Sony to possibly leave console market

[jigga]

Wednesday
Sony may be ever so quietly exiting the console race according to some recently released financial data. ( Raw financial data often more than not is a primary indicator, long before mainstream media gets the news, of a company's projected road map. )

According to recent reports TOKYO (Nikkei)--Sony Corp. (6758.TO) shares have fallen 26% since hitting a year-to-date high in late May, as investors have become wary of the company's inward-looking business stance, The Nikkei Financial Daily reported in its Wednesday edition.

Sony's stock ended lower Tuesday, with reports that it plans to sell a
cutting-edge chipmaking facility to Toshiba Corp. (6502.TO) as early as next spring failing to impress investors.

According to news reports, Sony plans to sell manufacturing lines that make the Cell processor to Toshiba for slightly less than Y100 billion. The move follows Sony's announcement last year that it intends to reduce spending on the next-generation chip to succeed the Cell, which is used in Sony Computer Entertainment Inc.'s PlayStation 3 video game console. Under a strategy of selectively consolidating its semiconductor operations,Sony plans to beef up its image sensor business while jettisoning the Cell.

"All we've heard from Sony recently are plans to quit something," said Eiichi Katayama, an analyst at Nomura Securities Co. "The company hasn't presented us with any new growth strategies."

What does all this mean in English?

It means that Sony for some reason or another will be selling the manufacturing lines that make the cell chip. However the biggest nugget of information to take away from this post is that Sony is now reducing its spending on the "next generation chip that will succeed the Cell presumably for Playstation 4. With the added competition that Sony now has in Microsoft and Nintendo, the last thing in world Sony would want to do is be technologically behind it competitors on the next hardware cycle unless planning to bow out of the hardware race.

Sony may be looking to pull a Sega and go multi-platform software only.

Is this the first signs that the Playstation Brand is on its way out? Only time will tell for sure.

http://www.hdgamenews.com/2007/09/pl...y-exiting.html


if this is true, sony lost.

[Grahf16]

I don't think so. Sony really isn't developing the chip. IIRC, it's IBM.

Also being "behind" technology wise doesn't automatically equate to being behind the race. They say the PS3 is the most powerful, then comes the 360, and finally the Wii. And who is winning the console war (according to sales)?: The Wii, the 360, and finally the PS3. Sony's gaming division makes them a shitload of money, I doubt they are going to make them leave. Sony leaving the gaming division is like Microsoft not making Operating Systems anymore.

[Son Of LA]

sony should leave phone business..
nokia>ericson
they are OK phones nowdays,but when they were still "kinda new" to it few years ago,theyr phone sucked and were really weird

[kharmon]

Trust this guy to make a thread like this, hating on sony anyway he can.

But first sony was known for there eletronic products (TVs, walkmans,phones) but now when ever you mention sony, people think directly about the playstation. So sony dropping there gaming division is like SE dropping FF, no company drops there cash cow.

[Son Of LA]

somehow im guessing on 1st page or when it reaches 2nd page,this thread is turned into "lets hate microsoft"

just watch it happen

IMO sony can do consoles,tv`s,mp3`s and what ever but leave the phone business

[kharmon]

The new sony ericson is a pretty nice phone, but nokia own the phone industry by the nuts.

[jigga]

Originally Posted by kharmon

Trust this guy to make a thread like this, hating on sony anyway he can.

But first sony was known for there eletronic products (TVs, walkmans,phones) but now when ever you mention sony, people think directly about the playstation. So sony dropping there gaming division is like SE dropping FF, no company drops there cash cow.

yea, you clearly are an idiot, because I posted a website source dumbass.. you think I just made all this up ? dumb kids these days. You of course, are a Sony fanboy, therefore you start crying when you read it.

u = and

[Grahf16]

yea, you clearly are an idiot, because I posted a website source dumbass.. you think I just made all this up ? dumb kids these days. You of course, are a Sony fanboy, therefore you start crying when you read it.

I'm not touching that.

I think if Sony leaves ANY industry, then it should be the PC industry, and the portable music industry. Their Vaios suck so much fucking ass, and the fact that they are overpriced too, makes me think they should just pull the plug on those. I think they should leave the portable MP3 market simply because Apple has that industry by the nuts for real.

Edit: Oh yeah, they should also leave the Car Audio industry too.

[Son Of LA]

[jigga]

Originally Posted by Grahf16

I'm not touching that.

I think if Sony leaves ANY industry, then it should be the PC industry, and the portable music industry. Their Vaios suck so much fucking ass, and the fact that they are overpriced too, makes me think they should just pull the plug on those. I think they should leave the portable MP3 market simply because Apple has that industry by the nuts for real.

Edit: Oh yeah, they should also leave the Car Audio industry too.

There car speakers and subwoofers are soooo SHIT!! its not even funny, there amps are bad too.