Sony borrows about £400 million

Wednesday 05 Jul 2006 : 20:44 PM



£376,746,816.14 to be exact, or 80 billion yen.

Read into this what you will but this is the first time Sony has borrowed money from investors in 10 years. Sony hasn't been doing that well recently, it's consumer electronics division hasn't been doing that well and PS2 revenues must be starting to slip.

It would probably have needed to borrow some money anyway as it's invested huge amounts of money in the Cell processor and Blu-Ray and even with the hefty price tag of the PS3 it will still be subsidising that for a while so it's unlikely to see healthy profits from that until 2008.

Despite their huge console market share and brand loyalty you've got to say that Sony is taking a lot of risks at the moment, as are Nintendo with their new controller. The next year is going to be very, very interesting.

Tags: Sony

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