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Microsoft buyout of ailing Sony possible?
10 Apr 2006 05:47 | Silver360 | Industry News
Xbox360News.com | Link to this article

Like many of you, it’s hard for me to remember a time when the word "Playstation" was not synonymous with gaming. Sony has held the all mighty hardware throne for an astounding eleven years at the time of writing this. The same can be said for Nintendo’s 9 year reign with the NES and SNES from 1985 - 1994, and even more so with Atari’s 10 year reign ending with the collapse of the entire industry in 1981-1984. With that in mind, one must ask, is Sony placing to much faith in the Playstation moniker at this point or do they truly understand the business on such a level that the cat and mouse game they are playing with the PS3 and any information surrounding will ultimately pay off in the bolstering amount needed to save the ailing hardware giant.



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1 - good read
Unregistered - smarty pants 04.10.2006 07:56
great read, but it may not be true. I see Sony taking losses but not that much. The prices of PS1,PS2, PSP, was a shocker, and the PS3 will be the same. With other Blu-ray partners maybe the loss will be shared with Sony. Well time will tell us all.

2 - Sony is gonna flop
Unregistered - 04.10.2006 08:11
Good things always come to an end(Sony will FLOP)

3 -
Unregistered -   04.10.2006 08:15
Personally, I'd like to see Sony's failure. No, I'm not a 360 fanboy. I had both the PS2 and the XBox. I preferred the XBox controller, HDD, and general games, but I LOVED RATCHET AND CLANK!!

I'd like to see Sony's demise so that MS could eat 'em up and make the gaming industry one. Imagine being able to play ALL the games, not just the ones available for one specific platform. Plus, games should then be cheaper to create, as programmers would simply make THE GAME instead of making several versions of THE GAME. (I'm intentionally ignoring Nintendo, as such has hardly been a competitor until the Revolution comes out?? Ignoring Metroid and Zelda, it seemed most of Nintendo's line-up was always for kids. Soooo, 4 games from the Nintendo line-up worth anything??)

From what I have been reading, it seems like this is the Cold War all over again. Generation after generation, MS and Sony are trying to outspend the other. Well Sony, you are the USSR-equivalent. You think you can get by our Reagan-like Allard? History repeats itself. Stop while you can.

One thing to note... I never hacked the PS2. But, if the PS3 was $650+ and was easily hackable, then I'd be happy to invest initially and go on record that I'd never buy a game... hahaha. At $400, I'm happy to buy the 360 and buy the games for about $40 each. (Yes, that's what I pay for them, new and sealed.) :o)


4 -
Unregistered - fixxle 04.10.2006 08:25
Post this article here

" http://www.ps3today.com/ "


5 -
Unregistered -   04.10.2006 08:36
This is poster #3.

Sure, I understand that competition is a good thing. I just don't understand why these consoles have to go crazy with it. In the auto industry, I can buy ANY!! vehicle and put my golf clubs in it, then drive to the country club. In the computer industry, I can buy Intel or AMD, Dell or Toshiba, etc, and I can go out and buy any brand HDD and attach it and use it immediately. I can go out and buy any DVD player and buy any DVD and it'll play as it should (ignoring a few bugs here and there).

Why does the video game industry have to be different? Why does one have to buy all three consoles to play "any" game? It's ridiculous. And they wonder why piracy is so bad. I'm not going to "buy" a $300 XBox, a $300 PS2, and a $200 Gamecube just so I can play Halo, Ratchet and Clank, and Metroid Prime. Even if money was never an issue, I don't want the ugliness of 3 consoles under my $2000 TV in my nice $4000 living room. I don't want to have to use 3 different controllers of different sizes and different arrangements. Ridiculous!

And now the movie industry is doing it again?!?! HD-DVD vs Blu-Ray?! Come on! From what I have read, it seems certain studios are adopting only one of the standards. Well, screw it. I'm not buying both players so I can watch one movie from Universal and another from Disney.

Beta flopped! Laserdisc flopped! I guess I'll stick with DVD until either HD-DVD or Blu-Ray flops. You guys kill the industry! You'd have had me at hello had you just come out with a single format. I'd have been more than happy to spend $20 or so rebuying every movie I have. Instead, I may skip out on these technologies forever, until something comes along better in the future. Widescreen DVD isn't really that bad. I enjoy it just fine until I intentionally compare it to something on Discovery HD Theatre.


