Sony Selling U.S. Headquarters

Sony Selling U.S. Headquarters

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With a $1.1 billion price tag, Sony's American headquarters in New York City is in the process of being sold.

In an effort to "strengthen its financial foundation," Sony is selling its U.S. headquarters, located in New York City. The $1.1 billion sale is expected to result in net cash proceeds of $770 million "after repaying debt related to the building and other transaction costs." Sony Corporation America, Sony Music Entertainment, and other Sony businesses located in the building will remain there for up to three more years under a leaseback arrangement with the buyer, The Chetrit Group.

The sale of the 37-story building, located at 550 Madison Avenue, is part of a "range of initiatives" Sony is taking in order to improve cash flow. To do this, the company is "carefully selecting investments, selling assets and strengthening control of working capital such as inventory."

The sale is expected to be completed on March 15, and with the fiscal year ending on March 31, the operating-income gain of $685 million is sure to have an effect on Sony's projected earnings. Sony is currently reevaluating its financial forecast for the fiscal year to take it into account.

Source: Polygon

Image: Jackie Craven

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I wasn't aware Sony needed the money that badly.

Oh weh, that sounds kinda bad.

My Gamer-I is more or less been raised by Nintendo, nonetheless i always had a friend who owned a PS of sorts.
That is why i left Fanboyism behind me pretty quick seeing how there were many great games on the Playstations that i were and am still really interested in.
I really hope Sony pulls their heads out of their asses for the release of the PS4 and don't repeat mistakes of the PS3 launch... wich they repeated during the PSP and VITA Launch.

Uh oh.

felixader:
Oh weh, that sounds kinda bad.

My Gamer-I is more or less been raised by Nintendo, nonetheless i always had a friend who owned a PS of sorts.
That is why i left Fanboyism behind me pretty quick seeing how there were many great games on the Playstations that i were and am still really interested in.
I really hope Sony pulls their heads out of their asses for the release of the PS4 and don't repeat mistakes of the PS3 launch... wich they repeated during the PSP and VITA Launch.

Uh oh.

I really do as well, the last thing we want is Microsoft having the market for consoles all to itself. Nintendo kind of has it's own market these days to be fair, can't wait to snag me a Wii U!

That is some prime real estate that they never did anything good with.
They had a decent storefront on the ground floor that they just sold sony stuff out of; no promotions or anything. They're like a couple of blocks away from Rockefeller Center.

The question that faces the many businesses fleeing Manhattan (and there have been many big & small) is: will we move to LIC, Brooklyn, or Jersey.

As a PS3 owner, I grown to kind of hate Sony, but you have to understand that even businesses that are doing well leave Manhattan. The real estate market across NYC has been gouged to such absurd costs, the only businesses that stay are the ones that have to.

felixader:
Oh weh, that sounds kinda bad.

My Gamer-I is more or less been raised by Nintendo, nonetheless i always had a friend who owned a PS of sorts.
That is why i left Fanboyism behind me pretty quick seeing how there were many great games on the Playstations that i were and am still really interested in.
I really hope Sony pulls their heads out of their asses for the release of the PS4 and don't repeat mistakes of the PS3 launch... wich they repeated during the PSP and VITA Launch.

Uh oh.

If you looked at Sony's profits during the last few years... it's been their hardware that's taken a serious hit. Their media division and Playstation division have been doing rather well. Sony is one of Japan's 'too big to fail' corporations, so at the very worst you could see Sony selling the Playstation division to someone. But don't count on that, as it's one of the rare parts of their corporation that's profitable right now.

SkarKrow:

felixader:
Oh weh, that sounds kinda bad.

My Gamer-I is more or less been raised by Nintendo, nonetheless i always had a friend who owned a PS of sorts.
That is why i left Fanboyism behind me pretty quick seeing how there were many great games on the Playstations that i were and am still really interested in.
I really hope Sony pulls their heads out of their asses for the release of the PS4 and don't repeat mistakes of the PS3 launch... wich they repeated during the PSP and VITA Launch.

Uh oh.

