PdotMichael
Banned
Well, that phenomenon has with "conglomerate discount" even a name.
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TSE: Nintendo is now worth more than Sony Corp (Market Cap)
- Thread starter ggx2ac
- Start date
Well, that phenomenon has with "conglomerate discount" even a name.
chicken_pasta
Banned
I should've invested in some Nintendo stock. Fuck. Is it too late now?
They also have divisions that bleed money. Last I heard, only the financial and Playstation divisions were making any money. Pictures, consumer electronics, etc, they're all crap.
They also have divisions that bleed money. Last I heard, only the financial and Playstation divisions were making any money. Pictures, consumer electronics, etc, they're all crap.
killatopak
Member
I'm sure a new walkman would pull Sony up again.
/s
/s
Maybe they should name it the Zune
what
AcademicSaucer
Member
Is Sony still bleeding money from its other divisions? Movies, Tv's, phones, etc?
The PlayStation arm is one of the ones that many think should be spun off. Sony would likely be much more stable and have higher valuation if they stuck to banking and financial services.
SinCityAssassin
Member
Between mobile and Switch, I still think it's going to approach Nintendo's previous peak of Wii and DS. Maybe not quite that high, but close. It was at 70k then and is at 38k now. Say it reaches 55k max, then you're still looking at a 45% increase. So if you invest $1500 (and take away some $20 for costs) you'll earn about $646 in a year by doing nothing.
chrisPjelly
Member
Market cap is how much a company is worth to investors. Having a high market cap indicates that investors believe the company is on a growth trajectory. This is how a company with relatively low revenues can end up with a higher market cap. Investors see a bright future for Nintendo.
The simplicity of Nintendos business is currently a strength for them. Their IP has proven to be incredibly strong, and their hardware is in high demand. The Switch shortage is temporary, and the SNES mini will be a massive hit and priced to reflect its high demand. It's hard not to see Why investors are confident in Nintendo.
A Sony investment is less promising. Sure they've sold a lot of consoles, but margins are shrinking and their operating costs are higher. Not to mention segments of their business is struggling.
Got you.
Thanks for the explanation.
Never thought I would see the day lol.
I know Sony was the first to really go hard in on 4K so at least it's paying off for them.
I also expect their phone division to do better with the XZ premium.
Aren't they forecasting their biggest profits since 1998 or something like that?
Their mobile division was actually profitable last FY.
CaviarMeths
Member
Don't worry, investors. Sony brought Tom Rothman on board to save their failing film division.
Seriously though, Sony Pictures just seems to be a big drag on the whole operation. I'm sure investor confidence would see a pretty big surge if they just axed it. I don't think their TVs and phones are doing so hot either, but I doubt they're losing money. Playstation and Sony Financial of course are doing great, as always.
Pokemon consistently earns a billion a year with licensing and merchandise. Selling the IP for hundreds of millions would be an immensely severe undercut.
Seriously though, Sony Pictures just seems to be a big drag on the whole operation. I'm sure investor confidence would see a pretty big surge if they just axed it. I don't think their TVs and phones are doing so hot either, but I doubt they're losing money. Playstation and Sony Financial of course are doing great, as always.
Pokemon consistently earns a billion a year with licensing and merchandise. Selling the IP for hundreds of millions would be an immensely severe undercut.
oh yup lol
SinCityAssassin
Member
Are we talking the actual Xperia or their mobile games.
chicken_pasta
Banned
Thanks. Will look into this tomorrow.
PdotMichael
Banned
A large and "sluggish" conglomerate will always be less interesting for the kind of investors we are talking about.
Their mobile division.
None of their mobile games have even released yet.
Unless you're talking about that Fate game, but that's actually a part of the music division.
I even said it in the OP. Microsoft has like a ~$550B market cap. More than ten times Sony or Nintendo.
Shin
Banned
Jawbreaker
Member
ITT people don't understand the article and make absurd comments.
Jarod McChicken
Member
If we like money talk, let's compare more closely how both companies are doing.
FY2017
SONY
Sales : 68,8 billion dollars
Operating income : 2,5 billion dollars
Net income : 654 million dollars
PLAYSTATION
Sales : 14,7 billion dollars
Operating income : 1,2 billion dollars
Net income : ???
