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?
Funny enough I actually started by looking for podcasts in Google. Yes I was overwhelmed by the number of podcasts I had no idea. Then I started narrowing my results and typed podcasts about games. Yes you were the first one that popped up.
@ question of the week- this question made me laugh because I just watched six batman movies. I was watching my nephew who is obsessed with barman. I also watched the brave and the bold. I think I would have to say Christopher Nolan batman. The catch is he would have to have a big say in the game. I think his view on Gotham City and batman is phenomenal.
Did I hear Jordan’s wife in the background?
@Square Enix exec says long console lifespans “biggest mistake”
… what? So they left for the web and found it a greener pasture than a console? As for profit margins, dunno. Yes, production costs are smaller for a browser. But the competition is …
Question: how many big names (Activision, id and so on) dropped the console totally in the favor of a web browser plug in?
@No fee to be charged for connecting to Wii U network
They have to recoup the costs from some other place. What will that be?
@Michael Fassbender pegged to star in Assassin’s Creed flick
Erm … movies made after games don’t have a great track record …
The main issues with movies made after games is that they deceive the gamer. They have expectations set up by the game and the movie somehow doesn’t deliver.
Both game fans and movie makers seem to forget one aspect that makes the game good and (because of it lacking) makes movies … not so good: interactivity.
@Batman game:
Erm, I don’t like super hero games that much (my way of saying I wouldn’t play one … well, except the NES games).
Dunno. I’d go for Christopher Nolan, the atmosphere in Dark Knight was good – less super hero-y stuff, more realism.
Keep the bloopers coming 🙂
@Square Enix exec says long console lifespans “biggest mistake”: You already covered every argument on this subject so I’ll just say this: I think that Sony and Microsoft are making a mistake by letting Nintendo get a year or more head-start in next-gen consoles.
No fee to be charged for connecting to Wii U network: Completely agree with the opinion that they had no other choice in this matter.
Next Rocksteady Batman game will feature Silver Age Bats: I’m hoping they can pull this off after the amazing Arkham series, it can be a nice change of pace.
Michael Fassbender pegged to star in Assassin’s Creed flick: Have zero expectations for this, hoping to be pleasantly surprised.
@QOTW: I already have enough of my Batman fix (cartoons, movies and video games), so I don’t really care what version they use at this point.
Hey!
@ass ass in Creed movie
I hope this movie is better than other movies based on games… Mario comes to mind right away 🙁
@QOTW meh.. Not my kind of comic… But ill go with adam west batman, he was funny in a kinda sad way
Thanks for the code!! (but i still have not got it) :p
@Square Enix and lifespans
That’s a difficult one to answer. For money consious gamers this generation was the best. However, the gaming industry is slowing down. Most of the upcomming titles are sequals or reboots. A new generation might bring back some originality. Regarding iOS and WEB game turncoats, you covered an item a few weeks back where Epic games stated that their iOS game brought more profits than Gears of War. But I don’t think that big names like, Activision or EA, will go purely iOS/WEB. The console market is highly monopolistic. It’s difficult and costly to make a console game. It’s much cheaper and easier to programm for an iPad.
@WiiU and free network
The 3DS has a free network. But you cannot benefit from it if there are NO GAMES THAT USE IT. Satoru Iwata released a statement at some point, that they will not concentrate on on-line, like Xbox 360. Which means that WiiU users will be stuck with crap network, like the Wii (2 minutes to get to the Wii Shop screen).
@Batmans QOTW
I am not sad enough to know what guy made what Batman. WIKIPEDIA!!! I CHOOSE YOU!!!
Tim Burton’s Batman could be fun, if they would bring back the actors that played villans (Danny Devito, Arnie, Jim Carrey). The recent comix emo Batman would make for a nice 18 rated game. But I think the animated series would be the best choice. It was a very good representation of Batman.
PS: they had Batman: Brave and the Bold game on Wii and DS. Might want to check it out.
@Arthur V – console lifespan
I’m afraid it’ll be just the opposite: new hardware? No cool new software available yet? Quickly, do a high definition version of Mario and sell it as Mario U! Or a high definition of Halo and call it Halo-rango!
“It’s difficult and costly to make a console game. It’s much cheaper and easier to programm for an iPad.”
Not sure about that in term of immediate costs. XNA is free, there’s a free version of Visual Studio.
If I’m not mistaking, all compilers for Apple are not free, and there’s a developer fee you have to pay.
The Terry McGinnis Batman from Batman Beyond, is awesome and it’s a from a Batman age that haven’t been explored much so developers would have great creative freedom and few restrictions.