I really do as well, the last thing we want is Microsoft having the market for consoles all to itself. Nintendo kind of has it's own market these days to be fair, can't wait to snag me a Wii U!

I can't see MS holding the entire market of consoles as long as the charge people for online. That and they've only ever made a profit off of the 360 as the original Xbox put them billions into a hole. If Sony is selling their HQ, I'd expect to see MS doing something similar in the coming weeks. I mean, we haven't heard anything about the Xbox in a while now..

AzrealMaximillion:

SkarKrow:

felixader:
Oh weh, that sounds kinda bad.

My Gamer-I is more or less been raised by Nintendo, nonetheless i always had a friend who owned a PS of sorts.
That is why i left Fanboyism behind me pretty quick seeing how there were many great games on the Playstations that i were and am still really interested in.
I really hope Sony pulls their heads out of their asses for the release of the PS4 and don't repeat mistakes of the PS3 launch... wich they repeated during the PSP and VITA Launch.

Uh oh.

I really do as well, the last thing we want is Microsoft having the market for consoles all to itself. Nintendo kind of has it's own market these days to be fair, can't wait to snag me a Wii U!

I can't see MS holding the entire market of consoles as long as the charge people for online. That and they've only ever made a profit off of the 360 as the original Xbox put them billions into a hole. If Sony is selling their HQ, I'd expect to see MS doing something similar in the coming weeks. I mean, we haven't heard anything about the Xbox in a while now..

Microsoft's HQ is in Redmond. While they may too have a building in NYC, it probably isn't as much of a big loss to them as it's just a building, whereas this is Sony's US HQ.

As for Microsoft holding the market of consoles - if there wasn't any direct competition around, then it would either be you get an Xbox, get a Wii U or go elsewhere, and if developers weren't preparing games for the Wii U then there would only be one option

AzrealMaximillion:

SkarKrow:

felixader:
Oh weh, that sounds kinda bad.

My Gamer-I is more or less been raised by Nintendo, nonetheless i always had a friend who owned a PS of sorts.
That is why i left Fanboyism behind me pretty quick seeing how there were many great games on the Playstations that i were and am still really interested in.
I really hope Sony pulls their heads out of their asses for the release of the PS4 and don't repeat mistakes of the PS3 launch... wich they repeated during the PSP and VITA Launch.

Uh oh.

I really do as well, the last thing we want is Microsoft having the market for consoles all to itself. Nintendo kind of has it's own market these days to be fair, can't wait to snag me a Wii U!

I can't see MS holding the entire market of consoles as long as the charge people for online. That and they've only ever made a profit off of the 360 as the original Xbox put them billions into a hole. If Sony is selling their HQ, I'd expect to see MS doing something similar in the coming weeks. I mean, we haven't heard anything about the Xbox in a while now..

Have Microsoft really made much off the 360 though? I suppose a lot of people have bought 4 or 5 of the damn things. Unless they improve their build quality and make xbox live free (then maybe they can justify those ads) then i don't see them really dominating, I'm worried about the next MS and Sony consoles though.

Not going to lie, I saw the headline and thought that Sony was leaving Southern California, and freaked out a little since I have friends that work there in both movies and games. But if its just New York.... :)

See this is what happens when you REMOVE backwards compatibility along with other features that people PAID for. If sony doesn't change it's attitude about what a customer wants they'll lose even more customers. I fear if they " stay the course " they'll end up with a REAL news report that looks just like this FAKE one.

Now bear in mind I love the Playstation 1 , 2 , and 3. I will however admit that with the Playstation 3 Sony wronged the customers by removing features they paid for. Some of those features were the reason some of the first Playstation 3's were sold. So I can understand the anger at sony those are completely legitimate reasons to be mad at the company I'm not arguing that. All I'm saying is that Sony needs to shape up or ship out. The RUMORS that the Playstation 4 won't have backwards compatibility , and locks used video games does not inspire enthusiasm but instead makes me feel like the console era is more like the tale of Icarus constructing wax wings for a goal of freedom. Only to ignore words of warning not to fly to close to the sun and have the wax wings melt. What I'm saying is that Sony should heed this warning that is " SONY Listen to your customers or you won't survive as a company ".

