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?
@Notch selling Mojang to Microsoft: I was a bit apprehensive when I first heard this story. Though we have no confirmation I’m taking the silence as to mean a deal is being discussed and nothing is finalized yet. The more I thought about it and after listening to your take on it I think it could be alright. I’m just concerned with what they might charge for using the PC version. I’ve also come to be used to Mojang having added features with each new version release and I hope that continues. I’m not so bothered by Notch selling the company since he’s walked away from Minecraft when he did the Full release a couple years ago. I hope that we will also still be able to use our own custom skins, resource packs and mods for the PC.
@Good games worth paying for: I do agree with the sentiment that quality games are indeed worth paying for. Like Skyrim was and I’m sure a lot of hard work went into that game. The quote “a terrible game lasts forever” is right when you have the Atari ET as an example.
@80’s shows: I got both the Dungeons and Dragons and Captain N show references , I loved both shows as a kid.
@FFVI: I knew I had forgotten to mention Terra from FF6, I feel that the first half of that game was about Terra and Celeste the second half the game. I remember the argument I got in with my friend over this when he noticed that I wasn’t using Edgar or Locke in my party and he questioned me “Why aren’t I using the main guys?” My response was “what main guys? Terra and Celeste are the heros and he got so mad and yelled at me that Edgar was the hero. How can he be the hero, or Locke, when you can beat the game without them at all? More over the whole story revolved around the Espers and the empire trying to use them.
And just FYI I am a guy but that doesn’t mean I can’t emphasize with women or feel rejected when I hear things like “Girls won’t like you if you play games, why don’t you play a sport instead?”
I also did misunderstand your point Paul, thanks for clearing it up.
@QOTW: I remember making a few custom units in CIV 2 and using the map editor. I’ve played around with programs like RPG Maker and other similar RPG games like Neverwinter. The amount of work in making even the smallest dungeons or quests is just tremendous so I have to give it to those who make entire games worth of content and quality work. You do get what you pay for.