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?
If you’re considering the Xbox 360 console, or plan to buy the Xbox 360 Arcade Edition for USD $279.99 please take pause, until the Xbox 360 20GB models dry up, you can now purchase them for USD $299.99. As Microsoft has bluntly stated, get them “while supplies last.”
@Diablo III I also think they will be selling more than those numbers tell, but I think that the goal of the “buy one year of WoW, get D3 free” is to get more money into Wow rather than more sales in D3.
@QOFTW – I’m thinking about backing up Xenonauts, which is X-Com: Enemy Unkown kinda remake. The approach seems different from the official remake, where in Xenonauts they’re trying to keep it closer to the original.
Meaning there will be two different games based on the original X-Com, and I hope I’ll enjoy both.
PS:
@What I meant with Korean Carebear fest (about Tera) – Carebear is what PvP-driven MMO players call to people who don’t like open PvP, full loot and overall activities that involve risking your virtual goodies.
I didn’t mean it as an offense, its just at first it looked like Tera was bringing a lot of PvP action and a somewhat sandboxy experience, but the comunity started to realize that in fact it is more of a WoW kind of thing with some light sandbox tweaks.
So for the community that has been waiting for a good game (pvp and sandbox wise) since Ultima Online, it was a bit of a disappointment.
As for the Korean part, I was talking about the graphics.
Sorry it was late guys, I was stuck with a sick MySQL server at work (yes, I do have a day job) and couldn’t make it then I guess the other guys had some kind of recording difficulty. C’est la vie… Hope the exams went well for everyone!
@EA deals with Rock Band iOS debacle
Oh man :)) Now it makes sense why EA won the award as the worst company …
As for what Harmonix would do, well, you’re quire optimistic Jonah. What I foresee is a small update made to the game, then selling it, regardless if you had the old game or not.
@Microsoft “banned” in Germany
Oh man … welcome, global players, to a world that does not have a global legal system.
@Diablo 3
The minimum specs for Diablo 3 is within my reach. Yet I don’t have broadband, because we live in a remote area; we only have a 3G modem, but that’s not broadband.
@ Next Xbox already in production:
Ha! So they might launch it in the holiday season this year.
As for concentration camps justifying a country to have stricter ratings, then Russia should impose the same rules for their game market. Oh wait, they won the war … nevermind …
@QOTW
Hmm … none, so far. I don’t bother visiting the site, so I have absolutely no idea what projects are there.
I know that all type of ideas get presented there, from games to devices, but still, the site didn’t catch on me.
“In Soviet Union, TV watches you!” 😉
Wow Paul, you get whiny when you are discussing the new generation of consoles. 😛
Almost finished with my exams, only 8 left.
@QOTW: Currently, none. As a 15 year old, I barely have any money for indie games which I don’t know much about yet.
The list I left you wasn’t a list of kickstarters I was excited for, but a list of successful video game kickstarters since Double Fine Adventure. I just thought it would be an interesting topic to discuss if there isn’t much news. I’m still surprised about how many kickstarters actually reached their goals.
Here is a list of the links just to make it easier. I picked the ones which have earned at least $100,000 to make the list shorter:
http://kck.st/xBJJ0N
http://kck.st/HiG1V7
http://kck.st/sRf3LL
http://kck.st/yAfgj2
http://kck.st/HYQbcy
http://kck.st/I1vU2N
http://kck.st/GTp0kn
http://kck.st/HqymGE
http://kck.st/HE8nZJ
http://kck.st/HEHrEK
http://kck.st/HujJPy
Hey guys missed you last week, glad that you’re back!
@Next box, although I don’t see it coming out for a while, I agree with Jonah. The sooner this next generation of systems comes out the better it is for gaming in general. Progression is one of the most important factors in the game industry. The better and newer the hardware, the better and newer the games and the opportunity for developers to really do some new amazing things with it. I hate to see the state of gaming stuck at the current peak of what the current gen systems hardware can do.
The major companies trying to prolong the life of the systems with movement controls was stale and gimmicky before it even started, with a few exceptions. I think we all want some innovation and new things in console gaming, and I feel like we’ve run out of room the the current systems. And hope to see them revealed as soon as possible without hurting current developers of course.
What does it mean if a comment is awaiting moderation? Is Jonah the moderator? If for some reason you can’t read my comment here it is again without links:
Wow Paul, you get whiny when you are discussing the new generation of consoles.
Almost finished with my exams, only 8 left.
@QOTW: Currently, none. As a 15 year old, I barely have any money for indie games which I don’t know much about yet.
The list I left you wasn’t a list of kickstarters I was excited for, but a list of successful video game kickstarters since Double Fine Adventure. I just thought it would be an interesting topic to discuss if there isn’t much news. I’m still surprised about how many kickstarters actually reached their goals.
@EA and RockBand
With all the mess ups EA is having lately I am surprised it didn’t shut down yet. Seriously, it’s starting to look like a continious marketing stunt to keep EA in the news. No one can screw the pooch at such a consistent rate.
@Microsoft banned in Germany
Corporations trying to skim each others profits. Move along. Nothing to see here. Capitalism at its finest.
@Next gen Xbox rumours
Remember the days when we would find out about new consoles AFTER developers began working on the concepts? Yeah, me neither. I am indifferent to when a new generation arrives. I am satisfied with things as they are now but wouldn’t mind if they changed. Since I am quite young and come from the poverty stricken Eastern Europe, if I ever run out of contemporary games to play, I can fall back on the extensive PSX or N64 libraries for new (if rather dated) experiences. It was lovely to hear how you were all arguing about it thou. It was starting to get so heated up, I thought Paul will eventually get FALCO PUNCHED (verbally).
@QOTW
Never bothered with Kickstarter. It sounds like a good idea but as a student I have more important things to invest my money into. Although I would join in if they had something like Shenmue III or a sequal to XIII (the comics FPS). I would love to see Kickstarter revive some franchises that were consoidered dead. Oddworld anyone?