Microsoft Buyout of Ailing Sony Possible
imashoe writes "BonaFideReviews has published an interesting article stating that a Microsoft buyout of Sony is quite possible sometime in the not-so-far future. From the article: 'All this added up, you have to ask yourself. Will the next Playstation you purchase post-PS3 run a Microsoft operating system and have backwards compatibility for PS1 PS2 PS3 Xbox and Xbox360? Putting your rabid love for Sony aside, this doesn't seem as far fetched as it once did, when the Sony name wasn't covered in enough red tape to fill the Grand Canyon.'"
Idiots! Get your idioms straight. Are the slashdot idiotors native English speakers?
It's not offtopic, dumbass. It's orthogonal.
Or is that different on Saturdays? Hmm.
My photolog
From the article: Stay tuned for the largest train wreck in console history.
Seems like he's really positive on the idea.
-Grey
Silver Clipboard: Time Management Tips
This would be a major anti-trust issue. Then Microsoft would own almost the entire console market.
It's true nintendo is around... but it is such a small share holder in the industry.
If Nintendo's "Revoltion" does well, this could happen, if not, i doubt it.
Firstly, Sony makes more products than the PSP. In case you didn't know that.
Secondly, why do we all have a "rabid hate" for Sony? They make excellent midrange CD players, for instance. I have an actual Walkman from back in the day, which still works.
The "news" slant would be something like "Wow, this article says that MS might by Sony".
Apparently the "accept trollish submission text" method is what we have here.
I want to delete my account but Slashdot doesn't allow it.
If MS bought out Sony, the rootkits could become undetectable just like the current US gov ones built into Windows ;)
liqbase
Does anyone at Microsoft know anything at all about running a consumer electronics company? Okay, they've tried to enter the field in a very narrow area with X-Box but does anyone seriously think that gives them the experience they'd need? This sounds like insanity. They have enough problems in their own markets.
Sony has held the all mighty hardware thrown for an astounding eleven years at the time of writing this.
I'm sorry, but with an error like that in the second sentence, I'm guessing the author is not an informed source and likely not an authority on predicting future console market trends.
Up, Up, Down, Down, Left, Right, Left, Right, B, A, START
Acquisition isn't typically the way Microsoft operates. They prefer to license the key pieces of technology that they want, and they only do that when they think they won't get away with simply copying them.
GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
They make all kinds of stuff, including this new handheld digital recording gizmo our department bought for doing ethnographic interviews. It is totally fly and it fills a niche (midrange price/high quality) that we couldn't do otherwise because its competing devices are 10 grand.
If M$ buys the console part of Sony, so be it. But I doubt that even Microsoft can absorb something as big as Sony. Sure, they may have the cash on hand, but that is a really, really large operation.
Comparing it to Windows will be a moot point, since El Dorado is going to have a 40% larger code base than XP.
In my humble opinion, Microsoft won't be continuing the PlayStation gaming console and the Xbox if they acquire Sony. It makes more sense to combine the merits of both consoles into one that combines the market share to put a serious force against Nintendo. If Microsoft were to buy out Sony, I see a lot of change happening. The Sony VAIO laptop and desktop computer lines would likely be spun off into a different company like IBM did. The Sony name could be used to sell a competitor of the iPod that runs some portable Windows CE-like OS. Sony's music and movie division would be great for helping Microsoft kill Apple's iTunes. Direct control over the label allows Microsoft to charge whatever they want (even free like with Internet Explorer, which would effectively kill iTunes.) I see the buyout of Sony a great move for Microsoft, provided they spin-off some things that aren't pertinent to boosting the value of the shares for us stockholders.
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Evil + Eviler = Evilest evil ever to do evil??
So Microsoft are going to buy Sony, which includes Televisions, DVD Players, Walkmans, their music label, their film label, PlayStation...
Even if this was true, I expect a purchase would be blocked by one or more governments.
Summation 2
The problem is that SONY isn't a software company, or a media company - they are a hardware (electronic device) company. They have alienated a lot of their customers with DRM crap and content controlls and have lost a lot of hardware sales because of it. So now the hardware side of the business is getting weaker, but the content side is getting stronger. Because of that, they will almost certinly impose more DRM crap, piss off more customers, kill more hardware sales and feed a vicious cycle that could kill the whole company.
