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Why Microsoft Should Buy Sony Instead

We're now on the verge of a recession, and Sony and Microsoft are in trouble. Games are luxuries. Nobody "needs" them. Nor does anyone need such hi-tech features as the Blu-Ray, HDMI compatibility Sony's pushing. But there is a solution to Sony and Microsoft's woes: they should join forces to make one system, for less money. Yes, I'm dreaming big. With this whole Yahoo! merger in play, it will never happen. But both companies have invested too much in video games, and they want to win. So I ask, in case either will listen: why two nearly identical multimedia future-machines? Why not join up and make only one?

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Hatchetforce3270d ago

Let's see, Sony has great hardware, the PS3 is on the way up, they are leading the field in HDTV research, hmm....Microsoft can't afford them. Bill Gates isn't Microsoft anymore.

Microsoft on the other hand has a new OS that is failing, Xbox360 on it's way to 3rd place. Yeah, that makes sense.

therealwillie3270d ago

i do not like the sound of microsoft buying anything :)

Tempist3270d ago

Talk about a troll.

"...Sony's online friend management and gameplay are an utter mystery, requiring endless navigation of its Byzantine menu structure."

- The XMB has won an award.
- Although Sony Only, it nicely makes for a universal menu system for all their products.

"Sure, buried inside the PS3 are plenty of amazing “potential technology” features -- like the ability to install Linux, or its wireless connectivity with the PSP -- but who cares?"

- Developers care, else why would the Linux community put their time and effort into it. It's a $400 super computer.
- It's helped to cure Cancer and solve gravity/physics problems.

Clearly, this man has some bias and has not done research.

VirusE3270d ago

tempist "...Sony's online friend management and gameplay are an utter mystery, requiring endless navigation of its Byzantine menu structure." That isnt that far fetched or a biased statement in my opinion. If you own both a 360 and a p3 and you play both on a regular basis the ps3s idea of friend management will make you scratch your head a bit. Hopefull home will fix these issues.

zambrota3270d ago

SONY is wayy bigger than MICROSFT

SONY's total asset is around 100 Billion $

http://finance.yahoo.com/q/...

MICROSOFT's total asset is just 63 Billion $

http://finance.yahoo.com/q/...

************PEOPLE PLEASE REPORT THE STORY AS SPAM************

N4G is now in a BETA state

SO THIS KIND OF ARTICLE IS CLEARLY UNACCEPTABLE

zambrota3270d ago

Sony has 100 Billion in total assets vs 63 Billion for MS

Sony is bigger than MS. I posted the links in the alternative section and so did Nick in the Open Zone.

please MARK this STORY as SPAM

meepmoopmeep3270d ago

me too, the sound of MS buying something makes me cringe, i hope the talks with Yahoo don't end up in MS's favor.

antoinetm3270d ago

Asset size isn't the only thing that matters.
you have to look at free cash flow, growth opportunities and stock market valuation.

TheSadTruth3270d ago Show
AzaziL3270d ago

When only one company is producing a certain product, what do we call that everybody??

A MONOPOLY!!!

Really, does that business concept ever work, even to this day, whenever anything is monopolized, it equals nothing but trouble for the consumer. Hell, the best example of monopolization in gaming comes from the biggest publisher of them all, Electronic Arts (EA, EA Sports, etc). One just has to look at the progression of the once great Madden series to easily see what happens when a company no longer has any competition. Nuff said.

GIJeff3270d ago

couldn't afford sony's used underwear.

KnowitAll3270d ago (Edited 3270d ago )

Are you for reals?

"SONY is wayy bigger than MICROSFT

SONY's total asset is around 100 Billion $

http://finance.yahoo.com/q/...

MICROSOFT's total asset is just 63 Billion $

http://finance.yahoo.com/q/... "

************PEOPLE PLEASE REPORT THE STORY AS SPAM************

N4G is now in a BETA state

SO THIS KIND OF ARTICLE IS CLEARLY UNACCEPTABLE "

Do you even know what a business asset is? ........
to make it easier, to make it simple, to just make it so you can understand.

"A buisness asset is like ah lil notebook where sony adds its "money" of the inventory they hold is worth, also thier short term investments and technology(blue ray) and other stuff. But in all this is supposed to provide future benefits(blue ray)

but the funny part was

"why am i getting disagrees?
Sony has 100 Billion in total assets vs 63 Billion for MS

Sony is bigger than MS. I posted the links in the alternative section and so did Nick in the Open Zone.

please MARK this STORY as SPAM"

hahahaha
last time i checked microsoft was the 3rd richest company with a value of 230bil. Sony was way below in the 100's while nintendo was even deeper in the 300's

KnowitAll3270d ago (Edited 3270d ago )

Income Statements for Microsoft:
Sales $27.7B
EBITDA $13.1B
Income available to common $6.37B - The money made that year

Income Statements for Sony:
Sales $59.2B - this is higher because in reality sony does own more iventory(psp, walkmans and ps3 they can't sell) than microsoft
EBITDA $5.71B
Income available to common $72.9M - Everyone argues that ps3 or xbox sell the most, but whats the point when you don't even make a billion

Financial Strength for MS:
Current Ratio 4.04 (4 times more assets than liabilities)
Debt/Equity 0 no dept
Total Cash $38.7B (A F---load of cash!)

