By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Sony Discussion - Sony sell Tokyo office building for 1.2 Billion dollars.

kowenicki said:
Chandler said:
happydolphin said:
Chandler said:
outlawauron said:
Chandler said:
Looks like Sony is betting everything on the PS4. Good luck.

Why does this news mean they're putting everything they have into the PS4 basket?


Because sell and lease back is most of the time just a short term relief. Right now, their business model is not profitable. But nonetheless they sold their buildings for liquidity and added another source of running costs on their balance sheet in form of rent. I don't think rent in Manhattan and Tokyo is cheap.

 

I think because Sony's credit rating is pretty bad they had to do this to get some liquidity because they probably only get shitty deals from banks right now. 

That's not what he asked you though. He asked why you think they'll use that money purely on the PS4, or betting on the PS4. What about their other businesses?


I'm just not aware of anything big in the pipeline at Sony despite the PS4. Of course they can spend that money elsewhere but PS4 is where the buzz is right now so I don't think it's far fetched to think that this is their horse.

To be fair they have a lot of new tech coming out this next  9 months.

Lots of new phones, lots of new tablets and lots of new hybrid laptops.

Thye have to be succesful with them.

This is absolutely true. While the PS4 will be a big part product and they're counting on it to be successful, it isn't by any means the last gamble Sony has.



"We'll toss the dice however they fall,
And snuggle the girls be they short or tall,
Then follow young Mat whenever he calls,
To dance with Jak o' the Shadows."

Check out MyAnimeList and my Game Collection. Owner of the 5 millionth post.

Around the Network
regin2005 said:


So what about all of the investments that Sony have been in recently?  Buying Gaikei, investing in some sort of tech that'll be used for the medical field.....aren't those supposed to be helping?  Or will the benefit of Sony's investments take more time to see the fruits of their labor?

There is certainly a lot of legal trickery going on about when to pay/finance for what. You don't want to show too high a profit since that means paying lots of taxes. Just enough profit to lull investors but not the tax man, I'd guess. (I think that medical thing or part of it is already sold again - not sure?)



outlawauron said:

This is absolutely true. While the PS4 will be a big part product and they're counting on it to be successful, it isn't by any means the last gamble Sony has.

Completely agree. Having said that, the buildings are a last gamble, looking at it on the flipside, so whatever they do invest in needs to work (be it PS4, more life insurance plans, more aggressive sales of LI, phones, etc.)



drkohler said:
deskpro2k3 said:
Selling off assets they don't need is good in the long run. Anything they don't need just leeches money away that can be put to better use.

Surely Kaz have a plan to dominate the world.

This has nothing to do with "Selling off assets they don't need". Obviously those employees need some place to work. Here is the whole problem explained for those who don't get it. Sony, like many other japanese TV makers, has too many plants and overproduces TVs that are too expensive. They also have a building full of employees that are part of the TV selling business group. Now in America, the solution is always the same : Fire the employees and shut down the plants as needed, within 15 minute's notices. In Japan, it is completely impossible to fire people (technically you can, but you have to pay their salaries until retirement. This has lead to an institution called "window jobs"). Combine that with a foreigner as ceo (Stringer, whose underlings seem to have apparently worked against him as rumours are fircling around),  Sony has, in the past years, fired every person and plant they could _outside_ of Japan (the console group in my country is history in a few weeks from now, so this is still going on). At this point, Sony is pretty much stripped bare outside of Japan. Enter Kaz Hirai, the Uebermensch as some think here he is, and guess what - not even Kaz has any solutions to the fundamental problem. There is no Kaz Superplan. I'm with Kowenicki this time (rare occasion I should add), Hirai is just buying time for himself by selling the table silver, and hoping that the problem slowly goes away over the next years while burning through the money for the two buildings (5000 employees means about 150-250 employees less per year through retirement and other causes). In the end, I see for the first time a Japanese company gutting Japanese plants and firing Japanese employees wholesale, because Sony does not have enough table silver to hunger through the losses (mainly from the TV business).

Wow, that was a very informative post.

Two questions:

Do you know specifically that those 5000 people working in the Tokyo building that was just sold are working with Sony's TV business?

