In 2021 Sony was 1 of the richest companies alive with nearly 50billion cash on hand (more than Apple & Tencent). WHY has Sony's cash declined so much

[Savant]

Another possible option for Sony. And this stems from the fact Apple and Sony have always had a nice history together. Right down to how much Steve Jobs admired Sony. Steve Jobs was inspired by Sony and always talked so fondly of Sony. Sony could merge or partner with Apple to go take on microsoft. Any kind of paternship where Sony retains full control of Sony could be of benefit. NOT selling to Apple. Not giving up shares to Apple BUT a mutual partnership where Sony retains full control while having access to Apple's muscle and immense wealth to fight off microsoft

 

[VillaiN]

They changed accounting method.

Before they counted short term assets (easily sold over night) around 25B as cash on hand. Now they have it in books as assets not cash on hand.

Although they did spend around 6B+ (if not more) on acquisitions. Bungie, anime ,music etc.

 

[Yobo]

And I know Sony has low debt. Sony is in a great position. They can easily buy big publishers. But I still don't understand why Sony are such unwilling cheapskates. There is no options left when you have micorsoft (literally dubbed the evil empire in court) trying to foreclose on you.

All the "lobbying" microsoft does, I would first like to see Sony buy their own politicians. First thing would be getting the deal blocked at all costs

Than looking to defensively aquire to protect their interests and safeguard against microsoft's constant aggressions and anticompetitive criminal offences towards Sony

Everyone says Sony should buy Square Enix. But Sony already have exclusivity with Final Fantasy 16 and Kindome Hearts 3 (the two biggest SE franchises)

Sony needs to aquire Capcom. Thats how they would really hurt xbox. xbox has relied on so many Capcom IPs.

In reality Sony is risk adverse because to an extent because it was barely over a decade ago that many were predicting they'd be gone within a few years

The fact they have been in such a healthy position is a real contrast to the trends where once Japanese giants like:

Sharp - sold in 2016
Sanyo - sold in 09
Toshiba - sold in 2023 after a decade of bleeding


I would argue that the economics of Japan the past two decades have made the companies this way. It's all about operational efficiency, no real risky innovation or bet the farm purchases

The fact Sony even went in with that approx $20 billion in purchases is pretty astounding to me considering the company. That they spent $4 billion on Bungie is just so unlike Sony. The pattern of their investment also shows they are still risk averse though. It wasn't $20 billion in one big shot, they filtered it out across a range of industry both acquiring and investing stakes to keep the risk lower

While it's nice to dream and hypothetically could afford a big size publisher like Take Two. It's such a big bet that I can't see Sony really entertaining it

 

[ksdixon]

And I know Sony has low debt. Sony is in a great position. They can easily buy big publishers. But I still don't understand why Sony are such unwilling cheapskates. There is no options left when you have micorsoft (literally dubbed the evil empire in court) trying to foreclose on you.

All the "lobbying" microsoft does, I would first like to see Sony buy their own politicians. First thing would be getting the deal blocked at all costs

Than looking to defensively aquire to protect their interests and safeguard against microsoft's constant aggressions and anticompetitive criminal offences towards Sony

Everyone says Sony should buy Square Enix. But Sony already have exclusivity with Final Fantasy 16 and Kindome Hearts 3 (the two biggest SE franchises)

Sony needs to aquire Capcom. Thats how they would really hurt xbox. xbox has relied on so many Capcom IPs.

It's more about being able to improve the games by developing for less boxes/not having to factor in the lowest common denominator box (usually XBO, Series S). Especially if it's a series that sells like shit on XB regardless. It's wasted development time/resources.

 

[Savant]

In reality Sony is risk adverse because to an extent because it was barely over a decade ago that many were predicting they'd be gone within a few years

The fact they have been in such a healthy position is a real contrast to the trends where once Japanese giants like:

Sharp - sold in 2016
Sanyo - sold in 09
Toshiba - sold in 2023 after a decade of bleeding


I would argue that the economics of Japan the past two decades have made the companies this way. It's all about operational efficiency, no real risky innovation or bet the farm purchases

The fact Sony even went in with that approx $20 billion in purchases is pretty astounding to me considering the company. That they spent $4 billion on Bungie is just so unlike Sony. The pattern of their investment also shows they are still risk averse though. It wasn't $20 billion in one big shot, they filtered it out across a range of industry both acquiring and investing stakes to keep the risk lower

While it's nice to dream and hypothetically could afford a big size publisher like Take Two. It's such a big bet that I can't see Sony really entertaining it

"Desperate times call for desperate measures"

 

[ksdixon]

So there's no hidden "we purchased x but can't announce it yet" to account for the number drop. It's just accounting faffing.

 

[Bryank75]

So there's no hidden "we purchased x but can't announce it yet" to account for the number drop. It's just accounting faffing.

Naaa, it was just a change in accounting standards and having to maintain reserves for banking.

But as one of the posters said earlier, spinning off or selling the banking arm will free up a lot of cash and they can still use some debt and shares to compensate any seller.

TakeTwo I believe used shares for a portion of the Zynga deal.

 

[Danja]

And I know Sony has low debt. Sony is in a great position. They can easily buy big publishers. But I still don't understand why Sony are such unwilling cheapskates. There is no options left when you have micorsoft (literally dubbed the evil empire in court) trying to foreclose on you.

All the "lobbying" microsoft does, I would first like to see Sony buy their own politicians. First thing would be getting the deal blocked at all costs

Than looking to defensively aquire to protect their interests and safeguard against microsoft's constant aggressions and anticompetitive criminal offences towards Sony

Everyone says Sony should buy Square Enix. But Sony already have exclusivity with Final Fantasy 16 and Kindome Hearts 4 (the two biggest SE franchises)

Sony needs to aquire Capcom. Thats how they would really hurt xbox. xbox has relied on so many Capcom IPs.

Been saying it. Capcom is the #1

 

[Nhomnhom]

Maybe they spent it all on GaaS/PC Ports/mobile.

 

[ethomaz]

They were reporting some money that was not cash in hand as cash in hand. For example the reserves in bank account to pay employee monthly.

So today they are reporting the cash in hand correctly.

That was the big change in numbers.

Plus they invested (acquisitions, shares in others companies, etc) and bought back some own shares.