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?
Thanks to the New Hampshire’s “State of Emergency” it looks as if we’ll have to delay the podcast a bit this week. We have had no electricity in four days and continue to have to deal with lack of power in our day-to-day life.
@Dead Island – wrong version on Steam:
Since its a digital distribution channel, it is easy to fix …
@Lord British wants to make another Ultima:
I said it in another post: as a developer, either you sell the IP to the publisher and enjoy the money, or keep the IP and retain control. You can’t do both, have the cookie and eat it.
@Crytek rebukes “unlawful layoff” claims
Europe labor laws (Germany included) are a bit more weird. They would send labor inspectors to check how many extra hours you’re pushing etc. etc.
That’s one extreme.
The other extreme is bad planning that leads to all-development-crunch-time.
There has to be a middle ground.
@ Steam on Xbox Live Marketplace:
Newell wants EA to start selling their titles on Steam again. The way he goes about it is by trying to squeeze market space away from Origin; if EA would like to make more money, they would have to go through Valve’s Steam.
@console “limitations” in Battlefield 3:
PC rulez 😀 !!
Now, while 30 fps in a shooter is fluid, at 60 fps you do get better reaction time from the game. And for online shooters, this matters.
There is a reason why competitive shooter games run at a simulation tick rate at 60 ticks per second, 90 ticks per second and even 120 ticks per second.
Question is, for the fps count to matter, will Battlefield 3 be a competitive online multiplayer? Something tells me that it aims to be one.
@Black Ops map packs hit 18 million sold
What pisses me off is that modders can’t sell the maps they make, but developers can. And nowadays (case for Battlefield 3) there won’t be any modding tools. Way to go to maintain a community …
@PSP:
This will come as a shocker: I like Jonah’s idea about a simple handheld console, that does only gaming.
In terms of gadgets, I don’t like multipurpose ones. My phone only does calls and text messages (and live for 5 days from one recharge), so from a portable handheld I only expect it to play games.
@QOTW:
In the second STALKER game, Clear Sky, they changed the damage mechanics and the weapon accuracy (nerfed it).
Now, while I loved the fact that you could customize your gun in Clear Sky, changing the base accuracy AND making enemies die only from headshots caused a lot of frustrations.
This was somewhat exacerbated by the fact that the first game had decent guns and enemies would die also from body shots.
Thankfully they reverted a good deal of it in the third game.
@Steam on XBL – That would be great but, as Jonah said, Microsoft would be putting out Arcade Games for 15 dollars while Steam is having a sale, selling the same game for 5 bucks. I wish it were so, but I understand why is isn’t.
@Black Ops Map Packs – I have purchased all four map packs (the last one was free due to the fact that I had the Hardened edition of the game), and I, like many, only purchased them for the Zombies maps. The problem with that is I have to pay for the four crappy multiplayer maps instead of them offering the Zombies maps as separate content.
@QOTW – Bioshock is easily one of my favorite games of all time, but the hacking in that game annoyed me horribly. Thankfully, they changed the hacking mechanic in the sequel, so at least they learned from their mistakes.
I enjoyed hacking in Bioshock. Deus Ex: Human Revolution does it better, though.
I found the hacking to be more tedious than enjoyable. But, to each their own.
guys,jonah ,just to let ya all know that im still listening and i observed that the podcast is getting better,i didnt have time to comment coz i was playing minecraft and studying, and guys if you have a minecraft account but you dont play anymore plzzzz message me and try to give it to me because im stuck with a cracked account and im really broke so plzz i beg you all @qotw i never encounterd those things because i enjoy all of my games ,ps dont stop the podcast keep it going
edit you could message me on Facebook ,name; oliver lance de leon