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Sony Officially Buys Factory Producing Wii U’s DRAM; Could Actually Work for Nintendo for a While

Sony's intention to purchase the Renesas Electronics semiconductor manufacturing plant at Tsuruoka (that produces the DRAM chip of the Wii U), in the Japanese Yamagata prefecture has been rumored for a while, and the house of PlayStation finally officially announced with a press release that the purchase has been finalized and a definitive agreement with Renesas has been signed. Interestingly enough, the deal includes a clause that could bring Sony to work for Nintendo at least for a while.

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THC CELL1301d ago

Sony doing well buying in.junk status eh lol.

360ICE1301d ago

In this sense, buying IS investing.

abzdine1301d ago

seen from a pure gamer eyes if Sony allows chips production for Nintendo could that mean Nintendo might rent out their icon characters to Sony for a game or 2?

Hatsune-Miku1301d ago

I'm quite sure Nintendo won't be opposed to working with sony again because the last time they dropped a deal with sony it was them actually digging their grave.

Alsybub1301d ago (Edited 1301d ago )

@Hatsune-Miku

In units sold - Yes
In profitability - No

Nintendo rarely sells a product at a loss in order to be the market leader.

Nintendo is sitting on a huge pile of money. I think it's something like $11 billion.

So, is it best to be the market leader and putting your company in to the red or is it better to trail behind, doing your own thing, but make money?

This is the first generation that Sony has produced a console without losing money on every unit. It's more out of necessity for survival, as a business, than it being what they would ideally want to do. It's always sold at a loss in the past on the assumption that it will claw back profits from software sales once it's got enough units in enough living rooms.

InTheLab1301d ago

Alsybub you don't know what you're talking about. Just stop.

Chrischi19881301d ago (Edited 1301d ago )

Hahaha^^

He knows exactly what he is talking about. A company has to make money, it has to pay its employees, how do you do that, if you lose money for more than a decade? Just stop? Pretty fanboyish, dont you think? He is stating facts. You dont like them? Doesnt matter, its still true. Nintendo might not be in a good position right now, but even the failed Gamecube made money for Nintendo, probably more than what PS3 did for Sony. Maybe, instead of insulting people about not knowing anything and wanting them to stop, why dont you tell us, why he is wrong? You probably cant.

Talidan1300d ago

@Chrischi1988
I think he means alsybub is wrong about Sony's selling at a loss, which is only half true. It should definitely be noted that while their consoles have sold at a loss, it was generally only during the beginning of a generation. The PS3 was sold at a loss the longest, I believe, but in all cases it should also be mentioned that Sony makes a substantial amount from software sales, which is why they treat their first-party games with such care.

They also continue to support a console for a long time. It took quite a while for PS2 sales to drop to almost nothing, and during the last couple years of its supported life, it was almost all profit.

And of course, you have to keep in mind that you're comparing a gaming company to an entertainment company. Would Sony be as bad off if they were just in games? Would Nintendo be as well off if they made other consumer electronics and movies?

During the PS2's life, Sony was dragged down by other parts of the company, so it plays a huge part in any financial comparative discussion, but all I'm saying is that there is a whole lot more to it than what was mentioned.

+ Show (4) more repliesLast reply 1300d ago
Yep1301d ago

Junk doesn't make you a stagnant business. Sony's not just going to throw in all their chips just because a couple rating agencies downgraded them to junk.

Obviously they are going to try and make an effort to make things better. They have to.

Letthewookiewin1301d ago

I'm thinking that maybe Sony will convert the facility to make GDDR 5 if it doesn't already. I believe if they can produce most of their components in house it will save them money in the long run. Also I know this is premature but assuming there is a PS5 it will most likely use the same memory, future proofing Sony. They are going to trim the "Fat" in other devisions but Sony Entertainment isn't going any where.

