Submitted by -Mezzo- 874d ago | opinion piece

Sony break-up would spell trouble for games

GI - Daniel Loeb's plans for Sony would undermine the games division - but the investor's proposals still need to be taken seriously. (Industry, Sony)

GameCents  +   874d ago
Great read. I seriously doubt Sony would separate hardware and software business. For starters, as the article mentions, playstation is as much hardware as it is software. How do you separate that?
It would paint an unclear picture for Games business because on the hardware side it would seem like they are just bleeding money since traditionally profit is generated more on software rather than hardware sales.
It's an all round bad idea that would lead to quality dips on the hardware side trying to make consoles profitable on their own.

Then again, I don't own a 6.5% stake in SONY and I'm not a billionaire so maybe my ramblings are just that, ramblings.
Have a fantastic weekend everyone.
joeorc  +   874d ago
this is the clear an concise response from Sony!
Break up Sony? It's harder than it looks
May 16, 2013: 7:37 AM ET

But there is hope. "Mr Loeb's proposal certainly came out of the blue, so I am not surprised that there is no immediate response," says Gerhard Fasol of Tokyo-based Eurotechnology. "And Mr Hirai did meet Mr Loeb which was not always the case in the past." However Mr. Fasol is unsure just how far Mr. Loeb may get. "He does not have that much power over Sony. After all they are not like Sharp ," he says. "They don't have the same problems as Sharp so they don't have a gun to their heads." The hope must be that like the the other Bravia that is plaguing Sony -- its eight years of loss-making TVs -- the foreign meddlers might just disappear.

Struggles with foreign shareholders have nearly always turned to favor Japanese companies, after all. Just six years ago when Steel Partners launched a tender offer for the 90% of a famous Japanese sauce maker, Bull-Dog, the food firm sought a white knight intervention and then a poison pill to save itself from an aggressive takeover bid from the Americans. Finally, Japanese courts voted in favor of the pill.


Sony is insisting that its entertainment division is not for sale, responding to calls from a Hudge Fund for an IPO of is entertainment unit.
The rumors of such a move pushed Sony shares upward on Tuesday, but a Sony spokesman said in a statement that Sony's entertainment business is vital to its growth strategy and is absolutely "not for sale."

WeAreLegion  +   874d ago
As someone who actually does own a bit of Sony (although nowhere near 6.5%), I think this guy is way off. Kaz is doing well with the company; possibly better than anyone else would be doing in his position. I see big things in their future. :)
Dan_scruggs  +   874d ago
The future for the gaming giants will be wrought with potential disaster. Sony has been hemorrhaging billions for years. It had to catch up with them at some point. Shareholders like this have a lot of pull. Hopefully nothing will change. If the launch of the PS4 goes well then sure this wont be a problem. If we end up looking at more expensive Vita scenario the story could be different. Only time will tell.
ILive  +   874d ago
The vita is not expensive. Why do people keep saying that. Do people want them to sell it for a dollar?
zebramocha  +   874d ago
Because the 3ds drop its price and memory cards but if you compare spec with the 3ds,nintendo'sp offering was over priced .
#2.1.1 (Edited 874d ago ) | Agree(3) | Disagree(0) | Report
hellvaguy  +   874d ago
And also the proprietary memory cards in the vita was a horrible choice. So unlike the ps3 where u can shove anything you want in it, usb this or that and any ol hard drive will due.
WeAreLegion  +   874d ago
Kaz united all the divisions within Sony for a reason...and it's paying off.
N4GGOT   874d ago | Spam
SanMarco  +   874d ago
I want that light!
DragonKnight  +   874d ago
He only owns 6.5% and thinks he can make such weighty proposals? I'm not stock genius or anything, but last I checked, 6.5% meant only that you get a cut of profit but don't really have a say in how the company is run in the same way a person with, say, 20% might have. I mean, Sony has an 8.5% share in Square-Enix and that hasn't stopped SE from making their games multiplat now has it.
SpideySpeakz  +   874d ago
Let's hope these Asians look out for each other to keep these barbaric westerners out.
dcbronco  +   874d ago
This isn't the time to split up the company. It's time for the opposite. Sony already has all of the parts needed for an Entertainment company. Besides the financial and insurance businesses, it really is all about entertainment. Most companies are either buying or forming divisions to create their own content. Design their own chips. And design their own equipment. Sony is already doing most of that. It just needs to get good at somethings again. And profitable at all of it again. Microsoft is becoming more of what Sony is. So is Apple and Samsung.

Sony just needs to adjust their view of their place in the industry, not break up the company. TVs for instance. They would be better off letting Samgsung have the high-end. The Sony name would carry a lot of weight in the low to mid range areas. They need to add exclusivity to the streaming services, timed, for music and movies. As much as Sony gamers hate the idea of an entertainment machine, Sony needs to use the PS4 as just that. Add PS functionaility to their TVs. They need to use PS to help all divisions. divisions.
kenshiro100  +   873d ago
I'm pretty sure that Sony knows what to do within their own company.

And your idea sounds awful.
dcbronco  +   873d ago
My ideas are fine. You're just dumb. And to prove it. Let's watch what Sony does and see how dumb my ideas are. Why don't you add some of your own ideas to see if you are as clueless as you seem.

Also, if Sony was sooo smart like you imply they wouldn't have been on the verge of bankruptcy recently. They had all but two of their divisions losing money over the last five years. Plus some of what I mentioned are things they are rumored to be working on.
kenshiro100  +   873d ago
Disagrees say otherwise.

And what in the world are you talking about regarding the PS4? The Playstation systems ARE entertainment devices.

You seem to mix up the gaming division with their other divisions. Their gaming division is doing well so I don't see what your assessment has to do with the gaming division.

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