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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Yes you are totally right, and all that influences the evaluation of the company. But you also understood that a lot of the "value" is based on speculation and manipulation as well.
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Unless you want to define what manipulation happens, I think yu misunderstand how the market works.
The price is simply what investors are willing to pay for a company today. The price changes base on Buy and Sell volume in the market. Usually a stock goes down in price because there are more sells than buys and it goes up when there is more buys then sells. The market is so volatile because there are so many people in the market.
There is speculation as well, but that is due to the fact you are also trading on the future information. Of course, not all of this is captured in the current stock price which is why they can crash or rocket upward.
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