the general concensus in the gaming world is that it won't be. It will be a success for those that are PS3 lovers and those who have money and must have everything, but that will not yield a slam dunk in any respect. To me, this is just another indication that Sony may fall to a mediocore manufacturer at best and hold no place in the top electronic mfg. companies. - inactive, on 10/12/2007, -5/+9Actually Sony IS putting all it's eggs into the PS3 basket. The switch to Blu-Ray is a HUGE deal with Sony. If Blu-Ray isn't picked up, and HD-DVD gets big instead, Sony is going to lose a LOT of money.
- inactive, on 10/12/2007, -3/+7companies do it all the time
- oboyy, on 10/12/2007, -1/+5@ffingers
the points you make out is what every company does. take out loans while cutting jobs, not borrowing in years, having a nice cash reserve, etc. companies in the same situation DO borrow this amount of money. and this large sum does not equate to financial difficulties. i find nothing odd with what they're doing.
if you're wondering what my background is, i work in the U.S. in one of the top 5 banks in syndicated loans. - Quatre, on 10/12/2007, -0/+4When you think about the billions of dollars in revenue that Sony makes a year, it really isn't that much money for them.
- phobia2001, on 10/12/2007, -1/+4Agree. Funny that your store took preorders so soon after the announcement. My store isn't taking preorders til Sony tells us how many they're sending. We had a problem with the 360s- we were still filling preorders in May because the shipping dates to us were so screwy.
But yeah. If you think Sony is going to go under, try working in a small electronic retail store and hearing the question, "Are you taking preorders for the PS3 yet???" about 30 times a day. You'll then realize how insanely unlikely it is that Sony will lose an inordinate amount of money. - kampfy, on 10/12/2007, -2/+5@attractivetb
"In the world of Sony, 80 billion yen (700 million dollars) isn't a lot of money. The company has cash reserves of over 800 million yen (7 billion dollars) and assets worth over 9 trillion yen (80 billion dollars)."
So 80 billion yen = 700 million dollars and 800 million yen = 7 billion dollars? Those crafty Easterners have inverted their currency exchange rate, so that's why their economy is picking up! - scott1, on 10/12/2007, -3/+6$700 millon dollars. I would hate to see how much intrest the bank makes.
- inactive, on 10/12/2007, -1/+4Sony, and other companies, borrow money all the time. It protects the stock prices and gives the company an out if they do have to default on the loan by going bankrupt (Sony is not in that kind of trouble, yet) In bankruptcy they do not have to pay back the interest and sometimes parts of the loan. Loans are also used to give credit (just like you and me) You don't get credit without borrowing.
- Nico_, on 10/12/2007, -0/+3Out of his ass. Apparently hes so desperate to flame Sony he makes up things. Especially considered Samsung and Sony make their TVs in the same factories.
- attractivetb, on 10/12/2007, -0/+3My Bad,
If you read the financials I linked in, it's an obvious typo on my part. They have 800 Billion yen in cash reserves. (7 Billion dollars). I only wish the bank made a few typos like that in my favour. - Yokai, on 10/12/2007, -1/+4700 million is not alot of money... 700 mil is a tiny bit of money compared to the amount sony has in total. Meaning, Its nothing. Every company takes loans. Microsoft takes a ***** load of money and maybe even more than that on their Windows products.
Its like if I took a loan for 50 cents. It doesnt really matter if I lose it, but it helps production if I can pay it back. - anonatron, on 10/12/2007, -0/+2Then the loan shark sends "Joey the tongue" to bust Sony's knee caps.
Seriously, if the PS3 bombs and sony loses their ass on it, they have other markets to fall back on. If the company feels the need to exit the gaming industry, they will do just that. They will liquidate their in house studios and other assets and shift focus to another market. Sony will be slightly bruised if the PS3 fails, but they will not be beaten. They could pay this loan off in no time at all if they needed to. - SpiralMH, on 10/12/2007, -2/+4this is a duplicate story some one submitted a similar story a couple days ago about this. no digg.
- Gremlinclr, on 10/12/2007, -1/+3@rick2k
Ummm, no. If you think for one second that the PS3 is gonna sell as many units as the PS2 then you are completely clueless.
