Fitch Ratings downgraded its long term foreign currency rating on Sony Corp because of worries about problems with the PlayStation 3 and major recalls of its batteries. The ratings agency downgraded the long-term foreign currency ratings to 'BBB-plus' from 'A-minus' with a negative outlook. The ratings agency said Sony's financial profile was expected to continue to weaken over the next one to two years. 'Fitch expects Sony would need a longer time to restore its underperforming electronics operations, while its game segment will likely incur large losses over the next three to five years given the huge investments and intensifying market competition.

The PlayStation 3 was likely to face more severe competition than the PS2 which could mean Sony will need longer to recoup the huge development costs, while the battery recalls have dealt a further blow, Fitch noted. Sony releases its highly predictable PlayStation 3. But if history is any guide, consumers might be better off waiting a few months for the kinks to be worked out and the price to drop. Don’t hesitate to visit our website Recalls-Info.com if you are in need of information on PS 3.