imo, they should target Capcom if they can. They have more IP worth compared to Konami at least. Square-Enix would be too big and expensive.
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Kaz Hirai details his plan to save Sony
- Thread starter Globox_82
- Start date
imo, they should target Capcom if they can. They have more IP worth compared to Konami at least. Square-Enix would be too big and expensive.
Admiral Bone to Pick
Banned
And that's probably not the best way to go about it. Sony needs a CEO like Carlos Ghosn, not someone who will continue to focus on unprofitable products.
In fact if Ghosn was brought on as CEO he'd probably put Sony into the black in like...2 years.
I don't think anyone is crazy enough to think Vita no matter how much it cost would sell 6-7 million units a month like iPad does. I mean it's already sold more than 115 million units I believe.
I'm talking about the consumer electronics business.
Their camera/imaging division is doing alright, they've probably been the most innovate division the last few years, and they hold a chunk of the CMOS market.
They brought Stringer in for this very reason. He was a foreigner who could close factories, cut products, and lay people off.
Wandering Leopard
Member
I really don't think they could get Capcom in any scenario. They should target From Software instead and maybe Platinum so they can absorb them into SCEJ who appear to be lacking in talent - apart from a couple of teams, compared to SCEE and especially SCEA.
I imagine it would be cheaper just to start building up new dev teams/studios from scratch.
The consumer side of the camera business was a million and a half down from q3 the year before. It's also common knowledge the point and shoot market is drying up. I'd get out now and focus on the pro camera market, as well as the medical imaging he was talking about.
Really????? No way imo and it would take a lot more time without any doubt. They need to bolster japanese portfolio rather quickly and the best way to do that is to buy a publisher.
zomgbbqftw
Banned
Yes, Capcom would be the best value purchase, if only to lock down MH as a first party IP. As to Square's value or market cap, well, let's wait until they release their quarterly statement, I expect it is going to look very bad after FFXIII-2 has bombed and their other IPs have also performed below average. If it plays out like that then Square could be in need of money and Sony should take a look because they will be able to lock up FF, DQ and KH as first party franchises.
Wandering Leopard
Member
I would agree that would be even better, but on the whole it's shocking how little SCEJ do to cater to their region with the genre of games they release and they definitely need to fix things.
D
Deleted member 80556
Unconfirmed Member
Good luck Hirai-san! I hope that all markets that Sony targets get more innovative because of them.
Also I hope that Kaz doesn't ignore incremental hardware improvements. And wow, I would love to see Sony tackle the medical field (specially because I love medicine!).
Also I hope that Kaz doesn't ignore incremental hardware improvements. And wow, I would love to see Sony tackle the medical field (specially because I love medicine!).
Japan isn't a country riping with young and new talent.
AranhaHunter
Banned
Why are people even suggesting that Sony should buy those companies? They just spent over $1 bil buying Ericsson's share out of their JV.
SE Market Cap is Y174.8B. Buying up the remainder of Square Enix would command a premium on their shares and cost more than double what they paid for Ericsson's, buying a majority share on that company would probably cost $1 bil. A very risky, unattractive buy for a company with a declining WW IP (FF) and really just one major, system selling IP in one region (DQ). They do not own the Kingdom Hearts IP. They own a rich amount of IPs that were system sellers at one point but are not right now such as Chrono, Tomb Raiders, Xenogears, etc
Capcom's market cap is Y110.5B. Buying up Capcom is also a costly and risky proposition that would cost more than buying Ericsson's shares. They have one major, system selling IP in one region (MH) and one major system selling IP WW (RE) and one major, but not really system selling IP WW* (SF). Good game series like Megaman, MvC, etc are not really system sellers.
Konami's market cap is Y279B. Needless to say, this is completely out of the question and not a smart buy at all. They have one major IP WW (MGS), one major, maybe still system selling IP in one region (PES/WE). Good game series like SH, Castlevania, etc are not really system sellers.
Really, I think these suggestions are ludicrous. If one would like to see Sony and Kaz turn around SCEJ, it would have to be through A) Building their own internal team and hiring talented people to work for them, and/or B) Buy up smaller, yet worthy developers. Gust was up for sale and would have been a good purchase, but Tecmo-Koei bought them up for Y2.2B. SCEJ probably never considered it but it would have been a good purchase. From Software and Game Arts are two that comes to mind. They are probably at the right price if someone is interested in snatching them up and they are both worthy developers that hold worthy IPs. Platinum games is another worthy purchase even if they don't own any real noteworthy IPs. Even Mistwalker would be good with Gooch there. L5 is probably too expensive and a risky investment like the 3 above.
