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?
🙂 No, Jonah, I don’t have it (Heart of the Swarm). It’s just that I have a lot of things going against this game: first of all, Starcraft II requires constant on-line DRM. This is a big no-no for me. Big enough to not buy either Starcraft II or Diablo III.
Add to that the fact that I have less and less spare time; so what’s the point of getting a game if I won’t play it? Better leave it for somebody who has the available time.
@Thief to feature “classic mode”, removing all assists
Props to that! I’d love to see that kind of approach used in more games.
@The Witcher 3 confirmed to be DRM-free
Talking about DRM never being an issue, to quote somebody from EA … I know, Jonah, you already mentioned the previous installments last week. Still, I find it amazing that nobody tries the same.
@Bethesda confirms “new version of Doom 4” being worked on, Rage 2 cancelled
Oh man … if only id could remain independent …
Yeah, new Doom 4? What happened with the old Doom 4?
Different kind of flashlight batteries? 😛
Didn’t play Rage; Doom 3 felt a bit stretched – a bit too short of a story for the length of the game. While the choices of flashlight vs. weapon felt artificial, the overall shooting mechanics felt ok.
As for South Korea not having nukes, it doesn’t matter that much, they have pretty much all western countries behind them.
Jonah, get well. Your voice is still … erm … “sexy”?
Hey Jonah, after seeing a Hitler video parody about you that I thought sucked, I thought I would take the time to make you a proper one. I hope you don’t mind!
http://www.youtube.com/watch?v=XH80Mgbt4ss
@Witcher’s great big sword
For those who have not played it, Whitcher is a dating simulator set in the fictional medieval era staring an albino Ron Jeremy. The aim of the game is to have sex with every female species in the world, including (but not limited to) elves,princesses, vampires and sentient plants. To fill the time between plowing the fertile fields of Temeria there is a light RPG mechanic and combat side missions with some sort of a secondary quest of revenge.
@Lucasarts
Pity really. I enjoyed the Jedi Knight series back in the day. Although I didn’t care about their more recent games. Kinect Star wars was a special case. First time people could tell the game was crap just seeing it at E3. On a side note, it’s sad to see all these studios closing. I’ve spent so much time playing THQ and Lucasarts games. Not to mention Midway. Oh well. As long as the talent of the developers lives on and joins another studio it should all be fine. It’s people that count.
@Doomed Rage
Don’t know why anyone cares. Doom was the original FPS. But now we have Halo, COD, Half-Life and all those franchises. Doom 4 has no chance of competing and will most likely crash and burn on day one. Not unless it brings something innovatingly outstanding. Regarding Rage, there is a popular opinion that Bethesda should just stick to Elder Scrolls. Everything else they bring out ends being crap or overlooked (WET, Brink, Rage)