"...it becomes blatantly clear that Sony and Microsoft simply don't have what it takes right now to compete and more consumers are more excited about Nintendo's platform than anything Sony or Microsoft can dole out."

"Sony's gaming division is quickly becoming a drain on its financial stability and shareholder confidence, while Microsoft is chugging along at a pretty good clip even though it has little influence in Asia"...  "Sony has blamed its gaming division's financial problems on high manufacturing costs and slow sales, but it's probably easier to blame it on poor management."

"And why wouldn't (MS) be? By acquiring Sony's games division, Microsoft effectively eliminates the major competitor in its space and can increase its presence overseas -- a major sticking point for the company.

Right now, Microsoft is a major force in the US and Europe, but it's practically nonexistent in Asia. On the other hand, Japan has always been a Playstation 3 stronghold and even now, it far outpaces the Xbox 360 on almost every measure of performance.

But by acquiring Sony's games division, all those troubles are behind Microsoft. After the ink dries, it'll have a full-fledged customer base in Asia and together with its US and Europe customers, it can expand its Xbox Live platform to more people than ever before and truly become a fearful competitor to Nintendo.

Full article here - http://news.cnet.com/8301-13506_3-10007014-17.html

2 words..."sunk costs"...Sony aren't just going to sell up after they've put in so much. More to the point MS aren't going to pay those sunk costs...This deal would be way too risky.

Silly "journalists" don't have a clue these days.

is this a joke ?

LOL where do they get these "analysts" from.

Why would they need Sony gaming division? Cell has shown to be underachiving, sony studios arent really moving consoles with their games, they already share pretty much all the great exclusives....

Bluray is the only aspect which could seem interesting but even that would be counter-productive of their goal for digital distribution.

1. That would be a rather large acquisition. I'm not saying that MS wouldn't have the money to purchase SNE's games divison, but if it did so, it would make games twice as big as they are now....strategically does MS want games to be a more dominant theme within its company? I thought that they liked being diverse with their focus but whatever.

2. The writer of the article fails to take in recent financial information in his/her peice on a financial topic such as this. Did the writer take not of the recent earnings report showing that Sony's GAMES divsision was basically the only division that did indeed make a profit? This would contradict the article's position that "Sony's gaming division is quickly becoming a drain on its financial stability and shareholder confidence"

I give this thread a 2/10 mostly b/c it shows less thought than what the fungus in my toe cheese can produce.

 LOL. I see...so they need the sony gaming division to satisfy fanboys on sites. Well played...

I don't think the Internet would recover. Look what happened when FF13 went multiplat. Wonder which asylum they pulled this analyst from?

That's stupid. What Microsoft needs to do is send 2.3 billion free 360's to households across the world. While the initial costs would be high, those households would then buy 360 games, cementing Microsoft's lead in the software market with it's larger install base.


There, I'm just as good an analyst as that guy.