Comments (61)
MASTER_RAIDEN  +   466d ago
if they split off the 2, the entertainment sector would thrive.
PurpHerbison  +   466d ago
You can see the future? How do you do that???
jimbobwahey  +   466d ago
I assume he's going off the fact that Sony's entertainment sector is the successful branch of Sony and what's basically propping the company up and keeping them alive.

The electronics division is what's dragging them down.
Godmars290  +   466d ago
Considering that that its was the TV/PC division that's been pulling them down, that at one point the PS2 alone was holding up the entire company, it is a fair assumption.
MASTER_RAIDEN  +   466d ago
cant see the future. what i can do is base reasoning off facts though. sonys electronics sector has been dragging the name down for years. the movie and playstation sections of the company however, are what keep it afloat. sony pictures, music and playstation have all fallen on hard times at some point, but a lot of it has already bounced back. not just me talking here either. if you doubt it, feel free to look it up.
the only thing really dragging down sony (ironically enough) is their electronic section. far overpriced even if they are pretty premium. sony is a lot like apple with its famed "apple tax". lots of sony brand products, though stellar, are a lot more expensive than the competitions offerings. i think splitting off the branches would do the company some good, as perhaps it will allow them to see just how much of a burden the electronics department has become and make some really worthwhile adjustments.

sony bravia tv's are some of the best out there. they would be even better if they were each just a few hundred dollars cheaper, like all the other guys.
Brazz  +   466d ago
The sony Eletronic division have some pros, for Ex.: The eletronic division make cost of production of the playstation go down quiet a bit. I dare say, sony is the strongest of the big 3 in the cost of production sector because of the eletronic division. Same goes to Software in MS case.
Well, i know sony is much bigger than playstation, but i'm trying to see this thing in the playstation side. no eletronic division, more production costs, but no eletronic division means less "money loss" whit televisions...
Hard choice for Mr.Hirai
GameCents  +   466d ago
How do you split Playstation on to either side? Playstation IS as much hardware/electronics as it is software/entertainment.

Meh, do what you want SONY, be stupid, whatever. I'm just gonna crawl into bed a forget this whole week happened. I'm gonna buy myself a Wii U and not be able to play anymore Mass Effect games. . .

Related image(s)
KingKevo  +   466d ago
@ PurpHerbison Sony told him to. Remember the slogan for the PS4 reveal in Fabruary? That's your answer sir.
dcbronco  +   465d ago
Life must be wonderful in bubbles. Where are people getting the idea that any division of Sony has been consistently successful. All of them have had years over the last five where they lost money. And gaming is included in that. Movies have lost, finance has lost and music has lost. TVs have lost more than any.

Sony would be betting on the success of the PS4 if they were to split it into the Entertainment division. And that would most likely be the case. Almost a sure thing. But what if those divisions start to fail again. Then you have two companies failing. Movie franchises die. And Michael Jackson can't die again. So there are no guarantees. They would be better off working more closely together.

@Brazz

The way console are made now is no more expensive for one over the other. The console makers own the main parts of the machines. The most expensive parts. They then shop those parts to the cheapest manufacturer. Sony doesn't own a chip fab anymore, so they have to shop for the best price just like MS. There are few parts that Sony makes that would make their machines significantly cheaper. In bulk, you're talking a bout a few dollars.
Hands Up For Games  +   466d ago
Very true, but a lot of the money required for R&D will be off set from other divisions just like MS, Apple Samsung etc etc

The gaming division would be fine, they would just be a little different to what they are now.
3-4-5  +   466d ago
They would be smart to do this after the launch....They don't need to let Microsoft back into the race so soon.

I'm an xbox fan, but I want microsoft to learn their lesson on this one.....So wii u & PS4 it is possibly.
husomc  +   465d ago
I think the Loeb guy is being paid off by microsoft. this would be the only way microsoft can get sony's content on their new TV box
creeping judas  +   465d ago
Weird? I watch Sony Pictures films on my 360 thru Xbox Video?

So it appears that Sony's content is already on the Xbox, so I don't understand your statement?
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KwietStorm  +   465d ago
Do you want to explain what the hell that means?
husomc  +   465d ago
Do you think the Sony content is free? obviously MS would have to dish out a lot of money to license the content. If this goes through MS could benefit in the long run. They are banking on the assumption that their new TV box is gonna monopolize serving media content to the general public in the near future. So it'd be like throw a few billion now to save a couple more billion in the future.
PiperMCFierceson  +   465d ago
I totally agree with you I was aiming for a hx950 but the price was insane and I was still considering buying it but then I seen the es9000 and compared it heavily and I was convinced I would rather buy it instead of Sony's , if they were at the same price point I would have gone with Sony.
Virtual_Reality  +   466d ago
What this means according to the experts analysts of N4G?
PurpHerbison  +   466d ago
Absolutely nothing.
BlmThug  +   466d ago
Well some members can see the future..
jujubee88  +   465d ago
It means the death of the Playstation VITA.
As per usual sub.
Sky_Walker  +   465d ago
I am not an analysts but this could be bad for the PS brand and here is why:

If this happens this would mean that the PS devices will be put togehter with the TV,laptop, handhelds, home stereo systems, MP3 players, Cameras, smart phones, tablets...