Just don't. You will want your five minutes back. You were warned.
There are two kinds of people: 1) those who start arrays with one and 1) those who start them with zero.
An example of how they could get a clue and repair some of the damage they've done to their reputation. A slashdot article a week or so back suggested UMD (for Video) might be on its last legs. This would be a defeat for Sony but they can gain a lot of kudos and a lot sales if they did something when it went bye-bye. That thing is simple - uncripple the PSP. The PSP is already excellent at playing movies, but uncripple it so rippers can use the full display resolution. For extra points Sony could give away something akin to iTunes that helps people rip / convert music & clips but also buy titles online.
Apple has lots of cash too, but I doubt you'll be seing anyone buying/merging with Sony at all.
1st it's a Japanese company, and I don't see those guys allowing Americans to come in and wreck their management structure. Second, years of losses does not necessarily equate to going under. Sony is a powerhouse consumer electronics giant that is arguably the leader in the field. GM has been posting record losses lately as well, but do you really think that anyone could buy GM?
Yes, Sony does have to get those Playstations out the door this year. And when they do, it will be an incredible success regardless of costing $150 more than a stripped down Xbox360. Sony has way too much mindshare out there and tons of fans waiting to buy the machines. Once the PS3 goes out the door the videogames get sold to those rabid fans and thats how Sony makes their money. Oh yeah
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Sony has an enormous cultural hurdle to overcome for any buyer. Just ask the guys at BMG who get told to effectively mind their own business on the record label side of things. Having the cash to buy a piece of Sony is probably only 5% of the battle. The other 95% would be trying to integrate with a company who's management is very antagonistic to any outside "interference".
If the article writer can predict buyouts that will occur in 8 years time, then he must be good enough to tell me next week's lottery numbers, please.
First line:
Like many of you, it's hard for me to remember a time when the word "Playstation" was synonymous with gaming. Sony has held the all mighty hardware thrown for an astounding eleven years at the time of writing this.
I would have said it's hard to remember a time when the word playstation wasn't synonymous with gaming. After all, Sony has held the console throne for a fair time.
I'm not sure I agree that a buyout is on the cards myself. If Sony's only product was the playstation, maybe, but look at their financial highlights; gaming only represents 10% of their income. Would Microsoft want a record label, a film studio or a consumer electronics business?
Sony's market cap is $48 billion. Granted, Microsoft might be able to stretch to this, but why not spend a little more and buy Apple for $59 billion? Apple is in the computer industry, and has the iPod. Seems like a much better purchase to me.
Just my $0.02,
Michael
"Goodness me, how unlike the FBI to abuse the trust of the American public." -- The Onion
Sony does other things than just the playstation consoles, the corporation has over 66 Billion USD worth of sales, the entire console market isn't anywhere near that figure.
Also sony corporation happens to have huge assets. As for cash flow statements, sony corporation made quite good operating profit they just invested it. So basicly they are probably not interested in selling their self to microsoft, it would be hostile take over probably.
And this kind of buy out is going to be killed by either japanese or american goverment by monopoly issues.
Finally the speaking of weak stock price for sony is *bull*. Check out the 10 year graph, if we ignore the bubble spike the stock is relatively high price.
These fan boys just look the part they understand and assume that part of picture is what matters.
Emacs is good operating system, but it has one flaw: Its text editor could be better.
Contrary to the poster of this article seems to believe, Sony makes more than just Playstations. There's Sony Records and Sony Pictures, but then they also make monitors, laptops, desktops, camcorders, stereos, headphones and medical equipment. Not exactly Microsoft's core business.
1. A Japanese company being bought by an US company. An ELECTRONIC Japanese company. Since buying requires someone else willing to sell, this alone makes it VERY unlikely.
2. Sony > Playstation. Sony has its fingers in consumer electronics, cellphones, content industry, computers and a few more branches that I can't think of right now.
3. Antitrust. A direct result of 2., if MS only THOUGHT about buying PARTS of Sony, this would immediately bring the antitrust witchhunters on them. And I doubt MS wants more attention from the feds concerning their monopoly situation, especially in areas like Korea (south) and the EC.
