JackHandy said:
Soundwave said:
Their stock price would tank and likely take years to recover. People don't understand today there are algorithms that will bomb a stock's value if the earnings per share even come in *slightly* below Wallstreet expectations even for a single quarter. You can't do wild shit like you could 20-30 years ago, there's too many people who day trade today because of the ease of investing in stocks today.
Even now companies like Microsoft and Meta are pulling monstrous profit that Sony could never dream of, but even their stock is getting hammered because investors are worried they're spend on AI is too high even though they're making way more in profit.
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Yes, but wouldn't the stock rebound down the line when Sony announces record revenue? I know jack squat about stocks, but that seems plausible to me.
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No, not if your bottom line, net profit, free cash flow is in the toilet. Investors would revolt.
There's no reason for Sony to even do this anyway, XBox is basically evaporating so they have less competition, there's no reason to lose a penny on any Playstation. Yeah maybe PS6 sells "only" 100 million instead of a 120 million ... that's actually far easier for Sony to live with if their margins increase (higher pricing) ... losing money on hardware would be far worse.
