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?
Dead Rising is being ported to the Nintendo Wii, only two years after the original title. In Japan, they’ve changed the name to Dead Rising: Zombies Sacrifice, perhaps to make it sound like a different game.
Much better microphone Jonah.
@ RTS’s aren’t dying – just waiting
So scaling down is an issue, apparently … Well, you can always push up the minimum spec, and leave the lower end PC market for indies.
I agree with Jordan, blaming the hardware instead of acknowledging the lack of balls/cojones is not fair.
@UK: Wii U sells just 34,000 pieces of software in January
😛 this is a big surprise indeed, taking into account the huge library of games available for WiiU.
On the other hand, WiiU doesn’t have the market share that other consoles have.
@thatgamecompany had been bankrupt when Journey shipped
Speaking of cojones, these guys had it.
As for a small design doc, well, not entirely bullshit. You can do it the Agile way, with lots of cards, each describing a development story. So yeah, technically you do have just a one page document, but the entire description of the design will take plenty of cards to compensate.
@QOTW:
Not sure, to be honest, I wasn’t a fan of RPGs. Then STALKER came (Steam labels it as an RPG). Warcraft III had RPG elements in it, but it was still an RTS. I also enjoyed Fallout 3, but that was after STALKER.
Some encouraging words for Paul: hope you get a job.
@KOTOR
I loved it. I actually prefer the Old Republic era than the whole Anakin timeline.
@RTS are undead
In my opinion a genre never dies. Few years back people were saying that 2D games were dead. Since then we had some brilliant 2D entries. Terraria. Trine. Same thing will be with RTS. They just need the right conditions for a return. A brave studio that will make a new classic and start an RTS uprising.
@Segsbox 360
I think Microsoft tried to buy everything at some point. I definitely remember Microsoft wanted to buy Nintendo during it’s Gamecube days. If Microsoft would buy Sega, the Dreamcast might have had a chance. Microsoft would flood it with cash and support.
But history chose otherwise. Probably for the best.
@At Wii U sales
If there is one thing I am sure off is that in February there will be at least one Wii U unit sold in UK. Mine. That’s right. I now own 2 Nintendo branded bricks. My £300 Monster Hunter emulator.
@Assassins Creed
Milk the cow while it’s alive and pray it does not turn into a bull.
@QOTW
First RPG I ever played was Phantasy Star 2 on Genesis. It’s funny cause I could never complete it because Russian cartridges shipped without memory and you had to finish the whole game in one sitting. The first RPG I properly enjoyed was Pokemon Emerald. I played a few RPGs before it but they were nothing compared to Emerald. That and Final Fantasy X.
The demo of Journey does not do it justice. I too tried the demo in mid-2012 and was underwhelmed.
Then over winter break, I decided to listen to the great reviews and give the game a shot. Actually bought the disc. It was an amazing experience. The gameplay is very basic, but the immersion and creativity levels are way high.
By the way, you can solo the whole game. It’s only an option to interact with others (who you will not see in the demo). Everyone looks the same, but has unique musical sounds they make. You can only communicate through musical sounds, and so interacting with others becomes this amazing experience, because you are doing most of the interactions in your own imagination!