You can play with numbers on a spreadsheet, but you can't book a profit unless someone is actually coming up with the cash.
Bad debt is not worth half of face value, it's worth like 2%.
Here's what I suspect is going on:
1. Sony is not selling PS5s, they're sitting in a warehouse aging out and this is going to look like SHIT on their quarterly.
2. So they create a shell company to "sell" the PS5 to (they lend the company the money so basically they're just giving away the device).
3. They report sales on their quarterly 🎉
4. But there's this weird little line item - a debt asset to a no-name company
5. When the rentals all disappear / get destroyed, and customers don't pay, they keep the shell company alive as long as possible so that they can delay booking the loss
So whose getting scammed is Sony investors.
Bad debt is not worth half of face value, it's worth like 2%.
Here's what I suspect is going on:
1. Sony is not selling PS5s, they're sitting in a warehouse aging out and this is going to look like SHIT on their quarterly.
2. So they create a shell company to "sell" the PS5 to (they lend the company the money so basically they're just giving away the device).
3. They report sales on their quarterly 🎉
4. But there's this weird little line item - a debt asset to a no-name company
5. When the rentals all disappear / get destroyed, and customers don't pay, they keep the shell company alive as long as possible so that they can delay booking the loss
So whose getting scammed is Sony investors.
