BigBoobieHead said:
You know so little. You think Sony did bad, check out other Japanese electronic multinationals.
Who is going to be worse off in a recession?
- A JAPANESE ELECTRONICS maker that charges HIGH PRICES and has fierce COMPETITION
- An AMERICAN SOFTWARE company than has LITTLE competiton
MS will always blow Sony away in net profit, because they make software and have basically no real competition - they're margins are unreal.
Sony, despite being worse off, still has:
- A ton more assets (which are sellable if needed)
- A bigger workforce
- More annual customers
- A much more diversified product range and mix
- More revenue
See how spin can work?
Bottom line is that Sony have came through this recession without significant loss, are now making profit, have better thinking and are restructured for the future.
MS have just continued as MS - doing awesome but not making it really in the electronics world. MS are unstoppable until Windows comes under serious competiton, of ever.
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On to your bullet points:
"A ton more assets (which are sellable if needed)"
Assets are either liquid (sell fast) or illiquid (sit in warehouses for months on end). PS3s are definitely more liquid than a 3D Sony TV selling for $3000. Likewise, Apple iPods are light years more liquid than the Sony Walkman.
Assets are both a asset and a liability. Much more a liability if you cannot move them in a month.
Not a real valid point without statistics to show how liquid each and every asset Sony creates is.
"A bigger workforce"
This is not an asset at all especially in Japan where they have the 2nd highest life expectancy after one of the Nordic countries (Iceland, Sweden, Finland or Denmark I cannot remember at the moment). With a larger workforce, you have a larger liability in wages and benefits, especially when they hit the 40 plus age range when they start to develop chronic medical conditions.
Not a valid point because a bigger workforce is not only a liability in terms of dollars, but bigger workforces have been shown throughout the history of business to paralyze companies in dynamically changing markets where if you don't restructure and fundamentally change your way of business today, then you will be extinct tomorrow.
The consumer electronics industry is a dynamically changing market. Just consider the iPod versus the Walkman.
"More annual customers"
This is an asset due to Sony being a consumer electronic conglomerate with everything from PS3s, television sets, record labels and what not.
Very valid point, but it is not a valid point when you are solely comparing Microsoft's Gaming Division to Sony's Gaming Division because it is unfair to compare apples to pomegranates.
"A much more diversified product range and mix"
See the above.
"More revenue"
Revenue is not profit. Profit is remaining revenue after a company pays off it's liabilities and taxes. Throwing the "more revenue" argument around is equivalent to arguing invididual citizens in one country are better off than those in another because their country has a higher gross GDP when it is GDP per capita that matters.
In this case it is the company with the highest profit who is in the best position to lead and respond to the market. Microsoft may be smaller as a whole, but they are more agile and able to put out new products faster because they are not depending, like Sony, on one of 5 plus different consumer electronic divisions to post a profit so it can subsidize other unprofitable divisions (as they did for the PS3 from 2006-2009).