| kowenicki said: If it was stand alone then it would struggle. It simply doesn't make enough consistent profit. Playstation relies heavily on the cross subsidy, expertise, research capability and manufacturing facilities that Sony can provide. If it was taken up by a 3rd party then it would depend on the 3rd parties intentions. Samsung for instance could bank roll it even better than Sony can so I don't think you'd see any difference. But any new owner wouldn't be as emotionally attached to the Playstation brand and would likely want it to be much more efficient. |
Isnt this somewhat of a sad thing? I mean how is it fair for any kind of business when lets say Your competition has unlimited money because other divisions help out? You on the other hand have to rely on your own? Or are forced to sell 49% if your company or whatever?
This should actually be illegal because start ups and small companies get killed by juggernauts with cash.
There is some laws that prevent you from subsidizing your goods because thats destroying the market and will ruin small companies that cannot do the same thing as long as you can. (when I sell my 60" TVs for $200 for a year noone will buy the competitions TVs during that year and they will die mwhahahaha)
But why is it allowed that one branch of a company is funding another one? Thats exactly as unfair as subsidizing your products untill your competition goes bakrupt.
IMO If any company/branch cant stand on its own feet then it should simply vanish. Everyone should have equal chances. The way it is now is just stupid.
This also applies to companies being able to buy other companies with no connection to their type of business.
Lets say you came up with an idea how to make holograms and make the mistake of talking about it way to early then big companies will start to pay attention and you will automatically fail because you will either be bought by a huge random company (when you agree to be bought) OR you will get destroyed by it (when you decline their offer) they just pump millions into RnD and then will most likely release their product before your 10-people-team was able to and their marketing will do the rest.
Also is the reason why solar panel companies all over the world go bankrupt. China as a state is subsidizing its own solar panel companies and small companies in europe etc cannot compete with China.