I don't know if theresint any new talent but one thing is sure, if there's any, they dont show up.
Yeah, point and shoot is dead, but they are focusing on the higher end. In 2010 they introduced their NEX line and mirrorless Alpha series, which target the prosumer segment. Need to do a better job with lenses though.
Sensor business also gives them access to lower end via phones.
Really? Interesting, I don't know anything about the Japanese dev scene. That's actually surprising to hear.
Im glad the focus to unite sony devices under the same software is moving into effect(although slowly) and im hoping the absence of ps3 firmware updates has to do with the fact they are working on something big. Its great that he recognizes us gamers are extremely valuable and heres to hoping future hardware and software updates keep that in mind!
Reagan's BR
Banned
Saw this in the WSJ today. I wish him luck. Sony is trading at a 20 year low If I recall.
Really, he has it right though. Sony needs to focus on high end products. Sony is not a commodity electronics company. To be honest in some areas they could take notes from Apple as far as streamlining they way their products interact with each other. Actually, they should be/should have already been talking with Apple with the Apple TV looming in the distance.
Really, he has it right though. Sony needs to focus on high end products. Sony is not a commodity electronics company. To be honest in some areas they could take notes from Apple as far as streamlining they way their products interact with each other. Actually, they should be/should have already been talking with Apple with the Apple TV looming in the distance.
zomgbbqftw
Banned
They are also challenging Canon and Nikon with SLT cameras and they are extremely competitive in the mirrorless interchangeable lens compact. If it wasn't for the Thai flooding they would be market leader by a long way in all three sectors of it, beginner, amateur and pro with just three cameras.
It has truly been an awful year for Sony in terms of natural disasters, they were just getting back up to speed after the Tsunami and then the Thai flooding knocked them off course again and now the NEX-7 and NEX-5N are proving very difficult to find for most consumers outside Japan. Both of those cameras have won countless awards and come extremely highly rated. The NEX-7 was supposed to be out in November, but the flooding affected them so badly that it still hasn't rolled out fully and isn't expected to be properly in stock by the end of Feb. That's a lot of lost revenue and profits for Sony because they missed the most important buying season.
The other areas where Sony do well is movies (this is going to be a banner year for them, MIB3 and Amazing Spiderman are going to do absolutely mega figures, and Skyfall will destroy the winter competition) and people who want Sony to sell their most dependably profitable division are mad. They would be better off getting rid of the TV division than movies!
Sonys focus on the High End is exactly why they are in shambles. Its the belief that the Sony tag means anything to the majority of people that has caused them to decline so much. Outide of the 0.0005% of the population who gives a shit thats not enough to keep a mega corporation afloat. Sony needs to accept the fact that They are but one fish in a giant sea and find ways to differentiate themselves in a way that gets them lots of sales not just the sales of the audiophiles or the pixel counters.
Apple isnt high end either. They are masters at making their products appeal to a group of people and a master at making their products seem much better than they really are.
AranhaHunter
Banned
No KHs and FF is in major decline. SE stock would go up as Nintendo and MS (and possibly others) would get on a race to buy it up. Not worth it for just one system seller.
Sony bought Aiwa which were supposed to be their low end commodity product. They never did anything with it though.
Mr.Squirrel
Tom
If anyone can, the Kaz man can!
Out of the top 20 highest grossing movies in the US last year Sony had just one title in that list. One.
And do you know what it was? It was The Smurfs at no 19. While overall they still did well even though they didn't have any 'event movies' to speak of it's still a poor showing.
Slow down. MIB3 was a MASSIVE investment and nothing is guaranteed with this new Spiderman film. Also Sony are splitting the cost of this new Bond film with MGM unlike the previous two.
I'm not saying you're wrong. I'm just saying none of the movies above are in the same 'mega franchise' catergory as Bay's Transformer.
Too dissent voices can also be detrimental and boycott the leader actions. This isn't a democracy. Kaz has to have a clear focused vision for the Sony brand and implement it as fast as he can. One thing is for sure Sony 3-5 years from now will be very different than what it is right now.
Captain Tuttle
Member
I've heard it makes money. PRINTS money? I don't know. Have a reliable source?
