PS3 Release Doesn’t Help Sony’s Stock
November 20th, 2006 by George Lester-Pearson in News
It appears that neither the recent release of the PS3 or the new James Bond film, have helped Sony stock to rise up in value again. In the last few months Sony’s stocks have been steadily decreasing. Many might have expected the PS3 launch to push Sony’s stock prices right back up again, yet it appears that this has not been the case. Shares of Sony went down by 1 percent in value on the New York stock exchange this Monday. This recent bad news on Sony’s part has led to some concerns about the PS3 launch. Only 400,000 PS3 consoles were sold in North America due to supply shortages, which brings up the question of whether Sony’s quick sell out was due to demand, or simply short supply?
Apart from the struggles of the last few months it has actually been a pretty strong year for Sir Howard Stringer, CEO of Sony, who took over in June 2005.
Read (CNN Money)
Tags: News
November 21st, 2006 at 1:33 am
That’s because the analysts know an overpriced piece of glitzy tech crap when they see one and the fact that each console is costing Sony a substantial amount in the losses column. Maybe in a year or so the PS3 will actually be worth its price but for now I wouldn’t pay more than $300 for that console.
January 11th, 2007 at 10:10 am
Gaming is what keeps Sony alive and you really don’t know what you’re talking about Anuban. You’re cool and everything, but you should study the stock market and you’ll find that Microsoft and Sony are in the same corporate bracket as other Big Dogs in the world. Very similiar profits, but Sony has a higher per share value. Just this week, Sony’s stock jumped up 6%! If you don’t know what that means, it’s a tech stock and when they go up by that much it’s remarkable in a time techs are not exactly doing fabulously well. Right now, theyare a whole lot higher valued than Microsoft, which haven’t split for 3 years. Used to be they split almost yearly. And they haven’t seen what it looks like above 100$ share price for ages.
PS2 has been making money since 9months after it launched with a cr*ppy launch at that. Plus with over 12,000 games on market worldwide, their income from that alone has them in the Green despite PS3 launch costs. When the fiscal year ends in June, profits will expand at a rapid rate, triple “A” games will come even faster. Latest analysts reports say Sony will catch MS Xbox by the end of this year world wide. Then go on to 3Peat by another large margin!
That’s not me talking and with that report PS3 has a 5 to 1 ratio over X360 as the pick to win it all again. Like I’ve said before, for the most part, I like some of the games on X360 and will probably pick another one up after that “Error 71″ BRICK after the new 65nm chip comes out. Mass Effect and Bio Shock look excellent and I’ll always vouche for Unreal 3 games like Gears any time.
But the rest of Microsoft have no real new direction and they’ve chop Vista to hell. Their middle management needs to be dumped wholesale. They may be working on a new replacement for X360’s successor, but now they don’t have a proccessor, unless they just double up the tri-core. IBM after that little M$financed attempt to use SCO (Unix), backfired on them.
Don’t go thinking AMD either. AMD and IBM signed a non-competitive aggreement to with IBM as a partner and are sharing technologies. Like SOI and hypertransport. They are also working on that new Super Computer that will have half AMD chips and half Cell chips!
Last I heard rumoured was M$ with all options and doors closed by their greed and the fact they can’t be trusted, they were considering developing their own chip for their nexgen project (which is laughable). Intel won’t even talk to them unless they fork over big bucks and the other chip maker interested is Transmeta, which is also laughable.
Seems they’ve burned their bridges too many times and will eventually pay the price for that. I say it’s this time! The Xbox division has lost billions since it was first launched. And they have to make that back up before they’ll ever actually make a profit!
Just the stating the truth as I see it. That SCO indirect lawsuit against IBM was perhaps the stupidest thing they’ve ever done. Not that this is the first mistake either. Later! Have a good one!!!
January 11th, 2007 at 10:17 am
***Fiscal year ends 1st of April! Numerous mistakes, but I think you get the gist of it! It would be nice to have an editing feature in here. Gotta go! Running Late! Bye….
January 11th, 2007 at 10:27 am
I think you need to take a look at what I just posted in the Sony shares Emmy award thread before you go any farther … right now their next-gen console is DEFINITELY not what is keeping their profits aloat … and I am getting tired of all this talk of the PS2 … those days are over … we are in the next gen phase of the war now and SONY is losing badly … facts are facts. The stock jumped due to how well Sony’s other products are doing … not how poorly the PS3 is doing. Sony is losing way more money on the PS3 than MS ever did with the 360 and now they are hardly losing any money at all on each one so really I think you may need to do a bit more research before you come down on me. I won’t even go into your theories on rumors about a lack of direction for the future and this burning of bridges you are talking about. IBM will continue to work with MS on future consoles for as long as MS wants them to be included. They would be crazy not to. I’ll need to some real evidence for me to even begin to believe some of the wild things you have just stated.
