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potato_hamster on 07 February 2017
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foxtail said:
potato_hamster said:

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.

First off, the bolded part is where I'm describing a hypothetical, and not a reality.

Secondly, there are many investors that are trying to push Sony to sell off divisions such mobile because it hasn't been a good investment for quite some time. Apparently Sony has been shoping around the sale of it's movie division (pictures), it's like as a corporation, they're doing exactly what I'm describing - streamlining their business to become more profitable. Unless the division exists mostly to provide internal services (and thus will never directly generate profit), then it's important to cut the dead weight if the division has been underperforming, and has no genuine prospects for improvement long term.

Should Sony invest more in financial services? I don't know, do you have any reason to expect that investing more in that division will see a larger return on investment?