4. Price. Another result of 2. Sony isn't some local company they scoop up on their road to market domination, I'd guess if anything it would be merger, but not buy-out. And merging would again bring a beehive of antitrust lawyers on them.
What I can see is an attempt to support the games of other consoles. They might try that, yes. For the simple reason that this IS undoubtedly a killer argument for one console over the other (when you can play PS and XBox games with one, why buy the other one that can play just one of them?).
But a buy out? Doubt it.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Check the prices. (This info is from Bloomberg).
There are 1,001,633,000 Sony Corp shares on the market.
In order to get controlling interest of the company, Microsoft has to buy 50% plus one. That's 500,816,501.
Sony stock today is trading at 5,700 yen/share. Total = $24,220,719,970.31
In August of last year, it was 3,640 yen/share. Total = $15,467,266,788.07
So in other words, Microsoft could have saved 9 BILLION dollars by buying it last August.
But I'm no business expert, and I haven't read the article, so everything I just said could be dead wrong.
At any rate, if they were going to buy it, last August sure as hell would have been a better time.
Why should Microsoft buy Sony when Sony are doing such a good job of knocking themselves out of their own key markets? The PSP3 and BlueRay sound like classic troubled products. Sony's sprawling consumer electronics arm is up against the likes of Samsung these days. And Sony's public profile has been dragged through the mud by the CD rootkit scandal. Microsoft don't ahve to do much more than stand and watch.
In addition, there would be a serious cultural and probably political offset: the Americanos operating in the heartland of SE Asian electronics. That would go down like a lead balloon in many quarters.
When you've got $40 billion in the bank, anything can sound like a good buy. Quite why Micrsoft should get into manufacturing cameras and alarm clocks is a bit mystifying. There are many other things they could spend more wisely on, unless Sony goes so tits up that it is sold of piecemeal and bits can be bought separately.
Las qué passoun
tournoun pas maï
You mean like taking a $4 billion dollar loss in the console market to wreck their competitors? No, nothing anti-competitive there.
Friends don't help friends install M$ junk.
so now the root kit comes bundled with the OS. No need to purchase a seperate CD. Except in Europe wher bundling is illage.
Your CPU is not doing anything else, at least do something.
I think the idiotor saw fit to post a crap story. Here's his thought process:
I need a story.
Oh look, MS might buy Sony.
Hmmm, some of his points have already been declared false by Sony, but MS buying Sony sounds good.
Oh jeez, this guy doesn't know english...but MS buying Sony sounds sooo cool.
Oh hmmmm, this article has no basis and draws its conclusion from thin air...but MS buying Sony still sounds yummy in the tummy.
Well this article is total crap, fiction, garbage, junk, but MS buying Sony makes me happy inside.
Posted.
Granted this does assume the jackass read the article first, which if true, says a lot about the editors at Slashdot.
Completely aside from the subject and content, it's hard to give this article much credibility when it reads like a remedial English paper. If a writer is attempting to express his opinion, especially in such a belligerent fasion, it behooves him to have a strong command of the English language. Reading an article filled with so many errors does not make me inclined to agree with the author; on the contrary, it makes me inclined to question his judgement and intelligence.
If this article had been written more thoughtfully, I might have said he had some points worth considering, but as it is I find them easy to dismiss. If the author doesn't care enough to check over his own work or isn't bright enough to see the numerous glaring mistakes, I can't help but think that his analysis is equally careless.
Consider these statistics on both companies:
Sony, 2005 Revenue (USD): 60.85B
Microsoft, 2005 Revenue (USD): 39.79B
Sony, 2005 Employees: 152,700
Microsoft, 2005 Employees: 61,000
Why did this article even make Slashdot? It makes no sense at all.
That's probably more of a Freudian Slip than it is a typo. Unintentional revelations as to what the writer's real thoughts about the topic are.
'Yes, firefox is indeed greater than women. Can women block pops up for you? No. Can Firefox show you naked women? Yes.'
Try this well known reference site; you might find it useful in future.
The one big, important thing to note here is that Microsoft is primarily a software developer and Sony is primarily a hardware developer. Microsoft has so far only eaten up software companies, so why would they want to start going after hardware companies? Microsoft's success in past has been largely, if not solely, due to the fact that it costs near nothing to manufacture software, so it's practically all profit.