Microsoft Buys Sony
Okay, not quite yet, but a couple of items I’ve just read sure make a good case for that to become an actual possibility.
The article on Xbox Circle pushes the point by stating how much Sony is poised to lose if their PlayStation3 is as successful as they’re expecting. The challenge though, is that the more successful they are at launching and selling, the more money they lose.
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 their entire fiscal gain for all of 2005 in under 24 hours.
For anyone that needs some quick math help, that’s a LOT of zeros to the negative. On the low end $250M loss in the FIRST DAY!
eHomeUpgrade’s article focused more on the aspect of Sony being a great purchase for Microsoft to really get them spread a little further than just software. Purchasing Sony would launch them into not only the hardward market with PC’s, but also consumer electronics and digital photography and video as well. This is turning out to be a really intriguing idea to me. I’m a HUGE Sony fan, and have oddly never really been excited about the PlayStation console. This would give me the best of both worlds. I think if there’s any company that comes close (or even exceeds sometimes in my mind) matching Apple’s style and design, it’s Sony.
For what it’s worth, I don’t think Microsoft is going to make a run at Sony. There are cultural issues and integration issues that would be difficult to overcome. It is interesting, however, to think through the possibilities of a merged entity and the potential synergies between the two companies. I think the whole issue speaks more to the innovation of Apple and Steve Jobs who have changed the competitive landscape and forced a whole new way of thinking about the PC business in recent months. The release of the Intel architecture and now the support of XP on Mac hardware are significant events. It creates real hardware competition for Apple and gives them another avenue to cause PC users to ‘Switch’.
What if Microsoft didn’t go after Sony to absorb them and make them “Microsoft”. What if, instead they just purchased the company and ran it as a wholly owned subsidiary that’s got the financial backing and resources of Microsoft? I really think that’s a possibility. It will be interesting to see what comes of it.
Source: What if Microsoft Bought Sony? Blame Apple!
Source: Microsoft To Buy Sony?
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POSTED IN: Corporate News, Speculation, Xbox & Games
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