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.

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GameCents1798d 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.

joeorc1798d ago

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."

WeAreLegion1798d 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_scruggs1798d 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.

ILive1798d ago

The vita is not expensive. Why do people keep saying that. Do people want them to sell it for a dollar?

zebramocha1798d ago (Edited 1798d ago )

Because the 3ds drop its price and memory cards but if you compare spec with the 3ds,nintendo'sp offering was over priced .

hellvaguy1798d 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.

WeAreLegion1798d ago

Kaz united all the divisions within Sony for a reason...and it's paying off.

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