Financial Strength for Sony
Current Ratio 1.30 (More liabilities per asset)
Debt/Equity 0.50 (Quiet a bit of long term debt!)
Total Cash $6.65B (And a lot less cash!)

finnaly
Market Capitalization for MS $282.9B
Market Capitalization for Sony $50.3B

zambrota spread the word,
say whos the richest daddy

IntelligentAj3270d ago

Stopped reading this article after he said Sony and Microsoft are in trouble. This has got to be the one of the dumbest statements I have heard. Both companies posted a profit in their previous fiscal year(MS more than Sony). Both have a good amount of cash on hand(MS more than Sony). Contrary to popular belief Vista is selling. Not as well as they expected but it IS selling and the rest of MS core business are doing well. Sony's electronics(Flat Panels and other consumer electronics) are doing well also as noted by the company posting $76 billion in revenue. As i've said before, if this sinking or failing then let me drown or give me perpetual F's.

zambrota3270d ago (Edited 3270d ago )

MS doesnt even have 23B dollars in cash. MS isnt one of the ten richest comapnies in the world. It is the 3rd biggest when it comes to having CASH or LIQUID ASSET for quick diposal

Others here is the breakdown

IknowITALL i dont think you even know the equation

TOTAL ASSETS = TOTAL LIABILITIES + SHAREHOLDER's EQUITY

LETS LOOK AT MICROSOFT's balance sheet************************* ****************************** * *******

http://finance.yahoo.com/q/...

PERIOD ENDING 30-Jun-07 30-Jun-06 30-Jun-05

Assets

Total Current Assets 40,168,000 49,010,000 48,737,000

Long Term Investments 10,117,000 9,232,000 11,004,000 <-- see this

Total Assets 63,171,000 69,597,000 70,815,000

***************************** ****************************** * *******

Total Liabilities 32,074,000 29,493,000 22,700,000

Total Stockholder Equity 31,097,000 40,104,000 48,115,000

Net Tangible Assets $25,459,000 $35,699,000 $44,307,000

TOTAL ASSETS = TOTAL LIABILITIES + SHAREHOLDERS EQUITY

NOW LETS LOOK AT SONY's balance sheet************************* ****************************** * ********

http://finance.yahoo.com/q/...

PERIOD ENDING 31-Mar-07 31-Mar-06 31-Mar-05

Assets

Total Current Assets 38,647,146 32,040,954 33,072,390

Long Term Investments 33,054,256 29,919,210 25,534,908 -< see this

Total Assets 99,589,077 90,165,901 88,341,630

Total Liabilities 70,938,093 62,933,159 61,647,487

Total Stockholder Equity 28,650,984 27,232,742 26,694,143

Net Tangible Assets $21,454,731 $19,868,087 $19,719,999

**SONY has more in future investments than MS . MS has total current asets but less future investments --10 B vs 31 billion for SONY****************

SONY has 38 B as TOTAL CURRENT ASSETS vs 40 B for MS

Current ratio = CURRENT assets/CURRENT liabities NOT TOTAL liabilities. MS total liabilities is 32B dollars. so if you divide 40/32 you get 1.2

DEBT RATIO for SONY takes into account its HEAVY LONG TERM INVESTMENTS 32B . MS has 10B in long term investments

MARKET CAPITALIZATION is irrelevant since it takes into account the commodies which are CURRENTLY IN CIRCULATION. Nintendo for instance has 10 Billion in total assets but they have over 60 billion dollar worth commodities in the market eg there are like 90million wiis and Dses and there could be 1 Billion DS+wii games in circulation.

same goes to MS . MS is smaller than SONY but MS has more commodities in circulation AT PRESENT. There could be 1 Billion windows user and those users might not have stopped using linux in PLACE OF totally discarding windows.

same cannot be said for SONY. since a TV made 20 years ago might not be in circulation AT PRESENT and has been completely disposed OFF. SONY produces goods whcih are more frequently disposed off than MS . take batteries for instance,laptops too which become obsolete after 5 years

MS is not shorter but much shorter than SONY.

SONY has more FUTURE investments . MS is based on contemporary performances NOT LONG TERM

coolfool3270d ago

Here it is at the top of the news section.

People who approved this, SHAME ON YOU!!!!

KnowitAll3269d ago

"MS doesnt even have 23B dollars in cash"
so how the hell did it come up with 40+bil for yahoo?

I know sony is bigger, it has more employers more locations(movie studios, recording studios).
Like you say "future investments"(which is blue ray,ps3,psp) but they have had different "future investments" since the early 1990's.
And yet each year microsoft makes 10-20times more in profit than sony.

Sony= Bigger Microsoft=Richer

a richer company is more powerful than a big company. Especially if its a small company.