While the PS3 has been making a profit and the PS4 will make a profit as well, some of those devices that I mentioned are not doing so good which means that they will need to piggy back from the PS3 and PS4 profit...this will affect the gaming division budget which means that we might see less exclusives regardless on how well the PS 4 or 3 sells.
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Gorilla_Killa_X  +   465d ago
It says all PS properties would be placed with entertainment side and not electronics.
Sky_Walker  +   465d ago
@Gorilla - My bad...well this is good news since the entertainment side is doing good.

Kind of strange since the PS products are electronic devices.

Dont think much will change, hopefully this does not mean that Sony will want to gram TV and entertainment into PS gamers faces like you know who.
Soldierone  +   466d ago
The only way that makes sense is to let the electronics side crumble without taking out the others with it.

I mean take out PlayStation and movies, and Sony isn't doing too well. Then also don't give them music?

Wouldn't the logical step be to just cut off the TV division until the global economy comes back? You don't even need to shut it down entirely, just scale it back to a select few models and keep it at that. You already have 4K ones coming, so you won't lose ground in the high end market.....

Everything seems to come back to their TV market being crap. People are simply buying cheap TV's. It isn't like it was where Sony was one of the top dogs with better products. people just see the selection, hardly see a difference, and go for the cheap version.... Their music, movies, and gaming departments are doing fine. Xperia / Ericson is starting to take off too. What is holding them back? TVs, like it has been for the past 10 years.
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NarooN  +   465d ago
Yeah. Sony's TV's and other stuff like their high-end headphones are amazing top-of-the-line quality, but just overpriced. I was gonna buy a Bravia but I just went ahead and got a 32" Vizio for $204. If Sony drops their prices, I probably would buy from them when it comes to stuff like that.
Soldierone  +   465d ago
That's because "high end" isn't that far ahead anymore. The technology is there, and there is only so much you can do with a TV before people just say whatever and go to the next guy.

Sony TV's will last longer and stay at better quality longer, but the modern consumer simply doesn't care. Why bother when you can just go buy another Vizio?

I love Sony's headphones though, they are really good for a decent price. However the PlayStation ones are an example of them expecting too much from this economy. They branded them like that, then turn around and ask 150 dollars for them.
ThatCanadianGuy514  +   466d ago
Chances of that are slim.4-5 years ago? maybe.Kaz is boss now and has been actively uniting all aspects of Sony.Top brass know this.

Give the man some time to work.Especially with one of the greatest consoles of all time about to light the industry on fire.
GraveLord  +   466d ago
So they plan on splitting the hardware part, which loses money with the entertainment division which includes Playstation and makes money? I'm ok with this.
joeorc  +   465d ago
@GraveLord
"So they plan on splitting the hardware part, which loses money with the entertainment division which includes Playstation and makes money? I'm ok with this."

No i do not think you do want this, let me explain..right now the Entertainment div. is a non public offered section of Sony, what this means is a investor such as D@n Lobe than would be able to A: see what is in side the entertainment div. and would be able to ask for resources cut where ever he and other share holder's would want by vote, that means if a game is taking more time to develop and the results are not to their liking that section will get the AXE, ie: less creative freedom!

B: with Sony splitting off this section it would in effect allow a public buy , and allow more shares of the entertainment arm, by once again a investor vote to sell more shares of the entertainment arm, thus Sony could end up with no control of their very own created Entertainment div.

this my friend is bad, yes it infuses the Company as a whole, but it allows other's to gain control of your company away from you and the people who started it.

This is the start of a Hostile Take over of Sony is if Dan Lobe cannot get his way. And the Problem for Dan Lobe is every attempt in the past has failed to do such to a japanese ran corp., this will most likely fail and right now the stock is at a high point but when this comes back as a Negative, which i do think will be the outcome, Dan's aggressive bid by him and his Hedge fund will have bought shares into Sony large shares that they would have to ride out the slow but steady work to repair the company by the current CEO or cash out.

He does not want to wait, instead many japanese companies see hedge fund's from the west as "vultures" and they would rather take a poison pill than Sell.!

