Every day we’re hearing of a company running through a round of layoffs or going out of business, it’s really not a happy time. Sony is not immune to the economic troubles either. Sony is talking restructuring and that involves a potential head count reduction of 16,000 jobs due to plant closings.
This leaves Sony with some hard decisions. Restructuring can mean drastic changes that effect all their product lines. The PlayStation 3 isn’t currently a shining example of high profit margins. The console needs time to reduce its overall cost, chip sizes and bring profitability. Is it in danger?
“Sony’s not in a position to halt all domestic production but it has to do something that drastic,” said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. “If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.” (gamestooge)
The yen is losing value in our global economy making it more difficult to export the product and build any type of profitability plan. “A source said this month the company will likely suffer an annual operating loss of about $1.1 billion, its first such loss in 14 years” (news.yahoo.com) All this noise is making CEO Howard Stringer contemplate Sony’s involvement as a “software only” company, making us recall the changes at SEGA to this same result.
The Financial Times reported Sony will unveil details of its restructuring steps on Wednesday or Thursday. It said Chief Executive Howard Stringer was meeting with resistance from some executives to shifting the company’s focus to software from hardware and cutting jobs in Japan. (news.yahoo.com)
Is this just a case of a fearful executive trying to lay plans for a more stable future? Software is easier to develop, pays for itself quickly and becomes pure profit as it ages. Hardware requires constant upkeep at manufacturing facilities, chip reductions and a boat load of quality planning for first shipment. Would Sony go full software?
Let’s face it, Sony isn’t SEGA, they’ve been developing hardware for consumers since anyone can remember and they’ve been doing it with quality and market penetration. It seems absurd to think they’d forgo hardware designs in replacement of a full software solution to the problem. In addition, Sony has already invested a large amount of cash into seeing PS3 through it’s 10-year plan and letting that die now is realizing a huge loss on investment.
If Sony pushes through the economic and maintenance course, the PS3 will become highly profitable, much like the PS2 last generation (with a slower ramp up for sales). Even if they break even after ten years it seems a lot better than throwing all the effort away.
Perhaps Howard Stringer is talking “software” for the next generation home console? You think Sony will create a PlayStation 4?
For those that are Facebook junkies, playing their hearts out of Scrabulous, you’re going to be hit with some reality: it’s not real scrabble. Hasbro has attempted to
@GameStop developing console and PC game streaming
This is quite funny, since I remember Derrick and Jennifer talking about GameStop as the iconic brick-and-mortar type of shop, not willing to buckle up on the pressure put by digital distribution channels.
The big problem I see is the fact that now there are quite a lot of digital distribution channels: Steam, Origin, Desura, not to mention the console based ones. It got crowded, and getting a slice of the pie is (now) very difficult.
Now, in terms of streaming, the only competition is OnLive. They will need to do something differently, however, if they want to become top dog. I’m curious as to what will that be.
@Is the Xbox 720 chip set
Well, the technology is already there. Call it Sandy bridge or ‘fusion’, CPU+GPU+memory controller are here to stay.
The hardware technology was already tested (well, Intel had some issues with Sandy bridge …) and deemed suitable for marketing.
SoC means ‘System on a Chip’, meaning everything (CPU, RAM, ports etc) is on the same chip.
Jordan, I see the 720 as just a hardware upgrade of the 360. It will be (just like 360) still based on PC-like hardware, so I say the 360 games will be perfectly compatible with the 720. This means the 720 already has a good library.
The way I see it, Microsoft decided to steamroll the competition.
@industry is failing female gamers
I say put your money where your mouth is. Instead of complaining about the fact that the market represented by female gamers is not being properly exploited, I say take the opportunity and make a game that will bring you the moneyz 😛
My sister also loved UT. She also played Quake 3 and Medal of Honor: Allied Assault, but her arena of choice remained UT. Another game she liked a lot was the first Unreal game.
Back to the UT/Quake3/MOHAA, she also played them in multi player.
@QOTW
I take pretty much the same approach as Jordan. I don’t look at bullet points.
But, be it FPS or RTS, I want a nice, plausible story.