Could you tell more about "window jobs" in Japan in general?



Slimebeast said:

Wow, that was a very informative post.

Two questions:

Do you know specifically that those 5000 people working in the Tokyo building that was just sold are working with Sony's TV business?

Could you tell more about "window jobs" in Japan in general?

There are certainly tons of other jobs than TV business related involved in those 5000 employees mentioned in the news (a few obvious choices are cleaning,house technicians, etc - all those jobs that are now on the new building owner's payroll, hence no longer on Sony's payroll).

As far as "Window jobs" are concerned, this might have changed over the years. In the past, young japanese people, after finishing school/university entered the job carousel by applying at company x. When accepted, this was a lifetime quarantee for a job at that company (some companies even had /have?) their own company graveyards where honorary employees would be buried if they wished so). Firing people meant big trouble with the law. So what did corporations do when an emplyee was no longer needed due to whatever reason? The "window job" was created. Essentially the employee would go to work as usual but was/is assigned to a special workplace where he essentially read newspapers or looked out the window all day. I've seen a few documentaries about that depressing stuff but that was many years ago. Maybe things have changed. Firing somebody (and being fired) has always been connected with "loss of face" (for all involved parties), and this is the worst thing that could happen to any Asian and is to be avoided at all costs (suing someone in court is also something connected to "loss of face", there are way fewer law suits in Asia than in any other parts of the world).



Around the Network
drkohler said:
Slimebeast said:

Wow, that was a very informative post.

Two questions:

Do you know specifically that those 5000 people working in the Tokyo building that was just sold are working with Sony's TV business?

Could you tell more about "window jobs" in Japan in general?

There are certainly tons of other jobs than TV business related involved in those 5000 employees mentioned in the news (a few obvious choices are cleaning,house technicians, etc - all those jobs that are now on the new building owner's payroll, hence no longer on Sony's payroll).

As far as "Window jobs" are concerned, this might have changed over the years. In the past, young japanese people, after finishing school/university entered the job carousel by applying at company x. When accepted, this was a lifetime quarantee for a job at that company (some companies even had /have?) their own company graveyards where honorary employees would be buried if they wished so). Firing people meant big trouble with the law. So what did corporations do when an emplyee was no longer needed due to whatever reason? The "window job" was created. Essentially the employee would go to work as usual but was/is assigned to a special workplace where he essentially read newspapers or looked out the window all day. I've seen a few documentaries about that depressing stuff but that was many years ago. Maybe things have changed. Firing somebody (and being fired) has always been connected with "loss of face" (for all involved parties), and this is the worst thing that could happen to any Asian and is to be avoided at all costs (suing someone in court is also something connected to "loss of face", there are way fewer law suits in Asia than in any other parts of the world).

Fascinating. Japan is fascinating. Thank you!

"the employee would go to work as usual but was/is assigned to a special workplace where he essentially read newspapers or looked out the window all day." lol

I'd like to get paid for doing that.



oh the dishonour,holds head in shame



                                                                                                                                        Above & Beyond

   

Both of these sales combined will retire about 2% of Sony's liabilities, add close to 8-9 billion yen a year in rental expenses going forward. I am rooting for Sony's new initiatives with smartphones, tablets, and PS4 to take off, one time gains selling your none investment real estate is nothing to cheer.

But to some of you here cheering this news. If you have a friend in business and he just told you, he sold his house and staying as a renter, buy him a beer and shut up. Don't do the " you're the man!" shit.



JOKA_ said:
Gettin lean, gettin money.


gettin lean dont always = gettin money  i.e. bullshit austerity



Tarumon said:
Both of these sales combined will retire about 2% of Sony's liabilities, add close to 8-9 billion yen a year in rental expenses going forward. I am rooting for Sony's new initiatives with smartphones, tablets, and PS4 to take off, one time gains selling your none investment real estate is nothing to cheer.

But to some of you here cheering this news. If you have a friend in business and he just told you, he sold his house and staying as a renter, buy him a beer and shut up. Don't do the " you're the man!" shit.

haha :) It was more in the sense that if he didn't sell his house and let things go to shit without doing anything about it, he clearly wouldn't be "the man".