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Teeqoz on 24 April 2016
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RolStoppable said:
Teeqoz said:

Rol, I'll help you out, because I think we get along nicely

FY 12 was actually the year gaming got its own segment again, after being lumped with a bunch of other stuff for FY 2009-2011. So it's quite the opposite of what you are saying here. However, in their FY 2012 report, they also gave numbers for the gaming segment for FY 2011, for comparative purposes, so we have numbers for Sony's gaming segment from FY2011 and onwards. That leaves FY 2009 and FY 2010 obscured.

Clearly, the reason your graph doesn't continue has nothing to do with divisions being lumped together, because it ends just before they stopped being lumped together.

Other than that, I agree with some of what you are saying. Nintendo achieves much higher margins than Sony due to their emphasis on 1st party software vs 3rd party software, and the fact that Sony has had a loss-leading strategy, but in your posts here, you've made the same mistake Kapi did in his post, by implying one or the other is smarter for a company in general. We both know that Sony's current strategy is a much smarter choice for them than if they were to adopt Nintendo's strategy. Likewise, Nintendo's current strategy (or what they've usually done, anyway, minus the Wii U and the 3DS) is much smarter for them than if they were to adopt Sony's strategy.

Is that so? I only remember a year with a huge loss that couldn't possibly be from gaming and that one wasn't on the chart, so I thought I got the timeline correct.

Such an implication wasn't my intent, but if you say that it is a possible way to interpret my posts, then it's necessary to set the record straight. I definitely agree with you that Nintendo's way to profits doesn't work for Sony and vice versa. The companies are set up very differently and consumer expectations for both are also very different.

You are correct in that there was a year where the segment where the gaming division was located in made something like a 3 billion loss, but you missed on the fiscal year (it was FY2011, not 2012). Your chart just isn't aligned with Sony's fiscal years, so FY2011 would be 2012 in the chart, which I guess is why you mixed the two.

 

For the record, Sony's gaming segment in FY2011 posted a 30 Bn Yen profit, then 1.7 Bn Yen in FY2012, -19 Bn Yen (loss) in FY2013, 48 Bn Yen in FY2014 and they'll likely end up somewhere inbetween 80 and 90 Bn Yen for FY2015.