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?
Ubisoft was asked by
@Black&White
It was the first PC game I played properly. I was surprised at how complex the game was compared to console games. I enjoyed it but it got tedious real quick. One thing that annoyed me about that game was the difference in effort you had to put to be good or bad. If you wanted to be good, you had to feed the villagers, build them houses, protect them and look for their sheep. Being bad was so much easier. Just pick up a bunch of kids and chuck them in the sea. And their parents. And animals. Just chuck everything in the see. That took care of everything and you were on your way to becoming an Elite Omnipotent Asshole.
@Steambox
I for one would love to have a console that runs steam games. For many out there high system requirements are a barrier to PC games. And they just keep getting higher and higher each year. I bet Johna’s new rig already can’t run the latest releases on highest specs. And I find buying PC games to run them in shitty resolution not worth my money. The Steambox would be a good thing. A gaming dedicated PC with decent specs and a powerful cooling system for a sensible price. Although the idea does sound too ambitious. PC games are not uniform. Fitting them all on one hardware if bound to have issues.
@World of Rockcraft
I think they will do it. But for next gen hardware. Wouldn’t want them to make an MMO out of it because I don’t want some twats ruining my criminal empire.
@QOTW
I am with Paul on this one. I get deep into a single-player game storyline. I read books in Elder Scrolls games. I talk to every villager in Final Fantasy games. I do every available side quest in Mass Effect. But when it comes to MMOs, I tend to avoid stories. Mostly because they are crap. 90% are set in a medieval setting where some Dark Lord has been revived and now there is like 3 million warriors that try to stop him. But you are the specialiest one here. Also, because I only play MMOs with friends and it’s difficult to read stuff when others are not interested in the story. I am really into the DC Universe story but that’s because I already have a large knowledge of DC Comics.