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Sony stock jumps following PS4 announcement

While Sony's share price was in decline ahead of yesterday's PlayStation Meeting announcement, the reveal of its new hardware prompted a 2.4 per cent rise during after-hours trading.

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majiebeast1250d ago (Edited 1250d ago )

Ps4 hype even Chad Daddy Warden came back for it!

http://www.youtube.com/watc...

On topic

Other article debunked.

TrevorPhillips1250d ago

right....Anywho, PS4 looks astonishing, can't wait to pick it up :)

morganfell1250d ago

I am going to start looking today for anywhere I can reserve for launch. Some places do offer a waiting list prior to actual reservation announcements. Whatever they bring as top of the line I'm there regardless of price.

JoGam1250d ago (Edited 1250d ago )

@ Morgan, On Amazon you can sign up to have them let u know when pre orders start. I just pre ordered Watch Dogs PS4. Ignor the price of $99, its just the holding price.

LightofDarkness1250d ago

Sometimes, it's good to know the manager of a toy store ;)

... wait, it's always good to know that guy!

JsonHenry1250d ago

Of course it jumped. They moved to a developer friendly architecture FINALLY. The CELL caused so much trouble (at the start of the console's life) that they knew they couldn't go for such an exotic design again. They went x86 with standard PC parts and an 8gig unified memory setup.

Given the fact they learned their lesson and decided to make a console that is dev friendly is good news for investors because they know the dev teams will be jumping on board in droves this next generation.

At this point it looks as if the PS3 will certainly have a lead over the other consoles in terms of power unless the GPU in the xbox is a lot more powerful than the rumors suggest.

One other thing to keep in mind is that Sony's 8 core CPU is actually an AMD APU. Which means the CPU actually has a DX11.1 video card on the chip as well as a dedicated GPU. That is kind of a big deal in of itself. Crossfire is awesome on PCs and I can only imagine how well this will work on the PS4.

I may switch from xbox to Sony this generation. And this is coming from a guy with the exception of the Uncharted sries hasn't touched his PS3 to do anything other than play Blu-ray movies since I bought it.

nukeitall1250d ago (Edited 1250d ago )

The "jump" likely has nothing to do with the announcement, and more to do with natural movement in stock market.

On any given day, the stock might deviate as much as 5%. Therefore that isn't a jump! In fact, right now in pre-market the stock is down 0.5%. Is that a jump down?

I doubt any significant amount of people invest into Sony because of the Playstation. That is because the Playstation business overall makes little difference compared to the rest of the company. If the division profits (see last quarter where they only made $6 million), it contributes very little and if it loses it makes the company look far worse.

Going forward, Sony is expected to loose significant amount of money as an investment into the Playstation business.

Furthermore, very little is discussed regarding the actual business itself, like profit projection, costs, strategy and so on. "Real" investors know, it is more about the execution and facts than "claims".

If you actually look at this, this could actually be bad news for BOTH Sony and MS going with a x86 architecture. It actually shifts the cost in favor of supporting PC as before it was an additional cost to port it back to PC from console. Now it is the opposite, you target PC and port it to console.

If you (the reader) disagree, I would like to know why!

JsonHenry1250d ago

I see it as a boon for both MS and Sony that they are going x86.

Easier to develop for, most devs have deep knowledge of the x86 architecture already, and easier to develop multi-plat games because they all share the same basic underlying hardware.

Less R&D+more platforms=greater chance to make more money. This could be a renaissance for gaming as a whole by making the entire current market easier, cheaper, and more accessible to develop for for this first time in decades.

Anyway, you (Nukeitall) are certainly right about investors needing to know more than just promises. But the overall positive reaction from around the world regarding the press conference and the (promised) system specs certainly has to be good news for investors.

LightofDarkness1250d ago

Json: I imagine that onboard APU is there to stream/playback HD video without using the GPU, thus being more energy efficient while not gaming.

Statix1250d ago (Edited 1250d ago )

It seems to me that people and companies alike have an over-obsession with stock prices. I think it's a fundamental flaw in the structure of our economy if companies are this obsessed and reliant upon share prices--i.e., "pleasing" the shareholders. Stock value should not be the primary concern of a company--profitability and long-term stability should be. But that's just my opinion.

Facebook was on top of the world, viewed as one of the hugest homerun successes in the past decade, prior to going public. All of a sudden, when it became a publicly traded company, and the share prices were shown to be lackluster, there became this perception that Facebook was over-the-hill, or in some ways a failure. Anyone else see the failure in this logic by the financial community and general public?

nukeitall1250d ago (Edited 1250d ago )

"Facebook was on top of the world, viewed as one of the hugest homerun successes in the past decade, prior to going public. All of a sudden, when it became a publicly traded company, and the share prices were shown to be lackluster, there became this perception that Facebook was over-the-hill, or in some ways a failure."

