Which Console Developing Company Will Be The Next To Leave The Gaming Industry. | |||
| Nintendo | 63 | 11.80% | |
| Microsoft Studios | 129 | 24.16% | |
| Sony Computer Entertainment | 341 | 63.86% | |
| Total: | 533 | ||
Claymore said:
The shit is close to hitting the fan for Sony, they're 13 billion in debt the companys value has fallen 75% from 100 billion in 2000 to 18 billion now and hasn't listed any profit in the last 4 years. A few more years like those last few and it could seriously be bye bye Sony. |
Do you mind showing a link on where you got this info from please...
Also i think Sony overall as a company is making a small profit now since 2011.
ThePS3News said:
Do you mind showing a link on where you got this info from please... Also i think Sony overall as a company is making a small profit now since 2011. |
http://finance.yahoo.com/q/ks?s=SNE
Sony estimates losses of around $3.2 billion for 2011.
Claymore said:
The shit is close to hitting the fan for Sony, they're 13 billion in debt the companys value has fallen 75% from 100 billion in 2000 to 18 billion now and hasn't listed any profit in the last 4 years. A few more years like those last few and it could seriously be bye bye Sony. |
Some of that is the state of the economy, much of that their own doing. I'm sure if it came down it there would be major restructuring.
| Rpruett said: You're right that ANY company can fail. However, you're wrong that they are equally susceptible. There is an immense amount of resource re-shuffling and re-direction that a larger company, far more diverse company can do to survive. If for some reason Windows got over-taken in the Operating systems market in the same form of dominance that Microsoft now holds, they'd be hurting pretty tremendously since their business isn't incredibly diverse. Wrong. Sony doesn't have a monopoly on any of their divisions. Movies, music, TVs, computers, stereos, or video games... there is plenty of worthy competition in all of those areas, many of which are losing Sony a lot of money as of late. The numbers don't lie: Billions in debt! It's not rocket science, dude. Do you really think Sony Pictures or Music is going to pour an endless amount of resources into SCE if they keep posting losses? Keep dreaming... The Wii was a desperation strategy (Not for Marketshare), it was the cheapest next gen console they could possibly produce and represented a marginal upgrade (Even marginal by Nintendo standards). It absolutely was a desperation console. Lol, your continuous responses just further prove that you have no idea what you're talking about. Do you really think that Nintendo was almost broke before the introduction of the Wii? They had BILLIONS in the bank; the loss that they posted this year was their first ever in the 30 years they've been in gaming, even after the Gamecube. They could have easliy gone the route of Microsoft or Sony and created a system just as powerful if they wanted to. They knew that it was not the right move for them this gen and went the Wii route to differentiate themselves from the competition, which resulted in amazing sales and tons of profit. It absolutely WAS NOT a desperation console in any way, shape or form. Try doing some research before you respond next time. I'm not diminishing profit, what I am saying however is Nintendo doesn't scale well. Even as the far and away dominant generation leader they are currently and have been the worst selling console in 2011. With no real signs of that changing. Sony and Microsoft (But more Sony) live on more of an aggressive marketing model. The PS3 was about as bad of a launch as a system could have, between pricing, timing, software, etc. And it has rebounded to be a probably an 80 million+ in sales console atleast. Nintendo couldn't give away their Gamecube last generation. Nobody is denying that Nintendo treated the Wii like shit in 2011, particularly in America, but the NES prospered for 7 years after it's launch in Japan before the introduction of the SNES in Japan in 1990. The Wii was not meant to have a 10 year plan like the PS3. Problem is, Sony will never recoup the losses they've suffered with the PS3 anytime in this generation, even though what they've done to turn around its sales/software is certainly commendable. I believe Sony will never witness a generation like Nintendo has for their consoles. If you're talking about consoles sold, I agree, although I don't believe Nintendo will ever sell less than N64 numbers again either. As far as profit (which is the basis for what this thread is about), I don't believe Nintendo will ever have the abysmal performance Sony did this gen. When have I said that Nintendo has a worse track record? I've