Sony's content platform and business strategy *spawn

May be, may be not. If I were their competition, I wouldn’t count on it until I have seen the production motherboard. ^_^
 
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Excellent presence already, so far from launch. Great move by Sony. This is an ad in EU.

https://twitter.com/Serum_Lake/status/338001347930632192
 
During the time frame of the Xbox One unveiling, Sony's stock rose by a huge 10%.
Well, it was certainly a dull hour for me and many others.

I was so hyped and then it was a boring conference in the end. But I am getting super excited at the prospect of the E3!

More and more rumours...

Sony had planned some kind of DRM for the PlayStation 4.

But after the internet's backlash and dispirited reaction related to the Xbox One DRM policies, they allegedly decided to dig it.

http://www.vg247.com/2013/05/27/sony-reconsidering-used-games-drm-following-xbox-one-reveal-rumour/
 
Okay just watched it all, and he's not exactly answering, he's just saying the board will review it, and avoiding repeated questions with "the board will review it". Interviewers didn't let him go easily. It seems like they're looking at it just by principle. He did say that the Entertainment business is very profitable and it's been very helping balancing the whole company during hard times. Said TV business now turning around and all that, went back into PR mode. That's a way of saying "thanks, but no. Why would we give up the most lucrative division which has always been helpful?".

This proposal sounds like a big pile of stock manipulation, but what do I know. Maybe I'd think it's a great idea if I were an investor ;)
 
I believe the issue is basically selling some assets or maybe brands which are under the electronics umbrella.

They are earmarking the sales at about 15 to 20% of the division I think.

The items that fall under the electronics section of Sony are things like TV, games, phones, digital imaging, and I think a few other things.

Hirai obviously didn't say whether or not it is happening, but he did reiterate that he wants Sony to 'focus their efforts' essentially on product lines or services that are giving a return (to paraphrase him).

He also seems to indicate Sony does indeed want to continue in the TV making business, but they want to refocus the TV business into a direction that isn't losing so much money.

Re: Hirai and the board members, along with the third party appraisers, will assess whether or not it is beneficial to cut their losses with some assets which are underperforming or aren't considered vital or necessary to keep... excess baggage in other words.

P.S. I am not remotely a finances expert. Just going off what I read here and there and the video from CNBC.
 
Anyone in finances can explain the logic of this proposal?

I don't understand venture capitalists, it's as if Microsoft shareholders would ask the Board to spin off Office or something. What's to gain for Sony here?

Shareholders don't want to have the gains from Sony's entertainment business to keep subsidizing the losses in their electronics business. So you sell off the entertainment business and shareholders can invest solely in that for better returns. Meanwhile, I guess Sony Corp. still has to focus on electronics?

It really makes no sense to me either. It just seems like a money grab more or less.
 
I think the idea is to cut or sell off parts of the business that make a loss.

Or spin off profitable parts of the business while still keeping ownership so that investors can trade shares for just that specific part of the company. Makes that part much more attractive for investment, but obviously makes the other parts less so, which is why it wouldnt be a no brainer decision.

Thats my guess anyway!
 
Yes, we've discussed several times before that the future of Sony is very likely to learn to see hardware, software and services are essential pieces of ONE puzzle. If they can't manage to get good synergies going from these three, then they may as well split everything up.

I also have a few general problems though - investors are only interested in maximising profit, not longevity. Taking a law firm, that typically has several sections in the company devoted to different types of work: tax-related, job-related, merger and acquisitions, etc. Depending on economic conditions, one of these can have a really bad couple of years and lose money, but then the other departments will do realy well, and vice versa. This allows a long and stable company, whereas investors probably prefer having stock in just the part that does well, and then sell everything when they see an economic shift and invest in the other.

I think Sony got the message a while ago - the current leadership does understand the modern market, and we're now just waiting to see if it works out in time. Tough decisions may still have to be made, but separating components makes as much sense as simply requiring them to be profitable or shutting them down/selling them off.
 
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