Kyros on 13 June 2008
I dont believe in this. MS is earning a lot more money than Sony in the report I have seen ...
I believe MS is bigger...
I believe MS is bigger...
MS is a much more profitable company. Sony's revenue is 1.5times bigger than MS. 66b$ vs. 44b$ 2006. But due to its monpoly status Microsoft makes much more profit. But the thing is that doesn't help them. Both are public companies and loosing billions just to crush the competition in one relatively small company segment is nothing you want to tell to shareholders. Sony made almost 4 billion dollar profit last year. Thats enough to follow ANY Microsoft attempt to crush their gaming division. (Its enough money to give away 10 million PS3 for free)
then they could just have bought R*
I could imagine one reason they do not do that is because both Microsoft and Sony wouldn't allow each other to take over R*. IF Sony tries to buy R*, Microsoft would raise the offer until they either get the company or Sony would need to pay much more than its worth. And vice versa.
==> ur main argument is about Sony = MS money power
You are correct that MS has much more liquid money than SONY. But public companies are so successful because they do not throw billions out of the window just because they want to crush the competition. Sony makes enough money with their main business (TVs, cameras etc.) to counter any responsible attack by Microsoft. If MS would throw more than 4 billions out of the window they would truly be crazy.