said numerous times that Nintendo runs their business supremely. What I am saying is that Nintendo has no margin for error or mis-steps. They have nothing beyond gaming. Like I have been saying, I think Handhelds are a dying breed right now. 5 years from now we might not even see them any longer. I would love to see Nintendo's profit from their Handhelds vs Consoles. If handhelds were to die in the next couple of years (and I don't believe they will), that would certainly be an obstacle for Nintendo to overcome. But don't act like they haven't had any prior experience with error and mis-steps (the Virtual Boy, modest console sales in the 5th and 6th gen). They have, and despite that, they've rebounded splendidly while profiting every time. So saying they have "no margin for error" is yet another incorrect statement. |
Double post
PS3 became profitable also on HW during Spring 2010. It has accumulated huge losses up until then, but from then on, stopping selling would just leave them unchanged (actually growing due to interests) while keeping on selling, but finally profiting, would help reducing those losses. But the Business Segment including Games (that includes in its turn PS3), PCs, LCDs and compact digital cameras is suffering heavy losses due to LCDs, while the profiting products now profit less due to several negative factors, unfavourable exchange rates, price cuts and damages and plants halted due to the tsunami. If in desperate need of money, Sony could sell some profiting product categories, like Games, but if it were enough, it could be better to just cut the losing products like LCDs. Currently Sony partially did the latter, selling many LCD production plants to Samsung and partially getting in supplies of LCD panels it needs for its monitors and TVs from 3rd parties at costs lower than producing them itself.
I doubt that if forced to cede a profitable product, Games could be the first choice, as Sony enjoys many beneficial synergies between them and many of its other products, like Music and Pictures, and, less directly, many others. OTOH, TVs too enjoy synergies with other products, like Home Audio and Video, Digital Cameras and others, moreover Games, TVs and all the products with a large public help to keep the Sony brand strong, so at the moment, just ceding LCD plants that produce panels too expensive for the new lower prices of TVs and monitors, is the only sensible move, unless forced to something more drastic and painful. I don't know why Samsung found those plants attractive and bought them, most probably it needs new plants and not having to invest creating them is already a saving for it, while having them already running is another advantage, most probably new contracts will mean lower wages than what Sony paid and finally Samsung balance sheets and homeland market and workforce don't use Yens, so that harmful factor ceases existing for it.
Nintendo is the less strong of the 3 by revenue, that's a "small" company compared to M$ and Sony, if they loose their mometum for too long (like 3 bad gens) like during the GC era (even if they made money with it)... Really, I don't see M$ or Sony dropping VG biz first.
What id like to know is how profitable Sony's gaming division rly is? I keep seeing comments that Sony would never drop theyr gaming division cause it is one of theyr most profitable division... I am not denying that but id like to know if anyone has numbers.
Im asking this because we know that Sony as a whole is losing billions but I dont think they released numbers for each of theyr divisions.
-PS3 was sold at a loss for a while, they loss alot of money because of this.
-Vita is being sold at a loss.
-Most of theyr first party exclusives are not selling so well. And since Sony are the ones developing it it cost them money and idk how many games they need to make a profit but I wouldnt be surprised if some of their games ended up being a loss of money for sony.
-PSN is free for users so idk how much $ it is milking every year to keep it running, im guessing probably alot.
-Add to this all the R&D for all that is hardware/software.
My guess would be that Sony's gaming division is no where near as profitable as most ppl would think... But this is just my guess so id rly appreciate if someone who has more knowledge on this could answer me.
What?! I can't hear you over all this awsome! - Pyrrhon (Kid Icarus:Uprising)
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Happy that this thread did so well. Now my new most posted/viewed thread :)
OT: Hope Sony does not leave the gaming industry anytime soon. They have done to much for the good to this industry...
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