VideoGameAccountant said:
Look at Nintendo. They struggled with the Gamecube, succeeded with the Wii and flopped with the Wii U. Microsoft was the same way with the 360 being a modest hit and then faltering. And look at the graveyard of companies that didn't make it in this industry (Atari, Sega, Hudson). Videogames are volatile. Who is to say that Sony won't trip up again with the PS5? The only company that has been consistently successful is Nintendo in the handheld business and even the sales figures are volatile. You mentioned life insurance, but Sony's bread and butter was consumer electronics, not life insurance. Sony's TVs are beaten by Samsung and LG, Sony lost its music business from the iPhone and it's phones line is nothing meaningful. Even Sony's movie business is on the rocks. Cameras are doing well, but Sony's business is dependent on demand from phone manufacturers, and they could find another alternative if need be. Video Games is the only industry they are really competitive in. It makes up about 19 percent of sales as of Q2 2016 (haven't seen more updated number). However, it's the most volatile industry they are in as well. PS4 is doing well know, but Sony will eventually have to release the PS5. And it will be doing it as PC gaming increases and as Nintendo Switch hits its stride. |
Sony's TVs are beaten by LG and Samsung because the latter have cheap, bottom-of-the-line TVs that Sony does not have. That's why South Korean and Chinese TV manufacturers are doing so well - they can go cheap.
Their music business is still going strong as they are in the business of producing music, which apple doesn't do. The music business made $670M in profit last year.
Sony's money come mostly from electronics so it is still their bread and butter, unlike what you are trying to imply. They've had that life insurance business since 1979.
Their movie business, as much as they make a lot of bad movies, will be profitable. Last year was an exception but this year they have had several hits to counter the flops.
