| kowenicki said: You see this is exactly what I am talking about.... I'll forgive the terrible and numerous spelling mistakes.... but... The "analysis" in your post is just ill-informed nonsense. Their losses are due to a business model that DEPENDS on a weaker yen. The TV losses and others are just symptoms of that approach and ongoing problem. Their profit margin has always been very, very low and is now negative due to the Yen. The Source is partially correct, but again is massively over-simplifying the problem. He doesn't seem to factor in exchange rate issues that will remain and doesn't factor in the large debt that Sony have to re-finance over the next few years with a worsening credit rating that will further drag on the profit margin. He also doesn't factor in Korean and Chinese wishes to replace the Japanese electronic giants, which to be frank they can do at will it seems. The whole business model needs reviewing. Luckily Sony (unlike their "fans") realise this and are trying to do it.... but they really have their work cut out. Playstation may be better off a stand alone business along the lines of Nintendo... but you have to wonder how and where the R&D input would come from. |
The last point is the question that would defeat the notion of the PlayStation division which, while it brings in profits in the long run, requires the presence of other profitable divisions to remain functioning in the short run. E.g. Sony makes most of its money in the latter three quarters of the devices life, rather than the first quarter, but how much of that money would they burn in R&D if that's all they had to play with?
The PlayStation business model would need significant rewiring if it were to function independently
Monster Hunter: pissing me off since 2010.
