Sony too focused on shareholder value & profitability at expense of sales figures... - Hideki Yasuda (Analyst)

[Bryank75]

Sony's focus appears more on shareholder value and profitability, leaving uncertainty about the purpose of their PlayStation business. Despite lower sales figures, Sony remains profitable with PS5, suggesting a strategic shift to address shortcomings with PS6. The ambiguity in their management strategy, including the departure of former CEO Jim Ryan, raises concerns about future business impacts despite Sony's strong position in recurring revenue models across music, films, and anime.

Currently, it feels like the Sony Group is more focused on stock prices and profits than on the way they conduct their business. Indeed, from an investor's perspective, a company that makes profits is a good company, but it's unclear why they are in the PlayStation business.

In a hearing with the Sony Group, they expressed the view that "even if PS5 sales are lower than PS4, it's not a problem because we're making a profit." Personally, I was astonished by this response because it suggests the notion that "as long as there's profit, anything goes."

The likely background to this view is that Sony Group's envisioned goal of PS5 surpassing PS4 significantly and overwhelming Xbox is now seen as unattainable. Moreover, rather than pouring unnecessary capital into what can be considered a failed PS5, it would be better to make fundamental improvements with the PS6. Thus, it is reasonable to scale back tactics to a level that won't disappoint investors, as long as there are profits, criticism will be avoided.

In the business briefing, I couldn't understand whether the goal of the game segment was to make money, to develop the PlayStation business, or to win globally even at the expense of Japanese users. It seems necessary to redefine the purpose of the game business.

As an investment target, I highly value the Sony Group. The company is a model of efficiency and asset-light management, and they have established a recurring business with music, movies, and anime copyrights. The overall growth potential of their business is high, making it a stock worth investing in for the long term. That is why I can't help but feel ambiguity in the management's decision to allow Jim Ryan (former CEO of Sony Interactive Entertainment), who was responsible for the confusion in the game business, to leave amicably. I fear that such vague management strategies may impact the company's business in the future.

Via Neogaf.

 

[Dabaus]

Sounds like Phil is working overtime to spread FUD about playstation again.

 

[quest4441]

Ah I guess the microsoft astroturfing budget funds for the quarter have been released, Understandable article in that sense.

 

[TubzGaming]

Hideki Yasuda >​

 

[PropellerEar]

Where did they find this FUDsuda guy!?

 

[Johnic]

That's how every major company works. It's why games are getting more expensive and also shittier at the same time.

This man also contradicts himself. "Sony is chasing higher profits. so why are they in the PS business?" Maybe because it's their most profitable and biggest money maker?

Also, "failing PS5". Yeah, it's an astroturfing hit piece.

 

[Johnic]

Also, same guy that contradicted tecmo themselves.

Koei Tecmo Q4 FY3/2024 Financial Results (January - March 2024) | Ordinary / net profits up vs previous FY, sales lower than the original forecast

https://www.koeitecmo.co.jp/ir/docs/ir1_20240430.pdf FY3/2024 YTD (from April 2023 to March 2024) Summary (Million Yen) Sales: 84.584 (+7,9% over the same period of FY3/2023) Operating Profit: 28.494 (-27,2%) Ordinary Profit: 45.741 (+14,6%) Net Profit: 33.792 (+9,2%) Increase in sales...

www.installbaseforum.com

Truth:

An astrotufer, through and through. Should be banned as a source.

 

[mibu no ookami]

This guy isn't a major analyst and shouldn't be taken seriously. I could create an LLC today and hire myself as an analyst and give more in depth and accurate analysis of Sony Group and SIE.

Sony has big plans to grow their business outside of the traditional console business. The strategy has been clear as day.

This guy is the equivalent of asking who is this Fiege guy and why is he having Marvel focus on movies.

 

[Puff]

The likely background to this view is that Sony Group's envisioned goal of PS5 surpassing PS4 significantly and overwhelming Xbox is now seen as unattainable.

