The vast majority of sony's shortfall this quarter came from the movie segment going from positive to negative. Movies are by nature hit and miss, this isn't a long term trend in itself. Good luck if you're waiting for single digits.
You are right, the movie segment produced most of the shortfall. However, most of the segments also did not turn profit, even though the depreciating Yen was on their side. They still managed to post bigger losses than last year,year-over-year, when the Yen was strong. So this highlights bigger issues than just the Pictures division. If macros were not enough to make you beat last year's weak performance, this says a lot about managements competence to turn this ship in time and make Sony competitive again in the market place.
I really wish Sony to succeed, but they need bigger and more drastic changes. This ship is definitely a very long term play, however, when considering opportunity cost I have to signing-off my position at a 25% loss, and cannot convince myself to own a part of Sony when management is so lousy in asset allocation and ROI record.
Until I see drastic changes in management (since I believe marketing, products, design, brand are still extremely valuable) I will be on the sidelines watching this brave company try and turn things around.
Complete nonsense. Sony's turn-around strategy depends on a successful roll-out of PS4 echo system and we will see exactly how that goes in only 2 weeks which by all indications should put a nice squeeze on those 5 million+ shorts. There should be plenty of signs of growth over the holiday season which should propel the stock up where it belongs. Anything less than $20 billion valuation for Sony is an insult.
My friend, you are right about the PS4 mostly being a success, but you're missing the fact that the game division has almost always only represented 10% or less of total revenue for Sony. So as much as I agree with you on the PS4's success, I don't see that turning the whole company around by itself. It needs further strengths from other areas which at the time seem very weak.
Sony most likely will not drop to 9$, but we need to understand the situation soundly and adjust our expectations. This company needs much more work, and the PS4 with the Xperia line are not enough to turn this ship around.