Should Sony separte its gaming division?

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#1 Edited by hotdiddykong (2047 posts) -

Its no secret, the PS4 is doing massively well in sales and Sony's Gaming division is doing really well, yet its mother company still continues its loss and expects a loss as big as 1.3 Billion, compared to last years 1.07, thats a 200 million dollar difference, only getting worse every year

http://www.destructoid.com/sony-expects-losses-to-total-1-3-billion-now-274093.phtml


As well as the PS4 is doing, everything else is sinking, they arent selling as well, what do you think Sony could do and that being said should the Gaming division be separated so it can flourish instead of being taken down with it?

#2 Edited by SolidTy (42134 posts) -

This is asked every few weeks. Profit Wars. Company Wars.

Dig up my answers in those threads.

#3 Edited by tonitorsi (8276 posts) -

No.

It would be pretty challenging finding another company who gives as much of a f*ck about gaming as Sony.

Sony also understands the gaming industry very well.

---->Which is exactly why PS4 is the #1 selling video game console right now.

#4 Posted by mbrockway (3349 posts) -

Great idea, have a company bleeding money cast out the only division making a profit.

#5 Posted by BattleSpectre (5953 posts) -

Great idea, have a company bleeding money cast out the only division making a profit.

#6 Posted by FreedomFreeLife (2013 posts) -

If they cut Gaming Division, then we can all say good bye to Sony and Microsoft buys Sony gaming division.

In fact, Microsoft earned more money last year than Sony has total money left.

#7 Posted by no-scope-AK47 (2686 posts) -

I can only assume this is troll bait to counter the xbone story... ms has yet to make one cent on the xbox brand and is billions in the hole. The shareholders want the xbox brand along with bing to be sold or separated from the parent company.

#8 Edited by PurpleMan5000 (6902 posts) -

Sony is barely keeping afloat as it is. It would be incredibly stupid on Sony's part to get rid of one of their only profitable divisions. If (when?) Sony finally goes bankrupt, somebody will buy the Playstation brand from them. Let's just hope that it's somebody who appreciates gaming as an art and doesn't resort to ripoff programs like PS+ or XBLG. Gaming as a service is going to kill consoles sooner than we all think.

#9 Edited by super600 (30152 posts) -

@FreedomFreeLife said:

If they cut Gaming Division, then we can all say good bye to Sony and Microsoft buys Sony gaming division.

In fact, Microsoft earned more money last year than Sony has total money left.

Microsoft can't do that because of anti-monopoly laws(competition laws) in both Japan and the US. The US government and the Japanese government will never let MS do that.

#10 Posted by AppleBeatsPC (46 posts) -

@hotdiddykong: Rumors are Apple and IBM are both considering purchasing a gaming division, whether it be Playstation or Xbox I'm not sure. Microsoft would be crazy to sell Xbox, but I think Sony should sell Playstation.

#11 Posted by Scipio8 (614 posts) -

No body wants to get into AAA console business. If you don't have a huge parent company to back you up and don't mind losing millions its doomed. PS will not survive on its own it will need a company like Apple, Google. Amazon or Facebook to back it. The best chance would be Amazon but I don't think any of the big companies want to bet on AAA games. In short Sony is done either way, its only a matter of time before Sony burry 7 million PS4s in a desert in new Mexico. Then we will have a documentary in 2034 on the Xbox about unearthing these consoles LOL

#12 Posted by LJS9502_basic (150066 posts) -

The gaming division is separate....but still belongs overall to Sony. What does this thread even mean? You want Sony to divest itself of the gaming division? Why would they do that.

#13 Posted by FreedomFreeLife (2013 posts) -

@super600 said:

@FreedomFreeLife said:

If they cut Gaming Division, then we can all say good bye to Sony and Microsoft buys Sony gaming division.

In fact, Microsoft earned more money last year than Sony has total money left.

Microsoft can't do that because of anti-monopoly laws(competition laws) in both Japan and the US. The US government and the Japanese government will never let MS do that.

No, if they were same country companies, then they can´t do that, but when you buying company from other country, then you can do it, but when you buying company that is located in your own country, then you can´t.

Same countries = Can´t

Different countries = Can

US government won´t let buy another US company, but they can´t stop deal when Sony is Japan company. Like history proves, they can.

#14 Posted by Lulu_Lulu (9943 posts) -

Na screw that. Sony should grant all its studios independence.

