Runa216 said:
If you genuinely think Sony doesn't care or that there's much of anything they can do that won't get beaten by scalpers (All your suggestions can be mass-enacted by scalpers), then I don't know what to tell ya. You're wrong, and you don't really understand business all that well.
Sony is making money because their brand is strong right now, their games are selling, and they've still got a PS4 selling reasonably well. literally the only thing they're benefitting from this scalper situation is the hype that their console is so sought-after that it's got a strong presence on the scalper market. but that benefit would still remain if people who actually wanted the consoles were buying them, with the added bonus of also buying games.
I don't know what to say, man.
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Well, business is a broad term. It can be used in many ways, as both good or bad. For instance, a drug cartel operates its business in a different way than pharmaceutical company. They both sell similar products, but they do business differently, so you are going to have to more specific if you want land a hit with at accusation.
Which brings me to what I do know a little about. If you take a few accounting classes, and you happen to get a good instructor, they will tell you that the financial statements are what you should look at, not at what the PR department is spinning. If you remember the days of Enron, you will understand that Corporations make it habit to lie whenever it suits them. (don't worry it's legal, but complicated)
Take exhibit A for instance:
If you look above, you see that the "Games and Network Services" is the highest grossing sector, and right behind it is the "Electronic Products and Solutions," and "Financial services."
I do understand that many people can interpret this sheet differently, but what I see the biggest drop off from last year is in "Digital software and Add-content." Yet the third biggest increase is in "Hardware and Others." Now this could definitely be explained to the consumers that Scalpers have got all these PS5 sales. I just don't buy it. I see VGchartz numbers, granted they are an estimates, and I see PS4 sales fell off a cliff and PS5 hasn't even sold over 12 million in these past 9 months? That's less than 1.5 million a month. Sony even promised it doubled it's allocation of Waiffers from TSMC from it's original goal of 10 million. That was before the PS5 was launched.
If PS5 are being sold at a loss and PS4 fell of a cliff, but they are making more money now on the "Hardware and Others." (Focus on the Others) It just doesn't add up to me, that they are making more now they they were back in 2020 when the PS4 was selling well do to the Pandemic quarantines.
There is more, but I'm sure you can look at the Financial statements and do the work yourself, since you obviously know more about business than myself.
Dante9 said:
Runa216 said:
I was trying to stay out of this fight because it's a really silly argument...but like, seriously? Sony does NOT want scalpers to be picking the consoles up. Because scalpers do not buy games. The consoles are sold at a loss to sony or if we're lucky a very small benefit...it's the GAMES that make Sony money in the first year or two. And scalpers don't buy games.
If you genuinely think Sony doesn't care or that there's much of anything they can do that won't get beaten by scalpers (All your suggestions can be mass-enacted by scalpers), then I don't know what to tell ya. You're wrong, and you don't really understand business all that well.
Sony is making money because their brand is strong right now, their games are selling, and they've still got a PS4 selling reasonably well. literally the only thing they're benefitting from this scalper situation is the hype that their console is so sought-after that it's got a strong presence on the scalper market. but that benefit would still remain if people who actually wanted the consoles were buying them, with the added bonus of also buying games.
I don't know what to say, man.
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Thank you, I forgot abut that point completely. As long as there are thousands and thousands of PS5s laying around in scalper facilities, those units are not contributing to game sales, and that's where the real money is for Sony.
No matter how much money a company is making, they will always want more, and right now they are practically losing money on each PS5 that's not in use.
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If you look at the Exhibit A above, you can see a huge drop off in sales of "Digital software and Add-content." If you saw that in your company, wouldn't you like to correct that ASAP? Or would you be okay with the status quo because you have managed to barely squeeze a net profit after you sum everything up.
I'm not looking at this as an investor, I'm looking at it as a consumer.
I find Sony lacking and I blame them completely because they have had 9 months to address this issue, so the more time passes the more time I will loose interest in their gaming products. I'm entering my 40's, and I can do many other things with my disposable income, I don't have to hang on to console video gaming as my only source of entertainment. If they want keep me as a customer, they need to make it easy to own and an enjoyable experience.
Last edited by DraconianAC - on 11 September 2021