Two more episodes, and Paul is no longer a regular podcast host. On a side note, there will be no podcast next week due to scheduling conflicts.
This week’s news:
All this and Listener Feedback.
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?
Harmonix, MTV Games and Electronic Arts has announced their next block buster killer app: Rock Band 2. First, the most important feature is backwards compatible downloadable content. They’ve surpassed 15-million paid downloads, we want our content and we want to keep all the awesome songs for future games, else we might as well stop purchasing now, right?
The question remains, will we want to upgrade our instruments? They’re saying we’ll have “more variety of instrument choices than ever before with new and improved drum and guitar peripherals, enhanced functionality and innovative new designs – all fully compatible with the original Rock Band instruments.” Will the enhanced instruments really want to make us go out and buy them?
If these new instruments are highly desirable or add any new features to the game (or make newer features ‘easier’) then we may be persuaded to look into new hardware…yet with Guitar Hero World Tour we’re already pressured into considering another drum unit.
So confusing, but yet so much desired. I guess that’s the love hate relationship of a gamer with a passion and a, slight, addiction!
Bethesda Softworks vice president of marketing Pete Hines is critzing publishers and developers who shoehorn multiplayer into their games that doing such a thing is “a waste of time” and advises, “Just drop it, don’t bother…it’ll make for a worse game.”
In an interview with Next Gen BIZ, Hines states that using online multiplayer as a tool to prevent used game trade-ins and rental simply doesn’t work, and robs developers of valuable man-hours.
Hines stated:
“(People ask us) for a game like Skyrim or Prey 2, why doesn’t it have multiplayer? Well, our question is always the opposite when we talk to a developer. If you’re doing multiplayer, why are you doing multiplayer? What are you trying to accomplish?
“If you’re doing it just to check a box or because every other publisher says you’ve got to have multiplayer, then just drop it, don’t bother, it’s a waste of time, a giant distraction and it’ll make for a worse overall game.
“We want the best game possible. If that’s a singleplayer game that’s 15 to 20 hours, then make that! Don’t waste your time on features that don’t make the game better.”
The Elder Scrolls V: Skyrim and Prey 2 are two Bethesda properties that will lack multiplayer, but one of the tools to encourage games to keep both games will be downlodable content and, even more important, good communications with the game communities and nurturing the fandom for both games.
