Sony has been in Financial Trouble, they reported a Two Billion Dollar loss last quarter and a stupid S&P report by Reuters expects things to get a lot worse for Sony in the forseeable future:
"We base the downgrade on our view that severe circumstances in Sony's mainstay electronics businesses make a strong recovery in earnings unlikely. We base the negative outlook on the long-term corporate credit rating on our expectation that we could lower the ratings further if we see no meaningful sign of recovery in Sony's earnings within six to 12 months," continues the S&P report.
S&P notes that Sony's television sector in particular hasn't made any money since March of 2005. "Standard & Poor's believes the major reason for the extended losses is Sony's strategy to aggressively expand its global market share despite strong competition, a massive erosion of prices, and its high cost structure compared with overseas competitors," notes the report. "Massive pressure on the prices of Sony's key products, such as flat-panel TVs and mobile handsets, is likely to continue, and the company's position in the global market is under strong pressure amid severe competition from Korean manufacturers and emerging Chinese companies."
However, nothing has been said about how this will affect the Playstation aspect of the company leading us to believe that if Sony does get screwed it will only affect their television industry. Still, let's hope nothing bad happens to them and let us hope that they can still sell plenty of VITA's in the U.S.
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