PS4 won’t solve Sony’s wider problem, say analysts


The city remains largely unimpressed by Sony’s prospects as an investment after this week’s PS4 announcements.

Seeking Alpha advised its readers against buying Sony shares, saying: “What investors really need to consider is what they are getting when they purchase a share of Sony. A very poor balance sheet, and a chain of losses reveal that not even the PS4 can stop Sony’s slow decline.“

“Even though the PS4 could be a huge hit for Sony, the company’s poor financials and large exposure to interest rates should deter investors away. There is also much more information the company plans to unveil on the PS4, and investors should also wait until they hear about the new Xbox.”

Bloomberg’s report noted: “The PlayStation 4 makes its debut amid an industry shift toward mobile play on smartphones and tablets, raising the question of whether gamers will shell out several hundred dollars for a new device.”

It also quoted BGC Partners’ Amir Anvarzadeh as saying: “This enhanced PlayStation experience is simply not revolutionary to overcome big disruptions facing the industry. Sony’s heavy emphasis on the social aspect of PS4 seems a bit too ambitious to deliver on.” The new console “is unlikely to deliver sufficient cash flow to turn around the company’s credit profile,” added a Fitch Ratings report.

“It’s unlikely that PS4 will boost Sony’s sales and profit in the long term,” Ichiyoshi Asset Management’s Mitsushige Akino told Bloomberg. “Only core gamers buy game consoles like the PS4.”

Speaking to Reuters, Inside Network Research analyst Billy Pidgeon added: “[PS4] looks good and had a lot of great games but the industry is different now. It’ll be a slow burn and not heavy uptake right away.”