psrock said: NJ5 said: I can't decide which of MikeB's predictions is funnier: - that the PS3 will sell 15 million on average for the next 7 years, or... - that the 360 will only sell 15 million more until it stops selling I think together they're better than the sum of the two parts. or the fact you thought Sony could not drop their price by $100 or they'd go Bankrupt.

NJ5 - If I remember correctly, you and I had an argument at the beginning of the recession about whether Sony would go bankrupt or not. Here's my quote from that "Hasn't Sony survived every other economic downturn since the 1940's?".

MikeB you had a couple of decent predictions dont let people bother you.

perpride said: psrock said: NJ5 said: I can't decide which of MikeB's predictions is funnier: - that the PS3 will sell 15 million on average for the next 7 years, or... - that the 360 will only sell 15 million more until it stops selling I think together they're better than the sum of the two parts. or the fact you thought Sony could not drop their price by $100 or they'd go Bankrupt. NJ5 - If I remember correctly, you and I had an argument at the beginning of the recession about whether Sony would go bankrupt or not. Here's my quote from that "Hasn't Sony survived every other economic downturn since the 1940's?".

I don't think you remember correctly... I have talked about the possibility of a Sony bankruptcy (depending on the extent of the recession and how quickly Sony can restructure), but I don't remember ever predicting they would actually go bankrupt.

 

@ KillerGran

Already in the original post I highlighted this was a former summary I wrote a while ago.

It was in reply to some trolling and outing of personal insults directed at me.

And so no, this is the first thread of its kind started by me.

NJ5 said: perpride said: psrock said: NJ5 said: I can't decide which of MikeB's predictions is funnier: - that the PS3 will sell 15 million on average for the next 7 years, or... - that the 360 will only sell 15 million more until it stops selling I think together they're better than the sum of the two parts. or the fact you thought Sony could not drop their price by $100 or they'd go Bankrupt. NJ5 - If I remember correctly, you and I had an argument at the beginning of the recession about whether Sony would go bankrupt or not. Here's my quote from that "Hasn't Sony survived every other economic downturn since the 1940's?".   I don't think you remember correctly... I have talked about the possibility of a Sony bankruptcy (depending on the extent of the recession and how quickly Sony can restructure), but I don't remember ever predicting they would actually go bankrupt.

IMO there was no chance at all for this to happen within the middle-long term, they have too many assets (they could sell).

In a worst case disaster scenario, Sony could also cut 100,000 (more people than Microsoft ever employed) from its workforce (cutting out many billons in annual costs) and for example kill R&D investments.

Any such talk seems so very strange to me and smells like wishful thinking to me.

@MikeB

If I give you that point, will you give me the fanboy prediction point? That meat of my post anyways. And, I would assume, the reason people insulted you from the beginning.

MikeB said: NJ5 said: perpride said: psrock said: NJ5 said: I can't decide which of MikeB's predictions is funnier: - that the PS3 will sell 15 million on average for the next 7 years, or... - that the 360 will only sell 15 million more until it stops selling I think together they're better than the sum of the two parts. or the fact you thought Sony could not drop their price by $100 or they'd go Bankrupt. NJ5 - If I remember correctly, you and I had an argument at the beginning of the recession about whether Sony would go bankrupt or not. Here's my quote from that "Hasn't Sony survived every other economic downturn since the 1940's?".   I don't think you remember correctly... I have talked about the possibility of a Sony bankruptcy (depending on the extent of the recession and how quickly Sony can restructure), but I don't remember ever predicting they would actually go bankrupt.   IMO there was no chance at all for this to happen within the middle-long term, they have too many assets (they could sell). In a worst case disaster scenario, Sony could also cut 100,000 (more people than Microsoft ever employed) from its workforce (cutting out many billons in annual costs) and for example kill R&D investments. Any such talk seems so very strange to me and smells like wishful thinking to me.

It may be saddening to know to some, but Sony owns a lot more assets than Microsoft does. In fact selling some assets, they could easily hand out 100 million free PS3s without coming close to bankrupting...

MikeB said: IMO there was no chance at all for this to happen within the middle-long term, they have too many assets (they could sell). In a worst case disaster scenario, Sony could also cut 100,000 (more people than Microsoft ever employed) from its workforce (cutting out many billons in annual costs) and for example kill R&D investments. Any such talk seems so very strange to me and smells like wishful thinking to me.

You do know there's a limit to how much job cuts you can perform without exiting certain businesses, right? If a company does too much layoffs, it becomes unable to compete and even perform its daily operations normally with the same quality. There's only so much fat you can cut before you get to the meat and bones of the company.

The same goes for asset sales... plus the fact that selling assets in a recession usually results in great losses.

There are plenty of big companies with lots of assets which went bankrupt, Sony is not immune...

Having said that, it seems they are restructuring fairly quickly.

 

If only GM could sell all their factories, then they could get out of bankruptcy and hand out 10 million free cars!

LOL.

@ NJ5

Yes, of course. But cutting 100K we are still talking about a remaining workforce similar to that of Microsoft. I think in a worst case scenario they could that off without losing too much capacity (of course stressing its workforce more and work more efficiently).

In the short run the company could save a lot of cash, of course without reason employees wouldn't accept this and for the long run its destructive for R&D, business relations, etc.

But in all honesty we are talking about a company with multiple the value of assets than Microsoft owns. Neither company is even remotely close to bankrupting.

MikeB looking at asset values alone gets you nowhere. Assets minus liabilities is the real measure of a company's value.