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Why Sony is much more desperate to win the console wars than Microsoft

28
Jan
2014

One of the more underrated questions surrounding the latest round of console wars between Microsoft and Sony is, “Which company needs a win more badly?” Looking at the financial health of each company, the answer is pretty obvious: It’s Sony. While Microsoft still rakes in enormous piles of cash every quarter thanks to its enterprise software and services, Sony’s hardware business has come under considerable strain. Moody’s this week cut Sony’s credit rating to junk status and said that even a successful PlayStation 4 launch might not be enough to make the company consistently profitable. “Sony’s profitability is likely to remain weak and volatile, as we expect the majority of its core consumer electronics businesses — such as TVs, mobile,

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