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Smashchu2 on 29 May 2009
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WereKitten said:
Smashchu2 said:

...

The facts are clear as day. The company is losing the company millions (the gamecube was profitable), Sony is not in the game industry (the whole goal of the Playstation line was to disrupt computers so they are not tied to the industry in any other way), the company itself is in bad time (Nintendo never was), and the the mind behind it (Ken Kutaragi) is now gone. Investors will probabyl demand to end the Play Station experiment if it doesn't show profitability soon. The system wont have a long life since the Wii will gain more attention overtime and as owners become increasingly bored with the HD twins. The end of Sony sounds more plausible.

So let me understand something. They spent billions in R&D. The hardware is right now crossing the hilltop of profitability, and the software is making them money.

You say that "Sony is not in the game industry" - weird, it certainly looks so - but now that they can make money out of the trojan horse they put in the living rooms, out of digital content and BluRay royalties and services, the investors will "demand to end the PlayStation experiment"? And what, close the PS3 fab sites, fire the first party developers and 1) renounce to the revenue and 2) renounce to the living room? What is the business sense of that?

First, I am really upset with how my paragraph came out. I need some spell check on this forum.

To all your comments: Yes

  • Sony is not a part of the industry as we would think. Nintendo makes all their money off of it. As does Sega, EA, Activision, Ubisoft, Square-Enix, Temco(who is now merged with Koei) and so on. Sony has other sources of income. They tied themselves to the industry by using their other products in a gaming machine. They were trying to disrupt computers though games. They are not dependent on it and can leave at any time. The companies I mentioned can not.
  • Investors will probably want the PS3 gone, asking why they are in an unprofitable market. If Sony can not turn it around in terms of profitability, expect to see the investors deny a PS4. Again, Sony is not a game company. Nintendo can always gets a game system past their investors becuase they invested in a video game company. Sony investors invested in a hardware company that deals in entertainment. They are numerous outlets besides gaming.
  • Lay offs happen. Heck, they will happen now in an economic turn down. Labor is a company's highest cost. Easy way to shead it right? They may keep a few. but I expect most will be laid off and the others will make software for other systems.
  • 1) renounce to the revenue and 2) renounce to the living room? Huh? First, profits matter. Revenue does not. Sony isn't making profit. You always make some kind of revenue. For two, there is not some mysterious battle for the living room. They are just trying to make money. There is no point for fight for the living room if it isn't going to show a return. The PS3 has been losing money for about 3 years. It sounds like they might be done with it.