Nintendo Shares Have Risen After PlayStation 4 Announcement

[Dodece]

I hate to shatter any illusions that anyone has, but the investors are actually behaving rationally. Where as supporters of a particular game console brand are unwilling to see that rationality. Sony is a deeply unhealthy company. That has seen substantial losses for five plus year. That has been selling off assets to offset losses on the spreadsheet, and now with the unveiling of the PS4 with its heavy handed specs. Doing nothing to address those problems, but seemingly primed to exacerbate them even further over the coming year.

I do not know if that is what Investors are responding too specifically, or if it is pure happenstance, but if that is the case you really cannot call their intelligence into question. The time for blind faith in Sony's future prospects is only to be found in the past. Not having that kind of faith in Sony is akin to having basic common sense. If the console is going to be sold at a substantial loss. That will mean that a return to consistent profitability could end up being many quarters away. If the console is sold at cost then it might not achieve enough market penetration, and may very well flop.

Which taken into consideration with the Vita adds up to a division without a flagship product to justify its own existence. A division that would only be worth a fraction of its current value. Requiring that Sony either write off the loss, or throw money at the problem. Which is probably the real nightmare of investors. That Sony may end up repeating the incredibly costly PS3 debacle. Where Sony ends up losing billions of dollars just to stay in the game. Which actually might not even be doable for the company.

No matter how it ends up playing out. You shouldn't be hard on people who may be getting their money out to avoid what could be a fairly substantial risk. This isn't a mental exercise, and this isn't necessarily about a game that some day traders are playing. For some people this is their retirement, college fund, or insurance against future disasters.

I know it might sound perverse, but a gamers wet dream. Is probably a nightmare for some investors. They after all have to be looking for something that Sony can make a quick profit from. Even if the company isn't the market leader. Rather then a console that has the potential to be a market leader, but promises substantial short term losses.