Could PS4 Save Sony?

Could PS4 Save Sony?
christianladewig0 / Pixabay

Sony Corp (NYSE:SNE) (TYO:6758) has been on critical support for the last few years. Once the king of electronics, years of stagnant design and little technological progress has crippled the once esteemed company. The recent success of the PS4, however, has been breathing life in the beleaguered company.

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Series of missteps crushed Sony

Back in 2000 Sony Corp (NYSE:SNE) (TYO:6758)’s stocks were selling for above $120 dollars, but now they are selling for less than $20. Sony’s portable Walkman CD players, DVD players, computers, and other electronic devices were among the most desirable in the world. Yet the company had grown complacent. Internal divisions and a lack of innovative ideas led the company to continue producing the same old products, missing out on key changes in the technology market.

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For example, Sony had all of the tools in place to make an iPod like device before Steve Jobs pushed Apple Inc. (NASDAQ:AAPL) into the nascent MP3 market. Indeed, Sony’s content division did try to push the company in the direction of MP3 players but its engineering division resisted change. Similar conflicts and internal divisions played out across the company and Sony quickly fell behind.

Indeed, just a few years later Sony missed out on the smartphone revolution, not adopting Android or any similar smartphone platform until well after Apple and Samsung had a stranglehold on the market. The company seemed to believe that such operating systems would not be popular among Japanese citizens. So is Sony simply doomed? If the company’s gaming division has anything to say about it, perhaps not.

Sony PS4 selling out

Sony has sold over 7 million of its immensely popular PS4 console. So far, the console has received largely positive reviews by industry critics, the console’s games have also been selling well and receiving good reviews.

Indeed, across Europe, North America, and the rest of the world Sony is having trouble keeping its PS4’s on shelves. While hardware makers regularly under-produce goods in order to create a perception of high demand, it actually appears that Sony is having trouble keeping up with demand.

So far, however, Sony’s stocks remain stagnant and have continued to decline in recent weeks. While the PS4’s sales have been strong, it may not be enough to save the struggling company. The strong sales of the PS4 is a sign that the company’s efforts to restructure are working. The company’s smartphones have also been selling well in recent months, though sales still lag far behind Samsung and Apple.

Sony’s CEO Kazou Hirai went as far as to apologize at the company’s recent annual meeting and admitted that the company had failed to meet the expectations of investors. Since Mr. Hirai took over the company, Sony has lost over $800 million dollars. Mr. Hirai is confident, however, that his efforts to restructure the company will eventually bear fruit.

Microsoft missed the boat with Xbox 360

While Sony is enjoying a mini-resurgence with sales of its PS4 gaming system, Microsoft appears to have made yet another blunder. In the months leading up to the launch of the Xbox One, Microsoft made numerous missteps. Initially, Microsoft planned to force gamers be logged onto the Internet in order to play, a move that many gamers quickly blasted.

While Microsoft Corporation (NASDAQ:MSFT) eventually retracted this requirement, many gamers were already jaded by a seemingly arrogant company. Microsoft also priced the Xbox One hundred dollars more than the SonyPS4 with a launch price at $500 dollars vs. $400 dollars for the PS4. The Xbox came with a Kinect motion sensor system, but this turned out to be an accessory that few gamers wanted.

With Windows 8 and Microsoft Phones & tables struggling, the last thing Microsoft needed to do was fall behind in the console wars. Unfortunately, a series of questionable decisions by Microsoft’s management has left Xbox One sales falling far behind the PS4. As of now, the Playstation has outsold the Xbox by more than 2 to 1.

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  1. I simply cannot stop shaking my head at all the ignorance of these comments. You microsoft-fed sheep need to do some research on your information before you make such bold statements. The PS4 has been destroying the Xbox one in sales since release and for good reason. Microsoft has become an extemely greedy company and it has been biting them hard, falling behind in the electronics race. They are not very far off from Sony, and not too mention, this article highly exaggerates Sony’s finiancial situaton. Sony has fallen behind, but so has microsoft, and even nintendo, but all three companies still make plenty of revenue to sustain.
    As for the PS4 vs Xbox one, I beg to differ. Sales of PS4 are almost 2 to 1 of Xbox one sales. Games wise are you refering to Forza 5, Dead Rising 3, and killer instinct? 3 games? that ‘s better exclusives? How about the last of us, killzone, Infamous second son, and countless indie games only playstation plus has? Microsoft has absolutely nothing better to offer than sony does. Online wise, Microsoft has nothing Sony doesn’t offer now, at least playstation plus gives you in store discounts and free game downloads. Better interface? with what? watching TV? what does that have to do with gaming? There is nothing Xbox one can do that the PS4 can’t already do, or do better. all the good games coming out are coming out for BOTH systems, and guess what system they optimize it on now? PS4. And again exclusives? you don’t have anything note worthy besides halo. We have killzone, infamous, the last of us, uncharted, and I can go on. Stop blowing hot air.

  2. Extremely Unlikey. Sonys losses are way too large for ps4 to help. Plus it looks like ps4 is making some poor decisions. Playstation Now was as $400 million+ investment and its all but worthless. Why would people pay these fees to play last gen games ? Another poor investment from a bankrupt company.

  3. Well your brother is either very stupid or you’re making that up. Sony would have to lose many billions each year in order to hit bankruptcy within 2-3 years. Bankruptcy doesn’t mean out of business either.

  4. The operating system is garbage…i agree. Have not been very satisfied with my Ps4 at all..mainly due to the constant game delays and absence of exclusives. I wish i was more aware if sony’s abysmal financial condition and lack of games before i made the purchase. Xbox ones monthly system updates have been fantastic from what i hear and the game offerings are indeed much better. PS4 alone has no chance of turning around the massive financial losses that sony is posting year after year. Changing over to xbox one this summer.

  5. Sensitive issue ponyboy ?? I wouldnt go around slinging the word xbot when your company has hardly any decent exclusives, a future of more delays due to massive 1st party studio turnover and bankruptcy in the very near future. PS4 is a farce…i have 4 xbox live buddies that i play forza, titanfall and dead rising with that give me all the details about why it sucks. We will be playing the next batch of fantastic exclusives starting this September with forza horizon 2, sunset overdrive and halo while you are still waiting for a decent game and bankruptcy looms closer…fools !

  6. Agreed..not sure how its going to save Sony when xbox one is a better system. I have both xbox one and ps4 and dont touch the ps4…xbox one has better games available, the future release lineup is much stronger, the interface is much better and the system just does more. I will be selling my ps4 on Ebay…but now worried it may not sell since Ebay is seeing a lot of Ps4 come in… quite a few others must feel the same.

  7. Doesnt look good for sony – my brother is a financial analyst and says its almost certain bankruptcy for them at this point within 2-3 years.

  8. It is too late for sony…poorly managed company. Microsoft already has made the steps to correct its launch mistakes and the xbox one is a better machine than the PS4 by far. Considering PS4s lack of exclusive titles compared to xbox one, inferior Operating System, inferior multimedia capabilities and weak online service & community and the future lineup of both systems…ill be selling my ps4 and sticking with xbox one. Sony bankruptcy is inevitable.

  9. What an amazing super-computer! Too bad it doesn’t run Windows or OSX. If it did I could run my favorite apps and dump my PC. This unit is more than capable but I’m not buying with the silly Sony OS.

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