DonFerrari said:
You mean Sony having all their departments making profit in the quarter and "only" increasing 13% the stocks? My sole point is that trying to use stock market evaluation for anything here is mostly useless. |
Sony has a lot of bad apples among its operating units, with most of them losing money for years or fluctuating over the years. Even then, Sony has a lot of competition in those industries and isn't a top competitor in them. Even when you look at the consistently profitable segments, like music, they don't make enough. The only segment that is doing as well as games is insurance, which is a separate subsidiary. At the same time, there is more risk for Sony. They have weaker liquidity and more debt.
Nintendo, on the other hand, has a lot of potentials. They have a large portfolio of IPs that can be leveraged into other products and mobile games. They have the legacy systems and of course the hardware/software business. The company has little debt, pays a constant dividend and is flushed with cash, giving them plenty of opportunities for M&A activities. Nintendo has a better outlook for growth with levering their IPs, the Switch selling well, and expanding into other markets.
As for the income, keep in mind Sony has a larger install base. This means more revenue from PSPlus and licensing fees from software developers. This will change as the Switch install base grows and the online service kicks in.
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