But apparently other Sony division are spending more that that. Sony will rebound if they take meaningful steps in reining in their TV, PC, and camera businesses and even spin off some under-performing units that are not part of the long term vision for the Sony Entertainment Network.
Has anyone seen it and what do you make out of it? Could it be something they are working to truly bring the MMORPGs like the upcoming EverQuest Next into the PS4 network?
Well, there is some talk to about producing consoles in other places (like Brazil) to avoid import tariffs. I hope that by sometime next year the manufacturing constraints will be lifted.
The 12%+ drop in PPS on $200 M lower forecast for the year was simply irrational. Everyone knew they would have a slow quarter before the PS4 introduction and everything else that will follow. The investors who wanted to swap shares at certain ranges are probably done (just look at the volume and patterns these last two days: sudden drop then steady accumulation) and SNE is moving back to where it should be based on the "negative" outlook.
PS4 is what brings people to Sony just as iPhone brings people to Apple. The real question is how many and what else will they buy from the company.
Thank you for sharing your thoughtful and rational analysis here. I completely see where you're coming from and tend to agree on most points.
I have always been a fan of Sony and gaming in general but I feel that social aspects of it have been often ignored and undervalued. In my opinion PS4 with a large display (and various peripheral devices including tablets) will become a central gateway into the massive social gaming and entertainment network that mobile devices and PCs have only been tapping into (even with tens of millions of daily active users). Yes, I strongly believe that we are on a verge of social gaming revolution where Sony is well positioned to become a major player. - no pun intended.
I think they already have plans to reduce the under performing segments of their business. I believe their primary entertainment hardware focus will be on high end UHD TVs, mobile devices and consoles, of course... and I cannot believe that they only "expect" to sell 5 million of those by March 31, unless they have supply chain problems. There is enough pent-up demand for PS4 for 5 times that. They just need to deliver on a promise now.
I respect your sound judgment, but I don't think that many people see the potential the PS4 echo system represents. To me, long term investment is all about the potential growth and future earnings and if executed properly, the console+display+mobile+services could all become significant revenue generators for the company over the next several quarters. I think that Sony can pull an Apple on us if they play their cards right and I'm certain that Mr. Hirai has what it takes.