Sony To Post $2 Billion+ Loss

[DonFerrari]

foxtail said:

DonFerrari said:

Xbox were evaluated at 23B, and you say PS should fetch more, but you also said PS brand is worth 5B, so you were quite lost...

On the methodology to determine the Xbox brand worth see this.

foxtail said:

DonFerrari said:

Quite possible... it baffles me that MS during X360 times (without Gears being theirs) the brand was 25B but people saying Sony in entirety were worth less.

And you know how they came up with all those pointless valuations for the Xbox brand, all they did was use a simple revenue multiple (price-to-sales) that used Nintendo as the benchmark.  

It all depended on how much Nintendo's stock sold for times its trailing 12-month revenue then applied to Xbox revenue estimates.  The higher that multiple was on Nintendo's end, the higher value they could say the Xbox was worth.  

It's a simple and erroneous calculation that has little basis in the reality of the situation.  Nintendo shouldn't be used to determine the value of Xbox because they are too different and using multiples gives us a shortsighted view.

Well we can both agree it was bad made evaluation... because if we would evaluate PS brand worth based on earning using Mojang (350M but sold for 2.5B) then PS Brand would be worth like 75B.

I see where you're going but it wouldn't work that way since Mojang wasn't a publicly traded company so you couldn't calculate with a revenue multiple.  

One reason I think Bloomberg shouldn't have used Nintendo to measure the Xbox brand value using multiples is because a large portion of Nintendo's revenue comes from it's handhelds and Xbox doesn't compete in that space.  Again multiples are too simple.

Well any "simplistic" calculation would give this kind of bizarre flaws... Why didn't Bloomberg gone for Sony Marketcap and made the same assumption, because that would also mix useless things... I quite believe they used a more positive number to put their analysis (and I'm not that far from believing 23B would be a fair price to pay on the whole Xbox brand) just said that it was obtuse to say Sony in whole is worth less than Xbox brand while PS brand is far more valueable than Xbox brand.