Any thing can happen but i doubt very much this will go anywhere.
Conan-O-Brady  +   465d ago
Well said Joe, Jim Cramer couldn't have said it much better, He might'a added a booyah though.
tiffac008  +   465d ago
You can also point out that there is no guarantee that this move will strengthen Sony in anyway.

If Sony can hold on to power, then they may try to do a little of this splitting thing but if they will lose it, then they are just probably entertaining the idea.
givemeshelter  +   466d ago
Sony needs to try anything at this point to turn their financials around...
WeAreLegion  +   466d ago
I feel like people haven't been paying attention. Sony is in the black now. They were in the red. The company is finally making money again, instead of bleeding it. It's pretty simple, really.
Belking  +   466d ago
"Sony is in the black now."

They aren't dude. They are still in the red overall.
joeorc  +   465d ago
@Belking
"
"Sony is in the black now."

They aren't dude. They are still in the red overall. "

Yes they are, the Red you are talking about is the 9th straight year loss TV section of the company, which D@n Lobe and his Hedge fund do not care about, the section's they do care about is the offerings not on the freaking Table, IE: the entertainment Arm that is not a Public IPO. and i doubt very much Sony is going to Sell or break off that to public offering just so as Lobe and his hedge fund can leave the rest of Sony to die on the vine without a care for the corp. as a whole or the people that are employed there.

that's exactly why he is called a corp raider, and all attempts in the past 40 years to do such a hostile take over to a japanese corp in the past has failed.

This is not going to be easy and those thinking he is just going to march in there with 6 % though large those shares may be, he would have to convince quite a large number of japanese investor's to side with him to do it! which many still see him and his hedge fund and many hedge funds from the west as vultures!

this has a very large chance and % to fail.
kenshiro100  +   466d ago
Belking
No they're not. I know you want to see Sony fail but their gaming division is profitable. Stop spreading lies and misinformation.
Belking  +   465d ago
lol...you're in denial. Even though they put on a happy face in public it's true. It's not about me wanting to see them fail, it's about reality. You don't sell off assets when you are on stable ground, and you sure as hell don't replace a CEO, and lay off thousands when things are going well.
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kenshiro100  +   465d ago
Belking
Then you have a problem sir because what I said is actually factual. Sony themselves said that their gaming division is profitable.

And please, give it a REST. Sony did not lay off thousands upon thousands of workers as you're 'implying'.

Trolls like you sure love blowing things out of proportion, especially when you don't know what you're talking about.
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GameCents  +   466d ago
It's not that simple. They had to sell 2 buildings for 2.1 billion and cut 10 000 jobs to make less than half a billion in profit.
They've yet to make an operating profit, not one earned from selling off assets.
darkride66  +   466d ago
True, they've been restructuring for years and that's caused streamlining of their workforce, but that's not a bad thing. As for the buildings sold, Sony also spent $380 million to acquire Gaikai and 2.2 billion for EMI music publishing the last fiscal year. Claiming "Oh, they only made money because of the buildings" is a rather simplified way of looking at things. When you're talking about a company as large as Sony, there's a helluva lot of moving parts.

You can't just look at one transaction (which was viewed favourably and earned the company a tonne) and make sweeping generalizations.

As for selling the entertainment division, I'm really not seeing the benefit to Sony here. It's an interesting prospect though and obviously it was recommended for a reason. I think some further reading is in order. :)
joeorc  +   465d ago
@ GameCents
" They had to sell 2 buildings for 2.1 billion and cut 10 000 jobs to make less than half a billion in profit. "

and why do you freaking think that is?

its not because of Playstation or the entertainment section of the company...!

Its because of the TV section Loosing Billion's and not just one year 9 straight years in a row. Hey dan lobe and his hedge fund may not care about what happens to those 160,000+ employed Workers that Sony employ's But Sony does, this is a Hostile Take over of the only section of Sony that is not public or for sale, and its the only section that keeping the other sections from being sold off without the loss of job's to those vast number of employee's.

This is exactly why in Japan for the past 40 years attempts by the west Hedge funds have failed to do such they are seen as vultures and right fully so, in my opinion never , and i do mean never take a company public if you want to keep control of your own company you built.