#15 Edited by hummer700 (10154 posts) -

@SolidTy: no one is ever going to do that

#16 Edited by Gue1 (9439 posts) -

@FreedomFreeLife said:

@super600 said:

@FreedomFreeLife said:

If they cut Gaming Division, then we can all say good bye to Sony and Microsoft buys Sony gaming division.

In fact, Microsoft earned more money last year than Sony has total money left.

Microsoft can't do that because of anti-monopoly laws(competition laws) in both Japan and the US. The US government and the Japanese government will never let MS do that.

No, if they were same country companies, then they can´t do that, but when you buying company from other country, then you can do it, but when you buying company that is located in your own country, then you can´t.

Same countries = Can´t

Different countries = Can

US government won´t let buy another US company, but they can´t stop deal when Sony is Japan company. Like history proves, they can.

there's this thing we now call "global economy" you know, the last phase of capitalism. We are in 2014 not in 1920. They were once American and Japanese but now they are no more, they are just multinational/global companies. That means that their profits are dependant on how they do globally and not just in one country. Therefore they look for talent and cheap labor work all around the world.

Example, Sony going out of business would mean that on the USA where there are Sony stores or programmers in Silicon Valley those people would lose their jobs. Losing their jobs mean that the USA's rate of unemployment would raise. More unemployment = worse economy in the USA because of Sony.

#17 Edited by Gue1 (9439 posts) -

@applebeatspc said:

@hotdiddykong: Rumors are Apple and IBM are both considering purchasing a gaming division, whether it be Playstation or Xbox I'm not sure. Microsoft would be crazy to sell Xbox, but I think Sony should sell Playstation.

wait what? Why? That doesn't make the slightest bit of sense.

Xbox is not only unprofitable to MS but the brand is so small it's like it didn't even exist to them.

#18 Edited by FreedomFreeLife (2013 posts) -

@Gue1 said:

@FreedomFreeLife said:

@super600 said:

@FreedomFreeLife said:

If they cut Gaming Division, then we can all say good bye to Sony and Microsoft buys Sony gaming division.

In fact, Microsoft earned more money last year than Sony has total money left.

Microsoft can't do that because of anti-monopoly laws(competition laws) in both Japan and the US. The US government and the Japanese government will never let MS do that.

No, if they were same country companies, then they can´t do that, but when you buying company from other country, then you can do it, but when you buying company that is located in your own country, then you can´t.

Same countries = Can´t

Different countries = Can

US government won´t let buy another US company, but they can´t stop deal when Sony is Japan company. Like history proves, they can.

there's this thing we now call "global economy" you know, the last phase of capitalism. We are in 2014 not in 1920. They were once American and Japanese but now they are no more, they are just multinational/global companies. That means that their profits are dependant on how they do globally and not just in one country. Therefore they look for talent and cheap labor work all around the world.

Example, Sony going out of business would mean that on the USA where there are Sony stores or programmers in Silicon Valley those people would lose their jobs. Losing their jobs mean that the USA's rate of unemployment would raise. More unemployment = worse economy in the USA because of Sony.

Company still can buy other company. Microsoft bought Nokia, nothing happened.

Microsoft can buy Sony easliy

#19 Posted by Spitfire-Six (497 posts) -

@super600
said:

@FreedomFreeLife said:

If they cut Gaming Division, then we can all say good bye to Sony and Microsoft buys Sony gaming division.

In fact, Microsoft earned more money last year than Sony has total money left.

Microsoft can't do that because of anti-monopoly laws(competition laws) in both Japan and the US. The US government and the Japanese government will never let MS do that.

Did you forget Nintendo exist? Pc Games? its not a monopoly and its not a requirement so you wouldn't be able to sue. I tried that before with a cable company and it was described to me as a luxury.

#20 Edited by hoosier7 (3777 posts) -

@FreedomFreeLife said:

@Gue1 said:

@FreedomFreeLife said:

@super600 said:

Microsoft can't do that because of anti-monopoly laws(competition laws) in both Japan and the US. The US government and the Japanese government will never let MS do that.

No, if they were same country companies, then they can´t do that, but when you buying company from other country, then you can do it, but when you buying company that is located in your own country, then you can´t.

Same countries = Can´t

Different countries = Can

US government won´t let buy another US company, but they can´t stop deal when Sony is Japan company. Like history proves, they can.

there's this thing we now call "global economy" you know, the last phase of capitalism. We are in 2014 not in 1920. They were once American and Japanese but now they are no more, they are just multinational/global companies. That means that their profits are dependant on how they do globally and not just in one country. Therefore they look for talent and cheap labor work all around the world.

