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?
Veterans to the rescue!
Maybe I’m not a ‘true’ veteren but I’ve been writing in for over a year now so I’m starting to fall into that category, I guess.
Anyway, I’m waiting for the plane to leave after a week’s vacation in Sicilly which I used to relax on the beach and at the pool but also to give Metal Gear Solid another go (hurray for the Vita!). I played through MGS3 (19.5 hours – embarrassing) and I really enjoyed it despite my two previous unsuccessful attempts to get into the game. Do you guys have any experience with the series?
@qotw
You mentioned Red Dead Redemption in the episode. I played tens of hours of the game, including MP (Platinum, yo!) and I had to play in the violence-less mode because it was impossible to focus on anything else with people riding around and shooting each other in the other mode. I tend not to play MP games a lot but when I do I try to get together with people from specific communities from podcasts and message boards. This decreases the number of unpleasant encounters.
Hey guys, I didn’t comment on the last two because I felt that I had answered the QotW and didn’t have anything to add.
@Dungeon Keeper: I think the Mobile version of the original is very poor with these arbitrary time restraints. I agree that players get very tired of being nickeled and dimed. It doesn’t feel like a real game with these limitations.
@Bartle: I’d like to second Jordan’s comments that your segment on this was so through that I can’t really add anything myself without being a broken record on this topic. I really do feel that the Free-to-play games need to change and find a different way to work.
@QotW: I have to second what Pawwel said, I tend to stick with a close nit group of people who I know relatively well. I remember once trying Red Dead Redemption in MP and got sniped three times by the same person in the starting area, I quit MP of that game right there. I feel like Paul in that I am getting older but also been quite content to play single player. I found the WoW experience to be “Too many people in the pool”. I’m not very comfortable even with the anonymity of the internet with just talking with random people. Perhaps because I never forget these are real people I am talking to and never just a handle and avatar.
There was also a StarCraft II custom Map game called ‘Mafia’ that my Polycast group played. In it you are a Town trying to find the Mafia members before they kill all the Towns people during the night. There was a number of trolls going on with that game, those not taking it seriously and just trying to ruin it for everyone that did cause me to quit a few times.
So yes the few times I have done Online MP where random strangers were involved I have quit. Hence why I stick to people I know well enough.
I wanted to add a question:
You talked about Rockstar Games in a previous episode and how the hero dies no matter what. I remember at the time it upset many people that this happened. It also happened in other Rockstar Games, *spoiler* LA Noir *spoiler* and I’ve been told each GTA protagonist dies by the time you get to the next game. So I wondered why when people don’t want the “cliché” happy ending and they get the Hero dies ending instead, that they get upset about. They can’t seem to make up their mind if they want a good ending or a “bad” ending (by that I mean the Hero dies or something similar).