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Analyst - Time for Sony to break up, SCE to turn into media division.

Sony doesn't get all of that $633 million. Try cutting that number in half.


And that $200 - $255 million is just the production budget. Add a massive marketing budget on top of that....now all of a sudden The Amazing Spiderman 2 isn't super-profitable anymore.

Add the home video sales to that - TAS made $82M in sales in the US alone.
 
Streaming games will never work. ISPs would have to stop fucking people ove and super high end google fiber would have to be available to everyone for the cheap. Will only happen if the government steps in.
 

spwolf

Member
Netflix grows just fine. Where does Sony go with PS hardware after the PS4? Slightly prettier graphics, a bit better framerate, bundling VR? These are not additions or upgrades that will get people to part with $399 all over again. If PlayStation is going to make it to 2020 intact then it must transition into an on demand service, and PS Now is the basis for that transition. PlayStation games are going to be made available on non-PS and non-Sony hardware. How much of a leap is it to assume that once rolled out new servers could be added to allow for PS4 level fidelity and PS4 games could be streamed as well? To me it's not that huge. Seven years is a long time in the world of internet infrastructure, what is not possible today, could well be possible in seven years time. Sony is a company that has hung on too long to traditional business models, SCE seems to be the one electronics division that is ahead of the curve, lets see if they stay there...

how profitable is Netflix, and how profitable would PSNow be considering cost of IPs as well as providing the service... would gamers be ok with paying $60 to get cloud access to the game?

I cant see cloud-only view being reasonable at all... in fact, it would likely destroy the company completely. Without $60 games, complete game publishing model becomes obsolete. Thats like theaters closing and Netflix being only revenue for studios...

Sony has been worst led major Japanese company for last 10 years, and analysts proposing ridiculous solutions dont help at all.

In reality, for 2015, except for TVs that are being spun off, ROI game division is lowest of them all. So correct way of doing things would be spinning off business's with low ROI, so they can be sold off... and not spin profitable SPE so you can finance failing rest of the business.
 

Averon

Member
With net neutrality in its death bed, and how popular bandwidth caps are with ISPs, how wise is it to bet your future on streaming in the near future?
 
With net neutrality in its death bed, and how popular bandwidth caps are with ISPs, how wise is it to bet your future on streaming in the near future?
Sony or any other game streaming service would just have to pay up, just like Netflix is doing now. The infrastructure exists, ISPs just want their piece
 

Guevara

Member
My internet today is no faster than my internet was seven years ago.

A PS4 is radically faster than a PS3.

The glorious streaming future is still a long ways away.
 

shink

Member
Sony doesn't get all of that $633 million. Try cutting that number in half.


And that $200 - $255 million is just the production budget. Add a massive marketing budget on top of that....now all of a sudden The Amazing Spiderman 2 isn't super-profitable anymore.

Yep Deadline estimates it needs at least $750m

The performance of Amazing Spider-Man 2 is crucial for the studio. The production budget is said to be around $255M, with about $185M-$190M spent on marketing. That means all in it needs to make more than $752.2M worldwide (which is what the first installment grossed). About 65% of the first installment’s gross came from international markets. The domestic audience has declined slightly for Spider-Man so if it does not perform strongly stateside, it will need to make up the difference internationally or vice versa.
http://www.deadline.com/2014/05/spider-man-2-box-office-preview-analysis/
$633m now and opened in all markets. Wonder if it'll cross it
 
wouldn't mind if Nintendo, Sony and MS all went strictly software service in the form of streaming services or digital game stores. like i can either buy the games, or pay a monthly fee to stream game. it'd be amazing if console gaming on your tv or on a setop box was just like buying apps/games on your phone; minus the microtransactions and f2p, but we're already there now so who gives a shit.
 