Example, Sony going out of business would mean that on the USA where there are Sony stores or programmers in Silicon Valley those people would lose their jobs. Losing their jobs mean that the USA's rate of unemployment would raise. More unemployment = worse economy in the USA because of Sony.

Company still can buy other company. Microsoft bought Nokia, nothing happened.

Microsoft can buy Sony easliy

Not it's gaming division. There's a reason for the World Trade Organisation, your whole same countries, different countries thing is nonsense. They could probably pick up different areas of Sony but not it's games division.

Nothing happened in the Nokia deal because it wasn't anti-competitive, neither of MS or Nokia hold enough market share in smartphones for it to be an issue.

Anyway to answer the thread, no. Just flog the TV division, the rest seems fairly profitable now the laptop's are gone.

#21 Posted by SolidGame_basic (16518 posts) -

what does separte mean?

#22 Edited by cainetao11 (16610 posts) -

Great idea, have a company bleeding money cast out the only division making a profit.

Its not. Sony's insurance holdings generate profit.

#23 Posted by stereointegrity (10699 posts) -

sony's biggest problem with its business model is pricing....

from its TV's and tablets to cameras and other home entertainment products they cost too much...

samsung is killing them in the tv world because samsung offers such a great product at any price range..sony on the other hand doesnt have the same picture quality as samsung in any price range

#24 Edited by _SWAG_ (2574 posts) -

lol 1.3 billion is cookie crums for sony. they could lose a billion every year for the next 10 years n they still make profits. sony is the best electronic company n Playstation is the best gaming company. they never fail imho facts

#25 Posted by Basinboy (10993 posts) -

Unless Sony were going to sell the PS division in order to keep the rest of the company from dying, then no.

PS is the only brand Sony really has going for it.

#26 Edited by Flubbbs (2912 posts) -

Japan isnt gonna let Sony fail

#27 Edited by Nonstop-Madness (9466 posts) -

No because not only does PlayStation generate good revenue, it also spearheads SEN.

#28 Posted by LJS9502_basic (150066 posts) -

@Gue1 said:

@FreedomFreeLife said:

@super600 said:

@FreedomFreeLife said:

If they cut Gaming Division, then we can all say good bye to Sony and Microsoft buys Sony gaming division.

In fact, Microsoft earned more money last year than Sony has total money left.

Microsoft can't do that because of anti-monopoly laws(competition laws) in both Japan and the US. The US government and the Japanese government will never let MS do that.

No, if they were same country companies, then they can´t do that, but when you buying company from other country, then you can do it, but when you buying company that is located in your own country, then you can´t.

Same countries = Can´t

Different countries = Can

US government won´t let buy another US company, but they can´t stop deal when Sony is Japan company. Like history proves, they can.

there's this thing we now call "global economy" you know, the last phase of capitalism. We are in 2014 not in 1920. They were once American and Japanese but now they are no more, they are just multinational/global companies. That means that their profits are dependant on how they do globally and not just in one country. Therefore they look for talent and cheap labor work all around the world.

Example, Sony going out of business would mean that on the USA where there are Sony stores or programmers in Silicon Valley those people would lose their jobs. Losing their jobs mean that the USA's rate of unemployment would raise. More unemployment = worse economy in the USA because of Sony.

Company still can buy other company. Microsoft bought Nokia, nothing happened.

Microsoft can buy Sony easliy

Damn dude if you want to play a Sony game console just buy one already.

#29 Edited by Wasdie (49561 posts) -

Right now? No. But I have a feeling before the decade is out, Playstation will be its own company.

#30 Edited by SolidTy (42134 posts) -

@SolidTy: no one is ever going to do that

No, they won't, will they? I can live with it.

I'm sure I'll be granted the opportunity to answer again in two weeks when the recycled topic comes up yet again.

