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Forums - Sony - Reasons why Sony won't go bankrupt.

Anfebious on 28 February 2014
Fusioncode said:
Anfebious said:
Sony is never going to go bankrupt, the key is that they have lots of buildings out there to sell. Whenever things get too bad they just sell a building and bam, problem gone!

They sold a building, and then they bought a building. It's only 7 stories less. Sony doesn't need that much space. 

http://nypost.com/2013/09/16/sony-moving-to-11-madison-avenue/


See? That's what I am talking about! They have lots of assets to sell! They might shrink but I don't think they are in grave dange of going bankrupt!



"I've Underestimated the Horse Power from Mario Kart 8, I'll Never Doubt the WiiU's Engine Again"

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cura on 28 February 2014
vivster said:
Mystro-Sama said:

4. The gaming division is the best it's ever been and even broke their records form the PS2 days, not to mention PS Now. They'll easily generate billions here.

 

Thoughts?

Don't count your chickens before they are hatched.

There is a 50% chance that PSNow will be a financial disaster.


50% chance? Where'd you get that from? Looks completely arbitrary to me. 



vivster on 28 February 2014
cura said:
vivster said:
Mystro-Sama said:

4. The gaming division is the best it's ever been and even broke their records form the PS2 days, not to mention PS Now. They'll easily generate billions here.

 

Thoughts?

Don't count your chickens before they are hatched.

There is a 50% chance that PSNow will be a financial disaster.


50% chance? Where'd you get that from? Looks completely arbitrary to me.

Years of experience. Had to reach way deep to get them ;)



If you demand respect or gratitude for your volunteer work, you're doing volunteering wrong.

Lawlight on 28 February 2014
ImmortalHelixFossil said:
Lawlight said:
Beyond cutting away their weak divisions, Sony could easily churn more from their movie division if they greenlit the proper projects. They've made a lot of poor decisions last year with movies like After Earth and White House Down. This year it's Robocop and Minuments Men.

                             World wide revenue                                                       budget
Robocop:                 $ 146.000.000 $ 100.000.000
After Earth:                 $ 243.800.000 $ 130.000.000
White House Down:  $ 205.000.000 $ 150.000.000

 

Still, it will be a minimum profit for After Earth/Robocop (Robocop is still in the cinema's).
White House Down, is even a lost. I don't expect millions  with the DVD/Blue-ray's sale. I am expecting some big numbers from The amazing Spider-man 2. 


Very nice. Except that the studio doesn't get all of the grossing. I would say about 50% goes to the theatre. Also, in several countries the movie is actually distributed by other companies.

if you look at the movie division's financial, you will see that they only get a small cut from the worldwide grossing.



ImmortalHelixFossil on 28 February 2014
Ajax said:

Sony's end seems unavoidable.
Certainly the Sony as we know it now.


This is a list of electronics companies by market capitalization (the company's total price if you want to buy the whole company.)

(All monetary values are in billions of dollars)

Rank Company Industry Market cap Headquarter

1. Apple Inc Electronics $453.03 Cupertino, CA
2. Google Internet $380.64 Mountain View, CA, USA
3. Microsoft Software $312.38 Redmond, WA, USA
4. IBM Computer services $187.95 Armonk, NY, USA
5. Samsung Electronics $183.97 Seoul,South Korea
6. Amazon.com Internet $160.49 Seattle, WA, USA
7. Toshiba Hardware/Software $125.83 Tokyo, Japan
8. Intel Semiconductor $119.1 Santa Clara, CA, USA
9. HP Hardware $32.46 Palo Alto, CA, USA
10. Hitachi Software Services $28.46 Japan
11. Foxconn Electronics $27.2 New Taipei, Taiwan
12. Dell Hardware $22.97 Austin, TX, USA
13. Panasonic Electronics $22.7 Osaka, Japan
14. Sony Electronics $17.6 Tokyo, Japan



Sony used to be on top of this list.
Besides, there is no bright plan that gives Sony a good prospect as a worldwide consumer electronics company.

This is a large article about Sony:


How Sony is turning into a ghost in Japan and around the world

http://kotaku.com/5960411/how-sony-is-turning-into-a-ghost-in-japan-and-around-the-world

"For some people in Japan, Sony is already dead. The only question they have is how did Sony die, or who killed it, and how long will the spectre of Sony remain haunting Japan. It's a pessimistic view of the company but it's one reality in this island country."

 

At my parents house we've always only had Sony tv's. So do I now. They day Sony stops making tvs, is the day the old Sony is officially dead, no matter how you want to deny it. Maybe Sony can prosper in a much smaller form in other market segments, but that will be a different Sony.

The XB division is worth 17 billion dollars. Just 600 million dollars less then Sony as whole company. 

(source: http://www.businessweek.com/news/2013-08-29/xbox-spinoff-seen-more-likely-with-ballmer-exit-real-m-and-amp-a)

Don't tell me that the Playstation brand is worth less than the Xbox brand? Or, Whatsapp is worth 1,4 billion dollars more then Sony? Makes total sense for me! <sarcasm>



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ImmortalHelixFossil on 28 February 2014
Lawlight said:

Very nice. Except that the studio doesn't get all of the grossing. I would say about 50% goes to the theatre. Also, in several countries the movie is actually distributed by other companies.

if you look at the movie division's financial, you will see that they only get a small cut from the worldwide grossing.


You're right, totally forgot that not everything goes back to the studio. Thanks for reminding :)



Once you entered you won't be the same anymore. A blog about life.

http://seetheworlddifferent.wordpress.com/

Ajax on 28 February 2014
ImmortalHelixFossil said:
Ajax said:

Sony's end seems unavoidable.
Certainly the Sony as we know it now.


