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On Jun 8, 2:39 am, "David Eduardo" wrote:
"Michael A. Terrell" wrote in ... David Eduardo wrote: "American Insurgent" wrote in message groups.com... . Sony did the same thing with the Playstation 3-created a hysteria for the product, artificially limited supply, then milked the frenzy for all it was worth. In the end, the PS3 was far inferior to the Nintendo Wii. Six months later, the Wii is still a strong seller while PS3 units collect dust. Everybody who paid thousands of dollars for the PS3 on ebay suddenly realized that they got ripped off big time. Sony probably lost many customers that they'll never get back. Sony probably won't be around for much longer- they're still focused on money losing small time consumer electronics like the Discman. They needed a PS3 frenzy to save the company. No, they don't. Sony is a $65 BILLION dollar a year company, and game consoles are a small part of that. It made a net profit of over $1 billion last year. Sony will be around a long, long time. That isn't a very good ROI. That is because it is not "ROI." ROI is "return on investment" or the payback on invested capital. ROI, simplified, is how much you make each year on each dollar invested. Often companies are measured in return on assets, as opposed to investment capital. Sony's $1.5 billion profit vs. $66 billion in sales gives you the profit margin, which is just about 2%. Supermarkets often have a margin below 1%. The profit is on volume. Other business may have margins of 20% to 25%, but these are usually service companies, not manufacturers. GE has a high margin, around 12%. Honda has a margin of 5%.- Hide quoted text - - Show quoted text - Gosh HD shill - is there anything you don't know ? You just grace us with all of this high-school dropout knowledge ! Now, go crawl back under your HD Radio Pet Rock ! |
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