#31 Posted by lamprey263 (22836 posts) -

At most Sony will turn it's gaming division into a wholly-owned subsidiary, like what it did for its TV division, and to be honest I don't know what that achieves since they're not getting needed outside investment. I'm kind of wondering if that's somehow a mechanism for borrowing money outside the company's falling credit rating. Thing is though, Sony's game division isn't strong enough to stand on its own. For most of the PS3's life it was losing billions. Sure, things look a lot better now with the PS4, but in the long term it may not be viable by itself. It'll need some kind of outside revenues to help it with costs when things aren't on the up-and-up. For instance, maybe they should spin off games with a considerable amount of its entertainment division, so movies and TV enterprises are able to subsidize games when it needs help, or vice versa. Problem with that though is if they make a wholly-own subsidiary then that's not really changing things much, and if they seek outside investment on the subsidiary by diluting their share of it and selling it to other investors, then they're going to have to share some of those revenues and profits with other investors, and in the larger sense the company may not be making as much money on its entertainment. Furthermore there's no saying what assets are attached to these divisions, from buildings to equipment, valued intellectual property rights and goodwill assets... basically doing so might effect Sony's already contracted balance sheet and diminish a considerable amount of what little equity they have left.

#32 Edited by xX0LDSCH00LXx (1409 posts) -

@no-scope-AK47 said:

I can only assume this is troll bait to counter the xbone story... ms has yet to make one cent on the xbox brand and is billions in the hole. The shareholders want the xbox brand along with bing to be sold or separated from the parent company.

Go crawl back under your bridge troll.

#33 Edited by tonitorsi (8276 posts) -

@stereointegrity said:

sony's biggest problem with its business model is pricing....

from its TV's and tablets to cameras and other home entertainment products they cost too much...

samsung is killing them in the tv world because samsung offers such a great product at any price range..sony on the other hand doesnt have the same picture quality as samsung in any price range

Sony is defeating Samsung in mobile with superior hardware.

The Xperia Z2 is superior to the Galazy S5 in every way and also has the HTC One M8 beat in every area except speaker sound clarity.

Also, Sony does make quality products, its just that their price-range is too costly. As for TV's, ironically, they are praised with having one of the best picture quality around. Samsung has them beat in TV sales though,

#34 Edited by LadyBlue (3927 posts) -

Sell to google, so we can have ads on our free games.

#35 Edited by jake44 (1942 posts) -

@SolidTy said:

This is asked every few weeks. Profit Wars. Company Wars.

Dig up my answers in those threads.

#36 Posted by super600 (30152 posts) -

@super600 said:

@FreedomFreeLife said:

If they cut Gaming Division, then we can all say good bye to Sony and Microsoft buys Sony gaming division.

In fact, Microsoft earned more money last year than Sony has total money left.

Microsoft can't do that because of anti-monopoly laws(competition laws) in both Japan and the US. The US government and the Japanese government will never let MS do that.

Did you forget Nintendo exist? Pc Games? its not a monopoly and its not a requirement so you wouldn't be able to sue. I tried that before with a cable company and it was described to me as a luxury.

I don't think any government will let MS use sony for gaming purposes because MS could technically own a significant chunk of the gaming market if they buy sony. If the chunk MS gets by buying sony is large enough the Japanese and/or the US government will have to interfere because the competition in the gaming market can become a bit unfair for smaller companies or any other company participating in the market(like Nintendo) since MS will own a good chunk of the gaming market.

#37 Posted by inb4uall (5284 posts) -

yes they should sell all of their gaming division and IP's to nintendo.

#38 Posted by GrenadeLauncher (3746 posts) -

@Scipio8 said:

No body wants to get into AAA console business. If you don't have a huge parent company to back you up and don't mind losing millions its doomed. PS will not survive on its own it will need a company like Apple, Google. Amazon or Facebook to back it. The best chance would be Amazon but I don't think any of the big companies want to bet on AAA games. In short Sony is done either way, its only a matter of time before Sony burry 7 million PS4s in a desert in new Mexico. Then we will have a documentary in 2034 on the Xbox about unearthing these consoles LOL

Unfortunately for lems it'll be Nintendo digging them up and finding hundreds of thousands of Xbones post-manufacturing draw down.

#39 Posted by MBirdy88 (7438 posts) -

@hotdiddykong: Rumors are Apple and IBM are both considering purchasing a gaming division, whether it be Playstation or Xbox I'm not sure. Microsoft would be crazy to sell Xbox, but I think Sony should sell Playstation.

have you yet to make a post that isn't full of crap? and not have the word rumour in it.

