Macroaxis: Sony Has 79% Chance of Going Bankrupt in the Next 2 Years
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Considering the fact that hardware-wise SEGA's doing fine as of late...
...what? They single-handedly revived the arcade business in Japan!
Considering the fact that hardware-wise SEGA's doing fine as of late...
...what? They single-handedly revived the arcade business in Japan!
We never did discover what the "Sega Spectrum" that got leaked in summer was.
Its a console i bet ya.
SEGA 2K14
Yeeeeah, riiiight, just like how Nintendo's doomed
Seriously, why is every single person saying something about a gaming company going bankrupt or doomed?
Seriously, why is every single person saying something about a gaming company going bankrupt or doomed?
I like how this thing sparked a global circlejerk around here, on Twitter and some lesser-known gaming websites that don't know any better when for all intents and purposes, XBox is far closer to dying. In fact, one of Microsoft's future CEO candidates considers deattaching the XBox division from the main company body and selling it off since it's the least profitable (or more accurately, the not-at-all-profitable) of their branches, which would be likely to happen if he got elected.
The PlayStation brand would become the only "middle ground" between PC gaming and Nintendo, and if Sony went under (which it won't, that's just silly), it would create a massive rift between the two spheres because let's face it, Nintendo is about as good with keeping up with industry trends as a bat is at reading.
To re-iterate, it's unlikely that Sony as a corporation will go bankrupt - if things go sour for them to the point where they have to make difficult decisions, they will withdraw from the non-profitable businesses and stay in the ones that do bring them profits until their situation stabilizes, as any megacorporation would.
The PlayStation brand would become the only "middle ground" between PC gaming and Nintendo, and if Sony went under (which it won't, that's just silly), it would create a massive rift between the two spheres because let's face it, Nintendo is about as good with keeping up with industry trends as a bat is at reading.
To re-iterate, it's unlikely that Sony as a corporation will go bankrupt - if things go sour for them to the point where they have to make difficult decisions, they will withdraw from the non-profitable businesses and stay in the ones that do bring them profits until their situation stabilizes, as any megacorporation would.
Because it's easier to deem something doomed than it is to actual do some research and get facts.Yeeeeah, riiiight, just like how Nintendo's doomed
Seriously, why is every single person saying something about a gaming company going bankrupt or doomed?
I wouldn't be so sure about that. Sony isn't just manufacturing Playstations you know, they are involved in a huge array of businesses. Besides that, they are also in a "keiretsu" like most other Japanese companies. This means that there is one central bank who funds dozens of companies that can be found in different sectors. So it's like a chain of a huge array of companies. Sectors include but not limited to: Financial, Food, Chemicals, Trading and Commerce, Petroleum, Electronics, Iron and Steel, Gaming, Entertainment and Shipping.
In turn, those companies have interest in each others companies as well as having stocks of each other. Besides that they usually also have shared boardmembers so it goes pretty deep. Another thing is, when companies within the keiretsu sell products another company can use, they usually exclusively purchase from within their keiretsu. Even if this might be more expensive than getting components from china. It's to support growth within their keiretsu and create more money for investments within.
My point is, when SCE blows all their funds, they will get more from Sony. And if they're out of funds, their central bank can provide more. Besides that, they have the support of their keiretsu members as well. Honestly Japanese companies don't fall over as easily as western companies do. There is a huge difference in business ethics. For example, Japanese aim for a 1-2% increase over 10 years while keeping their employees, while western companies tend to focus on short term 5% profit and laying off 20% or more of their employees.
I'm also not sure how you say that Sony disapearing from North American stock markets is a bad thing. Sony will keep living on in Japan. Besides that, their biggest markets are Europe and their own country. It will probably save them costs.
In any case, you seem really uninformed. I hope this was useful in any way. =)
Not surprising. However, I see a huge amount of terrible companies on that list (Namely Bank of America and AT&T). Valuable does not necessarily mean they'll be successful and practice good business. Since that's based on stock, it can change literally by the hour.
The more value they have, the lesser the chance is that they'll end up with $0 in the bank. Just saying.
Good or bad business practices have little to do with overall value - we may not like given companies, but our feels don't make them valuable or successful.
Shuji1987 Hit the nail on the head - Sony is a hydra with many heads and cutting off one doesn't mean much. By the time you aim at the next one, the first one will grow back with the funding from other branches. That's not to say that they're too big to fail - no company is, but they're not going bankrupt within the next 2 years, not a chance.
The more value they have, the lesser the chance is that they'll end up with $0 in the bank. Just saying.
Good or bad business practices have little to do with overall value - we may not like given companies, but our feels don't make them valuable or successful.
The established fact is that Sony has a lot more than just games. That goes for both Microsoft and Sony, who just so happen to be on opposite sides of that list. With as much red zone Sony's gaming division has been operating in, I would not be surprised to simply see them drop out of the business for a while. Japanese companies are very prone to saving face. Look at some of Nintendo's blunders for historical examples of console suicide. I'm not saying they're gonna bankrupt, nor have I said that they aren't turning a profit. The simple facts say that anything is possible with consistent failure, or recession.
I think the home market is stagnated beyond belief in an economy that isn't getting much better, if not worse. We're at a turning point in electronics, and it's definitely not good business to funnel money into something that keeps losing it.
It's probably worth noting that their previous system cost more to put on shelves than it brought back home and on top of that it was incredibly expensive at launch wheras their latest system is the exact opposite.
Sony's gaming devision is doing a 180 in terms of their approach to the console game. The conversation we're having now would be much more sensible in about a year's time when we actually get to see the results of this new approach.
Which I think is a good start. Definitely better business. I only wish more devs would pay attention to my dear Vita. She's getting kinda lonely.
So, I guess see you in 2015?
To be fair, the PSVita is seeing a bit of a revival as of late, likely due to the promise of being a good companion device to the PlayStation 4, although this spike in interest is going to be temporary for obvious reasons.
I expect another one like it as soon as Sony launches Gaikai on the platform... but at the end of the day, the PSVita follows the same philosophy as the PS3 - it's high-end, it knows it and it creates a userbase slowly, albeit gradually.
I only read the title of this thread and nothing else and I am sitting back feeling good about Nintendo now. All it will take is for Nintendo to release the next *insert sequel to any Nintendo franchise* in the next two years and Sony will be history!
If Sony can get that Vita-PS4 bundle out and actually advertise it I would bet that would increase the userbase a bit.
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