And I have had my 360 since launch and know a bunch of other people who have as well and have had no problems. And again who is leading in sales … MS … so again time for you to face some harsh facts about who is winning this war and who will continue to win it for some time to come. You aren’t even taking into account the lack of enthusiam for blu-ray which is what Sony was really counting on to launch this thing into 1st place much like the DVD player did for the PS2. Again you are entitled to your theories and opinions and getting quotes from sources that support your arguments but when you look at the big picture you can clearly see the PS3 is not Sony’s salvation at all. At least not yet and I can’t see it happening as I always say and will continue to say unless they make some real changes and get some real games and stop losing exclusive titles and find a way to get more of the 360 titles onto their platform so they can attempt to show why those same games should be purchased for the PS3 instead of the 360. Sony has a long way to go while MS and Nintendo are already there.
January 11th, 2007 at 11:54 am
Since you brought up the Stock Market here are some facts … and understand first of all that Sony trades on the NYSE while Microsoft trades on the Nasdaq (and if you really knew anything about the markets you would know you can’t compare the two markets directly no.1 and no.2 the price of the stock is but one of many many indicators as to the overall health and power of a company … so I am going to do you a HUGE favor and show you why Sony is just not in Microsofts league and why MS doesn’t need to do stock splits anymore or have a higher stock price than Sony):
This is the latest news as of close of markets on Wed. the 10th
- Sony first:
45.78 -0.62 (-1.34%) (I don’t know where you got that 6 point jump stat from but it didn’t last long)
Previous Close Open Volume 30-Day Avg Vol
46.40 45.65 826,200 1,119,000
on 1/9/07 on 1/10/07 on NYSE on NYSE
Prev. Close vs. Open: -0.75 (-1.62%) Current vs. Avg: -292,800 (-26.17%)
Day Low Day High Shares Outstanding
45.38 45.95 1,001,259,000
1/10/07 1/10/07
Intra-day Spread: 0.57 % of Total Shares Traded Today: +0.08%
52-Week Low 52-Week High Market Capitalization
37.24 52.29 45,837,637,020
10/10/06 4/26/06
52-Week Range: 15.05 Change Today: -620,780,580
Now for the real heavyweight - Microsoft:
29.66 -0.30 (-1.00%)
Quote Data for MSFT Provided by ComStock
Previous Close Open Volume 30-Day Avg Vol
29.96 29.80 55,048,885 55,543,000
on 1/9/07 on 1/10/07 on NASDAQ on NASDAQ
Prev. Close vs. Open: -0.16 (-0.53%) Current vs. Avg: -494,115 (-0.89%)
Day Low Day High Shares Outstanding
29.43 29.89 9,830,460,000
1/10/07 1/10/07
Intra-day Spread: 0.46 % of Total Shares Traded Today: +0.56%
52-Week Low 52-Week High Market Capitalization
21.45 30.26 291,571,443,600
6/13/06 12/18/06
52-Week Range: 8.81 Change Today: -2,949,138,000
Now if you really understand the market as you claim to by bringing it up in the first place you should be looking at these key things:
1) MS had a better day
2) Volume of outstanding shares
3) Market Cap
4) Percentage of total share traded (means much more activity)
5) 52 week low and high and the range which shows stability as well as MS ability to stay close to it’s high and not be many points like Sony
6) Better close vs open numbers
And these numbers as well:
Sony -
2006 Sales: 1 Yr. Sales Growth: 2006 Net Income:
+63,541,200,000 -4.60% +1,050,700,000 2006 Employees: 158500
Micorsoft -
2006 Sales: 1 Yr. Sales Growth: 2006 Net Income:
+44,282,000,000 +11.30% +12,599,000,000 2006 Employees: 71000
I think this definitively shows who is the better company and with less people … so again am I worried about MS … not at all. Should you be worried about Sony? Absolutely yes. Look at those sales number relative to Net income … there is a problem … no one can get around that issue … and part of that is the enormous cost and resulting failure of the PS3.
January 11th, 2007 at 12:01 pm
Sorry if it is a bit hard to read (it didn’t look like that when I was done editing it) but I am sure you can make it all out … if not ask me and I will be more than happy to explain any or all of it.
January 11th, 2007 at 3:12 pm
No problem reading it, but you are leaving the whole rest of the world out of the picture. Americans may believe we are the only ones in the world who have money and a Stock Exchange!
The truth is and this may hurt, there are 28 Stock Exchanges around the world. The New York Stock Exchange isn’t even the largest!!!
