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Forums - Sales - Sony’s in Trouble, Not Microsoft

Scientificreason on 07 November 2014

It's like people judge, posy without even reading. Why is everyone neglecting that every Sony division grew and made a profit except one that dragged the entire quarter? There stock went up for a reason. Are they out of the Woods? No but they are not going anywhere. Just need to trim the fat.



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Scientificreason on 07 November 2014
JustBeingReal said:
The funny thing about all of this is that Sony aren't in the dire situation that many try to make them out to be, their financial losses are the result of leveling out their accounts, the majority of their divisions are actually profitable, most important to the whole gaming discussion is that Playstation is the top dog once again, in the 3rd generation of home consoles out of 4, no other console manufacturer has had as much success as Sony and the only reason Sony doesn't have a 100% success rate as far as dominance goes is because of them being late to the party last generation.
Not only has PS4 sold more hardware than both of it's competitors (whilst making profit on that hardware), it's also sold more software and if anyone understands the console business they should know that software is what makes the money and matters the most.
This generation also adds huge amounts of money from services like PS+ and potentially PS Now.

PS4 has put the Playstation division into a situation where it's entirely self sufficient and the parent company doesn't have to feed the Playstation department with money from anywhere else in the company.
People like to act as if Sony can't afford to invest in new IPs or make AAA games, but the reality is that a portion of the profits made from software sales can easily be reinvested into the development of future games, a lot of future games.

Said profits from software can also be used to create exclusive agreements with 3rd party publishers to bring even more games to the install base of PS4 and Sony wouldn't need to spend anywhere near the money from their savings as Microsoft or Nintendo will because PS4 has a much bigger install base and is guaranteed to sell more copies of any game that Sony could want on their system.

Another thing to factor into this whole analysis of the situation is that the Playstation Division's financial situation means that they can literally match Microsoft's every move, when it comes to the console's price, they can reduce RRP to a point where the platform is breaking even, not harm the division financially, rather the surge in hardware sales that this will accomplish will actually drive software sales and thus division profit even higher.

This article was ridiculous.

Excellent post man. 



4k1x3r on 07 November 2014

Was this written by a certain person on this forum? Because damn does he try hard to grow a tree on an iceberg



Scientificreason on 07 November 2014
MikeRox said:
cannonballZ said:
So, according to this article and the author's point of view, Xbox One will win simply because MS has more cash.

Yea, we'll see how well that plays out.


I don't really get how that logic works. Regardless of the two companies financial circumstances, they are both in it to maximise profits. MS is successful with or without the Xbox division. Sony is currently relying on PS4 to carry them, you could actually argue that means MS have less reason to try because for Sony it quite literally could be life or death based on the long term performance of PS4.

This can be spun any way you want.

Sony is not relying on playstation to carry them lol.  Ps is a small part of Sony as a whole and any profit is tiny compared to there rest of the divisions



MikeRox on 07 November 2014
Scientificreason said:
MikeRox said:

I don't really get how that logic works. Regardless of the two companies financial circumstances, they are both in it to maximise profits. MS is successful with or without the Xbox division. Sony is currently relying on PS4 to carry them, you could actually argue that means MS have less reason to try because for Sony it quite literally could be life or death based on the long term performance of PS4.

This can be spun any way you want.

Sony is not relying on playstation to carry them lol.  Ps is a small part of Sony as a whole and any profit is tiny compared to there rest of the divisions


There was a time when PlayStation generated more profit than any other part of Sony. I'm sure they want too return to those days with PS4.



RIP Dad 25/11/51 - 13/12/13. You will be missed but never forgotten.

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Scientificreason on 07 November 2014
MikeRox said:
Scientificreason said:
MikeRox said:

I don't really get how that logic works. Regardless of the two companies financial circumstances, they are both in it to maximise profits. MS is successful with or without the Xbox division. Sony is currently relying on PS4 to carry them, you could actually argue that means MS have less reason to try because for Sony it quite literally could be life or death based on the long term performance of PS4.

This can be spun any way you want.

Sony is not relying on playstation to carry them lol.  Ps is a small part of Sony as a whole and any profit is tiny compared to there rest of the divisions


There was a time when PlayStation generated more profit than any other part of Sony. I'm sure they want too return to those days with PS4.

