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joeorc

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PlayStation is not a Division of Sony. It's a Whole owned Subsidiary.

Many of the gamer web sites and the Gamer review, and forum websites have tendencies to refer to The PlayStation part of Sony as a Division of Sony..this is completely incorrect. There is a big difference between the two terms & structure in Business.

This blog post is to clarify and show just some of the Differences.

What is the difference? Look and See for yourself.

Well it's defined, by many Business structure definition as such.

Difference Between Division and Subsidiary

Division vs Subsidiary

A division is a part of a business entity. This means that a division, although it operates in a different name, is still a piece of the entity itself. On the other hand, a subsidiary is an entirely different company, a separate one, which is owned by another usually bigger entity. But in some cases, the parent company is a much smaller entity than that of the subsidiary company. In a more concrete analogy, you can say that a division is a part of the body, let us say hand, for instance, and while a subsidiary is the offspring with an entirely separate body but is still owned by the parent company.

Another difference between a subsidiary and a division is that the subsidiary can perform an entirely different operation from that of its parent company while a division cannot.

SUMMARY

1.A division still operates as part of the parent company, although it has a different name, while a subsidiary is a totally separate company from the parent company.

2.A division’s operations should be related to the operations of the parent company while a subsidiary company’s operations need not to be in line with its parent company’s operations.

3.The condition of the division will greatly affect the parent company while the condition of a subsidiary will not have any effect on the parent company.

http://www.differencebetwee...

SIE is a wholly-owned subsidiary of Sony Corporation and has global functions and regional headquarters in California, London and Tokyo.

https://www.sony.com/en_us/...

As you can See, the PlayStation is a separate structure of Subsidiaries that are several separate entities under the PlayStation Subsidiary LLC.

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snakeeys5428d ago ShowReplies(5)
joeorc428d ago (Edited 428d ago )

Oh OK so if it's false , than prove it..instead of just saying it's false, why do you claim it's false? Explain why!

snakeeys5428d ago ShowReplies(9)
snakeeys5428d ago ShowReplies(3)
snakeeys5428d ago ShowReplies(4)
Hoffmann428d ago

I don't like to get spam PM's about submissions, no matter how good, bad, right or wrong they are.

@ submitter Joeorc

KwietStorm427d ago

What's your purpose in all this?

Oschino1907427d ago (Edited 427d ago )

It's obvious they are a professor of semantics at pretentious university.

+ Show (3) more repliesLast reply 427d ago
XXanderXX428d ago (Edited 428d ago )

So basically Sony is the Mother , PlayStation is the daughter and no matter how old the daughter is it still must do as told by the mother. Correct

MasterCornholio428d ago (Edited 428d ago )

If it was a division they would have a lot less freedom in their decision making. One of the things that SIEA is able to decide is their budget allocation and collecting said funds for that budget. If they were a division the parent company would make all those decisions for them. There are other things as well but what I mentioned is one of the most important ones.

Thank you for the article Joeorc.

@Bak

A division and a subsidiary are not the same thing.

LexHazard79428d ago

It still a Sony Company. It like NBC network. Its has it own board of Directors and all that but at end of day NBC is still owned by Comcast.

When its time for financial reports Sony still has to post Playstation numbers for investors.

joeorc428d ago

@BakPAin

[When its time for financial reports Sony still has to post Playstation numbers for investors]

Hold on there, not entirely true..you see this right here...

What is an
'Unconsolidated Subsidiary'

"An unconsolidated subsidiary is a company that is owned by a parent company, but whose individual financial statements are not included in the consolidated or combined financial statements of the parent company to which it belongs. Instead, this type of company appears in the combined financial statement as an investment."

http://www.investopedia.com...

All would be required would be such data as how much Capitol went out from the holding into Subsidiaries, or How much is received.. Or transactions between the Subsidiary to the Capitol holding Corporation if that is how it's set up. Disclosure to another Corp about day and date expenditure of the Subsidiary spending or its own Subsidiary spending would not have to be disclosed. Only if it pertaining to the holding companies stake in said Subsidiaries.

