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15. Re: Morning Consolidation Jan 21, 2013, 13:42 Verno
 
theyarecomingforyou wrote on Jan 21, 2013, 12:48:
Sony's net income for last year was MINUS $5bn (it hasn't posted a profit since 2008) yet we're seriously expected to believe it will be able to buy Microsoft's Xbox brand? As long as Microsoft isn't losing money it will continue to maintain the Xbox brand as it has strong brand recognition and benefits other sectors. Microsoft had a net income of $17bn last year so it can afford to maintain a brand that doesn't earn anything, especially while Sony continues to haemorrhage money.

There's more to it than simply looking at a single line on a company wide income statement. Sony's entertainment division is actually quite profitable and needs to be restructured. Microsoft as a company is in the process of restructuring itself to do battle against companies like Google and Apple, it's going to need all of those billions to do it. A brand is only as good as a company can leverage it and so far the Xbox brand has not been a profitable one for the company nor is it tying well into their other core revenue streams. Maybe that will change in the future but it's just not closely tied to what is actually driving the company.

It's a classic flamebait article that bears no relation to reality. And Barnes & Noble as the other potential buyer? Seriously? Fucking fantasy land. Apple is the most likely suitor.

I wouldn't be so quick to dismiss an idea based on a preconceived notion. A company like Barnes and Noble badly needs to diversify their revenue, they need more access to growing digital markets and moves like that could let them close large brick and mortars which are whats killing them (other than Amazon). They would need a strong backer to make a play on it though. Apple has continually hedged on the gaming market at every opportunity, I don't see that as likely at all and it wouldn't play to their preferred customers either. Apple loves electronics with high profit margins and they prefer a tailored approach.
 
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