What's So Special About Sony's Earnings?

“Yeah, they are. Again a strong

helps, right?” Prete said. “So, definitely some currency effect in these numbers. But when you start to dig underneath it, what you start to see is that it should be like [$]900,000, by our estimate, more PS4s than Microsoft did of the Xbox One. They doubled the number of subscriptions to their network services, which are people actually playing the games, and they also saw over 20 percent improvement.”

He continued, “Again that’s dollars in the phone business and that’s more bad news for Samsung, 'cause they are going after that premium Android space. Bottom line, they were out of the PC business last year, they retrenched, they got focused and you are starting to see some results and currency is helping.”

“Yeah, it is impressive,” Prete replied. “Again, this is an example of Sony going after the most demanding customer, and basically with some of their new high-end offerings, particularly starting to really make a big play in 4k."

“ Guess what? They are getting people to pay up because it’s a respected brand -- tremendous amount of brand equity -- and they are delivering results there […] commoditizing segment. My worry is: How long can that last?”