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?
It’s now official, written in stone… or, on a the 
It’s that time in the life-cycle of the PlayStation 3 where a few of their hit titles go into “classic” game mode, which translate to a price drop. We saw this with a few games like Kameo on the Xbox 360 a year or so after the launch of the console.
Great show guys, enjoyed the topics greatly.
@Joystiq no longer scoring: I agree I never liked the scoring of any game it never told me what I really needed to know about the game. Saying 3/5 stars or 90% is like saying Banana or starfish! Completely arbitrary and meaningless, I need and want to know how the person felt about the game they played. Take Dragon Age Inquisition, I have heard many detailed reviews from people I know about the game what they liked and didn’t; and I value that over some random score some review site gives. As you guys pointed out someone who doesn’t like a genre of games may be biased against it and will hate it no matter what. I had argued with someone the other day who felt that since Dark Souls had no story it was a bad game, when they were clearly missing the point of that game all together. So I am glad they have decided to drop scoring a game and entice people to actually read the review.
@Jonah joining NC: Speaking of reviewing Wow that is awesome, have you made videos for them already?
@Hatred AO rating; My first impulse to hearing this was good, I don’t think little children should be playing this violent a game, and before Paul says it yes the parents should be paying attention to what their kids play. I guess I can’t deny they have the right to make whatever game they want and make it available but stores do have the right to refuse to sell something if they don’t want to sell it. I’m fine with the rating to make it clear just how violent it is, course there are plenty of violent games but do have much more context as to why the violence is happening. I remember being bothered when my daughter was playing Fable 2 and she wiped out the starting village, for some reason the game didn’t summon any guards for that action.
There is a double standard with the violence being more acceptable for kids to witness. I’ve asked myself this, why is it ok to have a movie or game that kids kill people or see violent acts yet you get some nudity and then suddenly everyone losses their mind. I think at least for me it’s because violence is wrong and sex is not. It’s easy to say “well this is fantasy and we’re just having fun make believe” but sex there’s nothing wrong or bad about it, it’s a natural thing and can be difficult to discuss with someone who isn’t mature enough to handle it yet and I mean the real intimate details and not just “when two people love each other”. It is a difficult subject and it’s up to each parent to decide when to talk to their children about these things.
@Pose able toys: I think this idea really Is brilliant to have movable figures that would respond or give signals to in game actions. That would greatly increase interactive ness. I am also tempted to get some amboii’s if for no other reason than to display them, this is a DLC I can get behind.
A side note next time someone has a very noisy background that even the co-host can’t hear you maybe they should mute their mic or find a quieter place to record.