Episode 396: Getting Targeted

This week’s episode is very long to make up for the crappiness of last week’s episode, and the crew have fun with the trolling of Target critics this past week.

The news this week includes:

  • Guillermo del Toro quits videogame development
  • There is no suspend feature for Steam Machines
  • Gamescom sets attendance record
  • Chinese console crowdfunding project manages to rip off PS4 and Xbox One

This and Listener Feedback.

0 thoughts on “Episode 396: Getting Targeted”

  1. Hi Guys, Good Episode. I’m sorry I haven’t posted in a while as I have been busy with my newborn son William. I like that you have now expanded to include other game types other thank video games. To Paul’s infamous comment Story is Game Play’s Bitch… I HATE THIS… I really only like games that have stories or enable me to make a story… I hate games that are pointless grinding. I need progression otherwise I stop paying attention and generally stop playing. I still play game from the 90s because back then they had good stories. As for the Steam Machine’s suspend feature, I like the fact they recognize the risk and disable the feature, nothing would piss me off more than suspending the game and expecting it to start back up and finding that the session had expired/become corrupt. It would be great if they can fix it but I don’t think that would change my buying decision. As for the steam machine, I don’t mind the idea if the boxes are cheaper and outperform my gaming PC… otherwise they don’t really make much sense. If I want to play my PC games on my TV I would connect my PC to the TV. Otherwise… keep recording and I’ll keep listening.

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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.

floppyThis 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?