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Forums - Sony - Sony Breakup Would Be Better Late Than Never

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curl-6 said:
Xenostar said:

Great comeback i see i used an 'e' instead of an 'i'.

Doesnt make what you said anywhere based in reality, you only had to look at there financial statement of last week, to see they have many departments much more profitable than gaming, in fact gaming wasn't even profitable at all, but that is understandable as theyve just had a massive product launch. 

Their gaming division may not be a money maker now but they're in a good position for the 8th gen.


So why should they seperate it from there other entertainment divisions, music and film, which are already profitable when they can compliment and leverage each other so well.



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Well the freaking article pretty much said they are profitable over-all now, they posted a loss because of restructuring charges that had to do with divesting businesses. So there is no reason they as a company need to split up, and the investment banker who is promoting that concept didn't offer any rebuttal to that idea, he just said he thought it is desirable from "investors" stand point, but that is not because more profit would suddenly be generated, but because most people think a split up Sony would be VALUATED higher compared to it's earnings, i.e. instant paper profit for financial speculators that has nothing to do with the profitability of the underlying business. Anybody actually interested in investing for profits BENEFITS by Sony's lower valuation, these guys are only interested in getting share prices jacked up and then selling. So who freaking cares, at least here on a site dedicated to one of Sony's actual business segments (videogames)? Having interests in several sectors is good insurance, obviously so with a cyclical business like videogames which come with losses early in the gen and profits at the end of the gen. Sony has good engineers which can work on many types of products, crossing sectors, so keeping the company together makes sense on that level.



So gaming, movies, music, television, and insurance? Yeah that seems to be the way to go. For the most part all of those divisions are healthy. Gaming fluctuates but it can post a profit. Insurance does very well, and they have huge movie franchises like James Bond and Spider-man.



Sigs are dumb. And so are you!

Xenostar said:
curl-6 said:
Xenostar said:

Great comeback i see i used an 'e' instead of an 'i'.

Doesnt make what you said anywhere based in reality, you only had to look at there financial statement of last week, to see they have many departments much more profitable than gaming, in fact gaming wasn't even profitable at all, but that is understandable as theyve just had a massive product launch. 

Their gaming division may not be a money maker now but they're in a good position for the 8th gen.


So why should they seperate it from there other entertainment divisions, music and film, which are already profitable when they can compliment and leverage each other so well.

I wasn't being serious.



What ever it takes I guess, they can't go on bleeding money forever.



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think-man said:
What ever it takes I guess, they can't go on bleeding money forever.

Like the article says, the only reason they posted a loss was because of restructuring charges. 
More restructuring would just carry more charges.
The aim of the "activist investor" pushing total breakup is not boosting profits, it is a better valuation on paper.
I don't see why Sony is obligated to that perspective in anyway, they are obligated to pursue profits and growth,
but however investors wish to valuate Sony based on it's published numbers, is the investor's own business,
Sony's obliation to owners is to produce profit, not to achieve theoretical rankings.
The only benefit of boosting their valuation is to speculators who then sell,
those who buy at curretn cheaper price get better earnings/price ratio with current set up, and post structuring Sony looks profitable.



curl-6 said:
Xenostar said:

Great comeback i see i used an 'e' instead of an 'i'.

Doesnt make what you said anywhere based in reality, you only had to look at there financial statement of last week, to see they have many departments much more profitable than gaming, in fact gaming wasn't even profitable at all, but that is understandable as theyve just had a massive product launch. 

Their gaming division may not be a money maker now but they're in a good position for the 8th gen.


Okay, this needs to die here. Sony's gaming division is not in a good position for eighth gen. The PS4 is. The Vita still is and continues to be a money losing flop. You don't get to just ignore half of the playstation's gaming division. The Vita is a failure. That's like saying that Nintendo is in a "good position for the 8th gen" because the 3DS is doing well. No. They aren't.



What matters here is the overall situation of the unit, not whether one specific product is doing good or bad.
Apparently it's doing good enough that financial vultures want to spin it off along with Music and Film.



strange that investors are bringing this up again.
To me it sounds like: Let us profit from the entertainment and let the other divisions burn in hell.

Why would any investor want to put his money on such a sinking ship like non-entertainmen-Sony?
Heck Sony WITH entertainment is pretty much fucked up, how do they expect to improve without profitable divisions?

Therefore it is more like "saving" the profitable divisions before they are sinking along with Sony as a whole.



Imagine not having GamePass on your console...

They should give up on TV's but shouldn't leave every electronic business. Whilst the Sony brand is still associated with high quality products, they should use much cheaper materials and make lower quality hardware like Samsung and LG do, thus increasing their margins. Cause almost every time you look, you will notice Sony products are considerably more expensive than Samsung and LG, with LG usually being the cheapest.



    

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