Add one more name to the media dog pile that has developed around Sony since the company's launch of the PS3. RealMoney's Michael Comeau recently told readers that the slow start for the system was "only one of many reasons to avoid shares of the consumer-electronics conglomerate, but it's certainly the most important."
Comeau cited Sony's unflagging support for Blu-ray as the PS3's Achilles heel, causing higher costs and production delays "with no discernible improvement in game quality." Ouch! A harsh assessment, and one Kaz Hirai would no doubt disagree with. Comeau also felt that the loss of previous Sony exclusives like Grand Theft Auto and Virtua Fighter and the early hype surrounding the Nintendo Wii will hurt Sony's gaming market share.
Why is that important to the investors that Comeau writes for? Well, while gaming only provides 10 percent of Sony's revenue, it accounts for over 60 percent of their profits, leading Comeau to predict a declining video game market share for Sony will dramatically drag down profits for the entire company. What's more, increased competition in other consumer electronics like high-definition TVs lead Comeau to say "it is nearly impossible for me to come up with a bullish case for Sony." Double ouch!
Source: http://www.joystiq.com/2006/12/29/an...ing-down-sony/
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Originally Posted by ngs_raider
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