Sony's New CEO Aims For Top Position in Games Market

[Alby_da_Wolf]

theprof00 said:

Alby_da_Wolf said:

I can't talk for theprof00, but now I got your point, this time you explained it more clearly. And yes, I see those 3 years as a reasonable target, but I get too the contradiction about PSV profits supporting other business segments and product categories, when those profits will be there in 3 years. Obviously PSV profitability overall, including SW, should arrive sooner. But struggling products will have to wait for that money anyway. He didn't list just PSV, though, but PS3 and PSP too, so he maybe just meant PS3 and PSP now and PSV later, non all at the same time.

About TVs, Sony sold some display production plants, so they must be turning to produce less components by themselves and assemble their TVs with more 3rd party ones. TVs are very important for Sony brand, but if they go the way their recent moves suggest, they'll have to be very careful chosing those components that they used to produce by themselves and now they don't anymore, people won't accept their premium price if the Sony brand is stuck to a heap of crap.

How can you get his point when the point is that you can't support "other sectors" with a console that isn't profitable on its own?

This is regardless of the fact that Kaz never said he would support other sectors with psv profits, but that he would use ps3 psp and vita as investments into the mobile sector, which, I mean, we're SEEING with the xperia, and the apps for vita, and the buying out of ericsson. Lastly, he never actually says "use the profits", he says they are being used as an investments toward mobile. Sure an argument could be made that they're talking about profits, but given the "playstation suite", the "xperia", the "apps", and the buyout, I believe that he is talking about using the software coming out of those products as a foundation for smart phone competition.

There's no mincing words here, profit was not mentioned, psv was not mentioned singularly, and even if it was (which it wasn't) the quote he refers to is likely talking about base hardware profits.

Profits were actually mentioned in the OP, but not taking the products singularly, neither specifying HW alone or overall in that line "He hopes to use profits from PS3, PSP and PS Vita as investment into the company's mobile business". But yes, if journalists are quoting him correctly, he made a series of statements not tightly linked to each other, we tend to mentally join them with things we imagine as reasonable, but that he never said and there could be other links as much reasonable instead, or no ones at all.

About Kow's point, I can get it if he understood Kaz's point as PSV contributing with a profit too earlier than reasonable, and not just as the whole PS brand contributing with an overall profit. As I wrote though, whatever one wants to understand, PSV HW and SW overall profitability will come quite earlier than the HW alone one, and this should interest shareholders more, as they care for the end result. But hey, I'm reading too more things that he actually said, I get too that he was meaning mostly sinergies across all the most noteworthy Sony product lines and that's why I agree that Sony should streamline production and find any other possible way to cut costs and losses before even considering cutting a product, TVs themselves are bleeding money, but they could stop doing it, competitors can be profitable selling them, sony could be too again, and they are too important for sinergies and brand recognition, even now that they are in such a bad shape. PS line is very important too, obviously, and it's in a far better shape, as right now PSV losses and costs are those expected early in the product life, not the awful series of errors and unfortunate events and circumstances that crippled TVs.