Analytic Dreamz: Notorious Mass Effect - "SONY VS MICROSOFT"

Episode Date: August 27, 2023

Linktree: https://linktr.ee/AnalyticNotorious Mass Effect: Which is a Bigger and Richer Enterprise, Sony or Microsoft?In this segment of Notorious Mass Effect, Analytic Dreamz discusses the relative sizes and wealth of two of the biggest tech giants in the world: Sony and Microsoft. He explores their histories, their current business portfolios, and their future prospects.Which company is bigger? Which company is richer? And why?Analytic Dreamz provides insights and analysis that will help you understand the answer to these questions. He also shares his thoughts on which company is better positioned for long-term success.So whether you're a fan of video games, technology, or business, this segment of Notorious Mass Effect is sure to be informative and entertaining.Privacy & Opt-Out: https://redcircle.com/privacy

I don't refer to myself as a Sony pony, but I do have to point out the fact that in terms of gaming, the gap between Microsoft and Sony is insurmountable, if that's the word, as I think PS5 has officially won the console race. I think we've gotten to a very distinct time in history where the PlayStation is just outselling Microsoft by a landslide. Like, if you look, it's not a landslide, but in the billions talk, it's not a landslide, but in like how much a billion is actually worth, it's a pretty insurmountable gap between PlayStation Division and Microsoft's Xbox Division as in 2021 PlayStation Division pulled in $24.887 billion in revenue, while Microsoft's Xbox Division made $16.288 billion.

then in 2022 Sony's PlayStation Division made 24 billion while well 24.4 billion can't leave out that point four when we're talking into billions in revenue while Microsoft's Xbox division made 15.56 billion and then for the first six months of 2020 so this year

Sony's PlayStation Division made 11.9 billion in revenue while Microsoft's Xbox division made 8.9. So of course, if you add all that up, Sony in the past three years has a pretty significant gap when it comes to revenue in the gaming division compared to Microsoft. And the reason why I have this article pulled up right now is because Sony reported a 31% drop in an operating income for the fiscal first quarter, citing a decrease in profits at its financial services and movies business, which is and captivates everything as a company, right? But as far as the gaming division, that's what I wanted to focus on.

As Sony sold 3.3 million units of the PS5 and it's April to June quarter, up 38% year over year. So the reason I bring that up is because Sony has made $74.1 billion in gaming revenue in the past three years. Microsoft has made $56.3 billion, right? This means Sony is leading in the gaming division by 17.8 billion in gaming revenue over Microsoft. You know, not calling myself analytic dreams for no reason because we are definitely pocket watching these numbers. As it's important to note that this is only the gaming division because now let's transition into Microsoft as a whole.

Because the reason, while Microsoft is able to literally go out and purchase all of these owners, of all of these popular games like Call of Duty, whereas Sony even had to come out and say, hey, this is unfair. They're out here buying everything and no type of competitive, we can't have no type of competitive advantage if they end up buying the company that owns Caller Duty, right?

And you're probably wondering, why is Sony complaining like this that they've been leading in the gaming division for so long? Because one, Callow Duty is probably one of the most popular games ever made, of course. And then two, Microsoft as a company has way more money Sony and bringing in everything as far as what they do as a company. Microsoft has way more capital at their exposure than Sony because Microsoft as of March 8th,

2023, so basically it is as up to day as you would get as far as a company. Their market capitalization is of 2.3 trillion with a T. 2.3 trillion dollars. Sony, on the other hand, has a market capitalization of 143.1 billion with a B. So, you know, I'm no mathematician, but 2.3 trillion seems a lot more than $143 billion. Maybe I'm, you know, maybe I'm mistaken. you know as i'm reading it says i'm not because you know microsoft is 16 is worth 16 well about 16 times more than sony so anyways microsoft's greater financial resources is dude because they have a

way more diverse portfolio than sony i mean microsoft has the largest i don't know if it's the largest or one of the largest but i believe it's the largest software division in the world and also um So Sony, on the other hand, is primarily focused on the entertainment industry with gaming being its most profitable segment. So with Microsoft is grade in, it's the software division, whereas Sony is their gaming division. So that's why when I get to talking about gaming, Sony is usually a console I hold in higher regard compared to the Xbox because for the past two generations, which is the PS5 and the PS4. they've been leaps and bounds ahead of its time as far as quality than what the Xbox, the Xbox Series X and the Xbox One has given us.

So, and that's not even like it. For me, reason I went from Xbox to PlayStation is simply because Spider-Man, one of my favorite fictional, no, my favorite fictional creation of all time is exclusively on PlayStation. So I decided to make this, to jump from Xbox 1 to PS5. No, Xbox 1 to PS4. So I did at one point in time have an Xbox 1.

Once I realized Spider-Man PS4 was only for PlayStation, guess what? I made the switch. So anyways, that is, ladies and gentlemen, that is what you call a console seller. So anyways, with that being said, the reason why I wanted to get into this is because sometimes gamers as a whole are not as informed as you would like them to be.

So with my platform now, I feel like it's my kind of responsibility to try to, you know, put the information in front of you where these two companies stand as a whole and where as gaming division stand. Because as gamers, you would just look at Sony and be like, wow, they make way more money than Microsoft. But as a company, Microsoft is like, it's not even, they're not even getting close. Like, Microsoft could buy Sony if they wanted to, like, literally. Like, if it wasn't because of monopoly rules set in place to where companies can't just buy

everything than Microsoft could literally straight up buy Sony so anyways with that being said click my link to my bio let me know one of my social medias what do you think about that business talk with uh Microsoft versus Sony and in general what was your favorite fact throughout this segment