Normally the best Stock Exchange to go to for information, is the one in the country where that companies headquarters reside. In this case, Japan or at least Hong Kong!
The one you chose only reflects shares exchanged out of New York! Many Multinationals are headquartered in Tokyo and though they are all connected in some way, and are traded around the world, the tendency is to support the economy of the residing country. Sony is Japanese or if you prefer namywa Niponese desu. Arigato! It’s why Microsoft Xbox doesn’t have a chance in hell of cracking that market. *Fact=No game console has ever won the console war without taking Japan* The Niponese tend to buy Niponese, that’s a fact of doing world business!
I can’t remember the last time I made a bad call in buying a product I have spent so much time in researching. Pretty easy really if you take a look around and really read what these investment firms and research labs spend in time and money on developing these reports. Out of 6 proffessionally developed papers on the subject, only Forbes has said the Xbox 360 will win the nexgen console war.
*** And they are heavily invested in by Microsoft!!!***
All the others have placed Sony PS3 to do it again, for a 3Peat! That’s not me as a fanboy. That’s just the facts. I choose to take the side of that 5 to 1 ratio over anyone else who says otherwise. That’s what a smart man does, he doesn’t pick the team in his home town to go to the super bowl out of fan loyalty.
YOU DON’T EVEN OWN ONE! YOU can’t possibly know what they’re like up close and personal from 10 minutes on a Kiosk. I can tell you what it’s like having one and I can tell you what it’s like having two X360’s cook themselves or flash you that “Error 71″ telling you they are dead, gone, bricked, never to play again.
MS only had a 90 day warranty on X360’s till both Nintendo Wii and Sony PS3 appeared on the market with 1 year warrantees. Then over 1year after launch M$ annouce they’ve extended the warranty to 1year. Lot of good that does now! After recording the worst defective and bricking rate in the history of gaming. That they as yet have not fixed.
They are flat out NOT a hardware manufacturer to begin with. Now you go listen to these sites talking costs and think M$ is making a profit. They are, but not one dime has been made in the gaming division since it’s inception. You forget to include the marketing, packaging, money to pay those high faluting managers their high salaries, those 60,000+ employees, etc!
Fiscal quarter ends March 31. Microsoft themselves have reported losses in that division the last 3 quarters. Come that date, they will report a loss of over 1 billion dollars for the year in that division and you can mark my words on that. Last year it was way over a billion in losses due to launch! For the life of the console and games division 4 billion lost, not including anything to do with the Xbox 360 only Xbox!!!
http://www.joystiq.com/2005/09/26/forbes-xbox-lost-microsoft-4-billion-and-counting/
What I say about it? Well the PS3 is the best BluRay player on the market, regardless of price. Loads faster and puts out an exceptional picture at a full TRUE 1080P (not upconverted like cheaper HD-DVD players are doing or are having the TV do! Yes the HD-DVD disks are capable of 1080P, but these low priced players to date haven’t been able to meet the specs, so output at 720P. I know, cuz my neighbor has the Toshiba and you can go to their site!!!
I’ve got over 50 PS2 games and I have had no problems playing any of them on my PS3. I’ve bought 6 movies that play excellent. I have the games Resistance, Fight Night, NBA 2k7, Japanese Motorstorm, Madden Football and Genji. All play wonderfully! I downloaded all the demos and free games to the tune of over 15 gigs alone, including Tekken 5 Arcade 145HK $ (15$ U.S.).
I haven’t had a BSOD, an error, or freezeup, no problems whatsoever and I am rough on equiptment. It gets used by friends, family and neighbors daily. I surf the web in it’s browser and present movies and slideshows streamed from my computer to the PS3. The Cell in those Slideshows runs with facial recognition zoom and scan, even my high priced computer can’t do that.
I have Linux installed, and I’m connected to Folding@Home project, using my PS3 to help solve cancer when not in use in Linux. Stanford University is working with Sony to have a Client installed like a game for this. It will harness the full near 2 teraflops of computational power of the Cell and RSX combined for Folding@Home.
Terrasoft who wrote my Yellow Dog Linux have a HPC Cluster of all the PS3 returned Dev Kits (over 2000). They are building a massive Super Computing HPC Cluster in Colorado. It is expected to be the first HPC Cluster (high performance computing cluster) to push past the petaflop barrier. That’s computing power!
Petaflop = 1 Quadrillion Computations per Second! The Stanford University PS3 project will, with enough of the millions of PS3’s sold, push out 20+ Petaflops in no time to help save people from cancer. That’s way over 1000 times more powerful than Folding has right now.
