Mummelmann said: endimion said: oh without saying that what ever happens.... Sony is far from winning in terms of benefit on that generation, that could mean two things.... the financial power they'll have to buy exclu, keep them and finance ad campaigns to boost the sales... and even the capacity of doing a new gen....
again everybody is talking about MS losing money on their entertainment dpt, but everybody tend to forget that it's a company that has increased their net profit in the past few years where sony had theirs declining, without saying that the net profit of both companies is not comparable, when it comes to money power Sony is a midget compare to MS
i'm not trying to destroy your dreams crazy, I'm just pointing at facts that are not playing in favor of PS3.... they do have great exclu titles coming up but IMHO it's a drop in the see compare to all the negative points they have and they'll have to face.... adding it up all together Sony and PS3 are still running dead for now... |
Sony's net turnover was actually almost 40% larger last year than MS', and they had roughly the same net profits in 2006. Microsoft has a very narrow financial corridor compared to Sony because of the nature of their primary products; software. The software market is very unstable and fluxuating, whilst the hardware market (which is what Sony primarly is) is a lot more stable. If the markets dip, MS could loose 1/4 of it's entire estimated net worth overnight, while sony has 13-14 divisions spread out over a heap of various goods and products. So, while MS' net worth looks staggering, they can't spend money like crazy because of it (like many seem too believe lately)! Their financial margins are of such a nature and size, that they in reality can't spend more than Sony, they've just chosen to allocate their funds in other areas and have made different priorities. My fathers bussiness (carpenter workshop specializing in stairs and kitchens) is worth an estimated 15 million NOK. However, last years turnover was a little over 5 million NOK and the net profits post-tax were 700.000 NOK. The last figure is the one that sets the company's course overall, not the first. See? |
first of i'm sorry i'm late but i'm on here everyday :)
comparing net turn over of sony and MS is not relevant... like you said one is selling hardware the other one is selling software mostly.... with the kind of product sony is selling in general having just 40% more is bad than good from my point of view....
I agree on your point about the software industry fluctuating more than the hardware.... but Sony is in a bad financial position right now they have very high bad debt.... over taking their actual cash flow... and the software market for MS is the most stable of all due to their obvious monopoly and the fact aht the number of computer about to be sold in the future is not about to decrease on the opposite... the over night theory is possible but unlikely to happened.... I was comparing net profit yearly when I said sony was a midget and that's a fact....
now if you take the revenue of both sony is over by 20 billion or so (i don't won't to read their annual report a 5 am sorry lol) but for a hardware company compare to a software it's peanuts...
now I leave that post open and I'll update tomorrow when I'll go further in their financial reports.... but last time I checked (and I have to admit I didn't do it in depth) Sony has a lower financial health that MS... and the can technically take more risk (so put more money) than sony right now...
I do understand your point and think it is valid but I don't agree on the conclusion.. sony hasn't the opportunity to monoeuvre that MS has right now.... and that's true for the entire company not only the game division.... but if they had to cut the one losing the most it would be the gaming one....
though I don't take the ressession into consideration right their.... it could hurt a lot of industries even though MS is outsourcing a lot...
OK I had a quick look at both companies 2006 annual report (yeah I'll try to get the 2007) and with no calculation and a really quick tired look I still maintain that MS is in a better position globaly and on the gaming section in term of possibility of risk taking, financial health and potential support from the shareholders... but that's a 5 am quick look tomorrow I might say the opposite... the balance sheet the income statement and the statement of cash flow all looks to me better on MS side... keeping in mind that MS is a software company and Sony a hardware one....
PS you said sony it's 13 different company ... yeah but electronics is by far their main with more than 50% and gaming is their second.... and gaming is the one losing most... so I still think sony's gaming division is more threatened this gen than the MS one...
on that good night and if you have your view give it to me... I might even use your input in some of my grou project if you don't mind... :) thank you