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Forums - Gaming - CNET.com - "Why Microsoft Should Aquire Sony's Gaming Division"

Obliterator1700 on 05 August 2008
Untouch said:
So.

Their saying:
Microsoft shoul spend billions of dollars for nothing?
From your sig I'm not surprised at what you said.

 

 



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NJ5 on 05 August 2008
Pristine20 said:
NJ5 said:

So here are the numbers:

Nintendo is worth $67 billion.
Sony (as a whole) is worth around $40 billion.

And for reference:

Google - $148 billion
Microsoft - $239 billion

Microsoft probably has enough cash-on-hand to make a cash-only purchase of SCE... If they did a cash+stock purchase, they wouldn't have to break a sweat to buy it. Of course, they'd have to get regulatory approval, which shouldn't be a huge problem right now as Nintendo is owning both of them.

This is of course academic without the support of Sony's investors, which is probably one of the reasons why Sony is now very careful with their PS3 strategy. We don't need to assume something as dramatic as a Microsoft-buyout, their shareholders could simply force them to sell off some assets (some studios for example).

 

Its not that simple. Sony's asset value>>>>>>Nintendo.

 Nintendo seems worth more currently because they're very profitable. Why do you think forbes ranks Sony way higher than nintendo?

Those are the market cap values. Market capitalization includes asset value (or at least what the market thinks the assets are worth).

In any case, that doesn't matter. We're talking about Microsoft buying SCE here, not the whole of Sony.

 



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disolitude on 05 August 2008
Phrancheyez said:
Wow..this is probably the stupidest post I've ever read.

MS will never buy Sony..Sony would never sell itself to MS.

I don't think I've ever met this big of a fanboy in my life...seriously. I mean..seriously guys..just, wow.

I find it funny that they bring this up too, because lets go back 5 years, and would this not be the other way around? "Why Sony should buy Microsofts Gaming Division" or Nintendos or whatever..5 years ago, Nintendo was going down the tube, XBOX was getting crushed by PS2. Now, suddenly since Sony brought their console out a little bit later, all the sudden they're a failure.

Just..wow. I can't even post anymore on this. Wow..wow wow wow.

 

I agree with you but you're not providing any reasons why this is a stupid post. You just keep saying "wow".



DMeisterJ on 05 August 2008

Err... no.



Redcoat222 on 05 August 2008

To answer my own question, CNET is not owned by Microsoft but by CBS (teach me to listen to anything said by people trying to prove that Gamespot is inherently biased toward 360 lol).

Anyway, as has been well argued already, this is so naive it's bizarre.



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mike_intellivision on 05 August 2008
gebx said:

"...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.

 

I doubt that the writer of this article has not looked at sales outside the US and UK, where the Xbox 360 is strongest. The rest of Europe is much more Sony-land than Microsoft land. Given the hate out there for Microsoft, such a puchase would ensure (a) Nintendomination and (b) another company entering the console market.

 

Mike from Morgantown



      


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Pristine20 on 05 August 2008
NJ5 said:
Pristine20 said:
NJ5 said:

So here are the numbers:

Nintendo is worth $67 billion.
Sony (as a whole) is worth around $40 billion.

And for reference:

Google - $148 billion
Microsoft - $239 billion

Microsoft probably has enough cash-on-hand to make a cash-only purchase of SCE... If they did a cash+stock purchase, they wouldn't have to break a sweat to buy it. Of course, they'd have to get regulatory approval, which shouldn't be a huge problem right now as Nintendo is owning both of them.

This is of course academic without the support of Sony's investors, which is probably one of the reasons why Sony is now very careful with their PS3 strategy. We don't need to assume something as dramatic as a Microsoft-buyout, their shareholders could simply force them to sell off some assets (some studios for example).

 

Its not that simple. Sony's asset value>>>>>>Nintendo.

 Nintendo seems worth more currently because they're very profitable. Why do you think forbes ranks Sony way higher than nintendo?

Those are the market cap values. Market capitalization includes asset value (or at least what the market thinks the assets are worth).

In any case, that doesn't matter. We're talking about Microsoft buying SCE here, not the whole of Sony.

 

 

 That may be the key statement, if not why is HSBC ranked #1. Won't M$ be worth more than them? HSBC's "market value" is $180.81bln but their asset value is $2348.98 bln. The market value just seems to represent the worth of investing in the company at present not necessarily how much the company would cost because that would mean HSBC would cost less than M$.



"Dr. Tenma, according to you, lives are equal. That's why I live today. But you must have realised it by now...the only thing people are equal in is death"---Johann Liebert (MONSTER)

"WAR is a racket. It always has been.

It is possibly the oldest, easily the most profitable, surely the most vicious. It is the only one international in scope. It is the only one in which the profits are reckoned in dollars and the losses in lives"---Maj. Gen. Smedley Butler

NJ5 on 05 August 2008
Zucas said:

 

It's easier to buy Sony out considering they are worth less on the stock market.  But Sony gets more revenue than Ninty does meaning its easier for them to continuously buy their own stock to keep them from a hostile takeover. 

 

Technically Ninty is a bigger company than Sony but Sony earns more revenue which is apparent in the finance reports they report.

They can't buy back stock using their revenue, they have to buy back stock using their cash or their profits.

There's no two ways to it - Sony's current net worth is $40 billion, that's their assets minus their liabilities. It's the only value that matters in terms of buyouts.

I don't have an estimate of how much SCE is worth though, but it's easy to see that it has to be much less than $40 billion.

 



My Mario Kart Wii friend code: 2707-1866-0957

Obliterator1700 on 05 August 2008
mike_intellivision said:
gebx said:

"...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.

 

I doubt that the writer of this article has not looked at sales outside the US and UK, where the Xbox 360 is strongest. The rest of Europe is much more Sony-land than Microsoft land. Given the hate out there for Microsoft, such a puchase would ensure (a) Nintendomination and (b) another company entering the console market.

 

Mike from Morgantown
The 360 only sells well in Us and Uk

 

 



Untamoi on 05 August 2008
NJ5 said:
Pristine20 said:
NJ5 said:

So here are the numbers:

Nintendo is worth $67 billion.
Sony (as a whole) is worth around $40 billion.

And for reference:

Google - $148 billion
Microsoft - $239 billion

Microsoft probably has enough cash-on-hand to make a cash-only purchase of SCE... If they did a cash+stock purchase, they wouldn't have to break a sweat to buy it. Of course, they'd have to get regulatory approval, which shouldn't be a huge problem right now as Nintendo is owning both of them.

This is of course academic without the support of Sony's investors, which is probably one of the reasons why Sony is now very careful with their PS3 strategy. We don't need to assume something as dramatic as a Microsoft-buyout, their shareholders could simply force them to sell off some assets (some studios for example).

 

Its not that simple. Sony's asset value>>>>>>Nintendo.

 Nintendo seems worth more currently because they're very profitable. Why do you think forbes ranks Sony way higher than nintendo?

Those are the market cap values. Market capitalization includes asset value (or at least what the market thinks the assets are worth).

In any case, that doesn't matter. We're talking about Microsoft buying SCE here, not the whole of Sony.

 

 

I don't know... Sony has 5 times bigger revenue and almost 50 times more employees. Nintendo has only 3500 employees and Sony 163000 employees worldwide. I think Nintendo is grossly overvalued in the market.