COKTOE said:
VideoGameAccountant said:
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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Their semiconductor business seems pretty solid too. "Sony's semiconductor business saw profit of 49.4 billion yen in the quarter, up from a 4.2 billion yen loss in same period a year before. The loss was due to an earthquake which hit production.
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Let me clarify. Gaming is racking in a lot of money compared to many of Sony's other businesses. Semiconductors is a lot like Music in that is does OK, but doesn't make a ton of money. In terms of place in the market, I wouldn't know. Maybe they are top of their class there.
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