Monday, December 11, 2006

Samsung Buyout Ailing Sony?

unrumor it

Fact A: PS3 is doomed to fail
Bushnell, who started Atari, is one of the grandfathers of the video game industry. When asked about about which areas he still follows of his former industry, he said,
"It wasn’t anything brilliant that they did. With the PS and PS2 it was timing. They had the right pricing at the right time [and were] almost the accidental winner," answered Bushnell. "It would not surprise me if a year from now they’ll be struggling to sell 1 million units. [Factoring in the PS3’s price], I think in the U.S. the number of early adopters you have is actually around 300,000."

Fact B: Sony's PS3 failure leads to its financial disaster.
Analysts believe the company will lose US$3.29 billion on its PS3 business over the next two years.

The above article explains that the future of Sony depends on the success of the PlayStation 3. One of the things it said was that last year, out of $67.94 billion in revenue, only 1.65% of that was profit. With most of its other divisions not doing so well (its music department is already disliked by many, thanks to the Digital Rights Management fiasco), the company's fate seems to rest with the video game division's PS3.

Fact C: Samsung has been eyeing on game market and it is desperate to expand its business..
1. Samsung developed several mobile game phones.
2. Samsung is the biggest sponsor of World Cyber Games(WCG).
3. Samsung recently began to publish several Korean online games including "Dungeon and Fighters".
4. Samsung has been providing key components for game consoles.
5. The most crucial fact: One subsidiary of Samsung Group, Samsung SDS, actually developed its own game console.

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