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?
@WatchDogs – The problem with MS cloud computing is similar to PS Move. If it’s not obligatory or bundled with the system the install base is lower so the devs are less inclined to develop for it. Kudos to Ubisoft for taking advantage of the cloud but it is true that for users with slower Internet connection, the ‘dynamism’ may not be as improved as they say.
@Sony Dualshock4 – I’m pretty sure this can be fixed with a firmware update or at least I hope it can. There has to be a hardware option to do that – I understand that it’s the software that’s not allowing it at this point. As far as the battery lifetime goes, I have to say I’m satisfied with Dualshock 3. True, it’s a pain in the butt that you can charge it with the system off. I own two controllers so if one runs out of juice I plug it in and use the other one. As a last resort I could play with the controller plugged in but it rarely comes to that. Having said that, I hope it will be possible to charge the new controllers with the PS switched off.
@Indian prices – I agree with Jonah that EA could verify their customers somehow. A credit card would be the easiest way out although a mail-in method would also work. Punishing those people just because some idiots from the other side of the world take advantage of the system is precisely why EA gets all the ‘accolades’ it gets year in and year out. #WorstCompany
@Vita – it’s true that there aren’t many or even a few AAA Vita games in development but I like to be more optimistic. I hope that Vita will gain popularity with the new Playstation and once the install base grows, developers will notice that it makes sense to make games for the handheld.
Also, bringing back older games makes sense in this context. For people who buy PS4 and don’t have PS3 right now, Vita could be the way to experience the great PSN games such as Dead Nation (YEAH!) or Guacamelee.
By the way, have you played Velocity Ultra on the Vita? Look below.
@QOTW – I have to say Velocity Ultra. It’s a great vertical shoot’em up for the Vita. However, it has a twist in that your ship can teleport through walls and other obstacles. It’s easy to learn, more difficult to master, it has achievements and trophies and it requires a lot of skill if you want to complete all the stages flawlessly.
@Dynamicism (is that a word?)
OMFG!!! Dynamic water!!! I wonder if it involves advanced fish AI? Having a marginally better environment won’t sell the console. It sounds like a cool gimmick, but just like in GTA, rushing through the city at high speed you won’t even notice it.
@Matrick
If I would not care any harder, I would
start sucking in other people’s cares and turn UK into a country full of apathetic pricks (i.e. France). I don’t tend to place names to faces in the video gaming business. For me he will always be that smug short guy who wasted a lot of time on conferences talking crap no one cared about.
@PS controllers
Don’t care. I bought an adaptor that lets me plug in my Xbox 360 and PS2 controllers into my PS3. Haven’t used the official PS3 controller ever since. If I get a chance to do so with PS4 I will gladly. Dual shock controllers overstayed there welcome; a relic of an era long past that should have been redesigned at the PS3 stage.
@favourie Indie game
I played 2 in the last year. Both of them were rip offs of another series. CastleMiner Z is a Minecraft clone which focuses less on building and more on mob survival. It has craftable guns and loads of zombies to shoot. Another game is White Noise; a Slender rip off. Almost the same but has coop which results in some hilarious gags. I tend to turn to indies because a lot of them have coop support. Most mainstream titles just concentrate on pvp multiplayer.
Candlejack is such a lame meme. Look. I said Candlejack and I am still here. It’s not like I am making fun of Vladimir Puti-
In Soviet Russia, Candlejack is abducted by you.