It wasn't that Facebook was over the hill, it that it's financial fundamentals don't necessary measure up to it's valued stock price.

FB's growth isn't where it should be to warrant that price and hence it's taking a beating.

Basically, FB debut as a public company long after it had grown too much. FB was made public for existing stockholders to unlock their value, not because the company needed cash to grow like many other companies do which is how you usually "invest" into the company.

"Stock value should not be the primary concern of a company--profitability and long-term stability should be."

Good companies with good management do that such as Costco and McDonalds. Slow steady growth.

However, sometimes it is just market dynamics that even the company itself can't control. See Netflix.

Statix1250d ago (Edited 1250d ago )

In some ways, you're making my point. You say that Facebook's "growth" hasn't been fast enough, hence falling stock values. My argument is that it's a flawed philosophy to begin with to always be seeking the fastest possible growth to inflate stock prices in the short term. It seems to me that the success of economies or companies predicated on constant "bubbles" or spurts of greater and greater profitability--all in order to please shareholders--is a doomed endeavor. Because no company in the world will ever keep up those rates of growth. It's simply not possible. There's an upper-limit, a ceiling, to how much profit growth that each and every company is ultimately capable of. Once they hit that ceiling, the only other direction is downward. Apple, as an example, is very much on that track.

Hence, why I think more companies are, and should be, staying private.

"Good companies with good management do that such as Costco and McDonalds. Slow steady growth. [...] However, sometimes it is just market dynamics that even the company itself can't control. See Netflix"

By your statement that Netflix as a company is susceptible to market dynamics beyond their control, are you saying that the stock market is a good thing or a bad thing for them?

nukeitall1250d ago

"My argument is that it's a flawed philosophy to begin with to always be seeking the fastest possible growth to inflate stock prices in the short term."

It is flawed, and isn't how the system is technically intended. It comes from how efficient and easy it is to trade now, that one can manipulate the system and either use unwitting investors or prey on those that like to gamble.

I'm not saying it isn't, but I'm also saying not all stocks are like that. It's just that technology companies has a history of exceedingly fast growth, and therefore there is this pre-built expectation.

You wouldn't talk about this with other industries, like auto, home builders and so on. This is a technology company phenomenon.

"It seems to me that the success of economies or companies predicated on constant "bubbles" or spurts of greater and greater profitability--all in order to please shareholders--is a doomed endeavor."

It isn't doomed, because technically there isn't really an upper limit to profits. Problem is most companies are unable to diversify themselves and be successful, but new companies are constantly testing that limit.

In addition,these bubbles is also how the system corrects itself from speculators instead of real investors.

"Hence, why I think more companies are, and should be, staying private."

The thing is, most large companies (alas FB for example) cannot unlock their value to their shareholders as a private company. Let say you are an employee with x amount of stock options, who will buy it from you?

The only way, is if you sold it on the open market or at best a profit sharing scheme, but that is rather complex and would make it extremely hard to sell your share in a company. What if you don't believe in the company anymore? How are you going to unload it?

Being private isn't the solution and the real solution is proper education of the general public about economy, business and finances. So that the public doesn't speculate.

"By your statement that Netflix as a company is susceptible to market dynamics beyond their control"

To some degree yes. Netflix just had major growth, and they are required to report that. It's the public opinion that is bidding the stock value up and it is also the public that pummels it down. Netflix can issue statements to attempt to control public opinion, but sometimes that takes a life of it's own.

Netflix the company, is still humming along regardless of what the stock market does.

", are you saying that the stock market is a good thing or a bad thing for them? ""

Well, technically it was bad for them in the sense that we have a CEO that isn't very skilled in stock investing as Netflix bought their own stock at close to top. They should have known it was overpriced, and should have bought it when it was undervalued when it dropped several months later.

I believe in general stock market is good for companies with good management. It's only bad for companies with CEO out for the fast buck and that is based on the board.

edonus1250d ago SpamShow
Bahpomet---1250d ago

2 articals in 1 day about the exact same thing who doing damage control i think its time for me to bring a few to hell.

mandf1250d ago

Go look at the failed articles last night. They had 2 articles claiming Sony stock dropped one by half. Gaming media is becoming a joke. Half of these sites weren't even there. They steal info from other sites.

GribbleGrunger1250d ago

The PS4 only does everything ... and more.

mi_titan271250d ago

"Everything. Everywhere." did anyone else catch that?

ApolloTheBoss1250d ago

Everything
Everything Everywhere.

G20WLY1250d ago

This is great news! What do you think Cocozero?

Actually 2.4% is nothing particularly amazing, but it's all in the right direction at least. It has to be good news to see any shares in the industry rising after the recent general decline.

Here's hoping this (and Microsoft's impending announcement) help the industry gather more pace again ;)

MikeMyers1250d ago

True. Sony needs to build some momentum and I thought the PS4 livestream was really well done and quite a surprise for revealing so much prior to E3.

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