Is Sony going Nokia? Nokia sold their HQ recently, too, and we all know how bad things are going for Nokia now.

Well its complex stuff that is complex money and gibber. Hopefully they get back on there feet but seriously after the Kevin Butler fiasco thy need to work on good PR and making a winning console to take on the next gerneation war in gaming.

And then Sony will say "look we're in the black, we're a good investment," then next year they'll be taking a huge loss again because no one wants to buy their $25,000 4K TVs.

Riku'sTwilight:

AzrealMaximillion:

SkarKrow:

I really do as well, the last thing we want is Microsoft having the market for consoles all to itself. Nintendo kind of has it's own market these days to be fair, can't wait to snag me a Wii U!

I can't see MS holding the entire market of consoles as long as the charge people for online. That and they've only ever made a profit off of the 360 as the original Xbox put them billions into a hole. If Sony is selling their HQ, I'd expect to see MS doing something similar in the coming weeks. I mean, we haven't heard anything about the Xbox in a while now..

Microsoft's HQ is in Redmond. While they may too have a building in NYC, it probably isn't as much of a big loss to them as it's just a building, whereas this is Sony's US HQ.

As for Microsoft holding the market of consoles - if there wasn't any direct competition around, then it would either be you get an Xbox, get a Wii U or go elsewhere, and if developers weren't preparing games for the Wii U then there would only be one option

I think a lot of people would give up making console games and go PC. JRPGs are by large way more successful on Playstation consoles than Microsoft consoles (and recent Nintendo consoles to be honest). Also, more niche Japanese games like Demon's Souls, Shadow of the Colossus and Sega's Yakuza series find much greater chance of being successful on Playstation consoles as well.

If it were a console race of just MS and Nintendo I'd bet that a lot of those kinds of games would find their way to the PC before landing on what's considered to be "the North American console that caters to online multiplayer", and "the console that has an interesting dynamic but bad history with 3rd party support and even worse history with localization(Mother 3, Operatiion Rainfall needing to happen."

My point is, a two console competition would be the worst outcome for gaming no matter how you slice it.

When companies are in trouble, they sell off IPs. When they are circling the drain, they sell off real estate.

Well... either sony needs money badly because their pool is starting to empty or they are looking at the anti-game backlash by the likes of fox news and doing what every reasonable company should by getting the heck outta dodge

... And this is why I think the PS4 is gonna be as "Weak" as the WiiU. Sony is in such a dire straight (And this clearly shows that) that they need to use weaker technology (Like they did with the PS1 and PS2). Another "Five Hundred and Ninety Nine Dollar" Console will kill them!

AzrealMaximillion:
If it were a console race of just MS and Nintendo I'd bet that a lot of those kinds of games would find their way to the PC before landing on what's considered to be "the North American console that caters to online multiplayer", and "the console that has an interesting dynamic but bad history with 3rd party support and even worse history with localization(Mother 3, Operatiion Rainfall needing to happen."

My point is, a two console competition would be the worst outcome for gaming no matter how you slice it.

To be completely Honest, I think a Nintendo vs. Microsoft only Console War would be a repeat of Nintendo vs. Sega: They fight neck and neck and Nintendo barely comes out on top.

Mr.Mattress:
... And this is why I think the PS4 is gonna be as "Weak" as the WiiU. Sony is in such a dire straight (And this clearly shows that) that they need to use weaker technology (Like they did with the PS1 and PS2). Another "Five Hundred and Ninety Nine Dollar" Console will kill them!

It's not just about technology, Sony seems to be taking it slowly in terms of feature advancements. They wait for Microsoft to set the standard on the kind of online/friends/list features they want on a console and follow through. They're also frustratingly set on using proprietary data storage systems, which may have worked in the 90's, but now it's too much of a pain in the ass to look past.

I'm kind of neutral on this. Either their financial difficulties will light a fire under their ass and they'll actually INNOVATE to compete, or they'll just get progressively more irrelevant and collapse, which is what Capitalism is about!

Really wish I knew they were selling the headquarters ahead of time though, I would have totally put $1.2 billion down, the place is sweet.

