Why Sony should go after DreamWorks...

[stockstar1138]

We've all heard the rumors that Dreamworks may be departing ways from Viacom and Paramount Pictures. Initial rumors point towards Steven Spielberg going back to work with Universal. However, while both are red studios at the current moment, I cringe to even think about Dreamworks going to Universal. This is because Microsoft has close ties with Universal/NBC. I think Microsoft has realized Sony's HUGE advantage in pushing new media by having control over some studios and wants in the business.

I believed in the past that Microsoft was going to make a offer to Paramount/Dreamworks. I mean, they most likely contributed to a very handsome payoff to the company, to drop blu-ray support and then really buddied up the the movie studio(s) with a download deal wort over 3x as much as the payoff. However, I don't think they are going to make an offer anymore. Viacom, Paramount Picture's owner, may have already been asked if they were willing to sell Paramount/Dreamworks and MS was turned down, after all its very possible that MS made Paramount look like the ass of the industry over HD DVD and Viacom wants nothing more than what they are contractually obligated to do with them. Also, Microsoft made the mega offer to Yahoo, I highly doubt MS will be making two mega acquisitions so close together. It is very possible that their first target was to go after Paramount and derail blu-ray and Sony's PS3 from inevitable victory over the 360, but they failed so they went after Yahoo in order to go after another rival company, Google.

Anyways, Microsoft still wants to get into the living room and if they have been already turned down by Paramount, which is very possible, they could really help Universal secure the deal to pick up Dreamworks. With the help they give Universal in picking up Dreamworks, MS could get even closer to Universal. I know this is disputable but if MS would have a significant hand in the dealings of what could become Universal/Dreamworks, they have a better portion of the movie market than Sony does. Now, movie studios used to be a big advantage for Sony, and now it has turned into an advantage for Microsoft. Sony cannot let this happen. Now while I am not a Sony fanboy and I could care less if their future media formats fail, MS cannot get anytype of grip on movie studios. I promise you guys, whatever "format" MS puts their movies out in, will be half assed and total crap. I don't think if Universal does acquire Dreamworks and gets closer to MS it will affect the timeline of Universal moving to blu-ray, their is too much pressure from GE, which will always be greater than MS influence.

Sony has a pile load of cash due to some recent sales they made. Even if the rumors are completely true they made over 600+ million dollars in payoffs (they aren't, but I'm just playing worst case scenario), they still have a pile of cash. I'm pretty sure they are investing a lot of money into the PS3, and I think they should pull back the reigns considerably on this and really make a move towards picking up another studio. Sony does not need to put nearly as much money into the PS3 as they have in the past, the PS3 has games now, a price point that is 33% lower than the launch price, the biggest decrease of any console on the market, a hell of a games lineup for 2008 and the next-gen format included in every console sold. PS3 will sell PS3. Sony doesn't need to invest too much more money and be taking losses (please note: i'm not advocating for Sony not to put anymore money into PS3), god knows they have already invested so much. I mean, game console hardware is usually sold at a loss initially anyways and software makes up for it. Mark my words, in terms of discs sold/PS3, PS3 blows every other console out of the water (this stat is including blu-ray movies + blu-ray games, as some use ps3 only as a blu-ray movies player). Sony is doing very well with software sales and thats what is making them $. IMO PS3 is a short term investment, in 7 years, people won't even care if Sony spent a ton of money to ensure that it sold as well as PS2 and PS1, as the PS3 will be on a decline, due to new consoles hitting the market. However, people will still be talking about how Sony has this magnificant hold on major Hollywood studios. Dreamworks is a long run investment. Sony has a very good, very UNDERVALUED, animations dept. Dreamworks animation would fit beautifully with Sony. While I stated I could care less if Sony's future formats fail, Sony has always = quality in my book and I would expect that future formats will be quality and I would most likely go the Sony route and it would be major if Sony was in control of Columbia/Tri-Star, Dreamworks, and 20% of MGM. This is a long term investment that could make Sony a lot of money and prevent rival MS from taking control of the living room with the future crap that they try to force on consumers.