Someone should photoshop some sony officials onto this picture.
the-breakup.jpg
 
wouldn't mind if Nintendo, Sony and MS as ll went strictly software service. like i can either buy the game, or pay a monthly fee to stream game. it'd be amazing if console gaming was just like buying apps/games on your phone; minus the microtransactions and f2p, but we're already there now so who gives a shit.

Phone apps/games arent streamed,they are local to the hardware.
 

jtb

Banned
Phone apps/games arent streamed,they are local to the hardware.
ok, but my point about phones was more about the app store infrastructure and not gaming on the phones themselves. it'd be nice to be able to go to Sony, MS, and Nintendo app srores to buy games or stream games through a PSNow type service.
 
The day streaming becomes the only option is the day I stop playing modern games. My retro collection will keep me occupied for a long time. I am not going to put up with that sort of bs in the gaming industry as well.
 
My internet today is no faster than my internet was seven years ago.

A PS4 is radically faster than a PS3.

The glorious streaming future is still a long ways away.
No offense but that's your problem. If the infrastructure is there and Sony can get a superior ROI then they'll ignore everyone who can't get on board.
 
Netflix grows just fine. Where does Sony go with PS hardware after the PS4? Slightly prettier graphics, a bit better framerate, bundling VR? These are not additions or upgrades that will get people to part with $399 all over again. If PlayStation is going to make it to 2020 intact then it must transition into an on demand service, and PS Now is the basis for that transition. PlayStation games are going to be made available on non-PS and non-Sony hardware. How much of a leap is it to assume that once rolled out new servers could be added to allow for PS4 level fidelity and PS4 games could be streamed as well? To me it's not that huge. Seven years is a long time in the world of internet infrastructure, what is not possible today, could well be possible in seven years time. Sony is a company that has hung on too long to traditional business models, SCE seems to be the one electronics division that is ahead of the curve, lets see if they stay there...

Yes they are. People buy into a new generation because the graphics are better, the worlds are bigger and more interactive with more and better AI and they want to play the games released on the new platforms. Moving from the PS4 to a PS5 would be no different than any other generation, especially since the PS4 went for cheaper hardware and as such was largely outclassed by PC hardware at day zero. There is LOTS of room for noticeable grown in console hardware.
This reminds me of all the people that said there was no reason to release new consoles past PS360 because they were good enough.
 
Streaming games is going to be a shit experience for most people for at least another decade, so putting all your eggs in the PS Now basket seems like a bad idea.

Additionally, third-party games would no longer have to be programmed explicitly to Sony's hardware so I would think it would be likely that a PlayStation service based on streaming would lose a lot of its leverage over 3rd parties.
 
Both companies would benefit from a joint venture of Sony hardware and MS software. Unfortunately, it'll never happen.

Wishes it would happen so bad...
 
Both companies would benefit from a joint venture of Sony hardware and MS software. Unfortunately, it'll never happen.

Wishes it would happen so bad...

How would this be beneficial? Just like in the days of Nintendo vs. Sega, competition forces both sides to be on top of their game or fail. Sony is forcing Microsoft to up their game, so as Microsoft forced Sony to up their game with the PS3.

Competition is necessary.

For those accountants out there, considering what we know of the current state of the Playstation brand, would the Playstation brand be able to sustain itself without the assistance of the rest of Sony?

So if Sony did in fact break up into pieces, the Playstation brand being its own entity, would it be profitable enough to continue along the same lines as it is now? With the many first party studios and large budgets for those studios ( mainly ) and all of that?

If so, I'm all for a split.
 

Abounder

Banned
Playstation's subscribers alone would eventually make it a profitable company. The problem is losing money on hardware, but I think we'll see more Playstations in the near future especially since home theater boxes are more of a thing than ever (FireTV)

Sony TVs should come with 1 month free of Sony streaming content from everything to Playstation games to music to Spider-Man. Sony's content library seems like it could be a feature that would be hard to match for its competitors but I haven't done any research.

Spider-Man needs to go Separation Anxiety to have any chance of competing against Batman/Superman, X-Men Apocalypse, and CA3 (releasing after Avengers 2).
 

