Mr Khan said:
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 |
It is a very bad decision in the first place.
The Playstation brand is big enough that it feeds all its other departments.
Sony has a significant stake in DVD, and makes and sells movies, ps2 used DVD. That's an example.
Looking at playstation division alone without looking at the nourishment it provides to the rest of the company, through marketplace venues or brand strengthening, is folly. The fact is, Playstation by itself would have wasted profits. It's like mining crude oil just to make natural gas, there's all kinds of other fuel that comes as a by product of making natural gas. It makes more sense to have a bucket for each byproduct than to let outsiders stand around the well waiting for payday.