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BengaBenga on 05 January 2009
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NJ5 said:
goddog said:
NJ5 said:
bardicverse said:
We already know that Sony is closing its Walkman division, officially bowing out to digitally distributed music. I would expect their home computer division to fold also, with the dominance of Dell, HP and Apple in the computer/laptop markets.

After the success of the PS2, I doubt that Sony would outright kill off its gaming division just because of misfortune with the PS3. They WOULD be smart to terminate some of their exclusivity contracts though. Its a luxury they can't afford right now.

Where did you read about Sony discontinuing the walkman products?

Didn't Sony recently finish buying BMG Music? It would be quite weird to sell it right after buying it... 

if you remember in the early 90s, kamart bought and sold boarders, walden books, office max, payless drurgs. each was oowned from 2 to 5 years....

I think they are very likely to sell at minimum stakes in sony BMG, but i see sony ericeson as the bigger sacrifical cow

How much can selling Sony Ericsson really helping them?

First of all, it's not based in Japan, while the article makes it seem like Japan operations would be the most affected. That also means it's not affected by the lousy exchange rates. Thirdly, it really isn't losing any great amount of money... $18 million in one quarter is nothing.

Granted, I have no idea how Sony Ericsson will do in this holiday quarter. I'm guessing cellphone sales aren't too hot these days, but then again what products are selling well these days?

 

The answer would be videogames and consoles...
Unfortunately for Sony not theirs.

Even if Sony quit making Walkmans, it would acount for absolutely nothing of their total business at all. And the article clearly talks about Divisions, not a small subsegment of their main division. Sony will likely never give up making electronics.

The more I think of it the more realistic the idea of the sale of a huge chunk of SCE becomes. I hope not, cause competition is healthy and it will hurt the industry big time if they lose a big player, but it's one of the few Divisions they can easily sell for quite some money. The Activisions, EA's and Ubisofts will wait in a line to buy God of War, GT and their developers.