ElementX1301d ago (Edited 1301d ago )

Last year was the first time in 5 years that Sony made a profit and now they are going to be more in the red. I heard that Sony wanted the company to produce mobile chips however Sony doesn't even have much of a foothold in the mobile market, currently around 7%.

Abriael1301d ago

Actually they're the world leaders for CMOS sensors for smartphones.

ElementX1301d ago (Edited 1301d ago )

Actually they're the world leader of microcontrollers,

http://www.linkedin.com/com...

not specifically CMOS sensors and they are losing market to Samsung and thus were bailed out and are selling off plants and cutting jobs to make profits.

http://www.businessweek.com...

TIER1xWOLFPACKx1301d ago (Edited 1301d ago )

Yep Apple iPhones for instance use sony made cameras along with a lot of other smartphone makers that use Sony's camera technology in there phones. 7% may not seem alot but for how crowded the mobile market is with Samsung Apple HTC Nokia BlackBerry LG Lenovo asus etc sony I think have the third largest android mobile market share. Selling about 20% of all android devices sold.

EDIT: To anyone wondering what a CMOS sensor is Ile put it in the most simple way it's basically a camera it's what's needed to capture your image

ElementX1301d ago (Edited 1301d ago )

True there are Sony cameras in the iPhones. Sony bought them to increase production of CMOS sensors used in a number of mobile phones.

torchic1301d ago

insightful comment Element X. tell me again you were the CEO of which successful billion dollar company?

ElementX1301d ago (Edited 1301d ago )

It doesn't take a genius to read financial and earnings reports online. Mobile division revenue was up 39.9% however they still had a loss of $197 million

ruefrak1301d ago

Sony works for Nintendo, they buy Windows from Microsoft... it's all good. As long as everyone is making money and not going bankrupt.

Dumb_username1301d ago

The only people that are going Bankrupt are Sony.

ruefrak1301d ago

Not true. Many companies go bankrupt every day. And some, like Kodak, go bankrupt, restructure their corporation while eliminating legacy debt, and reemerge from bankruptcy as a fresh company.

Omar911301d ago

Were you even born when Apple was going down hill? Back in the 90's you would never expect Apple to be where they are now. So Bankruptcy happens to a lot of companies.

It's like failing an exam, it makes you want to push harder and study more to get a good grade next time. Same as companies. I think Sony although not where they wanna be financially, are doing great strides to get back up there with the rest.

Dumb_username1301d ago (Edited 1301d ago )

Sony is Too Poor, dump your TV and Phone crap and just stick with Games.

SniperControl1301d ago

There phone division is finally managing to break even, the Z1 is a cracking phone on par with the Samsungs and Iphones. The Z2 looks(per leaks)like a another cracking market beating phone, with the rumors of it having Android/windows OS it is sure to be a big seller.

You are right about the TV's, they are way to expensive for what they are, Sammy TV's are excellent buys, good screens with a good price. I was looking to spend around £3000 on a TV last year, the same spec Sony(as the Sammy) would have cost me £700 more, no brainer really as to what i bought.

Howard Stringer really Fcuked up that company with incompetent management, thats when Sony's problems started. Japs hate when foreigners come into to run there companies, they dont want to work for them.
With Kaz on board running things, i see a bright future for Sony.

InTheLab1301d ago

Samsungs are almost as expensive and cheaply made. That Sony made TV would have lasted you longer than a poorly made Samsung.

And I'm speaking from experience. The only malfunctioning TV in my house is from Samsung and I'm not the only one...

http://www.pcmag.com/articl...

Sooner or later people will see Samsung for the company they truly are. While they make excellent Smartphones, their TVs are mostly crap.

SniperControl1300d ago

@InTheLab

I have a OLED now, so not on the list. It was also our 3rd Samsung TV purchase in the past 10 years, all TV's working perfectly.

OtakuDJK1NG-Rory1301d ago

except Nintendo left that factory

deadfrag1301d ago

Not yet,but they are in the process of moving.The deal is actually good for the two parts!

kayoss1301d ago

Did you read the article?