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?
For those that are Facebook junkies, playing their hearts out of Scrabulous, you’re going to be hit with some reality: it’s not real scrabble. Hasbro has attempted to
@Call of Duty: Elite for Black Ops 2 will be free
What does that service bring anyway? Seriously, besides bragging rights? I get it when you get DLC for free or at a discount, due to being a member but still, the service itself … 😐
Then again, I’m the guy that is not sure whether to play or not free-mium games, so …
@Metro: Last Light dumping multiplayer
That’s not actually a bad thing. The strong point of the first Metro 2033 was the story, so I don’t see this as a disappointment. So sure, focus on what you do best. STALKER has multiplayer, but I never bothered with it.
To follow the off-topic, if a game has Co-Op and other MP modes, I would usually focus on Co-Op. And I’m not the only one: if you look at the server browser for the first Serious Sam games (First Encounter and Second Encounter) most servers with people in it are Co-Op. That’s gotta say something.
@Microsoft banning PEGI 18 apps from Windows 8 Store
Well, what can I say, they own the store so they can rule it as they want.
CroTeam’s pink scorpion: I like that sort of copy protection! Devs should do that more.
QOTW: I remember now! “Zombie Nation”.
The game has no zombies in it. You are a flying giant head, spitting … spit and eyeballs at your enemies. I liked the game, but the title … it just sets your expectations in the wrong direction.
*DING* You’ve got hate mail!
Dear Paul,
Stop asking for hate mail and then inflating your ego after Jonah tells you that the fans love you. Stop saying ‘I blame the parents’ when it doesn’t even fit the context. Don’t hate or love someone just because they like to play a certain game, it shows how biased you are. Finally, something for Jonah as well, stop interrupting somebody when you don’t agree with their point/opinion.
*DING*
In all seriousness, I didn’t have anything of value to comment this week.
@attempting hate mail
Dear Paul
You are annoying. I hope that when you are driving a car, you will crash into a schoolbus full of children and you will survive and they will all die in a horrible fire and that will haunt you for the rest of your life.
\hate mail
@Elite and Premium
Is it me or is COD trying to copy Battlefield because it’s subscription was more successful? I play Battlefield but never bought premium. That’s because I received one of it’s DLC as a pre-order bonus. That reduced the value of the package for me. Talk about catering for long time supporters.
@Kickstarter UK
I agree with Jordan. Never even knew it wasn’t available outside of US. In many ways it’s a good thing, because the UK government strangles all local creativity. They tax creators so much, that a large percentage of local stuff (like cartoons) are made abroad. Maybe removing the publisher will allow game developers to operate more easily.
@A single-player Metro
I hate it when they tack on multiplayer in otherwise good single-player games. Darkness is a great example. It’s usually bad unless they invest a lot of effort into it. Which takes manpower, time and money. Which makes single player worse off. They either have to balance well or concentrate on just one.
@Why do we even care. 99% of content on Windows 8 will be pirated anyway. I don’t think anyone will even know there is a store.
Microsoft should just integrate Piratebay into their core system. That and Steam.
@QOTW
Wish Metal Gear Solid: Revengance was already out. My spellcheck crashes every time I type that word. From the games I know, “Big Mutha Truckers: Truck Me Harder” comes to mind.
@Obsidian Project Eternity game:
Well Project Eternity has gotten over 4M and completed it’s Kickstarting funding. I am excited for this game, a call back to Isometric RPG games which I haven’t seen in a long time. I hope this not only helps Kickstarter become a more reputable option but also show that games other then FPS can not only make a profit but deserved to be made.
I really like one of the companions you’ll be getting a Cipher (Psychic) Detective, which seems very outside the norm of Wizard/Fighter/Thief/Cleric type classes.
Love the show keep up the good work guys.
@Metro: Last Light dumping multiplayer:
i hope they launch it as a free DLC if everything else fails on MP in “launchday”
@Microsoft banning PEGI 18 apps from Windows 8 Store:
if they dont like money, i can take some off their hands! and with the podcast kickstarter up and running, i know my 1st spending of this fictional huge sum of money i’ll soon have :3
no, but seriously, i can give this as a real ansewr to this issue: “they should not forbid steaks for everyone just because a baby can’t chew it” – mark twain
@QOTW:
Space Pirates and Zombies. i know, it is a good game and the name matches the gameplay, but it is still an awesome and weird name!
as of the time i am writing this feedback, it is monday and i was at college a few moments ago. i could not be drunk, but when i’m inhibriated by alcoholic beverages, i’ll give you guys a heads up
http://www.kickstarter.com/projects/417021624/td-gaming-podcast