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Sony Finalizes Plans To Acquire Factory Producing Wii U's DRAM Chip for Nintendo

The Japanese national TV channel NHK aired a report during the evening edition of its News broadcast stating that Sony has finalized its plans for the acquisition of a semiconductors plant in Tsuruoka, Yamagata prefecture, currently owned by Renesas Electronics. The plant is quite relevant to the gaming industry as it produces the Wii U’s DRAM Chip, defined by many the “life stone” of Nintendo’s console.

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ElementX1699d ago (Edited 1699d ago )

Hasn't Sony just been downgraded to "junk" status? They need to quit spending money, profits are down.

Agent Smith1699d ago

You spend money to make money.

ElementX1699d ago

Sony needs some reorganization first.

Abriael1699d ago

@ElementX: would you care providing your financial analyst credentials? :D

abzdine1699d ago

"Sony will purchase the plant for 7 billion yen (just north of 68 million dollars) and will invest a further 20 million (slightly less than 195 million dollar)"

http://t0.gstatic.com/image...

mewhy321699d ago

why bother? They aren't making any money on the wii u anyway. Why keep making them?

+ Show (1) more replyLast reply 1699d ago
ElementX1699d ago (Edited 1699d ago )

Last year Sony made a small profit for the first time in 5 years. Sony Pictures isn't doing very well and Samsung has taken a huge percentage of the mobile market. In October they reduced profit outlook by 40%. Maybe they know what they're doing however I expect they won't see a profit again for a while.

ravinash1699d ago (Edited 1699d ago )

I don't think Sony has ever had a large % of the mobile market, so any increase is good, and there is room to grow.
The way Samsung keep adding things to their phone I find annoying, so I might try different phone next time upgrade. (once your number 1 the only way is down).

For Sony pictures, it just requires a good picture to do well for the profits to go up.
We slowly are heading out of the recession now, so this will help the entertainment industry in the next few years.
I think the dept of Sony having the hardest time is the TVs.

Profit forecast might be down 40%, but it's still a profit and it's only a forecast...so it can go up as well as down.

One other main factor is the value of the Yen as well....but this will be affecting all Japanese companies.

N4g_null1699d ago

The problem is operating cost is way higher than profit causing debt. The corp is huge yet marketing has been more important than tech.

kenshiro1001699d ago

Unless you work for Sony or you're some hot shot investor...don't talk.

ShinMaster1699d ago

You're trying too hard.

It's funny how you like talking about all other Sony branches except PlayStation.

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Ultr1699d ago

Maybe this is part of the plan?
They also spend 300million on Gaikai and their plans look phenomenal.
Money well spend, the reorganisation already happend, now everything else needs to get going

superbhoy1699d ago

meanwhile MS spend 400 million on a useless NFL partnership

shadyiswin1699d ago

Microsoft isn't going bankrupt lol and football is the most watched sport in the biggest market in the world, it only makes sense.

DarkHeroZX1699d ago

@shady

If by football you mean soccer. Then yes it is the most watched sport and biggest money maker. American football doesn't even come close outside the US and Canada.

tagan8tr1698d ago

@superbhoy don't forget the genius move by MS to buy Nokia lol, next they can buy an outdoor swimming pool in the arctic …

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abzdine1699d ago

and you should keep away from posting silly stuff when you have no idea about how business models work

live2play1698d ago

Where were you when Nintendo was being attacked then? Oh that's right, holding a pitchfork.

You don't like when the tables are turned do you

Flo-con1699d ago

Great, go and propose your financial advise to them. I'm sure they're unaware that they were just downgraded.

live2play1698d ago

Why don't you tell him he can go file it in the same bin that Sony and ms fanboys filed nintendos financial plans

for we are many1699d ago ShowReplies(3)
NeoTribe1699d ago

You should call sony and tell them about there situation. You seem to have all the right anwsers.

Chrischi19881699d ago

Yeah, you mean like you guys, when you try to be experts and tell Nintendo what they need to do, to improve? That way it works, but not the other way around? Talk about bias on this page :(

live2play1698d ago

I'm sure you were one of the first to call nintendo

nidhogg1699d ago

U mad bro? I guess it hurts a fanboy to see his favorite company needing the life support of another one. Don't reason out the "profits are down" thing because companies need each other to survive. this is beneficial for Nintendo and strategic for Sony. Now please shut it. :)

Indy-Pendent1699d ago

Electronics are just a small portion of Sony. Most their revenue comes from selling life insurance.

ChronoJoe1699d ago

Does it make sense for them to reduce investment within their only profitable division when as you say 'profits are down?'

XisThatKid1699d ago

Obviously you don't understand business acquisition. To insult you are anything in that matter would be ignorant. This whole thing can be used for other things other than gaming remember Sony is still a multi-Billion dollar company and span across several mediums like smart phones and the like. Hope this helps your perception of the situation.

HaveAsandwich1699d ago (Edited 1699d ago )

they may be doing this to manufacture ps4's faster also.

Legend_Killer1698d ago

Just started blogging about games and here's my first post abt Nintendo. Check it out pls http://gamewatcherone.blogs...

+ Show (10) more repliesLast reply 1698d ago
JackVagina1699d ago (Edited 1699d ago )

Why is sony buying this for?? Wii Us rnt exactly flying off shelf's

Edit: i probably should have read the article...

BoneBone1699d ago

to increase production of CMOS chips in their mobile phones by 30%

nfl1699d ago

i suppose its easy for many people to give these companies advice......either stating there making wrong decisions, etc.
i personally prefer to let them do what they do. they know better than me.
if it were left to me, they would be down in days. lol

Chrischi19881699d ago

The selfish gamer is not able to understand that logic. They dont understand, that these people at such a big company are shifting hundreds millions of dollars around and are held responsible for that and that a lot of people can lose their jobs and families get destroyed of that, if they do something wrong, but the gamer want those companies to throw even more money at third parties, invest in even more bs and so on... good thing gamers are no financial experts.

neogeo1699d ago

You people don't think that maybe Sony people had a sit down meeting and came up with more than a few reasons to make this move? I'm sure armchair n4g news boys know more than Sony by putting 15 seconds of thought into this.

live2play1698d ago

I'm sure they got their degree out of the same cereal box the ones giving Nintendo advice got theirs from

Agent_hitman1699d ago

I'm pretty sure SOny will use this plant in producing PS4/Vita/PS3's ram or memory.. To be able to lessen their spendings in buying components to 3rd party suppliers..

Sayai jin1699d ago

wrong. its for their cmos chips...mobile phones.

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