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?
If you’re into Rock Band and love the songs you’ve played, you may want to migrate them into Rock Band 2, correct? For the price of 400 Microsoft points ($4.99) you’re now able to download an export “patch” to allow exporting of 55 Rock Band songs into the next version of Rock Band.
@Iphone: I’m with Paul, I got and have had a Iphone 4 for about 2 years now, I don’t like the idea of rushing to get things when they are first released, I take a while getting new consoles and phones.
@Wasteland 2: I am surprised Jonah didn’t mention more of the Kickstarter games that have been successfully released when Paul said he knew of only one (Wasteland 2). There is also FTL, Broken Age, Shadowgate, & Shadowrun Returns. Pillar’s of Eternity is coming out and I’m sure can be added to this list soon as well. If you only focus on the ones that fail you’re going to miss the ones that are succeeding.
Wasteland 2 has been fun so far, I like being able to create a party unlike in Fallout where it’s just you and some NPC’s. I also suggest trying to use energy weapons, they seem to be very powerful to me.
@Zelda rumors: I don’t recall or remember any of these but I do agree with Paul on the whole feeling something is there if you could just jump one more block or open a locked door. You want to know what’s there, humans love mysteries.
I do remember the stories about trying to find the lost level of Super Mario, which was actually true.
There are a slew of crazy Harry Potter theories and I do remember the “Weasley is our King”
@QotW: As for falling for any game Rumors I don’t think I really did, most of the time I had sources to validate if it was true or not. If I couldn’t do it or seemed astronomicaly impossible I figured it was fake. However the closest would be when Areis died in FF7 (I’d say spoiler warning but if you haven’t played it yet your’re probably never going to). I wanted there to be a way to save her since you could actually save Gremio in Suikoden, you can’t fault the logic of a angsty teenager.
The more I thought about it though the more I realized she had to die for the story, it was her death that brings about the Holy spell to save the world from Sephiroths Meteo. So yes listen to Paul if it doesn’t make sense in the story narrative, it probably isn’t true and if it is the game isn’t worth your time.
@iPhone yoga
It seems that someone did not pay attention during their physics lessons on the property of metals. I am sticking to my iPhone 4S. Last thing I need is my phone going all Beyoncé on me. But I am sure Apple will fix it. When they had problems with cracking screens, someone released a screen protector which was used for attack helicopter wind shields. You know, just in case you want to check your Facebook in a middle of a war zone.
@Windows NEIN!
Oh Lord, another Windows edition. When will Microsoft understand that the best way to fix a mistake is to never make it in the first place. I just hope that they were reading their feedback and will make a definitive windows experience. Considering that there is no alternative on the market, a good new windows is a necessity.
@QOTW
I don’t browse the net that much, so I avoid most of the rumours. If I do hear something, I triple check it for confirmation. I think my favourite rumour was the Halo 2 Scarab Gun. It was a plasma rifle that shot massive blasts of energy akin to the gigantic Scarab walking tank. It sounded like a hoax, until people proved that it actually exists. This set of a chain of rumours of other hidden weapons all across the game. Countless hours were spent in chasing ghosts in that game. A good marketing ploy if I ever saw one. My second favourite Bungie rumour is that Destiny has a storyline. Apparently it’s hidden somewhere deep deep within the game’s code and only the most dedicated players can find it.