SONY’s graded as junk

Fitch has graded SONY as BBB-, meaning that the company is in a dire situation. The same applies to both Panasonic and Sharp. I’ve never cared for Panasonic, as there have always been better alternatives, but at times like this Phillips has the leverage to turn their fame and profitability for the better if they play their cards right. Sharp’s been apretty awesome company throughout the years, but like with Panasonic there have always been other options most of the time.

We know why SONY has found itself in this situation. They have not made good business for more than a decade know. SONY’s business model has never been sustainable and has always been dependant on strong economy. Strong yen, problems in China, the Euro crisis and the weak macro economics do not allow SONY’s selfish acts any longer. For SONY to climb up from the trench they have dug themselves into means drastic changes that the Japanese mindset doesn’t like, mostly denying the rockstar status of the engineers and designers and forcing them to work like real engineers and force them to create products that people will buy. In other words; if they won’t make products that will sell, they get kicked from the company. 3D support is something that SONY can drop like a dead fly. It doesn’t sell. I know that SONY won’t cut their PS3 or PSVita support, as that would mean that Kazuo Hirai would actually admit that these consoles were failures and failed to grasp the attention and audience he wished them to gain. Naturally, this won’t happen because Hirai is an idiot.

In the 80’s SONY was one of those companies that abused the hell out of the Japan’s economy bubble. Relatively speaking, the 1980’s was one of the happiest times post-war Japan had seen. Money to spend, money to use, exporting and importing was flourishing and OVA boom was at full force. When the bubble burst in the early 90’s, SONY’s face from that decade allowed them an easy ride. PlayStation solidified SONY’s status as a game company, thou this is also the point where they began their downfall.

BetaMAX was a failure because SONY didn’t wish to cooperate with other companies, and forced a far too high price on the customers. The same was repeated with the PlayStation 3.

SONY has made attempts at restructuring itself for some years now. However, these attempts have gone completely unnoticed as they have changed nothing. SONY is like an alcoholic who just changed from beer to wine, then to whiskey until he finds himself drinking ethanol . We all know the best thing for this alcoholic would be to stop drinking and eat some bread. Otherwise the drinker’s going to die like a frog hit by a meteor.

SONY’s screwed, and the lack of success in the game department isn’t helping. One drastic measure could be that they’d stop developing the PS4, and continue with their ten-year plan for the PS3. It’s their best bet if they intend to keep with the competing games companies.
I’m not happy to see how things have developed. High quality demands proper competition, and we haven’t had one since the 80’s when it comes to video games.


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