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?
Recorded on 16th – that’s before posting the comment on ‘Computer specs’. Still not the happiest Jonah.
@Mass Effect 3 is Origin-only
It’s a pretty aggressive move to push for Origin. I’m sure they will have higher revenues if they would sell on both Steam and Origin.
I think that it will take a bit until every Steam user will have an Origin account, so, at least on short term, I see EA taking a bit of a hit.
Paul, I liked your point on this one.
@EA passed $1B in digital sales in 2011
I also have an opinion that a good chunk came from Steam. Because yes, EA also sold games on Steam in 2011.
Jordan, I like game boxes as well. And Paul, I also loaded games on a Z80 computer from an audio cassette.
Jonah, the games online cost (at launch at least) exactly as much as the ones from the retail store. Why is that? If I’m to pay the same price, I’d rather get the boxed copy, thank you very much.
@Gaikai: Sony or Microsoft won’t have next-gen console
MSFT has it a bit easy: stick to the PC-like hardware, that evolved from XBox360 until now.
As for Sony, don’t know, don’t care.
🙂 Jonah, loved your input 🙂
@SOPA:
Not touching it, it has been discussed to death. Every person who listens to podcasts is aware about SOPA.
@Thief 4 rumored to have multiplayer
All engines do light calculations on all entities now, in order to have a realistic rendering. As long as there is a way to access the results of that computation, any engine should do ok.
@QOTW:
I would say that my first MP game I played was “Battle City” (called “Tanks 1990” on the NES clone we had). A lot of other games followed, like Chip & Dales Rescue Rangers 1 & 2, Monster In My Pocket and a bunch of others.
Favorite game? Man … dunno … maybe Medal of Honor – Allied Assault, close to it would be AvP2. That doesn’t rule out Battle City or Teenage Mutant Ninja Turtles – Tournament Fighters. Too tough to pick one favorite.
@Mass Effect 3 as Origin exclusive
I think EA move to get its games as Origin exclusives (for digital distribution) will be a mistake on the long run. Steam already has a huge player base, and some players like me are not willing to have their games scattered in different accounts of different distributors.
PS: I also think that digital versions of games should be a bit cheaper than the boxed retail versions. Some MMO’s did this in the past, where you could buy a boxed version for a few more $$.
@SOPA I’ve already said my piece on it, but it was really interesting to see the blackout on some sites. Webupd8.org for instance, had a huge part of the words in its texts censored when the user visited the website for the first time during the day.
@QOTW:
First game of multiplayer was probably Kings of the Beach for the pc, or maybe some spectrum game before that. But the first that really made me love multiplayer was Quake2, which was also my first multiplayer online experience.
After that I was amazed with the MMORPG experience, firstly with Project Entropia, as I’ve never seen such a complex universe before, and after that I tried a few MMORPGs . Nowadays I tend to prefer the massive online games to normal games with multiplayer, although I would have loved Skyrim to come with Coop.
By the drill, Paul, I don’t mean instant hate mail. It just means that I will just like the podcast 50% less.
@Bioware confirms Mass Effect 3 is Origin-only: Why? I pre-ordered Mass Effect 3 on PC, but I really hate Origin. Oh well, I’ll have to live with it, but I really hope that the online multiplayer won’t be too bad with Origin.
@Electronic Arts passed $1B in digital sales in 2011: I’ve already said that I like my games in boxes, for the very same reasons you mentioned. And also, I’m paying extra for the box, CD and display? Bullshit! Deus Ex: Human Revolution pre-ordered was €34.45 from my online retailer. 5 months later, it is still €50 on Steam and only €16 from my online retailer. That’s €34 less for getting the game in the box. Digital distribution? No thanks.
@Gaikai: Sony or Microsoft won’t have next-gen console: And they are guessing once again. Also, I think that it’s a little bit too early for cloud gaming to catch on and appeal to the masses.
@“What was the first multiplayer gaming you ever enjoyed?”: I would have to say Heli Attack 3 on Miniclip. It technically isn’t a multiplayer, but my brother would shoot using the mouse and I would jump around the bullets. My computer was pretty crap back then and we had no consoles so flash games were pretty much all that I played.
@mass eff 3: in order to play the single player game is required a constant flow of an eletric courrent trough your computer or console. lol
The Battlelog is actually a good and innovative idea, the bad idea is Origin that requires a relativelly high portion of the PC’s processing power that could be used to help me run BF3 in high specs. That is what i like in Paul: he votes with his wallet, and stand for his principles no matter what. Damn you steam for not having BF3 and ME3 T.T.
What is wrong with CD’s? I still have my total annihilation in 2 epic CD-rom’s. INSTALLING THEM NAO
Dear Jordan, in 94, Brasil was already blessed with the NES and the Super NES.
@sony or microsoft no moar console:no comments. is a stupid rumor that will not come true, since both companies are rock solid on the console battleground and will not give up
@QOTW
1st enjoyed mp game: Counter-Strike… millions of hours wasted… WORTH IT