Sony Bought The Company That Produces The, Wii U's DRAM

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Sony Bought The Company That Produces The, Wii U's DRAM

Post by BigBox on Wed Dec 25, 2013 7:03 pm

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Re: Sony Bought The Company That Produces The, Wii U's DRAM

Post by DP on Wed Dec 25, 2013 7:42 pm

Did you actually read the article? It's still prospective, and it's beneficial for everyone. Sony holds a new smartphone chip producer, the company doesn't go bankrupt, several hundred people keep their jobs, and Nintendo doesn't need to go anywhere else for DRAM chips. Remember that Sony also owns rights to Blu-Ray, which Microsoft used on the Bone. Sharing like this is common in today's industry.
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Re: Sony Bought The Company That Produces The, Wii U's DRAM

Post by BigBox on Wed Dec 25, 2013 7:46 pm

Yes, I did.

"Nintendo will have to find another supplier for the long run, while in-house stocks of the chip are expected to last at least for a while."
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Re: Sony Bought The Company That Produces The, Wii U's DRAM

Post by DP on Wed Dec 25, 2013 8:10 pm

Selective quoting doesn't work on someone who read everything.

Another very interesting detail is that the rather low final purchase price has been determined due to the fact that Renesas is planning to move part of the facilities and equipment of the Tsuruoka factory to its main plant at Naka, in the Ibaraki prefecture.

This opens multiple possible long run outcomes for Nintendo, that still hasn’t announced official plans to relocate the production of Wii U’s embedded DRAM. If Sony converts only part of the production at Tsuruoka to CMOS sensors and retains the ability to produce the DRAM, Nintendo could very well acquire the chip from the rival. It’s not unprecedented and in the world of business it’s an everyday occurrence.

If Renesas manages to restore production of the DRAM at Naka (which is very possible, as the crucial factor to its production was the specially tuned equipment located at Tsuruoka, and at least part of it could be moved to Naka), Nintendo could continue to receive stock from there, just changing the location of manufacturing.

Which leads into your quote and gives it the context of "its likely they'll keep producing DRAM chips." Sony's not out to fuck Nintendo here (they did that back when they destroyed them 5th gen lol), so even if there were plans to shut that subset down, they'd probably go into arrangements for a business deal much like the one Nintendo already had. With the Wii U expected to ramp up its sales in the next year, Sony could easily buy the company out and flip both aspects (keeping the chips in production and flipping the rest into the smartphone business), and still be profitable on both ends.
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Re: Sony Bought The Company That Produces The, Wii U's DRAM

Post by BigBox on Wed Dec 25, 2013 8:20 pm

I doubt, Nintendo will stay because now they have to play Sony a percentage of Wii U sales for the use of the company.  Nintendo will have to look for something in the long run and there's no changing that. Unless they wanna pay, Sony a percentage of Wii U sales for using their manufacturing company.  Given, Nintendo's track record of making business deals with, Sony.  Nintendo will find a different company within two years.
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Re: Sony Bought The Company That Produces The, Wii U's DRAM

Post by lpool1996moh on Wed Dec 25, 2013 8:26 pm

well given they pay for Blu Ray already (I think) or they will next gen, its not a huge concern.
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Re: Sony Bought The Company That Produces The, Wii U's DRAM

Post by BigBox on Wed Dec 25, 2013 8:29 pm

Nintendo doesn't pay for, Blu-Ray. They don't even use, Blu-Ray.
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Re: Sony Bought The Company That Produces The, Wii U's DRAM

Post by DP on Wed Dec 25, 2013 8:30 pm

That's not how this works. Sony OWNS a proprietary stake in Blu-Ray, THAT'S why Microsoft pays a percentage. Sony doesn't own DRAM. They'd just be another manufacturer of a chipset, getting paid based on how much Nintendo buys and what the agreed payment per chip is. I doubt that amount would change from the current agreement either (it might go up temporarily to frontload and give Sony some money back on the investment earlier).

Don't argue this, it's not opinion based. This is how business works. If Sony tried what you're implying they will, Nintendo would just go back to in-house manufacturing like they did pre-Wii or find a deal so comparable to what they currently have that it wouldn't affect their bottom line.
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Re: Sony Bought The Company That Produces The, Wii U's DRAM

Post by BigBox on Wed Dec 25, 2013 8:41 pm

That's what I mean, I guess I worded it wrong, but in any case Nintendo won't be doing it for long.
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Re: Sony Bought The Company That Produces The, Wii U's DRAM

Post by DP on Wed Dec 25, 2013 8:59 pm

This is one of those stories that will be completely inconsequential when all is said and done. Well, for console issues at least. It could be excellent news for Sony's expanding phone market.

And lpool, Anaconda's right about the disc format. Nintendo never once used a common form of disc. They've got a slightly different version of Blu-Ray in the Wii U Optical Disc; it's pretty much the same, just not used commercially and owned by Nintendo.
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