The New York Times: One Crisis After Another

["Nerve-Damage"]

One Crisis After Another, but Sony Shares Keep Surging

Despite all this, Sony is, curiously, the land of the rising stock. If you look at the share performance of some of the biggest media companies over the last two years, — roughly since Mr. Stringer was named as the first non-Japanese head of Sony — you might be surprised to see Sony near the head of the pack.

Sony shares closed on Friday at $53.48 — up more than 45 percent over two years. It has performed far better than the Walt Disney Company, Time Warner and Comcast during that time. In that crowd, it is topped only by Rupert Murdoch’s News Corporation for appreciation in that period.

But launch delays, cost overruns and some so-so reviews for the PlayStation 3 have stung the company. With the roaring success of Nintendo’s new Wii console and the growth of Microsoft’s Xbox, the PS3 will end up capturing a smaller share of the games console market than the PS2 has commanded, Mr. McPeake estimates.

And Sony took a big gamble by building new Blu-Ray players into the PS3, which contributed to delays and higher prices. But while the high-definition DVD wars are far from over, it already seems impossible that Blu-Ray will go the way of the Betamax.

 

[epicstruggle]

side effect from nintendo's astronomical rise.

edit:to clarify the post. Investors are looking at how much cash (stock appreciation) is happening with Nintendo, that they assume at some point Sony will also have such growth.

 

[Farid]

to clarify the post. Investors are looking at how much cash (stock appreciation) is happening with Nintendo, that they assume at some point Sony will also have such growth.

Sony is not only a video game company, so I think there's more to it (CE, music, movie business), from inverstors' point of view, than a simple halo-effect created by Nintendo in the video game market.

 

[Kryton]

side effect from nintendo's astronomical rise.

edit:to clarify the post. Investors are looking at how much cash (stock appreciation) is happening with Nintendo, that they assume at some point Sony will also have such growth.

Yep. And, let's also remember investors aren't `rational' (no need to restart the debate).

 

[RobertR1]

Sony is not only a video game company, so I think there's more to it (CE, music, movie business), from inverstors' point of view, than a simple halo-effect created by Nintendo in the video game market.

Exactly. The only other thing I could add is if you swapped the sales volume of Nintendo and Sony, how much better would the stock be?

 

[Carl B]

That article is a little weak - it has all the info needed, but draws the wrong conclusions.

Investors care about future earnings, and Sony's earnings for fiscal 08 are on track to be much, much higher than previous years. So - the stock goes up. I think that's pretty basic; not sure what PS3 and Nintendo have to do with it. Gaming is relevant only insomuch as it plays into earnings, but just because gaming isn't doing all that hot, doesn't mean that the company as a whole isn't.

 

[patsu]

I just heard yesterday that Logitech, another star hardware performer, has drastically reorganized their structure. It came at a surprise to everyone. Previously they were structured around individual business units (They were kind of "forbidden" to share resources between units). Now they are consolidating into 1 giant business unit. Some VPs and Senior VPs were let go too.

Logitech's business units were probably too fine grained. I get the feeling that some of Sony's groups are too dispersed/disconnected too. I wonder what Sony has in mind for its hardware divisions and its unique challenges.

 

[Nesh]

Yep. And, let's also remember investors aren't `rational' (no need to restart the debate).

First of all if you are refering to my old post, the investor example was only brought only as just that. An example. Not a current observation or an often phenomenon.

Secondly I pointed out that in the examples mentioned people gain information and experience thus so they do behave rationally.

Thridly these examples were used only to transmit the idea

Lastly the discussion was not trying to point out an existing investor irrationality nor was it about Nintendo´s investors or anyone´s investors.

So please leave such remarks out if it was indirectly targeted to that past discussion

 

[kyleb]

I just heard yesterday that Logitech, another star hardware performer, has drastically reorganized their structure. It came at a surprise to everyone. Previously they were structured around individual business units (They were kind of "forbidden" to share resources between units). Now they are consolidating into 1 giant business unit.

Cool, sign me up for some Harmony game controllers.

 

[Cheezdoodles]

Yep. And, let's also remember investors aren't `rational' (no need to restart the debate).

They are statistically speaking, thats why finance works.

 

[Kryton]

First of all if you are refering to my old post, the investor example was only brought only as just that. An example. Not a current observation or an often phenomenon.

Secondly I pointed out that in the examples mentioned people gain information and experience thus so they do behave rationally.

Thridly these examples were used only to transmit the idea

Lastly the discussion was not trying to point out an existing investor irrationality nor was it about Nintendo´s investors or anyone´s investors.

So please leave such remarks out if it was indirectly targeted to that past discussion

Whoa!

I'm just saying please don't restart defining rational; investors are not (whatever definition you settle on).

 

[Nesh]

Whoa!

I'm just saying please don't restart defining rational; investors are not (whatever definition you settle on).

Exactly

Thast why I wouldnt because as I SAID at the above post already, it was, it is and will be irrelevant to the initial arguement which you remembered and decided to make an unnecessary post about it in this thread as if it was relevant.

I wanted to make it clear because it gives a wrong impression of me and my previous arguement. And the fact that you are telling me "please dont restart it" not only shows that you are indeed giving a wrong impression of me and that arguement, but it is also ironic towards me just for bringing it in this thread unnecessarilly