Sony Q1 2016: 3.5M PS4, Game Division Posts 44 billion Yen Operating Profit

[KBG29]

thismeintiel said:

KBG29 said:

Here's the thing though. 

1. Sony is making no money in the current mobile market, and the Xperia brand is in a continual decline. They have no way to advance in the Android market without compromising PlayStation and PlayStation Network.

2. Buy entering the market with a PlayStation branded mobile platform that is tied into the PS4 ecosystem, they already have 1000's of games and apps available from day one. They also make more money from the hardware and software, and they have no pressure to sell units. If they only sell 3 Million a year, that is perfectly fine, because they make money, and ever so slightly increase their own marketshare. All while not wasting time building custom versions of Android for a device that brings them no income.

3. Microsoft prooved nothing. They came in with a me to device that did not feature every me to option on the market. If Sony and Microsoft want to succeed at taking on Apple and Google, they have to be innovative and unique. They need to leverage PlayStation and Xbox to make head way. Microsoft is doing a great job with UWA right now, and they will definitly be ready to go back on the attack once 7nm FinFET is available. By then an Xbox/Windows phone will be just as supported as Android and iOS, but have the added benefit of a 10,000 games from PC, 360, and XBO. Put out a Vita like device, and they would grab a good chunk of the market.

No, MS's problem is the one they always have.  They try to conquer markets that have already been conquered years ago.  And usually already have a strong 2nd competitor. They then think they can lock down content to their product, which really just angers people, then throw tons of money at advertising the crap out of said product.

Another problem is if you leverage your brand to go after the big boys, and fail, you diminish your brand.  You don't need to be the king of every market.  It would be much wiser for Sony to continue to push their PS brand where it makes sense, gaming and new markets (like internet TV and VR), not try to take over ones that have already been conquered long ago.

The thing is Sony does not need to be the King of the mobile market. They just need to sell a device that allows people to stay in thier ecosystem whether they are at home or on the go. If they can sell 15 Million devices a year, then that would be a highly sucessful platform. It would only be the same marketshare they have now in the mobile space, but the profits from their customers would be many times higher. 

I agree with you to an extent about Microsoft, however, I still feel they did not leverage their own IP or create anything unique.  Had they made a Vita like device that ran Xbox games, and had access to a mobile version of their productivity software, they would have gained a decent foot hold, and from their they could have seen year over year growth for a long time to come. 

As I have said, I think both companies will come with a new mobile approach in the next 3 years, and both will find a decent hold in the market. Probably only 5% share a piece but, it will be a highly profitable 5%, and will give them more success than companies with much larger shares of the Android space.