#40 Edited by Scipio8 (614 posts) -

@Scipio8 said:

No body wants to get into AAA console business. If you don't have a huge parent company to back you up and don't mind losing millions its doomed. PS will not survive on its own it will need a company like Apple, Google. Amazon or Facebook to back it. The best chance would be Amazon but I don't think any of the big companies want to bet on AAA games. In short Sony is done either way, its only a matter of time before Sony burry 7 million PS4s in a desert in new Mexico. Then we will have a documentary in 2034 on the Xbox about unearthing these consoles LOL

Unfortunately for lems it'll be Nintendo digging them up and finding hundreds of thousands of Xbones post-manufacturing draw down.

LOL you probably don't know the dire financial situation Sony is in or delusional, dude Sony lost half a billion dollars, their entire gaming division made only $170 million profit - that's not enough to offset the losses - the PS4 is still a loss maker. Sony is losing money hand over fist, the writing's on the wall, its GAME OVER. At least Ninty has cash in reserve to see it through, while at Microsoft Ballmer wipes his ass with $100 bills.

#41 Edited by misterpmedia (3363 posts) -

Only way this will happen is literally when Sony goes officially broke. I don't see them selling it off any time soon as it's raking in profit.

#42 Posted by Heil68 (43273 posts) -

No because games area PILLAR of SONY.

#43 Edited by Scipio8 (614 posts) -

Only way this will happen is literally when Sony goes officially broke. I don't see them selling it off any time soon as it's raking in profit.

Yeah, its like making $170 a week when you rent costs $500 a week. There is not enough profit to offset the losses.

#44 Posted by TheTruthIsREAL (756 posts) -

Yes, give it Google plz

#45 Edited by tonitorsi (8276 posts) -

@Heil68 said:

No because games area PILLAR of SONY.

In shorter but wiser words....this.

#SDCmeansLife

#46 Posted by shellcase86 (1934 posts) -

I don't know how I feel about this. My concern would be that a company like MSFT would get their hands on it and kind of ruin the brand.

#47 Edited by jsmoke03 (12622 posts) -

@Gue1 said:

@FreedomFreeLife said:

@super600 said:

@FreedomFreeLife said:

If they cut Gaming Division, then we can all say good bye to Sony and Microsoft buys Sony gaming division.

In fact, Microsoft earned more money last year than Sony has total money left.

Microsoft can't do that because of anti-monopoly laws(competition laws) in both Japan and the US. The US government and the Japanese government will never let MS do that.

No, if they were same country companies, then they can´t do that, but when you buying company from other country, then you can do it, but when you buying company that is located in your own country, then you can´t.

Same countries = Can´t

Different countries = Can

US government won´t let buy another US company, but they can´t stop deal when Sony is Japan company. Like history proves, they can.

there's this thing we now call "global economy" you know, the last phase of capitalism. We are in 2014 not in 1920. They were once American and Japanese but now they are no more, they are just multinational/global companies. That means that their profits are dependant on how they do globally and not just in one country. Therefore they look for talent and cheap labor work all around the world.

Example, Sony going out of business would mean that on the USA where there are Sony stores or programmers in Silicon Valley those people would lose their jobs. Losing their jobs mean that the USA's rate of unemployment would raise. More unemployment = worse economy in the USA because of Sony.

Company still can buy other company. Microsoft bought Nokia, nothing happened.

Microsoft can buy Sony easliy

either a lot of assumptions are going on in this conversation and someone/ppl need to go back to econ class or there are a lot of econ specialist in sw. lol interesting things are going on in this thread

#48 Posted by clr84651 (5348 posts) -

No, that wouldn't be good for business.

#49 Edited by happyduds77 (1442 posts) -

No.

It would be pretty challenging finding another company who gives as much of a f*ck about gaming as Sony.

Sony also understands the gaming industry very well.

---->Which is exactly why PS4 is the #1 selling video game console right now.

What about the overpriced crap that was PS3?

#50 Edited by FoxbatAlpha (6068 posts) -

At this rate they can't continue on this path. Something drastic must be done or there will be nothing left. I fear it is Japanese stubbornness that won't budge that much or is in denial. Sony knows it is in trouble.

There is no denying that the PS4 is hugely successful. They carefully engineered this hype train to go along with it. It is also a sign that the company has its back against the wall. The pS4 is the cheapest console to produce in Sonys history. This may have been for the reason that the company is broke and not by design. Out of necessity.

Jack Tretton knew something was coming and jumped ship.

Studios are going crazy with hires and fires.

Sony lying is a sign of a desperate company. (Google Sony lies if you haven't been up to date)

I have also been saying that Sonys E3 will determine how confident they are for the future. The latest E3 leak if true is very weak for them.