Good point. SONY will need to install a lot more servers and rent a tremendous amount of backbone on top of the fees they will have to pay the studios. 30-40% of all internet traffic is now streaming video.
Man, SONY cannot afford to get into this pissing contest. SONY does not need to sell more PS4s than MS, it does not need fantastic or exclusive games, it does not need great press. It certainly does not need streaming TV. SONY needs PROFITS, PROFITS, PROFITS. Profits is where all good things come from. This quarter, MS made 97.7% MORE PROFITS than SONY did (after SONY's $8 billion loss in the past two years).
Everyone is getting in on the streaming bandwagon and SONY simply does not have the profits or cash to compete with the big boys, Netflix, Amazon, and Microsoft (let alone the cable and networks themselves). Bad choice SONY.
Japan is also suffering under a much stronger yen which pushes the cost of exporting upwards. That means SONY will be losing quite a lot of their profits by selling the PS4 outside of Japan during a stronger yen. The preorders could actually be doing quite a bit of harm.
SONY simply cannot afford to spend any money on the PS4. SONY's finances are terrible. They are selling off their buildings, the latest quarter had a 322% increase in operating losses year over year, they lost over $6.5 Billion US dollars last year, and the largest stockholder is trying to break up SONY into entertainment and hardware so the entertainment part would not be used to prop up the massively failing hardware business. SONY said no which dropped the stock price down 4%. The PS4 is both highly vulnerable to the schism of being both hardware and software and there is a huge drop in the number of R&D engineers and software developers available to support the PS4 before and during launch. No, SONY is doing zero customizing PS4 in either hardware or software.
johnpombrio's comments