Gorillaz

Member
PS Now wont be "there" for awhile. I do think that is there end game but now is not the time to head there


But soon, they do need to rethink there entertainment and TV division tho. Its basically dead limbs. Well some parts are
 
I like the Sony influence behind the Playstation brand so I'd rather them not spin that division off. That kind of seems like they're asking them to die gracefully and let the offspring flourish. Nah, fuck that.

Why can't they just shed the TV division and refocus on imaging tech or something to that effect? Does dropping TVs hurt them somehow?
 

EmpReb

Banned
I seriously hope so, ASM2 was so atrocious it made me reevaluate Man of Steel and similar shit
At this point I WANT it to fail. I mean spidy needs to be returned to Marvel. No ans ifs or buts about it. IT HAS TO RETURN. Avengers is amazing already with what they have done... just get spider-man in there some how or even doesn't need to tie in just needs to be the Marvel studios hands and I will be content.
 

Y2Kev

TLG Fan Caretaker Est. 2009
Suggesting the tv division could be focused on returning value to shareholders baffles me. There's no value there. Nobody would even want to be a shareholder except wackies.
 
I think it's quite telling that Daniel Loeb and Third Point LLC sold off their shares in the company except for a rumored %1 which was meant as a **** you to current management.

Here's the sequence of events. Daniel Loeb and his company Third Point LLC starts pushing for the Sony break up. Sony said it wouldn't happen and they rebuffed his efforts. Loeb sold his shares just before Sony projected their $1.1 Billion Dollar loss in April. A few weeks later when their yearly fiscal report was revealed they posted a loss much bigger than earlier projections. Obviously Loeb knows something is up at Sony and it's not good. Spinning off the entertainment division may be the only way to save the PlayStation brand, which also recently posted losses.

In Febraury Atul Goyal of Jeffries LLC (a global investment banking firm) said that Sony's only salvation would be an exit from the electronics industry.

For them, salvation is an exit from electronics,” (Atul) Goyal said in an interview last week with Bloomberg Television. “If there’s any buyer whatsoever in the electronics business -- and there might still be some today for TV and others -- get out now.

Here is a video interview with the man in question. (video) There is some bright news, but not much.

I personally feel that a stand alone PlayStation division could be a very powerful company. It would free the gaming brand from the encumbrance of it's parent company.
 

Woo-Fu

Banned
Sony's current and ongoing problem is that most consumer electronics have entered commodity status with commodity-sized margins. With consumers more educated than ever---thanks to the Internet---brand loyalty is deader than a doornail, the premium branding Sony used to rely upon no longer exists. Your brand is only as good as your current model in any given market. You either manage best in breed and can bump your margins a bit or you're stuck in the basement with every other vendor who didn't make it, fighting over scraps.

Most other large CE companies figured this out or quickly died. Sony struggled against it and/or outright ignored it for a very long time letting other divisions prop up the sagging CE group(s).

What I find most interesting is that this has all happened before in other industries. Plenty of case studies, plenty of success stories, plenty of roadmaps for transitioning from the old to the new. Sony ignored all of it for the longest of time. Look at your largest computer hardware companies. All of them have transitioned to primarily services/software instead of hardware or failed. They had to to survive, the margins on hardware just got too small.
 

James93

Member
Just another example of a eastern company still behind the times and running themselves in the ground.
Its sad since they have some divisions doing well, were others are being ran by idiots.
 

chaosblade

Unconfirmed Member
No offense but that's your problem. If the infrastructure is there and Sony can get a superior ROI then they'll ignore everyone who can't get on board.

Sacrificing entire markets, including the vast majority of North America, because the infrastructure isn't there is not likely to result in superior ROI. Steaming might be the future, but we aren't even close right now.

Not to mention the way the law is going in favor of ISPs, that is only going to further hinder Internet-based services.
 