You clearly don't know much about.  I am sure they never want to see those days.  In order for Sony to be healthy there bigger divisions need to do well.  Playstation is never going to be enough to sustain Sony.  They are a very large conglomerate. Playstation has never been what Sony wants to rely on,  they know full well even being a huge success playstation is not enough to carry the company. 



BreedinBull on 07 November 2014

"Look past the consoles" in the "console wars." Well then that wouldn't be console wars anymore now would it? Also this seems to be a long version of the default, X1 is losing but Microsoft is rich and Sony isn't fan defense.



Thanks jlmurph!

MikeRox on 07 November 2014
Scientificreason said:
MikeRox said:

There was a time when PlayStation generated more profit than any other part of Sony. I'm sure they want too return to those days with PS4.

You clearly don't know much about.  I am sure they never want to see those days.  In order for Sony to be healthy there bigger divisions need to do well.  Playstation is never going to be enough to sustain Sony.  They are a very large conglomerate. Playstation has never been what Sony wants to rely on,  they know full well even being a huge success playstation is not enough to carry the company. 

Sorry I should have clarified, while they were also making money on things such as TVs which they no longer do.

However, I more meant, I'm sure they want the profits they used to generate with PlayStation to return. Not that they wanted it to be their main source of profit.

Btw, I have a degree in business so yes, I do know "much about". You clearly don't know much about Sony's revenue/profit from the late 90s/early 2000s though. The big wigs were truly humbled at the joke division also known as SCEI.



RIP Dad 25/11/51 - 13/12/13. You will be missed but never forgotten.

JustBeingReal on 07 November 2014
Scientificreason said:
JustBeingReal said:
The funny thing about all of this is that Sony aren't in the dire situation that many try to make them out to be, their financial losses are the result of leveling out their accounts, the majority of their divisions are actually profitable, most important to the whole gaming discussion is that Playstation is the top dog once again, in the 3rd generation of home consoles out of 4, no other console manufacturer has had as much success as Sony and the only reason Sony doesn't have a 100% success rate as far as dominance goes is because of them being late to the party last generation.
Not only has PS4 sold more hardware than both of it's competitors (whilst making profit on that hardware), it's also sold more software and if anyone understands the console business they should know that software is what makes the money and matters the most.
This generation also adds huge amounts of money from services like PS+ and potentially PS Now.

PS4 has put the Playstation division into a situation where it's entirely self sufficient and the parent company doesn't have to feed the Playstation department with money from anywhere else in the company.
People like to act as if Sony can't afford to invest in new IPs or make AAA games, but the reality is that a portion of the profits made from software sales can easily be reinvested into the development of future games, a lot of future games.

Said profits from software can also be used to create exclusive agreements with 3rd party publishers to bring even more games to the install base of PS4 and Sony wouldn't need to spend anywhere near the money from their savings as Microsoft or Nintendo will because PS4 has a much bigger install base and is guaranteed to sell more copies of any game that Sony could want on their system.

Another thing to factor into this whole analysis of the situation is that the Playstation Division's financial situation means that they can literally match Microsoft's every move, when it comes to the console's price, they can reduce RRP to a point where the platform is breaking even, not harm the division financially, rather the surge in hardware sales that this will accomplish will actually drive software sales and thus division profit even higher.

This article was ridiculous.

Excellent post man. 


Thanks for the nice words. :)



Scientificreason on 07 November 2014
MikeRox said:
Scientificreason said:
MikeRox said:

There was a time when PlayStation generated more profit than any other part of Sony. I'm sure they want too return to those days with PS4.

You clearly don't know much about.  I am sure they never want to see those days.  In order for Sony to be healthy there bigger divisions need to do well.  Playstation is never going to be enough to sustain Sony.  They are a very large conglomerate. Playstation has never been what Sony wants to rely on,  they know full well even being a huge success playstation is not enough to carry the company. 

Sorry I should have clarified, while they were also making money on things such as TVs which they no longer do.

However, I more meant, I'm sure they want the profits they used to generate with PlayStation to return. Not that they wanted it to be their main source of profit.

Btw, I have a degree in business so yes, I do know "much about". You clearly don't know much about Sony's revenue/profit from the late 90s/early 2000s though. The big wigs were truly humbled at the joke division also known as SCEI.

Having a degree in business does not mean you know what you are talking about,  especially in today's educational system.  You clearly don't know much about Sony if you think they  are relying in playstation to "carry"  them.  They are relying on a turn around of there wider business. 

 

If you meant that in your first post why not make that clear?  Degree in business never taught English?