[This post has been deleted]

DVS BSTrD:
I wasn't aware Sony needed the money that badly.

Believe me, financially they're in the shitter.

They were worth around $120 billion at the start of this decade. They're now worth about $11 billion. While that's a large amount in itself, it's also a drop in value of 90%. If they don't sort out their TV and phone departments soon, they're going to go down the drain. They're already getting their rating downgraded to 'junk' by creditors, and things will only get worse if they don't pull the finger out.

Mr.Mattress:
... And this is why I think the PS4 is gonna be as "Weak" as the WiiU. Sony is in such a dire straight (And this clearly shows that) that they need to use weaker technology (Like they did with the PS1 and PS2). Another "Five Hundred and Ninety Nine Dollar" Console will kill them!

AzrealMaximillion:
If it were a console race of just MS and Nintendo I'd bet that a lot of those kinds of games would find their way to the PC before landing on what's considered to be "the North American console that caters to online multiplayer", and "the console that has an interesting dynamic but bad history with 3rd party support and even worse history with localization(Mother 3, Operatiion Rainfall needing to happen."

My point is, a two console competition would be the worst outcome for gaming no matter how you slice it.

To be completely Honest, I think a Nintendo vs. Microsoft only Console War would be a repeat of Nintendo vs. Sega: They fight neck and neck and Nintendo barely comes out on top.

If if were a repeat of Nintendo vs. Sega, I'd say that Nintendo's at a disadvantage considering that they're mirroring Sega's treatment of 3rd Party devs. And Sony isn't as bad off as you're making them seem. They and MS have subsidiaries for gaming. Gaming is the majority of Nintendo's business.

All off the Big 3 are hurting right now but Nintendo's the most financially vulnerable. Not to say they'll go down, but they're locked in to the gaming industry. Sony and MS can leave and not care. Honestly, if it were to be a 2 console market, I could see Sony or MS outspending Nintendo one on one.

Here's something that might help: PS4 with backwards compatibility and at a decent price.

But you know what they're gonna do instead? Sell the PS4 with no BC and at a very high price.

Caaaaaause...that's Sony for ya!

Beautiful End:
Here's something that might help: PS4 with backwards compatibility and at a decent price.

But you know what they're gonna do instead? Sell the PS4 with no BC and at a very high price.

Caaaaaause...that's Sony for ya!

Thats ppretty much EVERY console for ya.

None of the systems have very good backwards compatibility outside the WiiU which, as far as I remember, plays all the Wii Games still.. But thats not saying much as my computer can play Wii games better than the Wii could. :P

o.0

well, i knew they where having problems but damn ...

that's what releasing crap no one wants will do though

AzrealMaximillion:

All off the Big 3 are hurting right now but Nintendo's the most financially vulnerable. Not to say they'll go down, but they're locked in to the gaming industry. Sony and MS can leave and not care. Honestly, if it were to be a 2 console market, I could see Sony or MS outspending Nintendo one on one.

Gamers have been reading the negative-Nintendo news too long.

The reason Kaz Hirai was made president of Sony is because the gaming department was the only profitable portion of Sony for ages. That's been changing as the Vita bombed and the PS3 didn't meet expectations.

Sony can not afford to cut and run from gaming.

Sarah LeBoeuf:

The sale of the 37-story building, located at 550 Madison Avenue, is part of a "range of initiatives" Sony is taking in order to improve cash flow. To do this, the company is "carefully selecting investments, selling assets and strengthening control of working capital such as inventory."

Translation: "WE ARE FAILBOATING AND NEED CASH."
Welp, nothing can expand forever, and after witnessing their propensity for self-destruction and certain anti-consumer practices, it's not surprising.

Well looks like I gotta invest in a good PC gaming rig and learn how to use a mouse and keyboard. My console gaming days are coming to end as it would seem... but then Microsoft locks down their stuff Apple style and I give up completely.

Jumwa:

AzrealMaximillion:

All off the Big 3 are hurting right now but Nintendo's the most financially vulnerable. Not to say they'll go down, but they're locked in to the gaming industry. Sony and MS can leave and not care. Honestly, if it were to be a 2 console market, I could see Sony or MS outspending Nintendo one on one.

