Will PS3 have a successful year in 2009?

[NJ5]

Deneidez said:

freedquaker said:
There are a couple points that need to be pointed out...

- Sony is not a small company, it's actually bigger than MS in some terms (like asset value, employees etc.) Sony's current problem is about small profit margins, liquidity and exchange rate fluctuations.

Sure its not 'small', but its still small when compared to MS. Sonys net income is about 6 times smaller than MS.

Net income US$ 3.694 Billion (2008) and if game division makes 3 Billion losses its huge(!) losses compared to MS losses or even 3 Billion losses for MS. (Net income US$ 17.681 Billion (2008))

He's talking about size as in number of employees and assets. However, this is not always a good characteristic, it can even be a drag on the company's financials.

Sony is a big but mismanaged company in my view (having such low profit margins and so many unprofitable divisions at the same time is asking for trouble). Microsoft is a smaller but better managed company, with some of the best profit margins and cash reserves around, which means they can take a huge hit. The same goes for Nintendo, but on a smaller scale of course.