It says something that sony has the ability to fail like that and continue. Just like FB failed at the metaverse after doubling and tripling down about how it was the future of the company before it just kinda stopped talking about it.
Companies with this much cash can take risks and fail with little to no concequences, smaller companies cannot and thus often choose not compete or just HOPE that they get bought by one of these near monopolies.
Using caps doesn’t make this affirmation any more true.
While you’re correct that it does massively help, money is only a resource, which you can use to trade for a lot of things, but there are people, things and abstract concepts that money can’t buy.
Money buys recovery from failure, which is a double-edged sword. It doesn't buy the ability to learn the right lessons, and eventually the money teaches that failure doesn't really matter, because there's always another chance to get it right.
Which is why it is probably better to be just constrained enough financially that your first attempt really matters to your bottom line, but have enough to be able to pull it off.
Sure, but it's a factor and it's not like Snap is doing great otherwise.
Startups have less money, but invent new fields because of the differentiated advantage that comes from being smaller and faster (among other things). This is Snap competing in the same arena against Zuckerberg who is a lot better capitalized and better at it.
It'd be one thing to do if Snap was otherwise firing on all cylinders and trying to expand into the platform of the future, but it seems like they never recovered from Apple's ATT and are blowing money on passion projects that are not competitive.
What do I know? I'm just an outsider, but I'd buy Meta and sell Snap. If you disagree, the other direction is probably a lot more profitable if you're right.
Snap is worth $20B, Meta is worth $1.5T. No comparison.