How would this be beneficial? Just like in the days of Nintendo vs. Sega, competition forces both sides to be on top of their game or fail. Sony is forcing Microsoft to up their game, so as Microsoft forced Sony to up their game with the PS3.
They are essentially competing for the same audience/dollar (unlike Nintendo who has a bit if an overlap but a pretty different audience/dollar.) Hence they would make more money with less competition. Third parties save money with less consoles to develop for. Less competition allows for them to make less consumer friendly decisions that help the bottom line.

At the end of the day, if Sony and MS were one company developing one console, it would be better for that company. Better for consumers? Perhaps not. But better for that company? Absolutely. Especially if they are reasonable with their actions.
 

RoadHazard

Gold Member
Sell it to Apple.

I'd buy an Apple Playstation.

Oh, hell no. I shudder just thinking about what such a thing would cost. The PS4 is sold at a (rather small) loss, like most new consoles. Think Apple would ever do something like that? Hahaha, no. If they had been the ones making the PS4 it would probably cost like $800.
 
Oh, hell no. I shudder just thinking about what such a thing would cost. The PS4 is sold at a (rather small) loss, like most new consoles. Think Apple would ever do something like that? Hahaha, no. If they had been the ones making the PS4 it would probably cost like $800.

I dont mind, then it will be an actual powerful system.
 
At this point I WANT it to fail. I mean spidy needs to be returned to Marvel. No ans ifs or buts about it. IT HAS TO RETURN. Avengers is amazing already with what they have done... just get spider-man in there some how or even doesn't need to tie in just needs to be the Marvel studios hands and I will be content.

No thank you to a Marvel Spider-Man. The last thing we need is another flat Marvel movie.
 

RedAssedApe

Banned
outside of playstation sony just seems to do really stupid business things.

i know a decent amount of people who would buy their xperia phones...
 
Sony had Avengers sized expectations for The Amazing Spider-man 2 before it opened earlier this month.

From Variety:

Of all the studios in summer 2014’s battle of the superheroes, Sony Pictures, which backs “Spider-Man 2,” arguably has the most at stake. Chairman Michael Lynton and co-chair Amy Pascal need the latest installment of their web-slinging franchise to deliver outsized grosses to offset the studio’s substantial investment, and reverse a recent string of domestic duds that include “RoboCop” and “The Monuments Men.”

Aside from the necessary financial boost, Sony is desperate to lift morale at the studio, which has been reeling from an onslaught of layoffs and other cost-saving moves that have rattled nerves in Culver City and beyond.

Just how big does “Spider-Man 2,” directed by Marc Webb and starring Andrew Garfield and Emma Stone, need to be? Pascal, who declined to be interviewed, has set a goal of $1 billion worldwide, say sources.

Looks like the pressure is on 22 Jump Street to bail out SPE for the year.
 

Mooreberg

Member
My internet today is no faster than my internet was seven years ago.

A PS4 is radically faster than a PS3.

The glorious streaming future is still a long ways away.

My internet is slower now than it was nine years ago. FiOS seems to have gone nowhere in the US. I guess we can thank idiots paying $2,200 for 24GB of mobile data over two years for shifting Verizon's priorities.

I dont mind, then it will be an actual powerful system.
It would the same system at twice the price.
 

MaulerX

Member
It will be the first 1000 dollar console to hit the market and sell off of the name alone


Mac computers and Apple TV's beg to differ. Apple has yet to crack the home market. All their success has been mainly mobile and portable .
 

Kallor

Member
Why would Disney spend a "few billion" for a character that they already own and will probably get the movie rights back if more Spider-Man films bomb like The Amazing Spider-Man 2?

You're kidding right? Spiderman has brought in like 4 billion from the 5 movies alone, not counting what games and toys bring in (which apparently Sony already sold to Disney, SMFH) and the Spiderman character would massively bolster their Avengers films.

Spidey might be worth more than a few billion, really.
 
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