MS: Get timed exclusive. If sales, buy the IP.

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User Info: PominAus

PominAus
3 years ago#41
Rome218 posted...
Sony was downgraded to junk? Isn't there a better word that could have been used? The word junk is kind of strong.

How about "poor rating"? o_O Junk is something you throw in the trash. It's an embarrassing title.

That would be like.. a company downgrading someone to "peasant" who doesn't make a certain income, or downgrading someone who is in debt a "Deadbeat".


This!
Xbox Live GT: Jaydeekay86

User Info: Kcrack

Kcrack
3 years ago#42
MS buys the IP, Sony buys the developer.

Pretty sure Sony is doing it the right way..

User Info: Kodega

Kodega
3 years ago#43
Rome218 posted...
Sony was downgraded to junk? Isn't there a better word that could have been used? The word junk is kind of strong.

How about "poor rating"? o_O Junk is something you throw in the trash. It's an embarrassing title.

That would be like.. a company downgrading someone to "peasant" who doesn't make a certain income, or downgrading someone who is in debt a "Deadbeat".


Uh, yeah. That's kind of the point. Fitch and Moody believe that Sony isn't in any shape to become profitable any time soon. Hence buying their stock is indeed like throwing money in the trash. It's an embarrassing title because it's an embarrassing position to be in.
Just because you're paranoid, doesn't mean they're not out to get you.

User Info: aszsith

aszsith
3 years ago#44
People seem to be confusing Credit Worthiness with Stock Value.

Junk status is assigned to Credit Worthiness. It means that the company, in this case Sony, is a higher risk to loan money to because they have little likelihood of being able to pay it back due to declining revenues. It is like a commercial version of a consumer credit score. A really low consumer credit score.

This status means that Sony must essentially generate their own money to save the company rather than borrow it from someone else. This is usually done through the selling of assets. Vaio and Playstation are the likely ones to go as their have potential buyers in their associated markets. We'll get a clearer picture of things on Feb 6th when Sony releases their financial statements.

The junk rating inherently affects stocks, which is one way a healthy company generates money, because no one is going to try and bail out the sinking ship. Therefore the stocks fall and the company is forced to find other ways of generating the revenue that it's normal business processes are not generating.

Credit Worthiness and Stock Value are not the same thing, but they one affects the other (and it goes both ways).
ALL games should have a Single Player mode. I can always guarantee I want to play when I turn on my system. I can't guarantee others will at the same time.

User Info: TheSilentRaven

TheSilentRaven
3 years ago#45
KID VID posted...
U mad?

User Info: 120N7

120N7
3 years ago#46
aszsith posted...
People seem to be confusing Credit Worthiness with Stock Value.

Junk status is assigned to Credit Worthiness. It means that the company, in this case Sony, is a higher risk to loan money to because they have little likelihood of being able to pay it back due to declining revenues. It is like a commercial version of a consumer credit score. A really low consumer credit score.

This status means that Sony must essentially generate their own money to save the company rather than borrow it from someone else. This is usually done through the selling of assets. Vaio and Playstation are the likely ones to go as their have potential buyers in their associated markets. We'll get a clearer picture of things on Feb 6th when Sony releases their financial statements.

The junk rating inherently affects stocks, which is one way a healthy company generates money, because no one is going to try and bail out the sinking ship. Therefore the stocks fall and the company is forced to find other ways of generating the revenue that it's normal business processes are not generating.

Credit Worthiness and Stock Value are not the same thing, but they one affects the other (and it goes both ways).


Nice explanation :)
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