Sony could soon dominate the console market, analyst says

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Analyst Eiichi Katayama, an analyst at Bank of America/Merrill Lynch, believes Sony could dominate the home console market and make it its own.

http://www.forbes.com/sites/davidthi...console-space/

What do you think?

My opinion NO....
I hate to admit it but its possible...with Nintendo's decline since the Gamecube and Xbox not being able to do well in the international markets compared to Sony...its possible.
The only hope of xbox is that sony is losing money on the playstation so the stock hollders might have affect on the playstation. I don't thick xbox loses will affect M$ the same way, because I doubt Bill Gates will ever admit that he is wrong, which would be the case if xbox ever folds.
09-25-2014 09:08 AM StaffPremium
Playstation 2 dominated its generation at roughly 75%. So, I would say last gen was a case of Sony REALLY, REALLY blowing it. I don't think they'll get to that proportion, but do they get into the 60s, they might based on what we're seeing right now. Will be interesting to see after Christmas this year in US.

In any case, with how they publish games now, I think the One will have a healthy enough size of the market that publishers won't start ignoring it.
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Yeah, it's all just click bait. Despite the number of units Sony is moving in PS4's COMPARED TO the Xbox One, both consoles are FAR OUTPACING previous generation sales. What does that mean? That means that they are still making money and are still successful. The Xbox One unit sales are higher than the 360s were for the same periods. Neither company is going to dominate, they are only going to compete more (which is better for ALL of us, PS3, PS4, Xbox 360, Xbox One owners).

Side note, it's Forbes. Call me when they are comparing Sony vs. Microsoft stock ratings.
Yup.
This article is crap... Saying they will have exclusivity? That won't happen... Not speculation, it wont. At a best case scenario they are sitting at probably 60-65% market-share. While that is very impressive, it's also a huge uphill battle to move the needle as you need your competitors to basically stop sales entirely, which won't happen. To reach a 75% market share (like the PS2), PS4 would roughly need to sell 8 million more units while the Xbox One and Wii-U sold NOTHING. Like I said... impossible.

Also, how does he really think that PSNow and VR will be game changers? Both are headed down a bad path for the exact same reason... pricing. PSNow is largely agreed upon to be way too expensive and the VR early estimates have it at around $300. How many casual gamers (majority of the 10 million units sold) are really going to drop $300 on an accessory for their $400 console?
Why does it have to be one or the other, get both systems. Equal opportunity gaming!
Why does it have to be one or the other, get both systems. Equal opportunity gaming!
Originally Posted by LordChabelo13
MONEY MONEY MONEY
Except, on a corporate scale, Sony is struggling: http://money.cnn.com/2014/01/27/tech...unk/index.html

So, even after selling more consoles, and leading the market, it still widen its net loss forecast, is being downgraded again, and won't pay an annual dividend for the first time since 1958: http://www.bloomberg.com/news/2014-0...-bnp-says.html

Sony is doing great with the PS4, and it is a decent piece of hardware (I really only play Knack and Resogun on it, but, it is solid). However, almost every other industry they are in is struggling, and not just for them, but across the board. So, even if they grabbed 75% of the marketshare, they still face an uphill financial battle. Even after the PS4 launch, one analytic had them at 79% likely to go bankrupt in 24 months: http://www.technobuffalo.com/2014/01...ays-macroaxis/

Even without that, they are closing retail stores, laying off employees, selling off their TV brand, closing their computer division: http://www.forbes.com/sites/erikkain...00-jobs-in-us/

So, little picture, Sony has had a fantastic console launch and first 10 months. Big picture, the entire corporation is struggling, and consoles don't make up for lagging TV sales, lagging PC sales, lagging phone sales, poor motion picture performances...

They are in a hard position. Nintendo is struggling, too. However, they have their card division that always makes money, and a well-performing overall handheld (yea, the 3DS has a garbage gimmick, but the DS line in total still makes money), and franchises that sell consoles. (Legend of Zelda next year will sell Wii U consoles)
Why does it have to be one or the other, get both systems. Equal opportunity gaming!
Originally Posted by LordChabelo13
Both? ALL.

Skipping the Wii U skips some good games, too. And forgetting the PSP, PSVita and 3DS means missing out there, too.
Except, on a corporate scale, Sony is struggling: http://money.cnn.com/2014/01/27/tech...unk/index.html

So, even after selling more consoles, and leading the market, it still widen its net loss forecast, is being downgraded again, and won't pay an annual dividend for the first time since 1958: http://www.bloomberg.com/news/2014-0...-bnp-says.html

Sony is doing great with the PS4, and it is a decent piece of hardware (I really only play Knack and Resogun on it, but, it is solid). However, almost every other industry they are in is struggling, and not just for them, but across the board. So, even if they grabbed 75% of the marketshare, they still face an uphill financial battle. Even after the PS4 launch, one analytic had them at 79% likely to go bankrupt in 24 months: http://www.technobuffalo.com/2014/01...ays-macroaxis/

Even without that, they are closing retail stores, laying off employees, selling off their TV brand, closing their computer division: http://www.forbes.com/sites/erikkain...00-jobs-in-us/

So, little picture, Sony has had a fantastic console launch and first 10 months. Big picture, the entire corporation is struggling, and consoles don't make up for lagging TV sales, lagging PC sales, lagging phone sales, poor motion picture performances...

They are in a hard position. Nintendo is struggling, too. However, they have their card division that always makes money, and a well-performing overall handheld (yea, the 3DS has a garbage gimmick, but the DS line in total still makes money), and franchises that sell consoles. (Legend of Zelda next year will sell Wii U consoles)
Originally Posted by futiles
Best response ever.
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09-25-2014 10:53 AM StaffPremium
I used to buy a lot of Sony stuff. Now days, it seems like I end up with Samsung or LG. I think Sony is losing out on the premium stuff they used to make, too much other companies at that level and they don't play well enough in the "pretty good" category.

