Microsoft buyout of ailing Sony possible

Despite having zero evidence of the article's/thread's title -- beyond Sony being in deep shit with the costs of the PS3 -- this is still an amusing article:

http://www.bonafidereviews.com/article.php?id=148

I like this part:

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PS3 production pricing at this point has been laid out to be anywhere from $850 - $956 per unit, meaning there will be a loss on each machine of approx $250 - $350 per console sold. If one million consoles sell in the first day of availability Sony will have wiped there entire fiscal gain for all of 2005 in under 24 hours.

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What a bunch of idiots. Microsoft isn't as big a company as half the internet thinks it is, and that "analysis" you quoted ignores the fact that all of the first party money in this industry is made in software licensing, except for Nintendo's.

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Sony has held the all mighty hardware thrown

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I hope everyone stopped reading the article right there.

Oh look he changed it, cute.

lol. Yeah, there are plenty of spelling mistakes. Hey, I did say the article was amusing.

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Originally Posted by Yoshi

What a bunch of idiots. Microsoft isn't as big a company as half the internet thinks it is, and that "analysis" you quoted ignores the fact that all of the first party money in this industry is made in software licensing, except for Nintendo's.

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No, it doesn't ignore that fact at all. Sony made like $580 million in 2005. He's just saying that could be soaked up in losses in the first 24 hours after launch at the projected pricing structure.

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Originally Posted by Compass

No, it doesn't ignore that fact at all. Sony made like $580 million in 2005. He's just saying that could be soaked up in losses in the first 24 hours after launch at the projected pricing structure.

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No, it couldn't, because they will be making money back with every game and Blu Ray movie sold during that 24 hour period too.

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Originally Posted by Yoshi

What a bunch of idiots. Microsoft isn't as big a company as half the internet thinks it is, and that "analysis" you quoted ignores the fact that all of the first party money in this industry is made in software licensing, except for Nintendo's.

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I dunno dude.

They're pretty fucking big.

MS Market Cap: 278b
Sony Market Cap: 47b
Wal-Mart: 191b
Exxon Mobil: 369b

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So this article is just a guy with no evidence or real knowledge of this material spouting off?

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He ignores one compelling piece of evidence - that Sony isn't the powerhouse they once were and are struggling mightily. Except for their games division, though. But yea.

Time paradox!

So this article is just a guy with no evidence or real knowledge of this material spouting off? It's nice to see the content match the layout and design of the site.

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Originally Posted by diffusionx

I dunno dude.

They're pretty fucking big.

MS Market Cap: 278b
Sony Market Cap: 47b
Wal-Mart: 191b
Exxon Mobil: 369b

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Yeah, it depends which metric you look at I suppose. There's no arguing with the market cap view.

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Originally Posted by Yoshi

No, it couldn't, because they will be making money back with every game and Blu Ray movie sold during that 24 hour period too.

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Well, of course they'll be making money in other areas. That goes without saying. But if they only made $580 million in 2005, without taking huge losses on hardware... it doesn't bode well.

If Sony only made $580 million in profit, as a corporation, in 2005, they are in deep shit whether they take a loss on the PS3 or not.

If we look at the technology companies within the Fortune 500, you get a different view (by revenue):

10. IBM ($91B)
11. HP ($86B)
25. Dell ($55B)
48. MS ($39B)
49. Intel ($38B)

MS isn't so big when compared to some of its competitors, is more where I was headed. I have no idea what Sony's annual revenue is.

MS doesn't compete with Dell or Intel or HP though. Sort of with IBM, but their main competitor is probably Sun, who was #211 on the list. Just saying.

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Originally Posted by diffusionx

MS doesn't compete with Dell or Intel or HP though. Sort of with IBM, but their main competitor is probably Sun, who was #211 on the list. Just saying.

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They compete with IBM and HP in the services sector (or at least they erroneously think they do), but I agree that Dell and Intel are not part of that equation.

PS3 To Single-Handedly Destroy Nation of Japan?

By: StriderKyo, Total Expert

It's hard to remember a time when Japan wasn't a country. Like England and Liberia, Japan has had a government, borders, and ground for decades now. But that may all be coming to a close, if recent internet speculation based on various conflicting and indefinite statements isn't wildly inaccurate.

According to industry sources, the Playstation 3, currently being made by Japanese people, will cost $900 at retail.

However, the actual cost of manufacturing the PS3 will be far higher.

Consider the components it contains:

• Blu Ray Player, $1000
• Wireless Connecshin: $100
• HDD: $300 (3x the size of 360's $100 drive)
• PS1: $50
• PS2: $150
• PS3: $500
• Controller: $50
• Wires & Cables & Stuff: $200 (if all Monster)
• 11 USB Ports: $15 each (Total: $165)
• Vents: Free, but drilling the holes an estimated $5 each. (Total:$350)
• Box, Styrofoam, plastic bags, plastic wrap with the bubbles that are fun to pop, instructshins, twist ties (black), staples to hold instructshins together: $25
• Mexican guy to write spainish version of instructshins: $5
• Demo disc: Not sure, usually $2 trade-in value at EB.

Add that together and you come out with an eye-popping industry-analyst-fiscal cost total of $2987.00, which is almost $5000 if you round up.

Video game scientists have said they expect PS3 to sell upwards of 120 million units. With the Japanese losing $4100 on each unit, that comes out to a total of $492,000,000,000 in losses.

In 1999, Japan's gross domestic product was $25,590. If we assume they have been very good and saved all their money since then (Japan is very strict), they have a total of $204,720.

THIS MEANS JAPAN'S LIFE SAVINGS COULD BE WIPED OUT IN A SINGLE DAY.

After selling all the PS3s, they'll have -$491,999,795,280, which is alot of money to owe. The logical assumption is the government will have to sell the country, probably to either Angola, Equitorial Guinea, or Microsoft.

Blu-ray, Cell and a self-destructive obsession with one upping Microsoft, might have possibly put Japan to rest... for good.

Stay tuned for the largest train wreck in country history. Comment on this article here.

stupid.

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Originally Posted by Joust Williams

stupid.

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Funny.

You're just bitter and jaded.

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Originally Posted by StriderKyo

Comment on this article here.

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FANTASTIC.

thats great news
Lionhead & now the entire country of Japan will now be working on the 360

And it'll still only have 100 units sold.

http://www.stampandshout.com/_gfx/_bst/_ex/bullshit.gif

Strider, that was so far beyond awesome. :)

Don't listen to the haters (Joust)

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Originally Posted by Korly

Don't listen to... Joust

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Confirmed.

Well I didn't realize he was going for the "Onion but much less clever" approach

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Originally Posted by Joust Williams

Well I didn't realize he was going for the "Onion but much less clever" approach

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Okay you try, Captain Hilarity. If you can top singing Carl Lewis wearing mascara I want to see it.

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Originally Posted by Joust Williams

Well I didn't realize he was going for the "Onion but much less clever" approach

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It was plenty clever! Stop hating.

No, that link doesn't even play a video for me. I'm sure that part is funny.

It really completes the piece, imo.

Strider, that was POTMFC. Post of the Mother Fucking Century.

:bs: What a bunch of crap