6 - SONY WILL BE IN TROUBLE
Unregistered - XBOX360 04.10.2006 08:37
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

7 - IT May Happen To Sony
Unregistered - Ric Hard 04.10.2006 09:41
Sony may fall just like any good boxer passed its prime. Sooner or later your going to loose the belt. But take a look at Nintendo. To me the last great system they had was the SNES and just like a Great Boxer {who don't know when to hang it up} has became a Journeyman in the sport. Nintendo should be like Sega and just make games because the end came years ago. But Sony will have a better fight than Nintendo. You see Sony just doesn't depend on Systems to make their money. Just like Microsoft they have other ways of making money. With HDTV,MP3 Players,DVD and Producing Music and Movies. They're a scary company to wrecken with. If Microsoft does win this fight and win the belt. Buying out Sony will never be a possibility because of the other revenue they bring in. Microsoft is loved by America and Europe. But just like The American Atari loosing the title to a Japanese contender Nintendo. Microsoft will have to when Japan over to break the circle of gaming systems or repeat history. So lets not paint a pretty picture yet because it could get real ugly quick.

8 - XBOX360
Unregistered - Devon Williams 04.10.2006 10:58

I really hopefully this news turn true and I alway want Microsoft buyout Sony in the future after PS3 finish before PS4. I rather Sony Playstation out of videogames market and run to games on XBOX 3. Also, I hopefully Microsoft buyout Nintendo and Sony become are third party. I would to like to see XBOX 3 one console videogame.


9 - #6... Cough
Unregistered - skooby 04.10.2006 11:07
#6... Your Caps lock is on... Hee hee

Anyway... I doubt MS would purchase Sony... In acquisitions liabilities would also transfer. Why would MS want Sony's liabilities?


10 - To # 8
Unregistered - Ric Hard 04.10.2006 11:35
What fun will it be to just have one console out there. That means whatever MS puts out there we have to except it. Magazines will be very boring to read and forums like this would not be made. I don't know about you but I like the variety of systems to choose from not just one. If it was like that than everything will be Pleasantville around here and thats sound boring to be a fanboy of one company. Companies keep each other on their toes and we get the best from them that way. Like EA sports, after awhile they are going to give the same old Madden every year because there is no NFL2k to challenge them. If that ever happens and Microsoft becomes that dominate then why should they continue making any other systems there is No Competition out there to push them. That sounds like fun Right? Wrong. I don't know about the world. But thats not the way America is run and if it did happen then I should look for a new country. God bless the USA

11 - This is Not News...
Unregistered - asdasd 04.10.2006 11:46
This is a news site, not a pure speculation/blog site. Whoever posted this article is an idoit.

Not a sony fan boy.. microsoft all the way, but I come here for news. Although this article says what I want to hear.. its not freaking news.


12 - I agree with the last poster
Unregistered - I agree with the last poster 04.10.2006 12:15
I heard osama bin laden is gonna buy the chicago bears too

13 - We know its Fiction
Unregistered - Ric Hard 04.10.2006 12:17
I think almost everybody on this forum knows that the Topic is a what if Question and not real.

14 - Much more is at stake.
Unregistered - TMoney 04.10.2006 12:24
Everyone should realize that "competition" is good. Without competition, a company can set arbitrary pricepoints and game release dates at their leisure. Since there is no threat from competing companies, the ultimate loser is the consumer. Thats you and me, boys and girls.
If people think that the 360 priced at $299-$399 is high, they should realize that MS is losing about $180-$200 per unit. And if Sony prices the PS3 at $599-$699, they will lose over $200 per unit. For these two companies, the stakes are high. This is all-out war.
Sony easily won the war against Sega because Sega didn't have the necessary resources to survive a protracted conflict (ie., they didn't have a warchest budget that could sustain them past three years from the launch of the Dreamcast).
However, Microsoft isn't Sega. MS is among the very few companies in the world that could afford to lose BILLIONS. Ironically, Sony may now be in the position that Sega was. How long would they be able to survive losing billions in a protracted conflict with MS? The real console war begins with these next-gen consoles. The ultimate loser in the console war may be irreparably damaged for years to come.


