couchmonkey said:
> "2.....Other companies aren't exactly thriving either. eg. Microsoft continues to eat into their profits with the whole RROD issue, and they're share price is falling down too!"
Failure + Failure =/= Success. Microsoft and Sony could BOTH exit the game market at the end of this generation. I don't think that's likely, but it's certainly possible.
As for falling share prices, that's happening across the board. The real question is who has a business strategy that will survive or even thrive in this recession? The answer is Nintendo, which is setting sales records AND making a profit on every piece of hardware sold. |
Microsoft and Nintendo shares are falling but not so much their profit (even though they both will make less profit than expected). Sony isn't in the deep shit but they are not thriving either. The problem with Sony is that they need to change their business model. Until now, they always used the entertainment part of their business to push the hardware part of their business:
Sony records: push walkman, discman
Sony Pictures: push TVs, video players
SCE: push TVs and multimedia functionalities
The competition is harder now than it was. Sony has been expelled from the hardware music industry by Apple. Their TVs are still going strong but the competition is also strong: LG, Samsung, Panasonic, etc.
In all their years on top, Sony was only able to create one very successful franchise (Gran Turismo). It's only now that they are in 3rd place that they realize what they should have realized 10 years ago: they are not only selling Playstation to sell TVs but to sell games.