Agreed, but Kaz had better changes things in a faster time frame than that.
I'm going to assume (hope) this is sarcasm.
The fact that it makes money at all right now automatically takes it off the kill list. Sony's got enough things on the list for now; Home isn't one of them.
AranhaHunter
Banned
I agree...for better or worse, it will be different than what it is now.
Captain Tuttle
Member
Why? Saying something "prints money" implies that it is extremely profitable. I'm just asking if that's true.
Agreed. I wasn't saying that they should shut down Home, just asking the poster to clarify "prints money". You're absolutely right, Sony needs all of the profit they can get. You can bet that Kaz is looking at the opportunity cost of every profitable venture though (at least I hope he is).
I would hope that Sony's prior CEOs did that as well. Otherwise, yes, that would be a key piece of information for determining why the company is as fucked up today as it is.
I honestly can't see how Sony can turn it around. They can't complete on the low end against the Koreans and the brand and products isn't strong enough on the high end despite they think otherwise.
They have a bunch of products in each segment across multiple segments that bleeds money and I can't see them aligning focus anytime soon regardless of who is in charge.
They don't have the war chest to compete with MS on the console side long term nor Apple on the consumer side. Medical equipment and a dying camera market. Lol good luck
They have a bunch of products in each segment across multiple segments that bleeds money and I can't see them aligning focus anytime soon regardless of who is in charge.
They don't have the war chest to compete with MS on the console side long term nor Apple on the consumer side. Medical equipment and a dying camera market. Lol good luck
I am one of the people that would like to compare this Sony period to the return of Steve Jobs to Apple in 1996. But the truth is that it's a completely different scenario. Sony is a behemoth of a company, with products and services spread all over from finance/insurance to music and movies industry to consumer electronics and medical equipment. The inertia to change in such a structure can be impossible to overcome. Kaz will have to decide ultimately what is the real meaning of the Sony brand? What areas are in the company best interest to keep? Kaz to have a "Steve Jobs return to Apple" scenario will have to cut not only the fat but also some muscle of the company. Make it manageable. That's why I think that Sony will be very different a few years from now.
The comparison falls apart when no matter how much one may like Kaz he is no Steve Jobs. No one in the tech industry today has his impeccable instinct on what consumers want and how to market it. Apple would not have turned around to become the biggest company in the world without Jobs. Sony doesn't have Jobs.
A big thing is Kaz worked his way up the corporate ladder. He is a Sony insider through and through. Jobs was kicked out of Apple over a decade before his return and within months of coming back he ousted the very CEO who hired him back. That ain't Kaz.
The problem with this scenario is the very real fact that Kaz is not Steve Jobs. Apple didn't become the way it is because it simply cut fat; it was because Jobs was a lightning rod for innovative, disruptive products. Kaz has, thus far anyway, not shown this skill.
They have already started this transition. Their mirrorless ILCs are the most well known and popular. The sales have been great and the market for these cameras is only set to grow. Over the last few years they have also made major advances with their alpha DSLRs, they are now third in that market behind Canon and Nikon and are rapidly closing the gap.
They also pretty much killed their cheap point and shoots, they are only offering pretty expensive ones nowadays and many less models than before.
Maybe it would be a good idea for Sony to scrap all its phone projects and concentrate on one: Sony Phone. It would be a PlayStation handheld (compatible with PS Suite and Vita titles), as well as a best-in-class Android device.
Alternatively, two phone: the Sony Phone and the PlayStation Phone.
Sony's problem has been expatiated for them by every pundit and armchair in the world: they spread themselves too thinly, period. Sony should be a V12 engine and not a Rube Goldberg.
Alternatively, two phone: the Sony Phone and the PlayStation Phone.
Sony's problem has been expatiated for them by every pundit and armchair in the world: they spread themselves too thinly, period. Sony should be a V12 engine and not a Rube Goldberg.
Ignis Fatuus
Banned
Dual analog on a phone for the mass market? It's a gamer's dream come true but sounds like a recipe for financial disaster.
100% agreed. But in the current scenario they don't have neither Steve Jobs or a more manageable company.
Well, you sort of set yourself up for those comments though by mentioning Jobs and Apple at all. If your focus was on cutting the company down to a manageable size, you could have said that without connecting it to that man and that company. It's really light years apart from Sony on too many dimensions.
I meant more that Kaz needs to streamline Sony product line and make it interconnected and consistent across the company.