 

[BroodCorp]

This guy isn't a major analyst and shouldn't be taken seriously. I could create an LLC today and hire myself as an analyst and give more in depth and accurate analysis of Sony Group and SIE.

Sony has big plans to grow their business outside of the traditional console business. The strategy has been clear as day.

This guy is the equivalent of asking who is this Fiege guy and why is he having Marvel focus on movies.

An analysis is just breaking down information and offering a perspective, it’s not scripture.

What you gave was a take, a pretty goddamn optimistic one too. “Growing outside the console business” means what exactly?

 

[Johnic]

nah, bro, outselling them 3:1 in certain regions ain't enough. Sony doomed.

The industry really needs to start making these people accountable. Either openly state you're sponsored or provide facts with your statements.

 

[Evil Aloy]

I don't know why people are clowning on the analyst, what he says is right on the money. We have all been saying the same things here for a while. Sony is sacrificing the growth of its platform for a quick buck through pc and now switch ports. If the PS5 doesn't sell more than the PS4 while Xbox has collapsed in the meantime, that would be a huge failure for Playstation's leadership.

 

[Johnic]

I don't know why people are clowning on the analyst, what he says is right on the money. We have all been saying the same things here for a while. Sony is sacrificing the growth of its platforms for a quick buck through pc and now switch ports. If thr PS5 doesn't sell more than the PS4 while Xbox has collapsed in the meantime, that would be a huge failure for Playstation's leadership.

What's right on the money? Break down his post and provide arguments. Is it one of the things several users quoted above? Contradicting himself or going against official company statements? You're just feeding off of the dooming.

 

[Evil Aloy]

What's right on the money? Break down his post and provide arguments. Is it one of the things several users quoted above? Contradicting himself or going against official company statements? You're just feeding off of the dooming.

From my perspective it's just numbers. Xbox is collapsing, yet the PS5 is behind the PS4 in sales. Why did Sony fail in converting the xbots to Playstation?

 

[Kokoloko]

Time to send Yasuda s DM or 2….. call this guy out for what he is and dont think he is getting away with it.

 

[BroodCorp]

That's how every major company works. It's why games are getting more expensive and also shittier at the same time.

Every company is not okay with having lower sales on their latest product so long as it’s profitable. Of course they would say that in this position, but you’re spinning this as if it’s favorable or expected.

 

[Kokoloko]

I don't know why people are clowning on the analyst, what he says is right on the money. We have all been saying the same things here for a while. Sony is sacrificing the growth of its platform for a quick buck through pc and now switch ports. If the PS5 doesn't sell more than the PS4 while Xbox has collapsed in the meantime, that would be a huge failure for Playstation's leadership.

It’s a big miss, not a huge failure. They are still racking in profits and there games selling well. Still around what they were last gen.

A huge failure is having multiple generations of consoles and only 1 of your home consoles selling over 60million, when spending billions. While your competition is selling 100m+ every generation apart from 1 generation…. Even Nintendo has only 1 home console that sold over 70m units (Wii).
Every Playstation console except PS Vita has sold more than 80+million. No other Platform holder can say that, and they havent dropped off by much

 

[Danja]

There's some truth to what he is saying though? Or is it you guys don't want to hear the truth unless it's coming from other PlayStation forum posters lol.

 

[mibu no ookami]

An analysis is just breaking down information and offering a perspective, it’s not scripture.

What you gave was a take, a pretty goddamn optimistic one too. “Growing outside the console business” means what exactly?

PlayStation Studios - To grow IP and increase cash flow by utilizing Sony IP with transmedia.
PC game ports - To grow IP and increase margin with low cost PC ports.
Peripherals - To increase marign on high margin products like Dual Sense Edge, Ps Portal, and Pulse Elite headsets

 

[Bryank75]

From my perspective it's just numbers. Xbox is collapsing, yet the PS5 is behind the PS4 in sales. Why did Sony fail in converting the xbots to Playstation?

I definitely think there was an opportunity there.

Not sayin PS is doing badly... they're still good but I think they should be more growth focused.