Will the PS3 be a success? Of course it will. I'm guessing it'll sell about 50 million units in its lifetime, which is less than half of what the PS2 sold. The preorders are going to people who would buy it regardless of price, not the bread and butter of the console gaming industry, namely most parents who are going to balk at a $600 price tag. Especially when the helpful gamestore clerk tells them for that price they can buy a Wii and a 360.
Sony isn't going to fold anytime soon, but I really can't see them being #1 this generation like they were last time. - inactive, on 10/12/2007, -8/+10Damn! I foresee Sony crashing very hard sometime after the PS3 comes out.
They have been the red for some time now. - dharm, on 10/12/2007, -0/+2who knows what the money is for...
they put in several billion dollars into r&d of cell processor along with ibm and toshiba. - ryanjensen, on 10/12/2007, -0/+2Smarterdanu, maybe they're getting a better return on their cash than the interest rate on the loan? Not very likely, but they could have some crafty investment gurus.
- haloevo, on 10/12/2007, -1/+2"800 million yen (7 billion dollars)"
That doesn't make sense. - Abarax, on 10/12/2007, -0/+1Sony owns 1/5 of all music and movies
- GT35R, on 10/12/2007, -4/+5...and whose ass did you pull that out of?
- rick2k, on 10/12/2007, -5/+6Sorry but 90% of comment posters here obviously live on some remote island out in the ocean because your so ***** blind. "PS3 IS GONNER BOMB!!11, THEY ARE GONENR GO BANKRUPT COS NOBODY GONENR BUY IT!"
How can you not miss the insane amount of preorders ps3 is getting.. my local store had to stop taking preorders about 30 Min after announcing them. Same with every other store.. PS3 will be in such huge demand (even with the big launch price tag).
So please open your eyes and ears, Sony is going nowhere but up and are goign to as usual make a huge amound of money from there next console. - digiteyes, on 10/12/2007, -8/+9When will people realize that Sony is not Just the company that makes the PS3.. It says Sony not SCEE.. Im pretty sure a company as big as Sony isnt banking all its hope on the PS3. Maybe the SCEE division but not the company as a whole. The company as a whole isnt really doing well and hasnt posted a profit. If the PS3 does bomb im pretty sure Sony might cut off the SCEE division and abandon the console market
- inactive, on 10/12/2007, -0/+1@attractivetb
"In the world of Sony, 80 billion yen (700 million dollars) isn't a lot of money. The company has cash reserves of over 800 million yen (7 billion dollars) and assets worth over 9 trillion yen (80 billion dollars)."
Who the hell are you, Dr. Evil?
"Why have billions in reserve, when we could have... millions?" - Isyso, on 10/12/2007, -4/+5Uhm.. yeah.. Sony is a big company. This may be distributed to a number of projects that have nothing to do with PS3. Hell, it might be to expand Sony's motion picture department for all we know.
Edit: Sorry. Digiteyes got there before I did :) - rick2k, on 10/12/2007, -1/+2Sorry i don't have a full hardcore news report on my local area and the ps3 situation for you kaptfy!
maybe you can just take my word for it..? - Jugalator, on 10/12/2007, -2/+3"So 80 billion yen = 700 million dollars and 800 million yen = 7 billion dollars?"
No, 800 billion yen = 7 billion dollars. Exchange an "m" for a "b". Big deal, you still see his point, don't you? No need to be so anal about it just because he mistyped a letter.. - gincarnated, on 10/12/2007, -1/+2For them to get that loan someone must have seen Sony's business plan and approved of it. Hopefully this is a good sign and not a banks blind trust in Sony expecting to get a large payout of interest.
- cdman98, on 10/12/2007, -3/+4Funny thing is Sony < Samsung for TV;s and other Electronics ( Blu-Ray as well) which is quite a shift.
Sony is hurting, no doubt! - ffingers, on 10/12/2007, -1/+2@oboyy- Well you obviously have the background to back up your analysis and I totally respect that. I only find the timing very odd. A point where Sony is losing ground in almost every market area. Their last area is gaming where they have a good stranglehold, but looking at the general consensus, that seems bleak as well. Although normal companies, I have no doubt, do this on a regular basis, my concern is that Sony seems in a predicament and taking money out at this time, feels like to ME, as an indication of bad times ahead.
Of course, I could always be wrong, hell I often am. :) -
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