Sony Group Corporation (SONY)

[potts800]

My personal SNE Evaluation

First off, SNE & AMD are my picks this month for our investment club. If I can, I will attempt to break down my views of why I plan to invest in SNE as a group and personally.

FUNDAMENTALLY
Last year, Mr. Kazuo Hirai was appointed as CEO. From completing his first video game in 1997 to now, he has managed to work his way up the corporate ladder and take Sony in a new direction. Since heading up Sony, Mr. Hirai has increased forecast earnings from all aspects including the negative EPS that has once surrounded Sony is now on the decline and heading in the right direction. Under his reign, all assets are being minimized including the tower in NY that should allow them to meet their yearly profit forecast.

In short, this guy knows what he's doing!

SPECULATIVE

In 2012, Sony purchased Gaikai, Inc, the world's leading interactive cloud based gaming service. (Why would Sony be interested in a cloud based gaming company?) Sony knows they can no longer just release a console. It's been 6 years and times have changed. Games are available on many platforms, mobile, tablets, etc and for a lot cheaper.

Furthermore, China may/may not begin to allow consoles. This would put Sony in a market that is already overwhelmed with streaming games service and knock offs from a black market. The console might not be a complete success in China, but offer a cloud service with it so can play anywhere, anytime and you might have something no one else has.

On top of this, rumors have developed of an AMD processor which is cheaper to use but more powerful. This cuts Sony's cost on the unit and allows them to focus more on software integration. So while monitoring SNE, monitor AMD at the same time.

TECHNICALLY

Click link below of my analysis.

Chart2005-2013


Overall.....
I believe Sony's next console will take all I have stated above and bring the next generation of gaming to fruition allowing for streaming services over multiple platforms including tablets, pc's, and mobile which will put Sony at the forefront of a major change in the gaming industry and still be able to incorporate the console itself.