the Entertainment Arm of Sony is not for sale, thing's could change but i expect to see these increased stock climbs the corp. has had in the past few days drop like a rock after Sony's mostly japanese board all vote in favor of the long road to recovery than the quick and dirty "vulture" way of the west in how they do thing's.
urwifeminder  +   466d ago
Japan are in danger of devaluing their currency to much so fast to help drive investment not just sony its japan as a whole that are in trouble some very big articles on this matter are floating around.
dlocsta  +   466d ago
Open your eyes
I guess most of the comments on here should not surprise me as they are made by people who regularly call opinion fact. What the article is saying is that the electronics division (playstation, TV, computer, etc.) is bleeding money. Loeb wants to divest to remove the profit making center and stop putting money into a division that for, as the article said, nine years straight has been a drain on the company. Sony is doing ht esame thing Microsoft does by using other division to make the entire company look profitable. The only difference is that Sony is loosing money from every electronic unit, not one single unit is a profit center for the company. For Microsoft the Xbox division is a profit center. They are loosing money on cell phones and tablets.
kenshiro100  +   465d ago
No, the gaming division is profitable. That includes the Playstation family. Please, stop spreading lies and misinformation. Their TV division is the only division that's struggling because of the yen and the economy. People can't really afford luxury items atm.
WickedLester  +   465d ago
It's not just their TV division. Their cell phone, camera, PC, and tablet divisions aren't doing well either. The bottom line is that their competition is killing them on labor costs and are now putting out products of equal or better quality. Sony products have always been more expensive but they used to always be considered the best. Their competition has simply caught up and are doing it a cheaper price.

Personally I think this would be a great move! You don't need to make the divisions that are actually making you money suffer. Sony should swallow their pride and do this! Sometimes thriving as a company means knowing when you have to simply survive.
hellvaguy  +   465d ago
" People can't really afford luxury items atm."

Not to be that obvious guy, but Playstation is a luxury too. Unless it falls under food, clothing or shelter somehow.
kenshiro100  +   465d ago
WickedLester
Their cellphones are doing fine as well as their tablets. TVs is what's killing them-mainly because of their cheaper competitors. As for cameras -- that's probably not doing so good either but who knows.

hellvaguy: Most luxury items are more expensive than others. The PS3 isn't as expensive as it was years ago.
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dlocsta  +   465d ago
I stand corrected. I just reviewed their balance sheet and the gaming division fell into profitability as of last year. But the jist of what I am saying is what used to be the strength of the company, electronics, is now the part of the company pulling them down. A divestiture is a very smart business move. It may not be what gamers want, I do not own a PS3 or any PS products but I do like to see the division thrive as it is an overall good for the industry, but it makes good business sense.
THC CELL  +   466d ago
Sony all ready said no they are not for sale
MultiConsoleGamer  +   466d ago
^This.

This article is old news.
AzaziL  +   465d ago
+Bub for saving me time reading this...
Jazz4108  +   465d ago
Btw this was announced the day there stock went up and every business site has claimed this as the reason.
KnownAsEpic  +   466d ago
NO WAY! Don't change your strategies !
MariaStepp45   465d ago | Spam
Prcko  +   465d ago
that would be disaster if you ask me
Master of Unlocking  +   465d ago
What, they're gonna sell the Playstation division to that billionaire? It's a joke, right?
Prcko  +   465d ago
i hope it's a joke :(
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Gamer-Z  +   465d ago
I know it would be like putting the PS brand in the hands of Activision or EA.
EliteGameKnight  +   465d ago
huh, maby it will be like the Roman Empire. Sony Electronics (West Roman Empire) splits from Sony Entertainment(East Roman Empire) then Sony Electronics failes because of it's reliance on Sony Entertainment, and then Sony Entertainment lasts a great deal longer.

The only reason the East Roman Empire fell was because they tried to buy back alot of their land, which made them bankrupt, and the bubonic plaque hit Europe. So my bet is unless Sony Entertainment did something really stupid, they would thrive
kingPoS  +   465d ago
It's entirely possible Sony might come up a cable card like solution with the ps4, If Torne & Nasne are anything to go by.

For all of MS's talk of TV on the Xbox One. They probably won't let it be used as a DVR, hence the non user friendly HDD.
joeorc  +   463d ago
Just as i thought
It was fun for gaming community to speculate but Sony stock has crashed back down to same levels it was before the Xbox One announcement.

It would seem the stock spike had to do with a false rumor of Sony Entertainment being sold and spun off in to a seperate division.

http://gamrconnect.vgchartz...

"This is exactly why in Japan for the past 40 years attempts by the west Hedge funds have failed to do such they are seen as vultures and right fully so, in my opinion never , and i do mean never take a company public if you want to keep control of your own company you built.

the Entertainment Arm of Sony is not for sale, thing's could change but i expect to see these increased stock climbs the corp. has had in the past few days drop like a rock after Sony's mostly japanese board all vote in favor of the long road to recovery than the quick and dirty "vulture" way of the west in how they do thing's. "

I called it, Every attempt for the past 40 years of a Hedge fund to do so from the west has ended in utter failure. The hedge fun's out of the west has always seen as Vultures by the many companies that they try this hostile take over attempts of japan companies.

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