This is a list of electronics companies by market capitalization (the company's total price if you want to buy the whole company.)

(All monetary values are in billions of dollars)

Rank Company Industry Market cap Headquarter

1. Apple Inc Electronics $453.03 Cupertino, CA
2. Google Internet $380.64 Mountain View, CA, USA
3. Microsoft Software $312.38 Redmond, WA, USA
4. IBM Computer services $187.95 Armonk, NY, USA
5. Samsung Electronics $183.97 Seoul,South Korea
6. Amazon.com Internet $160.49 Seattle, WA, USA
7. Toshiba Hardware/Software $125.83 Tokyo, Japan
8. Intel Semiconductor $119.1 Santa Clara, CA, USA
9. HP Hardware $32.46 Palo Alto, CA, USA
10. Hitachi Software Services $28.46 Japan
11. Foxconn Electronics $27.2 New Taipei, Taiwan
12. Dell Hardware $22.97 Austin, TX, USA
13. Panasonic Electronics $22.7 Osaka, Japan
14. Sony Electronics $17.6 Tokyo, Japan



Sony used to be on top of this list.
Besides, there is no bright plan that gives Sony a good prospect as a worldwide consumer electronics company.

This is a large article about Sony:


How Sony is turning into a ghost in Japan and around the world

http://kotaku.com/5960411/how-sony-is-turning-into-a-ghost-in-japan-and-around-the-world

"For some people in Japan, Sony is already dead. The only question they have is how did Sony die, or who killed it, and how long will the spectre of Sony remain haunting Japan. It's a pessimistic view of the company but it's one reality in this island country."

 

At my parents house we've always only had Sony tv's. So do I now. They day Sony stops making tvs, is the day the old Sony is officially dead, no matter how you want to deny it. Maybe Sony can prosper in a much smaller form in other market segments, but that will be a different Sony.

The XB division is worth 17 billion dollars. Just 600 million dollars less then Sony as whole company. 

(source: http://www.businessweek.com/news/2013-08-29/xbox-spinoff-seen-more-likely-with-ballmer-exit-real-m-and-amp-a)

Don't tell me that the Playstation brand is worth less than the Xbox brand? Or, Whatsapp is worth 1,4 billion dollars more then Sony? Makes total sense for me!


Take it the way you want. The market cap of Sony is the market cap of Sony whatever you may think of it.

Sony market cap today: 18.18B for Feb. 27, 2014 https://ycharts.com/companies/SNE/market_cap

 

There is more than just market cap and market caps do change of course. The whole picture consists of more than the total value of a company on the stock market. But, its this "whole picture" that the investors are not happy about that gives Sony their current worth as a company. 

Samsung being worth 10 times Sony would have been laughed at in the year 2000. And now Sony is not trying to become as big as Samsung or bigger again. They are trying to stop losing money and survive. These are the facts. I dont make this up. 




''Hadouken!''

torok on 28 February 2014
Soundwave said:

Also, "axing" the TV division isn't as simple as people think. The TV division is dear to Sony, it's the central pillar of their company heritage, it would be like Nintendo giving up on consoles entirely or Honda giving up on automobiles. There may be an argument for it, but it's not as simple of decision as you think. It would be an extremely painful loss of morale for Sony and end of an era.


Surelly not so simple. If it was, it would be already done and problem solved. They are trying a plan to save it. First they made it smaller and tryed to cut costs, if it doesn't work in some quarters (years at max), they will split it. If it can't sustain itself that way, then they will have to close it.



Bet with jetforcejiminy: PS4 will pass the Wii lifetime numbers.

torok on 28 February 2014
ImmortalHelixFossil said:

The XB division is worth 17 billion dollars. Just 600 million dollars less then Sony as whole company. 

(source: http://www.businessweek.com/news/2013-08-29/xbox-spinoff-seen-more-likely-with-ballmer-exit-real-m-and-amp-a)

Don't tell me that the Playstation brand is worth less than the Xbox brand? Or, Whatsapp is worth 1,4 billion dollars more then Sony? Makes total sense for me!

The market cap for Sony isn't that related to the PS division value. If you had 17B and would buy all Sony stock, you would get PS, wich is nice, some good movie franchises, financial, imaging and medical divisions and so on. But you would have a multi billion dollar debit and a sick TV division. That throws the stock value down. 

Remember that stock value isn't about the real value of a company. It's about future prospects. Sony could ditch the TV division and we could see a 20% bump in stocks (just an example). That doesn't means that Sony suddenly has 20% more assets, IPs and so on, it would actually have less things because they dumped an entire division. But their future prospect would be so much better. If Sony decided to sell PS, it would probably be way expensive, since it's a healthy and profitable division and has a strong brand.



Bet with jetforcejiminy: PS4 will pass the Wii lifetime numbers.

hollabackenny on 28 February 2014
ImmortalHelixFossil said:
Lawlight said:

Very nice. Except that the studio doesn't get all of the grossing. I would say about 50% goes to the theatre. Also, in several countries the movie is actually distributed by other companies.

if you look at the movie division's financial, you will see that they only get a small cut from the worldwide grossing.


You're right, totally forgot that not everything goes back to the studio. Thanks for reminding :)


I wouldn't say 50%. Depends on how long the movie has been out for. It's usually closer to 20% during the first few weeks and some bigger movies have 0-10% of the ticket price going to the theatre. The longer the movie has been out, the higher the percentage the theatre will see but, keep in mind, not nearly as many people will be seeing the movie a month after it releases. Most theatre revenue comes from the concession stand hence the stupidly jacked up prices.