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?
โSonyโs not in a position to halt all domestic production but it has to do something that drastic,โ said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. โIf it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.โ (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?
Paul is back!
@Analyst predicts 66M iPad sales in 2012
The nasty thing about extrapolating numbers to make predictions can fail. I mean Sony Vita sold ok initially, then to simply drop rock bottom immediately after.
Oh man, I sure loved Paul’s comment with Harry Potter ๐
Ah, you gotta love the planned obsolescence. As for PC games, you get better graphics for the extra performance requests.
@Diablo III gets May 15 release date
It makes no sense to delay the launch for Russia. It will not increase sales in Russia or anywhere else. I say that 3-4 days after Diablo 3 gets released in US, pirated copies will show up on torrents sites.
@Next gen console launch titles will probably use Unreal Engine 3
Well, the rendering can be expanded to cope with DX11 hardware. As far as I know, it can already cope with it (Aliens vs. Predator 2010).
As for it being the only game engine, it implies that only Epic is aware of the API for the new consoles. Careful there with the statements, Epic …
@ looking for executive producer to work on an โAAAAโ Xbox title
I think they simply need a fresh idea … the team that produced Halo would do the job just fine … oh wait! They dismissed them a while ago. Smart move!
Lol, Paul, that was a great interpretation. Hmm … maybe I’ll start roleplaying my comments ๐
Family show, right… You can bleep out as many swear words as you like, this will never be a family show.
Well, there weren’t any interesting news stories this week, so I’m not going to comment on them.
Paul, you should read Reader Feedback comically more often! And I do agree that the Flying Beetle in Skyward Sword is a great item because you can use it to scout pretty much everywhere. I also think that Koloktos (the one with the six hands and huge scimitars) is the best boss in the game.
@Episode 255 comment: The theater was sort of packed, and my roommate sat in front of me with the other half of our party. He sort of deserved the head kick, though, so it’s all good.
@iPad Sales: I had an iPad 1 at my last job and liked having it around to browse the Web and look at other content on the couch. But since I had to give it back (the company folded), I haven’t missed it. Only the money I spent for The Daily (peeyoo).
@Unreal: I get the Game Developer trade publication, and Unreal always has an advertorial touting its wares. If it looks good and is easy to develop with, why not?
Thanks for another damn good fucking family show, fo shizzle.
hmm i dont know if my friends dragged me to the movies to see something like alvin and the chipmunks i might have another reason to kick there ass in the theater .
oh forgot to mention last week either version is fine.
also i never got the reasoning behind the serah palin movie. she lost the race but the celebrate her as a great victor? i guess you just do things diffrently in america
oh i forgot to mention that the mgs2 ending was scary because it became alot like eternal darkness on the gamecube but it came so out of left field in what was a normal game up until that point.
66M iPad Sales in 2012? – I wrote something maybe too evil for this show regarding this news piece, so I’ll just say this. I don’t like Apple and I like Paul just a little bit more now that he has shown his hate for Apple as well. I like ya Paul, stay classy.
AAAA Title by Microsoft – Why? Why would Microsoft claim to have a AAAA title? Doesn’t that just completely destroy the point of the game rating system. Now KOEI is going to announce they have a AAAAAAAAAAA title: Dynasty Warriors 231. I’d like to believe all developers/publishers think highly of there games, but it seems sorta cocky to go off of the scale because you believe this game is better than any other title ever put out, and does not deserve the lowly “AAA” spot. But that’s just what it seems like to me.
As always guys keep up the good work. Hope you all are doing well, can’t wait for the next episode.
(to Paul to read, and please in british accent, if possible, of course)
as an answer to the previous podcast, one shall improve his english skillz, i mean, proficiency!
@66 million iPads sales in 2012
those poor bastards, wasting their money in an overcharged piece of eletronic equipament that shall not bring any major improvement over the previous iPad
@Diablo III 15th of may
One shall not leave the presence of one’s personal computer while one’s equipament still works (not fry out into oblivion)
@AAAA microsoft title
thou shall be amusing to see such game when announced right after Call of Duty, n00b warfare 4 (let’s hope CoD just die now, before that happens).
Mr. Nowak, is this better (insert trollface)
one hopes the TD gaming podcast trio (hopefully) understands this message as a form of entertainment, or if you gentlemen prefer, a joke
always wishing the best!!!
*@beggining: “*for* Paul to read…”
and i mean hopefully a trio, not hopefully understand