Sony Management Files For Unemployment
Nomura, the largest brokerage firm in Japan, has reported that the Playstation3 will only hit 75% of its sales goal for the period ending March 31, 2007. Their financial forecast is that Sony will only ship 4.5 million units against…
Nomura, the largest brokerage firm in Japan, has reported that the Playstation3 will only hit 75% of its sales goal for the period ending March 31, 2007. Their financial forecast is that Sony will only ship 4.5 million units against the company target of 6 million.
Nomura also cut is forecast for Sony’s fiscal year PS3 sales from 16 million units to 10 million.
Sony (SNE) management has committed to a Playstation financial breakeven in a fairly short period of time. That is a dangerous bet.
Goldman Sachs has also gone out on a limb for Sony, based primarily on its expectation that LCD TV sales are going well. The banking firm upped Sony to a "buy".
Sony’s shares have staged a relief rally, rising from under $38 in mid-October to trade at over $47 recently.
That rally is almost certainly about to end.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
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A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.