Coffin873269d ago (Edited 3269d ago )

WHAAT? MICROSOFT BUYING SONY???
HAHAHAHHAHAHAHAHAHAHAHAHAHA!! !!!!!!!!

omg, this BY FAR THE BIGGEST BULLSH*T I'VE READ IN THE INTERNET up to now!!
rofl, this just too awesome..

how DUMB do you have to be to post sh*t like this.. it's really unbelievable.
(notice: i don't mean the n4g poster.)

zambrota3269d ago

MS hasa around 19 B dollars in CASH. In order to buy yahoo they need to primarily loan 25 B dollars for the full purchase

YOu have already read articles which say that MS is TRYING TO ACQUIRE MONEY FOR YAHOO PURCHASE.

MS has more cash in Hand but has fewer assets and future investments

SONY has less in cash but huge future investments and ALSO A MUCH LARGER ASSET

SONY can also acquire money by LIQUIDATING FUTURE INVESTMENTS + THEIR CASH (6 B) to PURCHASE GOOGLE/YAHOO/AMD ---or whatever thing MS can buy

KnowitAll3269d ago

Zambrota someone already posted this
So im just going to post his post since i don't thing i can explain it any better

"Microsoft's Market Capitalization is $260 Billion

Sony's Market Capitalization is $43 Billion (it used to be much higher, around $104 Billion, in fiscal 2000 - but they tanked for a few years after that).

Market Cap is the value of a company's total shares. Therefore, it is essentially the amount of money a company would need to come up with to buy all the shares of that company at face value. Since most investors won't sell their shares at face value (they want some profit) a buyout usually requires a company to pay a premium on top of the market cap for the shares.

Anyways, go ahead and check for yourself if you don't believe me. Just look up the stock of both companies, Market Cap is listed. MSFT & SNE are the symbols.

Total assets is irrelevant when buying out a company; the only time that would come into play is if the company being bought liquidized their assets to buy back some of their own shares - this would almost never happen, however, because the board of a publicly traded company is bound by law to make decisions which are in the best interest of shareholders. Liquidating ones assets is rarely, if ever, in the best interest of shareholders.

I'm not saying that MS could easily buy out Sony - although their proposed buyout of Yahoo for $44 billion is more than Sony's total market cap. My point is that you're wrong - MS is a bigger company.

Why am I even posting this? It's not like you kids in the Open Zone even care about truth or reason. Flame on. "

Zambrota let it die

I can understand people getting offended over culture,race,religion but not over a dam freaking oppinion about your freaking favorite company getting bought by another freaking company. Who the hell cares if sony is bought by aol, or yahoo (since yahoo is worth more market cap wise)

+ Show (19) more repliesLast reply 3269d ago
Iamback3270d ago Show
ruibing3270d ago

All Sony needs is some better software developers, which they can easily get from Apple or any other sources.

wageslave3270d ago

@2.2

Sony and Apple make a lot more sense. Sony's RIAA and MPAA divisions are a big part of their business.

MS has repeatedly stayed out of the Media Contenet creation. MS is a software and technology firm, while Sony is a electronics and media firm.

They are too different. Its an interesting idea to consider -- but this article is littered with inaccuracies and trolls.

titntin3270d ago

Quite possibly the worst argued opinionated BS I've ever read! Bet he gets tons of hits... but I'm not going to help him with an apporval..:(

scrillakiller3270d ago

what a load of u know what.sony doesnt need ms and their garbage

predator3270d ago

sony hardware + ms live software = one hell of a machine

predator3270d ago

i didnt say game software did i? i said the software behind LIVE, and dont give me that [email protected] that the 360 has no games coming out either

BenzMoney3270d ago

Holy crap - how is it that you're still allowed to post in the "GamerZone"?! You want to know what's a joke? This whole "moderated" N4G "GamerZone" thing is a joke! Your comments prove that.

ravinash3270d ago

Hardware on PS3 - yes
O/S on PS3 - yes, I'd keep that, I much prefer the layout than the one 360 has.
Online experience - Live for now, but PSN can use most of the ideas from that and make it new, plus things like home make it more interesting....so what would be in it for Sony to merge???

VirusE3270d ago

ravinash i fully agree with your comments and we all know those that don't are ps3 only owners. Its like saying what is better a BMW m3 or a mustang, they are not even close in terms of functionality and ease of use. Everyone that i know that owns both prefers live. It has had so many more years to mature than ps3s online experience and is much easier to use. That being said i like knowing that my ps3 will not red ring on me. I have had 4 red ring incidents at this point and i am starting to get a little pissed off. Twice was a coincidence 3 times was frustrating but 4 times is down right insane. If it weren’t for the fact that the 360 has so many more AAA titles than the ps3 i would seriously think about crushing it with a hammer. My 360 is quite possibly the least reliable thing I have ever owned next to my 04 GTO. MS is a software company and that is what they do best, sony is a hardware company and that is what they do best. If they did team up they could make one hell of a system. Imagine what ps3 games would look like if MS had made the development tools for it. Everyone knows the biggest flaw with the 360 is that the hardware design sucks and everyone knows that the biggest flaw with the ps3 is the development tools and support for said tools suck. It would be a match made in heaven in my opinion.

Rocko3270d ago Show
+ Show (4) more repliesLast reply 3270d ago