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?
@Notch earned $101M in 2012, may buy car
Good for him.
@Sony teases “See the Future” event on 20th February
It could also be some sort of TV or virtual reality device. But again, unless the announcement includes price drops, I’m not interested.
@Rumor: PS4 hitting Europe in 2014, will have 8GB GDDR5
Hmm. Dunno. Higher end PCs run on 8GB today, and a console should aim for the future. On the other hand, there isn’t too much using up RAM on a console except the game.
I agree with Jonah though, the difference in RAM speed will produce only a small bump in performance. Common bottlenecks for games are at the CPU and GPU.
@Feedback leads Kawata to “slightly revise” opinions on Resident Evil
I say blame the movies for influencing the games.
As for changing genres, anyone remembers Command & Conquer: Renegade? I loved the strategy games, I also loved Renegade. But apparently I was part of a minority.
And if you think of it, other game featuring vehicular combat released after Renegade did enjoy success.
So it seems that switching genres will impact sales, regardless of the quality of the end product. Therefore, be careful when making drastic changes. If possible, don’t make them.
@Source Code director signs on for Legendary Pictures’ Warcraft adaptation
Moon was good. Still, I foresee an action movie. Think of Prince of Persia.
@Controversial torture interrogation from Splinter Cell: Black List removed
Dunno. If I were to make a game about war, I’d make it as gritty as possible. War is like that. You’d play the game, feel awful about it.
@Rumor: Halo 3 finally hitting PC – on Steam?
Never was a Halo fan, so you know what? I hope it doesn’t sell. When you make exclusives, there’s always a gamble. Heck, Halo 4 is out for XBox, and just now Halo 3 comes up for PC?
@QOTW
Oh … this is difficult. There are plenty of NES games that I’d like to see re-made. Dunno, “Mission Impossible” I guess.
“It could also be some sort of TV or virtual reality device.”
Not with a hashtag #PlayStation2013.
@Kick it up a Notch
Quite a success story. Contemporary Bill Gates. In my opinion he deserves it. Minecraft is possibly one of the most influential games of our time. If only the gaming industry had more people like Notch, we would have more innovative games.
@Sony’s crystal ball event
What a tempting ambitious name. Although it will probably be some fancy prototypes of some Star Trek tech that won’t see the light of day for another decade. Sony needs to grab attention. But I don’t think they have anything to back it up. Otherwise we would have heard about it already. Roll on 20th of feb and let me see Sony fail to prove me wrong.
@PS4 hitting Europe in 2014
And we get it later than anyone why? If Xbox comes out in 2013, this move will be the death of PS4 in Europe.
@GTA delayed
Nintendo does it all the time. I don’t see why someone else can’t. If it’s for the best of the game then I can wait. Besides, I am yet to play GTA4. Don’t know why everyone is bashing GTA these days. You don’t like GTA 4, you make a better game and then you can talk.
@QOTW
Too many. As long as it’s a proper remake. Not a Nintendo style remake of taking on new controls and charging full price i.e. Ocarina of Time 3DS. My pick would be Final Fantasy 7. I would go for Morrowind, but since it’s a PC game it already has fan made graphic updates which make it look like Skyrim.