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Spoon! on 30 May 2009
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Smashchu2 said:
Spoon! said:

@Smashch2

"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."


Just so you know, investors do not have a say in what the company produces. Sure the investors can be upset and they can voice their opinion by selling their stocks, but as far as votes go,  it is usually just to vote for who will be on the managing board (and the choices are limited), and when the company will make changes to the stocks which will directly affect them such as a stock dividend, stock split or merging with another company. Sure, keeping the investors happy is a goal of any company, but that doesn't mean they can stop the PS4.

Investors pressure that company into doing what they want. Ever heard the phrase used in relationships "If she aint happy, you aint happy?" Same thing. If the investors are not happy, the board is not happy. They aren't going to go dirrectly against the people putting money into the company. That's just stupid. If the investors want Sony out of the videogame market, they are out.

The bolded line shows how naive you are. If the market is unfaviorable, why stay there? The investors expect a high return, so they will pressure the company into actions. Sony will not hold onto the PS line just because Spoon! wants it to be so. The system is unprofitable. Investors will be angry and question the Playsation line. Sony will probably respond and end the Playstation line. If the system is not profitable soon, expect the PS4 to be the Dreamcast 2. There is no way they could justify a PS4 is the brand isn't making profit. 

Wow, you seem to be taking this personally and are starting to get insulting. Not once did I say that the company should keep the PS3 because I want them to, nor was I being naive. Sony does not make any money off of the investors in the secondary market, they only get an influx of capital with an IPO, or when releasing more shares from private stores, but that is a different story.

My point is that the investors do not have as much control over Sony, or any other company for that matter, as you seem to think they have.  If Sony has a long term strategy that includes a PS4 then they will not change that because stock holders are upset. Stock holders do not run a company and if you believe it to be true I would like to know what experience you have. Are you a stock broker? Do you or have you ever worked in the financial industry? Do you have shares and have you ever gone to a shareholders meeting? I've worked for a transfer company and read countless proxies, and presently work at a webstreaming company that streams many shareholder meetings, and so when I say Sony will stick to their game plan even if it upsets the investors I'm speaking from my experiences. Yes I've seen shareholder meetings where the shareholders were upset, they get to ask questions of the execs, and the execs try to spin it to make everything seem hunky dory, because it's a PR game, but I have never seen them change their goals.

If anything, Sony would address the concerns of the investors by illustrating the long term gains of keeping the PS3 and then introducing a PS4 and telling the investors that this long term strategy will be lucrative and the investors may grumble about it, but if Sony wants it then it will happen. And once again, it does not matter what I want. Oh, and if I did have the power to get what I want just by wishing it, keeping the PS3 alive would be pretty low on my list.

 

P.S. you never answered my question about 3rd parties leaving Sony from my other post.