NINTENDO
Sales : 4,4 billion dollars
Operating income : 263 million dollars
Net income : 912 million dollars
Notice how the net income of Nintendo is curiously higher than the whole Sony despite sales and operating income being largely in favor of Kaz's house ? That's because for that fiscal year Nintendo got 64.5 billion yen as extraordinary income by selling the Seattle Mariners.
FY2017
SONY
Sales : 68,8 billion dollars
Operating income : 2,5 billion dollars
Net income : 654 million dollars
PLAYSTATION
Sales : 14,7 billion dollars
Operating income : 1,2 billion dollars
Net income : ???
NINTENDO
Sales : 4,4 billion dollars
Operating income : 263 million dollars
Net income : 912 million dollars
Notice how the net income of Nintendo is curiously higher than the whole Sony despite sales and operating income being largely in favor of Kaz's house ? That's because for that fiscal year Nintendo got 64.5 billion yen as extraordinary income by selling the Seattle Mariners.
People should stop applying American measurements to non-American companies, especially Japanese ones. Stock markets don't exactly serve the same function all over the world, and especially in Japan there is more to it than meets the eye. It's not a good indicator for anything.
Yeah... This is like high school basic business knowledge.
It's funny how many people here are shouting "but Sony's revenue is currently XXX times Nintendo's". Of course we know that, and you are effectively comparing Sony at its prime time (relatively speaking) vs Nintendo at its low towards the end of WiiU and 3DS. Stock prices are always about outlooks, not about last year's financial reports. The stock price rises when investors SPECULATE the company is getting better, such as Nintendo now with the positive outlook of the Switch. The most ridiculous response you could possibly have to this news is to pull out last FY's earning from Nintendo and Sony and scream "How on earth is this market cap BS possible???!!!!" as many people in this thread are currently doing.
Stock price always rises first, revenue may follow, which justifies the stock price; or it may not, leading a plunge of stock price. There's absolutely no point in comparing revenue/profit now. If you really want to compare revenue, compare Nintendo's now vs its own peak previously, because that's what the investors are hoping for now and using as benchmark.
Stock price always rises first, revenue may follow, which justifies the stock price; or it may not, leading a plunge of stock price. There's absolutely no point in comparing revenue/profit now. If you really want to compare revenue, compare Nintendo's now vs its own peak previously, because that's what the investors are hoping for now and using as benchmark.
SilverLunar
Member
This is good to hear, these are good products, I still see that they don't have a meaningful presence in the Americas, maybe they should have more effort in advertising there.
WeirdoStalkerJr
Member
Lol They have to have Marvel prop that piller for them. They would make more money if they went third party with their movie IPs or sold them all together. Hard truth
exactly, their software output is as good as ever right now.
No one cant say that for certain. But it's always better to invest when they are low.
Samanosuke Akechi
Member
Had no idea they had an ownership stake of the Mariners. Interesting. I wonder if there's a list of firms that has ownership of sports teams like this.
Shin
Banned
It was a good will gesture from the Yamauchi era of Nintendo for allowing Nintendo to do business in America. The Mariners were facing financial trouble so Yamauchi bought them which allowed them to stay in Seattle. Kind of impressive they held on to the Mariners for so long. Even after being sold off, the Mariners still thanked Nintendo for the things they did because they likely wouldn't be around at all today had they not stepped in.
Nice. Thanks man. Love reading these types of topics.
minkymuskyslyoldstoaty
Member
That's brilliant.
Mister Wolf
Member
Every gamer wants a Switch.
not suprising consider the amount of bloat Sony is carrying with them like the movies and TV department that most investors are telling them to sell it off that affect a huge part of their market value. While Nintendo on the other hand doesn't have any of those but strong IP, the company is pin point focus on games.
Sure, I wasn't trying to suggest Sony was a bad investment. Just why investors might be more interested in Nintendo.
I don't foresee much relative growth for Sony in the coming quarters, while I expect Nintendo to explode so long as they can manufacture enough hardware to meet demand- they are dabbling in mobile phone software, their home console is tapping into their handheld strengths, and people are willing to pay hundreds of dollars for mini classic systems, and they are charging for online. The next few years are going to be unreal for Nintendo profits.
Noisepurge
Member
They still sell all kinds of electronics like TVs, audio systems and Bluray players. And im not sure if this also covers Sony Pictures movie divisions etc.
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