Gamers have been reading the negative-Nintendo news too long.

The reason Kaz Hirai was made president of Sony is because the gaming department was the only profitable portion of Sony for ages. That's been changing as the Vita bombed and the PS3 didn't meet expectations.

Sony can not afford to cut and run from gaming.

Uhh, yeah they could. If Sony dropped gaming they'd stop taking a loss on every console/handheld they sell. You forget, Sony is a massive corporation, and also owner of the second biggest music label on the planet as well as Sony Pictures. Profits from those 2 subsidiaries alone have gone up decently. Sony the Corporation is by no means hurting for cash, and could take leaving gaming easily. Especially since that would mean they'd be selling off IPs, studios, and franchises, which would make them a few billion easily. I could see EA, Activision and Ubisoft in bidding wars for a lot of the rights to gaming franchises, a lot of which Sony owns but has done nothing with for a long time.

j-e-f-f-e-r-s:

DVS BSTrD:
I wasn't aware Sony needed the money that badly.

Believe me, financially they're in the shitter.

They were worth around $120 billion at the start of this decade. They're now worth about $11 billion. While that's a large amount in itself, it's also a drop in value of 90%. If they don't sort out their TV and phone departments soon, they're going to go down the drain. They're already getting their rating downgraded to 'junk' by creditors, and things will only get worse if they don't pull the finger out.

Lolwut? Sony for $11 Billion? Not freaking likely. I could see that for just their gaming, but surely not the entire corporation. Sony's music label alone is worth $6 billion and profits for that have gone up. Same with Sony Pictures and that's worth $8 Billion. Sony Inc is worth closer to $144 Billion dollars. Sony ranked many places higher on the top Fortune Global 500 list than MS and MS is worth about $120 billion.

http://money.cnn.com/magazines/fortune/global500/2012/full_list/index.html

Where'd you get $11 billion from?

Man, Sony's consumer electronics division had better not fold. They make the best cheap (say, sub $20) earbuds on the market. That may not sound like much in the way of brand loyalty, but it's enough -- there aren't all that many brands I feel any sort of loyalty to.

AzrealMaximillion:
Lolwut? Sony for $11 Billion? Not freaking likely. I could see that for just their gaming, but surely not the entire corporation. Sony's music label alone is worth $6 billion and profits for that have gone up. Same with Sony Pictures and that's worth $8 Billion. Sony Inc is worth closer to $144 Billion dollars. Sony ranked many places higher on the top Fortune Global 500 list than MS and MS is worth about $120 billion.

http://money.cnn.com/magazines/fortune/global500/2012/full_list/index.html

Where'd you get $11 billion from?

Yeah, see, if you'd read the link you posted, you'd have seen that Sony is one of the only companies to have posted negative figures in the profits section. Meaning they lost money, not that they made it.

Sony has been posting losses for years. Turns out $11 billion worth wasn't quite right- they're worth about 18 billion currently That's still a drop of nearly 90%, seeing as they used to be worth $120 billion.

Yes, that is the worth of the entire corporation. Because they really are tanking money. The reason they used to be worth so much was because they were market leaders in pretty much all their fields. Now, they're the market leaders of nothing. The Walkman got replaced with Apple's iPod. Their TVs have been getting outsold by the likes of Panasonic and Samsung. And where the PS2 sold over 150 million units, the PS3 has sold just over 70 million and got outsold by Nintendo's Wii. If you think they're going to be worth the same they were at their height, despite not having any market leasership, then you're obviously not aware of how business works. They had to let go of 10,000 staff.

They got their credit downgraded to junk, for christ sake. By two different credit companies. And their share prices are at an all time low.

So yes, the fact that Sony is selling its US headquarters is another indicator of just how far in the shitter their financials are.

And there is no way Sony Gaming could be worth $11 billion, seeing as how they sold the PS3 at a loss for the majority of its life, and are currently selling the Vita at a loss now. In order to be worth something, yo have to make money. Sony used to make money. Now they lose it.

 

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