Devil_Survivor said:
Do you have any sources for this because I thought it was only 2 or 3 divisions making any profit? Sony has had one profit quarter in the last six years or so as a company, and that was famous buliding selling one. They are going in the right direction by cutting some of the dead weight like Vaio, however it should been done years ago. Anyone in their right mind that looks the overall picture of both companies realizes that Sony is much more trouble than Ninteno which why that site going from 22 percent chance of them going belly up in november(or october?) to 73 percent chance in february when literally noting changed is a bit laughable. As Sony I could see them bringing down because of thier latest moves.
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"Anyone in their right mind that looks the overall picture of both companies realizes that Sony is much more trouble than Ninteno."
How does Nintendo make their cash? I thought it was only on their hardware (WiiU & 3DS) and on the software sells on those devices. What I am trying to explain is, right now they are barrely earning anything on the WiiU hardware/software. There profits comes from the 3DS, and even tho they are selling great. They have way to much competition from the tablet and smartphone market. How much longer, can Nintendo relate on their own hardware/software sells?
Sony, is having a financial struggle for ages. Way, way longer then Ninteno. Still, right now Sony's future is looking way brighter for years. They, finally removed the two divisions that caused the most trouble last 6 years (TV & laptops). What's left are healthy divisions, that always made profit, or a minimum lost.
The huge adventage from Sony is they aren't depended on the portable/console market. They have so many other healthy divisions, that always made a profit. So, if they have so many healthy divisions why did they made so many lost over the years? Simple, the TV and laptop divisions made such a big lost in the years, that the numbers of the whole company always turned red. Everyone, always look at the numbers of the news article. The moment you dig in the whole reports, you will see it was always 2/3 divisions that made the huge lost. The other divisions always made a minimum lost or no lost at all.
Also the Playstation 3 generations, was a huge financial disaster. That was also one of Sony's life lessons, and won't ever happen again. How can I be so sure? The financial sh*t load the Playstation 3 caused the first years. Made Sony realize: "Never ever again". Right now, they are making a lot of profit on the Playstation 3/software. They will make a profit at the end of the Playstation 3 generation. If it was worth all the trouble, bad image and stock value lost? Definitly not, but it was a precious lesson Sony learned.
Back to the whole topic: Sony is heading the right way, they finally found their way out of hell (took them years). They finally made the right decisions of closing the most risky/making lose divisions. The last risky division that remains is the game division, not for this generation. They got this generation in their pockets. But in general the whole console market is a huge investment with a minimum chance of making profit (since the introduction of tablets, smartphones and cheaper laptops/computers). Their other divisions were never a risk and always made sure Sony didn't go bankrupt (got my doubts at home entertainment/sound division)
Nintendo: It's a great company with a fantastic game history and probarbly the most famous IP's in the world. Still, Nintendo will go bankrupt for sure. Wait what? Only, if they won't change their business model. The time hes come that the almight portable console of Nintendo is getting huge competition. No, not from the Playstation Vita, that one is selling poorly. The tablet and smartphone market. Why should parents, give their children an 3DS or the next portable console for their children, if they can get a tablet for the same price or even cheaper. The difference is, the games will be way way cheaper plus they (parents) can have also some fun with it.
I know Nintendo's IP's will always, always make sure they will sell console's, but only for the true Mario, Pokemon, Zelda and so go on fans. Nintendo need to change their business model. They can't relate on their console hardware/software sale (at least not this generation). They, should start thinking about bringing some IP's out as an 3th party developer. The old times are gone. There are now way more ways to play games. There are getting so many cheaper alternatives.
At the end, this is how I see it. Especially my prediction of Nintendo's future isn't a fact. That's my opinion how it's going to happen, and I tried to explain also why. Please, share your thoughts if you agree, if it makes sense or if it's total bull sh*t.
