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?
While Bobby Kotick said the titles, “don’t have the potential to be exploited every year on every platform with clear sequel potential and have the potential to become $100 million dollar franchises,” Phil Harrision sees it as a personal challenge to prove him wrong.
Interesting, the dynamics of the group didn’t change a lot.
@Wasteland: Fallout as the spiritual of Wasteland? It makes a bit of sense; when you started to describe the game I scrolled up again: I initially thought you were describing the wrong game 🙂
@Dashboard update gives Indie Marketplace more visibility
I wonder, is it that the indies managed to pull enough money to actually deserve the extra visibility? And by ‘deserve’ I don’t mean the politically correct version of deserve.
If you ask me, the answer is yes, they do manage to pull in cash.
… :O Baby Makers Extreme had a sequel?!
@Call of Duty: Black Ops 2 outed by Amazon France:
Activision canceled advertising campaigns on that site? Really? Didn’t the tabloid stars teach them that is bad to f**k the press?
@Electronic Arts terminates “free Battlefield 3 for preordering Mass Effect 3” deal early
Hmm … I bet it is an exploit. Dice is just the developer, it’s the publisher that calls the shots on what and how gets sold, so I don’t think it was Dice who got upset.
I say it is an exploit.
@Alan Wake on PC because Remedy “a nagging little kid” to Microsoft
Hmm, lemme guess, they [devs] caved in and opted for an XBox exclusive for a little extra cash from Microsoft. Now they ran out of that said cash and they need to make more sales …
I liked the Max Payne games and I was quite excited about the game when it was announced. Now … meh … bad decisions have their consequences, and I think the devs will feel that. I mean there is a reason why others release their games AT THE SAME TIME ON ALL PLATFORMS, not two years later.
Regarding the question of the week, I’m not in for the pixie diamonds.
The Duck Tales games for NES (both of them) are very good. They even kept the TV series theme song in the first game (thanks for that ending, by the way).
It really was like Paul never really left! I guess you don’t need even need him after all! Paul kind of annoys me sometimes, especially when he’s whining about something.
About Mass Effect 3, I was actually playing the multiplayer demo while I was listening to the podcast and I think it is great. About the animations and such: I noticed them too, but what do you expect out of a demo! I also noticed some improvements over Mass Effect 2, but most of them were minor.
-.- Pixie Diamonds, whatever. (No offense, Paul)
Oh and by the way Paul, I was kidding, it wasn’t actually hate mail at the beginning.
It’s been ages since I’ve commented, but that was a really great show! This episode and the original crew episode are two of my favourite eps in a long time… and neither of them featured Paul! Isn’t that telling? (How’s that for hate mail?) 😛
I happen to be a fan of Polycast, so hearing Dan on the show was a very nice surprise. It’d be great to have him on again sometime! (Btw Jonah, I seem to recall you making a guest appearance on Polycast a while ago. Am I remembering correctly?)
@Alan Wake on PC due to Remedy nagging Microsoft
I always find it interesting to hear details of the relationship between a Dev and a Publisher. I find the Retro Studios/Nintendo relationship quite interesting, since although Retro are a very successful and acclaimed studio, Nintendo seems to be very controlling of them.
But even more interesting is the Rare/Microsoft relationship, given the Rare staff leaving and speaking out against Microsoft, etc. It’s sad to see what Rare has become these days though 🙁
@QOTW
To be honest, Disney didn’t feature that heavily in my childhood. I do love Pixar though and they’re part of Disney. They don’t really do ‘Princes and Heroes’ though. So maybe Aladdin then? He was a hero I guess and pretended to be a Prince for a while too!
thank you Paul for not showing up in this podcast, i was away from internet connection for roughly a month and when i heard the 1st VGRT contest i was very sad because i didn’t got the chance to answer and now i got a 2nd chance. TY
@indie dashboard XBL
microsoft fixed the problem because indie games are money makers. simple as that. the proof is baby maker extreme 2, you just said that
@Mass effect + free bf3 no more
idk if it was a exploit on the buggy origin software but bf3 is still selling as crazy (unlike the Vita – you stopped giving weekly selling numbers, i was amused by that…) the “useful selling time” of bf3 is yet to be reached.
@QOTW (oh boy, must acquire fictitious currency)
the Hunchback of Notre Dame.
he is awesome dude!
he might have been friendzoned as hell but he is the king!!!! not only because he s the king, but he has the atributes to be the best king with includes a pure heart even after a public humiliation from the entire kingdom, just, no heartfeelings bro Q.Q
he is epic
@Duck tales
when you mentioned duck tales for the NES, this came to mind instantly: http://www.youtube.com/watch?v=MPkhhLC1tf8
MOON THEME EPICNESS AT IT FINEST
ops almost forgot!
Derek, Jennifer, DonDon, nice to listen to your voices again! good ol’days back
my heart is with you and your son in the battle against cancer!!!
I just wanted to mention that there are games for XBLIG that are excellent besides I MAED A GAM3 W1TH Z0MBIES 1N IT!!!1. One of my very favorite games from last year was Escape Goat (an excellent puzzle-platformer with very nice pixel art) and there’s also Curse of the Crescent Isle (a Mario 2 style platformer), T.E.C. 3001 (a 3-d freerunner with a very professional presentation and addictive gameplay), as well as many others. Yes, you do have to wade through countless flash game knock offs such as the baby launching game mentioned on the cast, but there are genuine gems to be found.
Jonah was a guest on PolyCast Episode 118 last year, as well as the show’s newest edition — Episode 141 — released yesterday:
http://thepolycast.net/polycast/season5.php#episode118
http://thepolycast.net/polycast/season6.php#episode141