Nomura, the largest brokerage firm in Japan, has reported that the Playstation3 will only hit 75% of its sales goal for the period ending March 31, 2007. Their financial forecast is that Sony will only ship 4.5 million units against the company target of 6 million.
Nomura also cut is forecast for Sony’s fiscal year PS3 sales from 16 million units to 10 million.
Sony (SNE) management has committed to a Playstation financial breakeven in a fairly short period of time. That is a dangerous bet.
Goldman Sachs has also gone out on a limb for Sony, based primarily on its expectation that LCD TV sales are going well. The banking firm upped Sony to a "buy".
Sony’s shares have staged a relief rally, rising from under $38 in mid-October to trade at over $47 recently.
That rally is almost certainly about to end.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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