Vita descend

The day is upon us, ladies and gentlemen. Sony's Playstation Vita has hit North American shores, almost a year after Nintendo's 3DS hit North American shores. Reviews are currently coming in and many paint a positive picture for the Vita. But for Sony, it has alot going up against it. One good thing is that the Playstation Network has a new name. Since last week, it has become the Sony Entertainment Network

On Tuesday, February 7, 2012, the PlayStation Network shall cease to be, and the Sony Entertainment Network will stand in its place. Existing PSN members are receiving emails informing them that their terms of service are about to change in the wake of this alteration.

Sony says the rebranding will not apply to the PSP "at this time." I guess Sony's already planning to bail out on that system completely with the PS Vita on the horizon.

We've known that the PSN was to be folded into the SNEI for a while, but it's been months since we last heard anything. Sony says the only thing that'll really change for users is the name. The online services -- and your associated login details -- will remain the same, but you'll have to get used to calling it something else.

Unfortunately, it seems us PSP users will be left out in the dark, forcing us to download Media Go for our PSP needs. But what about those who still have UMDs? Unfortunately, the PS Vita cannot run UMDs, and for those who want to convert the UMDs to Digital Distribution, some bad news out of this.

Sony has decided that, unlike in other territories, there will be no PSP-to-Vita transfer program in North America, barring the possibility of PSP owners obtaining games they already physically own at a discount. You want to play your PSP UMDs? Keep your PSP, or buy them again.

The transfer program was revealed by Sony back in November, but it seems that only Japan will be blessed with its services. Sony did a similar thing with the PSPgo, when it decided in the end to not allow UMD transfers on the all-digital model. Still, at least one part of the world is eligible this time.

That's a blow to those who were loyal to the UMD media. And you thought Maddox was upset at Sony over the PSP and PS3. But what may be Sony's ultimate downer? Standard and Poor has given Sony a lower rating than the Good Ol US of A

Standard & Poor’s (S&P) has lowered Sony long-term credit and debt ratings from "A-" to "BBB+," according to an IndustryGamers report. That report also notes that the firm also removed the ratings from CreditWatch, where it dropped them in November of 2011.

"The outlook on the long-term corporate credit rating is negative," S&P noted. "We base the downgrade on our view that severe circumstances in Sony's mainstay electronics businesses make a strong recovery in earnings unlikely. We base the negative outlook on the long-term corporate credit rating on our expectation that we could lower the ratings further if we see no meaningful sign of a recovery in Sony's earnings within six to 12 months. We affirmed the 'A-2' short-term corporate credit rating on the company."

The downgrade in its credit rating comes on the heels of the company's fiscal third-quarter results and news that it expected to post a fiscal full year net loss of $2.89 billion.

The credit rating firm thinks that a quick recovery is not a possibility for the company.

"Standard & Poor's believes the major reason for the extended losses is Sony's strategy to aggressively expand its global market share despite strong competition, a massive erosion of prices, and its high cost structure compared with overseas competitors," read the report. "Circumstances are so severe that Standard & Poor's believes it will be difficult for Sony to return its TV business to profitability even in fiscal 2013. Therefore, we see a low likelihood of a strong recovery in Sony's earnings in the next two years or so."

S&P added that it could lower Sony's credit rating even further if it doesn't see some signs of positive progress in the next six to 12 months.

"We expect strong price erosion and a fall in demand may delay a recovery in earnings in the company's TV segment and lead to further expenses in restructuring," it said.

Sony's got alot going against it. Will the Vita help keep Sony afloat in the sea of electronics, or will it sink to the bottom and take it down? Stay tuned



Works Cited
Destructoid: PSN will become Sony Entertainment Network this Tuesday
Destructoid: Sony: No PSP-to-PS Vita transfer program for America
Game Politics: Sony Credit Rating Downgraded by S&P