I hope they find their new footing.
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Best response ever.
Originally Posted by Kaens
Well, you and I often agree that gamers think far too highly of themselves and the role they play in corporate economics.

Think about Q1 2013 - or even all of 2013.

Q1 Sony had $13.29 BILLION in revenue: http://www.wikinvest.com/stock/Sony_...evenue/2013/Q1
BUT had a PROFIT of $35 MILLION: http://www.engadget.com/2013/08/01/s...2013-earnings/

For those playing at home, that is 0.26% profit, not even 3/10 or 1 percent in profit. Basically, if you made an item that cost you $100 to make, you would be selling it for $100.26. Not going to get rich that way...

And even with that, 2013 was widely successful as it was the first time in 5 years that the company even turned a profit on the year: http://bgr.com/2013/05/09/sony-earnings-2013-profit/ $458 Million in profit over the entire 12 month! Of course, that was on $72.23 Billion in revenue, but hey, the total year profit was an astounding 0.63%! So, make that $100 item sell for $100.63!


And just to point out what I am saying, let's see Microsoft's profit margin, remember Sony's is 0.63%:
http://ycharts.com/companies/MSFT/profit_margin

HOLY HELL!!! (I actually did not look this up ahead of time) Microsoft has a Profit margin hovering around 20% EVERY QUARTER since 2002 (with one single quarter in June 2012 being the aberration, at -2.2% - so, what exactly did they write off? The EU anti-trust litigation against IE bundled with Windows? Seems like the right time period). So, Q4 2013, Xbox One launched, sold less than PS4 and sells at a loss (most new consoles do) and MS ran a profit margin of 26.75%.

That's all I have.


*EDIT* made a typo, looked like an idiot, had to fix, Fsh has already quoted it...
Last edited 09-25-2014 at 11:29 AM by futiles.
09-25-2014 11:26 AM StaffPremium
HOLY HELL!!! (I actually did not look this up ahead of time) Microsoft has a Profit margin hovering around 20% EVERY QUARTER since 2002 (with one single quarter in June 2012 being the aberration, at -2.2% - so, what exactly did they right off? The EU anti-trust litigation against IE bundled with Windows? Seems like the right time period). So, Q4 2013, Xbox One launched, sold less than PS4 and sells at a loss (most new consoles do) and MS ran a profit margin of 26.75%.

That's all I have.
Originally Posted by futiles
No wonder they're buying companies left and right. I'm wondering if Nokia was a big write off or a big patent buy, I'm too lazy to go look it up. Now if they could create a search engine people will use without bribery...
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No wonder they're buying companies left and right. I'm wondering if Nokia was a big write off or a big patent buy, I'm too lazy to go look it up. Now if they could create a search engine people will use without bribery...
Originally Posted by Fshguy
It was a bit of both, consolidate hardware/software on mobile to one entity, while obtaining patents desired to promote that branch of the business.
I'm pretty sure that MS has about $88B cash on hand. There is no way to keep 20% profits by putting that in the bank, so they have to constantly invest in things like Xbox, Nokia, Minecraft where they see the potential to make those profits. That's what you have to do for your shareholders! That's why they are buying your stocks, they want that return.

To me, Sony is shit. They had walkmans and high end audio/tv stuff. They were always insanely overpriced for the specs, but people bought it because of the name. They lucked (yes I'm swearing lucked) into Playstation, because the only thing they did that others weren't doing was us a cd player. There was zero innovation, but they grabbed the market and ran with it. Yes I know Dreamcast had a CDs, but they had their own issues, basically setting Sony up for the steal.

To me, that is exactly what Apple is today. Huge market cap, all because of the damn iPod. iPods became iPhones, iPhones became iPads, and people bought into the ecosystem and starting buying Macs again and the real Apple lovers buy stuff like Airport. NONE of these products (except the ipods) are the top of the class, they are just easy to use and the general population 'knows' they are good. Remember this..



Look, Atari made this game market, and there is a lot of money to be made here. That's why players like Mattel (Intellivision) and Colorado Leather Company (Colecovision) jumped into the market. Nintendo and Sega (Service Games) both have really long histories and ties to the arcades so it at least made sense they joined in. Now, console games are only for the big boys like Sony, Microsoft, Apple, Amazon. The cost to be a player is so high, only the biggest can compete. Ask Ouya, the stupidest thing I ever heard of and I'm honestly surprised that got as far as having a console in the major retailers.
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Yea, I got an OnLive for free. It works, and works REALLY WELL, but, there is nothing backing it.
Kaens' dropping knowledge!
Originally Posted by LordChabelo13
I just ramble off the top of my head. Futiles source his stuff, so I'll defer to him because I know how lazy I am.
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[quote=futiles;21295]Well, you and I often agree that gamers think far too highly of themselves and the role they play in corporate economics.

Think about Q1 2013 - or even all of 2013.

Q1 Sony had $13.29 BILLION in revenue: http://www.wikinvest.com/stock/Sony_...evenue/2013/Q1
BUT had a PROFIT of $35 MILLION: http://www.engadget.com/2013/08/01/s...2013-earnings/

For those playing at home, that is 0.26% profit, not even 3/10 or 1 percent in profit. Basically, if you made an item that cost you $100 to make, you would be selling it for $100.26. Not going to get rich that way...

Interesting for sure, its also convenient, and it doesn't look like any executives from Sony are starving. Im sure their accountants are doing ok as well.
You lack a vital quality found in all Sith. Sith have no fear, and I sense much fear in you."

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