15 - to # 5
Unregistered - player 1 04.10.2006 12:29
the answer is very simple ,video game consoles are designed to take a profit loss on the hardware unlike cars or computers. The industry is very unique for that reason.

16 - #14 well said
Unregistered - Ric Hard 04.10.2006 12:33
I was just saying something similar to that earlier and I agree with everything you wrote. It was good reading.

17 - up^
Unregistered - Not a Sony fan. or a ms fanboy. 04.10.2006 12:39
sony always tries to run things, they want the world to accept their proprietary ways. umd? minidisc? memstick? playstation? blue ray? Van zant anyone? they always go for their "own way" and everything they do fails. they are a greedy company with poor managment, and billions in developing propriatary properties, and ultimatly its bankrupting them. they will cut their own throats, and fail. how can they afford to develop new technologies, and try to force the public to go "sony only" with everything they do? nobody wants to be told what to do, or what they can only buy. sure they try, but its never anything so breakthrough, or cost effective for that matter. they change the shape of a failed minidisc format and call it a umd!! C'MON! i like lots of products from lots of different companies, and i like choice. sony has no choice, and high prices!!!! they gouge terribly. @ least microsoft sells their os to mac users now!!!! they always have sold ms software in mac form, and they are rivals! sony is to stupid to realize the money is in common formats. besides nothing they have made is even remotely practical. "lets have a great big happy sony infested world, yea?" not! sony should stick to game development, oh wait, their games suck too! they cant even deliver good games to their own system. all the games even remotely cool (not that i care) are done outside their studios! Ms develops decent games, and notable franchises. mech assault, pgr, not to mention they parent other companies like rare, and bungie? i guess soon sony's spines will crack from the weight of their huge heads. dat my peaz.

18 -
Unregistered - player 1 04.10.2006 12:39
I'm an MS supporter but I doubt that they would buyout the actual entire company of sony, but just the console division seems more possible.

19 - I wish...
Unregistered - TMoney 04.10.2006 13:13
...there could be a happy medium where two or three consoles could exist in a market large enough to sustain them. However, the reality (at least currently)may be that the console market cannot support multiple consoles where everyone achieves profitability. As big as this market is and despite the growth, the enormous cost of manufacturing consoles and sustaining the infrastructure is so high that profitability would take decades (if at all) in the current three-way horserace (although Nintendo is only a viable presence in Japan than in the US/Canda/European market).
MS is no dummy. They see the HUGE potential profits of this market...not just in the gameing arena...but in the potential future convergence of home entertainment technologies. To MS, this is the market that they have tried to crack in one form or another for years (one example of a failed attempt: "WEBTV"). They can actually manufacture a convergence of entertainment technologies that would make them the biggest player in all areas of business and home entertainment.
Don't be fooled, the videogame market is EVERYTHING to MS and they don't plan on losing.


20 -
Unregistered - shotty 04.10.2006 13:36
I cant see MS buying out Sony. Its not that MS doesnt have enough money its because Sony is not in the best financial position, owning Sony is a burden on MS. I can see in the future MS owning Nintendo but never Sony. If Nintedo does partner up with MS it will be great all the great retro games will be on the marketplace, ppl with play Zelda, Mario and Pokemon in High Def. And MS will give Nintendo its much needed cash boost to make more first party games. And I agree sony is poor ethics, they all ways try to create a monopoly and create their own propriety formats but end up abandoning all of them and losing billions. They should also leave the computer manufacturing business cause thier computers are crap. I do admit though that their TVs and other A/V products are great but competitors like Samsung, Toshiba are starting to get sony nervous

21 - XBOX360
Unregistered - Devon Williams 04.10.2006 16:04

20# are you wrong, Microsoft has enough money to buyout Sony and Sony going to flop in the future.


22 - XBOX360
Unregistered - Devon Williams 04.10.2006 16:06

18#, no, They can buyout all full sony not console division.