And you have the nerve to call it a failure and it hasn’t even got on the main highway yet. That (and I’m Not going to insult you) Sir is not only absurd, but a completely ignorant statement. I have not heard anything that bad in many years. And you don’t hear me or anyone else ever say the X360 is a failure even at this same time last year. That’s an insult, because you are saying something that is so outrageouly far from the truth it makes me sick and lose the respect I was gaining for you.
That’s the kind of talk that completely discredits anything you have to say. That’s fanboyism mentality with a capital “F”! A Fanboy to the 10th degree!
Pull the blinders off and “Wake Up Mister Freeman”! That’s not an accusation, or point of view, that’s the simple truth. You either refuse to see or worse, are incapable of fathoming this! Enough, I’m done. I have better things to do. Later!
January 11th, 2007 at 11:39 pm
All I know is regardless of what you want to think the NYSE and the Nasdaq are the most watched and respected of all the markets and they set the pace. And you can’t dispute any of those numbers I posted which shows Sony is not in MS league and can’t even make money these days. Sorry if your anger gets the best of you and you can’t see the truth yourself. And I am not worried about the 360 cracking the japanese market at all … they probably won’t … no biggie … it is the world market that is the big prize anyway and again they are the leaders atm … no disputing that. I’ll leave the Wii and the PS3 to battle for dominance on their home soil. And as revered as the Nikkei is sorry but the NYSE is just held in overall higher esteem aroud the world.
So far the PS3 is a failure plain and simple … it has FAILED to live up to anything that Sony counted on and continues to look pretty bad in comparison to BOTH of its competitors. A long post feeling with lots of meaningless fanboy like statements can’t save Sony so believe what you want to. I posted some real numbers and many more facts around here to back up what I am saying and again none of those can be disputed unlike half of the stuff you are saying.
I just think it best we stop here since you are getting to edgy about this whole thing. You want to think Sony is doing well … fine … but the numbers don’t bear out what you saying plain and simple … beyond that I have nothing more to say to you on this matter. Just have your facts in better order next time and try not to lose your cool. And again fanboys don’t admit to eventually planning on buying the competitors product … I will have all three consoles (already have two) by the end of the year and I hope that Sony does indeed have some really cool games and blu-ray has made some steps forward … it will only benefit me. But as I see it and as ALL the hard evidence to date points towards they are in a losing battle. Only time will tell … not rants … if they can turn it around. peace man … and calm down please. You don’t want to be seen another fanatic fanboy do you?
January 12th, 2007 at 1:35 am
The World is what you make it. And if you want to somehow distort the truth to support you point of view, that can be done with anything. I can just about guarantee you that if you go west, you will not fall off the earth. Microsoft and Sony will still be battling it out in 10 years. They are both in the top 10 of the world wide stock indexs. You pay quite abit more for Sony stock, but that’s a non-issue.
Never in the history of World Trade has one of those Top 10 fallen off the earth either. Contrary to what you and others might wish. PS3 will still be here making you angry they proved you wrong.
In that post I read lots of Double Speak and you’ve proved nothing but your lack of understanding in the matters of the world economy. Both Europe and Japan have tended to be Sony strongholds. In just a few weeks we will see just how right or wrong both of us are. I plan to be in London for the launch. Within a month of that launch, we will know how big the losses are for both companies how big the profits are for Nintendo. We will also have a better idea of just how well the PS3 is doing.
In that report, if you read it, the X360 is slated to take the U.S. market this year. But by the same token, PS3 is slated as closing the gap by year’s end and taking the lead the following year. Then go on to a 3Peat by 2010. Even if you had money to blow, if you took a chance in Vegas and put it on PS3 to fail (not just come in second or third even), you would lose plain n simple. Because even in the remote chance that, Sony loses both Japan and Europe and falls to second or third in the console wars, does not make it a failure by any stretch of the imagination. That’s the point I was trying to get accross to you. In one year, two years, three years, if they are no longer selling the PS3, then you can say it failed. But now, is way too early and is a lot like me saying the X360 or Wii are failures now. Simply not true!
No I wasn’t losing it and one thing about me is I never do in real life. I just take things with a grain of salt and live another day. I live a pretty spoiled life and always have. That’s not bragging, I’ve been lucky to lead the life I do. If I want something, I can go buy it. It would be nice if everyone could do that. But I’ve worked hard as well. I hope since you say you are in school still, are putting that time into having as viable of a future as I have had a in the past. But on some things I hope you eventually mature on and learn that you are not the center of the universe, only your own world. You are not God can not dictate who’s a failure and who’s not.
Go in Peace My Child and Sin No More! You’re forgiven for your deceitful twisted ways.
BTW: Do you have Vista or not? If you have a key from beta like me and read the links I put in for you. The Vista image is available in torrent download. Because it is now optomized to simply install that image, takes less than 15 minutes.