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foxtail on 07 February 2017
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potato_hamster said:
Barkley said:

I agree, people seem to just say "But if they still make a profit they'll keep making hardware!". But in reality it doesn't work like that. If there is a MORE profitable avenue for them to go down, they may take it. It's about achieving the most success, not enough success to keep doing what you're doing.

It's why they started making iOS games. They clearly weren't happy with the profitability of the Wii U and 3DS and started to look into other revenue streams. If for example, Super Mario Run generates far more profit for Nintendo than Super Mario Odyssey, you can bet your ass Nintendo's mobile game projects are going to see a larger investment than their console game projects. Nintendo's executive will start green lighting more mobile games, and less consoles games because that would be where the money is now. If Nintendo's executive believe that Nintendo's IP will generate more profit for the company on Sony or Microsoft consoles, rather than on Nintendo consoles, then that is the direction they will take.


Why can't people see that? Why are people acting like Nintendo is a privately owned company where the owners can just sit back on their IP and make whatever the fans want as long as it makes a profit? Is it wishful thinking? Did they never take an economics course? Do they not know how investments work? I gave up trying to figure that out.

 Search for profit is only part of the equation.  What would Sony do if "search for profit" was all they cared about?

The chart is a little small but if I'm reading it correctly the lastest Forecast is for Sony Financial Services segment to produce a higher operating income than the sum of Mobile Communications (MC) +  Imaging Products & Solutions (IP&S) + Home Entertainment & Sound (HE&S) + Semiconductors + Components + Pictures + Music, total added operating income.

Financial Services [150M yen]

Vs.

5+45+53-19-51-83+69 = [19M yen]

Mobile Communications [5] + Imaging Products & Solutions [45] + Home Entertainment & Sound [53] + Semiconductors [-19] + Components [-51] + Pictures [-83] + Music [69]

 

Since most of Sony's other segments aren't doing as well as Financial Services would it make sense for Sony shareholders to demand Sony make the bulk of their employees Insurance salesmen*

*Insurance is a big part of Sony Financial Services and a big contributing factor to Sony's bottom line.