Should we be worried about SOE being sold?

[joeorc]

VanceIX said:

joeorc said:

Why? You think Sony is going to go completely belly up?

Here is a point again I have been pointing out, the way Sony is cutting and down sizing there would not be massive employed payouts to workers in the 100 of thousands of people employees that work at Sony currently, Sony's playstation section is only less than 9000 people total!

Its not going to be the main area that would be let go, it would be other sections, thus cutting and trimming only helps Sony because it will shrink the overhead! When people seem to say, Sony cannot thrive being only a game company..why not?

 

Why cannot Sony become just a game and entertainment company that defines itself as "sony" being only/just that? People say it would be a shadow of its former self, and yet with a debt in 100's of millions, with a junk bond rating was yet again able to create a very fast selling game console. Hell cutting out now of the dedicated Game handheld sysytem space after the PSVita and move that to software/services on smartphones as mainly App store distributions, and PSNow, PSvue and Playstation Mobile releases along with indie focused games for smartphone will generated more profit than Sony could have ever made with a dedicated Game handheld. And still have a large % of the mobile game handheld market because like apple and google and samsung Sony could make games for those smartphone and indirectly compete with Nintendo.

 

As a matter of fact that will also mean more focus for living room console development because with the way the ps4 is selling sofar it seems that is where their real selling power for playstation as a platform is, the living room.

Sony isn't going to belly up, but their gaming and entertainment divisions are nowhere near their most important. They need their camera and phone ivisions to do better, since that's where hte big profit margin is.

Sony needs to get their stuff together and figure out what to do. Nintendo can get away with entertainment-only bussiness because they have such a huge profit margin on all their consoles and games. Sony and Microsoft don't have that, so their gaming core isn't going to keep them running.

Also, not sure if you noticed, but Sony's entertainment business is doing pretty terriblr too, after the hacks and all. Depending on that would be pure stupidity on their part.

You do not think the heads over @ Sony do not know what to do?

Its one thing to point and say , hey you are not moving fast enough to cut, this or that but when you employ over 100,000 people with the resources those people expect for job's they do for your company, the last thing you do is just let them twist in the wind without trying to find some area or other place for them to call home still with employment if you can.

Its that point of cutting and trim the company down that is what Sony is doing despite not cutting as fast as some would like from a west centric point of view.

I keep hearing gaming and entertainment is no where near important, but in fact it is, do you know how much Sony 1st invested to create the playstation part of the company? Do you know how much it only started with?

 

In fact after 10 years on the market Sony has generated over 50 billion in Revenue just with the playstation section alone by itself , do you really think thats not anywhere near a priority? The simple fact Sony's loss in smartphones was because they paid too much for the buy out based on revaluation of the cost write down and the reduction in not only work force but also reduction in the number of smartphone models released in a year and the number of releases a year for phone's. The Loss accured is a write down of good will due to the cost of restructure and the orig. Buy out.

The Playstation and entertainment section is not the lower investment arm of Sony anymore its becoming the main Arm. And that means reduction further of assets of other parts that can be sold off and levered to pay down debt and offset massive overhead. The value of the playstation brand is what would you say?

Microsoft's xbox brand is valued over 17 billion, and is playstation value lower or higher than that? Some may Say lower because profits are no where near Microsoft's, which while is true, microsoft overhead is no where near Sony's. So reduction to more software services is further increase in profits if you reduce operating expenses. Which less than 9000 total employees is a hell of a lot less than the 30, to 60 thousands of other TV and factory line workforce sony has to pay out.

To say, sony has to get their act together is easy to point out when its not the people employed you have to look out for, in the west companies are more than willing to hand out the old pink slip. Not such is the case in japan

But thats ok, many such experts rate your company based on the valuation of lower assets in order to buy cheap so as to make profit off the miss fortune of other's, but what else is new.