SOE a negitive when Investing in Sony?

Neolivesftw · 12/29/2006 13:04:12

I was thinking of investing in Sony but I'd say that this division has turned me off. The market share is terrible, which reflects the poor service. Are there any informational packages that investor could be sent to assure them that SOE is a solid part of Sony Global and give me some confidence in my investment.

Skill

not really. as i understand it, you would have to buy an insane amount of shares to have any say in the way the company is run.
and I don't see how SOE being a solid part would give you confidence in your investment... They make most of their money from electronics probably (if not ps3)

Buhdai · 03/30/2007 12:02:14

I believe SoE is a privately held part of their movies division. I imagine you can invest in Sony but not neccesarily SoE.

edit: Oh, you are saying SoE is the weak link. Well, they surely don't make as much as their electronic division or even SCEA. I wouldn't think it would have very much to do with share price. I also disagree with any ideas that SoE is not doing a good job or has weak market share. They are still a major player in this budding industry.

RainKingX

Neolivesftw wrote:

I was thinking of investing in Sony but I'd say that this division has turned me off. The market share is terrible, which reflects the poor service. Are there any informational packages that investor could be sent to assure them that SOE is a solid part of Sony Global and give me some confidence in my investment.

Well, this is late. But, I would guess that most investors have no clue that SOE exists. Their last Annual Report barely mentions the entity. People know Spiderman and as long as there is growth in Sony Pictures, I doubt that SOE will come under scrutiny from investors...that is, except for the minority that actually experience their service.

**SolidRevolver**

Skill wrote:

They make most of their money from electronics probably (if not ps3)

Sony lose money for every PS3 sold, it is the games where they will make their money back.

RainKingX

20136098 wrote:

Skill wrote:
They make most of their money from electronics probably (if not ps3)

Sony lose money for every PS3 sold, it is the games where they will make their money back.

Price and Volume have increased significantly since the release of the PS3. BTW, the PS3 is a Blu-ray delivery system first. To which, they are banking.

phaydren

Acctually the ps3 is a multimedia games system that makes use of the larger capacity blu-ray disk to allow more detailed games to be developed and reduce or eliminate loading times.

Then its a blu-ray video delivery system SMILEY

This is pretty much the same as the ps2 launch, the console was a platform for a fledgling media type to find its feet, then set out on its own, it does help that the ps3 is the cheapest blu-ray player in europe for at least the next 2 years, with a saving of €300 over a standalone blu-ray player.

Sonys largest profits from its consoles were always from the games, thats where their banking their money, especialy since it still has quite a few exclusive titles left.
With games you have to buy the console, with a dedicated BR player you can shop around for the cheapest deal.

It just so happens that at the moment the ps3 is both, but as seen with dvd's it wont be that way forever, as soon as BR players drop in price anyone who just wants to watch HD movies can buy the player rather than the ps3, its the games that will see the console through once HD equipment prices start to fall.

RainKingX · 04/26/2007 21:24:27

phaydren wrote:

"Acctually the ps3 is a multimedia games system that makes use of the
larger capacity blu-ray disk to allow more detailed games to be
developed and reduce or eliminate loading times."
Then its a blu-ray video delivery system "

I disagree. The Blu-ray media has a much higher demand potential than PS3 gaming (per se). Keep in mind, Blu-ray machines exist outside of the PS3. Putting that tech in the PS3 allows Sony to kill two birds with one stone. Quicker penetration and a faster rate on ROI.

"This is pretty much the same as the ps2 launch, the console was a
platform for a fledgling media type to find its feet, then set out on
its own,"

Uh, no, the PS2 used DVD which was an uncontested (not counting Divx) standard 4 years before PS2s inception. Sony is trying to corner the Hi-Def media market through Blu-ray (its tech).

"it does help that the ps3 is the cheapest blu-ray player in
europe for at least the next 2 years, with a saving of €300 over a
standalone blu-ray player."

Wow, you can see the future. Remind me to call you when I trade next.

"Sonys largest profits from its
consoles were always from the games, thats where their banking their
money, especialy since it still has quite a few exclusive titles left.
With games you have to buy the console, with a dedicated BR player you can shop around for the cheapest deal."

Here's a little lesson in profit-making...

If someone says to you, "If you make this product, I guarantee you upfront, $.10 for every unit built whether you build it or not for as long as it is built" with the potential of selling 100 million units guaranteed and a operational profit of $5 per unit vs. "Invest two years and $2,000,000 and receive $20 per profit unit and 2 million units guaranteed" Which one do you pick?

The $.10 per unit (which I'm sure is higher for blu-ray) royalty alone is enough to say, "screw the rest". This is where the money is.

"It just so happens that at the moment the ps3 is both, but as seen with
dvd's it wont be that way forever, as soon as BR players drop in price
anyone who just wants to watch HD movies can buy the player rather than
the ps3, its the games that will see the console through once HD
equipment prices start to fall."

BR players are actually cheaper than the PS3 now that they've nixed the 20GB model.

RainKingX

Supposed loss of 64 cents a share. I blame MxO. LOL. Yeah, Yeah, I know. PS3. But, I'm sure SOE had something to do with that. hehe.