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?
@EA deletes Tweets: Glad they removed the poor taste in tweets that was like rubbing salt into a wound.
I’d like to defend Indy games as you don’t need great graphics for great gameplay. Braid is a nice puzzle platforming game. I’m glad you mentioned Dust an Elysian Tail, Jonah. Not all the Indy games are 8-bit, Dust being one of them. I just completed the game and it was fantastic and very impressive that one person was able to do so much in making that game. Any game that adds to the diversity of games available to play is a good thing.
Also many of these Indy games are on Steam and GoG now.
@Parity Policy: It would be nice to have LAuchn Parity like when Skyrim came out and all DLC was released on Xbox and PC first and it wasn’t until months later that PS3 got anything. That was really unfair that PS owners had to wait so long to get the DLC’s for Skyrim.
I think some people are willing to wait though for the game to come to their prefered console. Take Minecraft for instance First on PC, than Pocket edition, Xbox and finally PS and each platform just adds to the sales of the overall game.
QotW: My favorite game related April Fool’s prank would be when Mojang did Minecraft 2.0. They got several YouTube Minecraft LP’ers to make video’s showcasing the features of Minecraft 2.0. The features ranged from the ridiculous Pink Wither, Diamond chickens, redstone bug monster, & exploding furnaces; to the features that we actually now have like Coal Blocks, Slime blocks, Hay bales, etc. It was a fun laugh to have and even more interesting to see the features that they actually are implementing from that prank.
Alpha: The delay of Skyrim DLC on the PlayStation 3 was strictly a technical issue.
Hey guys,
I couldn’t disagree with you more regarding porting and re-launching titles on different platforms even months after the original launch.
Saying that if someone had wanted to play a game they would have already done it doesn’t make much sense, in my eyes. I only own Sony consoles and my laptop is not able to support even the less demanding titles, since I mostly use it for work. This means that I’m naturally cut off from titles that are not available on PlayStation. That’s why I believe it’s a good idea on Sony’s part to port games such as Fez or Minecraft on PlayStation to make those titles available for people such as me who otherwise have no access to them.
By no means are such titles system sellers but being able to play them on Sony’s machines makes it less and less probable that a given gamer will buy another console, which is good for the company, I presume.
I agree with Alphashard that some people, including me, have no problem waiting for a game to come to PlayStation, in my case. I don’t need to buy all the newest titles since my backlog would keep me busy for months. And if a fun, although older, game comes to PlayStation, I might consider getting it.
@Infamous Second Son
I just started playing the game last week and I’m some 4 hours in. I don’t really see how ‘dumbed down’ the title is compared to the first two games. Jordan mentioned that all the opponents are the same, which I can’t agree with. I already encountered 4 different D.U.P. soldier types and there’s also the drug dealers so I don’t think it’s that different than in the PS3 games. So far I feel that it’s just another Infamous game, with a similar, forgettable story and cool powers and action scenes. I enjoy it quite a bit.
@QOTW I deliberately avoid news sites on April Fool’s so I don’t really have an answer to the question. Let me chime in on last week’s QOTW, though. I used to subscribe to a video game magazine called CD Action, here in Poland. What was great about it was that every month they would include one or two full versions of games on CD/DVD and also tons of demos and other stuff. Back in the lat 90’s the CD also contained funny pictures, gifs, etc. so it was like an offline version of 9gag. I don’t buy such magazines any more, but I also don’t visit video game news websites that often. I get most of my news from podcasts and I don’t mind the delay of several days before the news reach me.
League of Legends never ceases to amuse with its ‘URF’ related jokes 🙂
Great podcast by the way 😀
@EA flogging a dead horse
That was deffinetly a lapse of judgement. In my opinion every company should have an IT expert that approves all internal internet posts. So that if he sees something stupid he can find the person who posted it and slap some sense into him. It’s not nice making fun of disabled companies that are impaired by their management.
@Microsoft Indi
I played some good Indi games on Xbox 360. Mostly rip offs of PC games (Day Z, Minecraft). But they are cheap and mostly multiplayer, so make for a good blast. I absolutely don’t care when and where they are released. If a game is good enough I will eventually play it. I have no problem waiting. Plenty of other games out there.
@QOTW
A long time ago (2007?) the website gamefaqs.com (a cheat, hint website) had an April’s fool joke where entering the website greeted you with a page saying that cheating in video games was a crime and you should enter at your own risk. That was quite amusing. Also, a few years ago we had the Assasin’s Creed Kinect video. Wish it was true.