23 - SONY ARE FAR FROM DEAD
Unregistered - jo 04.10.2006 16:06
IM A 360 fan but out of ten of my mates im the only one how will own a 360 thats like 10 to 1

but i reckon this race will be a lot closer then last time


24 -
Unregistered - LOL 04.10.2006 19:08
IF YOU CANT BEAT ´EM BUY ´EM

lol


25 -
PAUL CERULA 04.10.2006 22:34

This would only be possible if blu-ray failed. That simple. PS3 will continue to take the majority but the 360 will do a lot better this round. In all honesty I see the Rev. going down big time and going under. Imagine the interface of a duck hunt like gun, but only its a remote. You just can't do it, I'm open minded but this should of been an accessorie.





26 - I dont care
Mighty Boom 04.10.2006 23:26
I never was a fan of sony's playstation. I will however give the PS3 a fair chance.

27 - 25
Mighty Boom 04.10.2006 23:28
Give it a fair chance dude. Im looking forward to the revolution more than I am the ps3.

28 -
Unregistered -   04.11.2006 00:31
-----------------------------

Hmmm... a Sony world? I do like the idea of being able to buy a Sony-quality HDTV with built-in Media Center PC.

To #10, we're in it for the games, not the hardware systems. If it was only MS, they'd still be producing these bad ass systems. The difference would be that we'd get to play ALL the games, not just the ones that politics and conference rooms forged agreements for. In a MS-only world, we'd still have the 360, and we'd have 100+ games for it by now, 'cause the companies wouldn't have to waste time developing the same game for all three hardware groups. Instead, the same companies would be able to develop three times the games in the same amount of time... speculative.


29 - Sony has more money than "M$"
Unregistered - Microsoft 04.11.2006 01:21
First off... I own a 360 and I have no plans as of yet to buy a ps3. This article is just a bunch of speculation, and no matter how much I want sony to go down (DREAMCAST REVENGE!) it most likely will not happen.

Everyone lets realize something... Microsoft is, roughly, a 40 billion dollar company. Sony on the other hand is a 80 billion dollar company, with around 27 billion of that being their video game revnue. (Yahoo Finacance)

Believe it or not, microsoft techincally does not have deeper pockets here; their video game operating budget comes in a little behind sony's.

Its funny how so many people do not realize this, people are not buying xbox because microsoft "owns" everything. "Down with the man! BOOOO big coperations." If everything the said is true, they be playing graw with a little bit of oblivion on the side.

Fu@king awesome system the 360 is. Microsoft, after I applaud you.


30 -
Unregistered - Get it right! 04.11.2006 08:22
Here are the financial facts between the 2 companies.




http://www.techweb.com/wire/26804461


Sony Reports Fourth Quarter Loss

By TechWeb.com

Sony Corp. reported a net loss for the fourth quarter, reflecting the electronic giant's struggle to restructure its electronics business.

The Japanese company reported a net loss of $348.9 million for the fiscal quarter ended March 31, reflecting the high cost of severance packages and Sony's high investment in semiconductor research. For the full year, the company saw its net income drop 23 percent to $851 million.


The company's losses for the quarter, however, were better than the previous year, when Sony posted a fourth-quarter net loss of $1 billion, due primarily from poor electronic sales.


The high cost of the revamp of Sony's electronics business is reflected in its restructuring charges, which were $884.3 million and $1.5 billion for the fourth quarter and the fiscal year, respectively.


Sales and operating revenues for the quarter were up 7.1 percent to $17 billion, and 3 percent for the year to $68.5 billion.


Sony expects to finish the current fiscal year with a net income of $913.6 million, which is 13 percent higher than the last fiscal year.


"In the fiscal year ending March 31, 2005, we will work to concentrate management resources on growing businesses through initiatives such as proactive investment in key devices, including next-generation broadband microprocessors, and we will strive to bring value into the Sony Group and differentiate our products," Nobuyuki Idei, chairman and group chief executive for Sony, said.


Here is one for Microsoft!

http://www.forbes.com/finance/mktguideapps/compinfo/CompanyTearsheet.jhtml?tkr=MSFT
Microsoft
on the Forbes Global 2000 Software & services
RANK
55
2005: 47
Sales $41.36 bil
Profits $13.06 bil
Assets $67.26 bil
Market Value $279.02 bil
Employees 61,000


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