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?
😀 so our best wishes came true! Paul got a job!
Last think I remember playing is Wolfenstein (the 2009 one) using an analogue controller. I can’t possible imagine how somebody can be good at shooting using a controller.
Oni – it’s actually a pretty good game. Game mechanics are ok, but … you can’t quite go for a strategy that avoids hand to hand combat. The blend is ok, but you don’t get a choice. You use guns to weed out enemies from a distance, but you will eventually end up snapping enemy necks because you quickly run out of ammo.
@Games Industry Biz eulogizes Wii U, states it suffered “death by apathy”
100% with Jonah. The issue the list of available games, so you’d better make it easy for third party developers.
@XBox One:
– external HDD: so, apparently being able to upgrade things yourself is a good thing … who would have thunk it 😛 … obviously not people using PCs … or people developing for PCs.
– always online: no. Just … no. I’m not going to buy a console anyway, but I can tell you that the ‘always online’ is a major no-no for me. And most likely for others as well. And I think it applies for both games and consoles.
So yes, Microsoft would better give up on that.
@Microsoft’s Greenberg: E3 presentation will be “all about the games”
Fingers crossed. Microsoft knows that the game library is crucial if they want to sell the console.
To Pawel Predki, who loves old-fashioned point-and-click adventure games – here’s a free one:
http://www.strategyinformer.com/news/23208/free-game-spotlight-adventure-island
Thanks for the link, Jonah. I’m downloading it now so I’ll try playing through it this week. The screenshots look worse than the first Broken Sword but that’s not really what I care about in games like that 😉
@Xbox One
I watched the conference live and I wasn’t really sure what to expect. I’m pretty convinced now that Microsoft is following the path of wanting to be the only necessary multimedia box in the living room with game playing functionality only one, not the most important, of its abilities. They focused on some stuff that if it works, it will only work or make sense in the USA (integration with cable set top boxes, live NFL fantasy league integration). Seems to me like MS is really targeting the online, connected, richer part of the USA as their primary consumers. As a gamer from Europe, I didn’t feel like a proper recipient of the message they were delivering during the conference.
@Xbox One games during E3
MS said they would announce 15 exclusives during E3. I wonder how many of those will be amazing Kinect 2.0 titles. Quantum Break looked exciting. I wonder how they’re going to tie the gameplay in with the live action stuff. Or was it just the trailer?
@Used game fees (or lack thereof)
Until they tell us what will really happen, it’s really hard to say anything. I’ve read and heard conflicting stories on that. I don’t really buy used games and I’ve only ever sold one of my own. I like to have the option of going back to play them and digital-only distribution does not satisfy me.
I understand that it’s not the hardware manufacturer but rather the software publishers that are pushing this issue so it seems clear to me that whatever Microsoft does, if anything, Sony will also have to do. Let’s wait and see because there’s too many rumors floating around.
By the way, you can already preorder both new consoles via the German Amazon for 599 Euro each. The fact that the price for both of them is the same makes me think it’s just Amazon trying to get some early orders in and it’s not a ‘leak’. 600 Euro is around $780 so the price is waaay too high.
Last, but not least, congrats to Paul for getting a job!
@OH-NO
I played it a few years back. I hated it. It had an interesting fighting mechanic which was useless when someone pulled a gun at you. It was a pain even with God Mode, as the level design was crap and checkpoints were few and far between. It also suffered from the sindrome of westerne’s trying to make an east game.
@Nintendo
Everyone has been teetering around this for a year but someone finally came out and said it. Nintendo has a zombie disease that every developer is afraid to catch. I agree with Jonah. Being backward does not mean anything. Lots of publishers jumped onto Wii because it was cheap and easy to develop for. Lots of them are jumping onto iOS for the same reason. In regard Wii U, it was not killed by the consumer but by Nintendo itself. They thought that people will just buy the console because it’s Nintendo; no software needed. It’s a pity they didn’t learn their lesson after the 3DS launch fiasco.
@Xbox What?
I was complaining about the PS4 presentation but I take my words back. Xbox presentation was a classic much ado about nothing. I could shitstorm on this topic for hours but since I am a true gamer, I will reserve my judgement until I see some proper games. Bottom line: Meh. At the moment I am indifferent between a PS4 or a Xbox (I refuse to say the “ONE”). Or to put it into a perspective: a choice between a high powered Facebook or a digital set top box.
@Kerbal Xbox Rocket Science Game Verification Process
I have been following this topic for weeks and I still have no idea how it works. Some say it will tax game stores, others say it will tax the consumer. Maybe both. Oh well. Now that I am employed money is not that much of an issue as it was when I was 15. That said, it all depends how much an individual piece of software costs.
@USABox
I am with Pavel on this one. The Xbox seems like a good idea if you live in America. But it will loose half it’s functionality once outside. It really depends on how Microsoft integrates it in other countries. UK and Western Europe will have its own services but what about the rest of the world where digital cabling is not so widespread? Is there going to be a pure gaming edition of Xbox or is it just going to be aimed at 1st World countries only? Quote Microsoft: “I am sorry but you cannot play our console because you are too poor. Come back when you are White Middle Class American Male.”
@Halo 2
Don’t know what’s Jordan’s problem with Halo 2? It was a very good experience. And what’s Jonah’s problem with Skyrim? Why is everyone hammering my favourite games? I know that tastes in gaming are opinion based but I would just like you to know that you are all wrong. Those games are good because I said so.
@Arthur’s refusal to say ‘Xbox One’
Imagine what will happen when hordes of moms go their local electronics store and ask for an Xbox One and the person in the store asks which one they have in mind. The original Xbox or Xbox One. Oh, the confusion that will follow…