Sony considers splitting the company after proposed IPO

Sony executives are considering splitting the company's entertainment and electronics divisions, following billionaire Daniel Loeb's proposed initial public offering of its entertainment business. The entertainment arm includes all PlayStation properties, alongside Sony's film and music businesses.

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if they split off the 2, the entertainment sector would thrive.

PurpHerbison1824d ago

You can see the future? How do you do that???

jimbobwahey1824d 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.

Godmars2901824d 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.


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.

Brazz1824d 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

GameCents1824d 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. . .

KingKevo1824d ago

@ PurpHerbison Sony told him to. Remember the slogan for the PS4 reveal in Fabruary? That's your answer sir.

dcbronco1823d 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.


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.

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Hands Up For Games1824d 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.

3-4-51824d 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.

husomc1824d 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 judas1823d ago (Edited 1823d 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?

KwietStorm1823d ago

Do you want to explain what the hell that means?

husomc1823d 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.

1824d ago
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Virtual_Reality1824d ago

What this means according to the experts analysts of N4G?

BlmThug1824d ago

Well some members can see the future..

Sky_Walker1824d ago (Edited 1824d 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.

Gorilla_Killa_X1823d ago

It says all PS properties would be placed with entertainment side and not electronics.

Sky_Walker1823d 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.

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Soldierone1824d ago (Edited 1824d 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.

NarooN1823d 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.

Soldierone1823d 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.

ThatCanadianGuy5141824d 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.

GraveLord1824d 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.

joeorc1824d 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."

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 [email protected] 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-Brady1823d ago

Well said Joe, Jim Cramer couldn't have said it much better, He might'a added a booyah though.

tiffac0081823d 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.

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