Sony’s stock took a massive spike and closed today at 22.91 points. Two points higher than it was eight hours before. That’s a 9.25 percent jump for Sony’s market price. This all happened during the XBOX ONE Reveal, just mere minutes after the broadcast began. Microsoft on the other hand, their stock closed down at 0.66 percent, lower than what was expected after the massive reveal today.
Bloomberg reports that the stock jump may be due to a rumor circulating that Sony may be spinning off it’s entertainment division altogether. The rumor was reported in the New York Times that Daniel S. Loeb, a hedge fund manager who owns 6.5% of Sony, suggested the company is looking to break it’s electronic and entertainment sectors into separate divisions entirely.
The plan here is to divide all sectors into their own sort of brand, Sony Music, Sony Pictures, Sony/ATV Music and Publishing and Sony Computer Entertainment. According to Loeb he believes “that spinning off a portion of the entertainment business to Sony shareholders could sharpen the company’s focus and lead to higher profit margins, while helping to revive the core electronics business. He has also contemplated a spinoff or sale of other operations, including Sony’s insurance division, which accounted for much of the company’s profit last quarter.” Sony made it’s first profit this year reporting a $436 million profit, their first since 2008.
Many gamers are up in arms about the XBOX ONE event, and could be the other reason why Sony’s stock is rising, whilst Microsoft’s Light-on-games conference is affecting them in the market and taking a steady decrease. Although this is not good news for Microsoft, we still do have 3 weeks until E3 hits, where we hope Microsoft will divulge it’s major titles to us, center stage in Los Angeles. That remains to be seen, but it looks like it’s already hitting them in the stock market. Not a good sign for Microsoft here. Be sure to stick around on Dashhacks this week for more XBOX ONE news, and the big lead up to E3. Be sure to check out our recap of the XBOX ONE Reveal.