So with how many systems it has sold in such a sales Quarter, yes..how much Capitol the hold company will gain from those sales..yes..how much the Subsidiary's cut is on those sales ..no
LoL

Some things are not disclosed for a reason if you would not have to. Since the PlayStation board members are people like Kaz, in the case of Sony's Subsidiaries it's really not a problem..except for outside investors wanting to get in on the PlayStation Subsidiary by asking to have it taken public and a repeated ...Answer of No being the result..LOL

XXanderXX427d ago

So if for any reason PlayStation screws up with it resources , budget or has mismanagement issue they are on their own and have to recover on their own with no extra resource backing from sony .

joeorc428d ago (Edited 428d ago )

@XXanderXX9m ago(Edited 9m ago)
"So basically Sony is the Mother , PlayStation is the daughter and no matter how old the daughter is it still must do as told by the mother. Correct"

That would depend on how the whole owned Subsidiary is set up in its structures.. Sony has as the main body is a Holding company..that's why there is a LLC..a limited Partnership, thus the Subsidiary has its very own Board of Directors it's own financial Ballance sheet , investments of its own etc..out side of the main Sony Corpus, that's playstations..those as of the very post above States.

["A subsidiary is a totally separate company from the parent company."]

Thus it's the separate child reference...

The common stock is held by the Corpus of Sony , IE: there is no stockholders or any of Playstation's stock as offered into a public stock option, now stock holders.. Do not exist except for one single stock holder and that is the created company its self..its pretty much holds the stock but does nothing else, in ver basic blunt terms is playstation is just a held Asset!

So taking the key of LLC designated listing..

"while a subsidiary company’s operations need not to be in line with its parent company’s operations."

There is no stock holders calling the shots to the LLC other than the PlayStation LLC board of directors, those just so happen to be people like Kaz anyway..lol

They have to call meetings , days minutes... Have board meeting discussion's etc..but it's not Sony calling those itself , it's the PlayStation Subsidiary's very own Board of Directors.. PlayStation is in essence a private company in of itself .

Christopher427d ago

Not really, actually. There are instances where the subsidiary can even work to separate itself from the company and operate as a separate company. It's harder for the business to re-absorb a subsidiary in certain situations, meaning they lack certain power other than to force certain others out of position within the subsidiary (which can be difficult as well).

Apocalypse Shadow428d ago (Edited 428d ago )

Gamers like Joe and I knew this already from the jump. It's one of the reasons why they can't be touched. PlayStation is part of Sony but it isn't so that investors like the last one don't change Sony into companies like Microsoft,EA, Activision and Ubisoft: profit machines that only care about things that sell and forego the rest and wanted to break up Sony. Can I get a beyond good and evil, road rash, crimson skies, hero or pitfall game again? Nope.

That means no Sony investment in smaller niche games, Indies, etc. Basically a round Robin of uncharted, gt, god of war, etc every year like those other companies do milking Madden,Assassin's Creed,COD, Forza, etc.the bottom line is to makes profits, but there would be no bound, abzu, hot shots, etc that add variety to gamers who don't play those other games mentioned but don't sell as big.

I'm glad Sony and Kaz stuck to their guns and stayed Japanese rise or fall and didn't become more like American companies that don't care about gamers. PlayStation being a subsidiary and doing well gives us gamers variety in games and innovation like PSVR .

SIE should have called themselves "the untouchables."

Apocalypse Shadow428d ago

http://www.gamesindustry.bi...
http://www.ps3hax.net/archi...

Investors wanted more control and Sony made it unavailable to them. SIE controls what's going on and since it makes money, a lot for Sony, they are left to the control of the directors. They are owned but you can't buy a stake into them like american companies.

TwoForce428d ago

Dude, I understand what you saying. But Jesus, just don't go over head of yourself.

Cueil427d ago

omg I'm not sure what I just read here, but I'm pretty sure this is the words of a delusional fanboy

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