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?
Hi guys!
First of all: congratulations to 500 episodes 🙂 There are not many (good) podcasts who have so many long episode. Long because nearly every podcast of your show is about an hour. It´s nice to hear Paul again on the show .. he has such a nice humor, i love it 😀
Regarding the topics in this episode: i really like POP Figures 🙂 I have all 11 from Magic The Gathering, all from Back to the future and all from Michael Jackson. i like them as decoration for my gaming room 🙂
These games like skylanders, Lego Dimensions and so on: i dont like it that much .. its too expensive and the game itself is not that … intersting in my opinion :/
It was nice to hear, that you are Star Trek Fans (or something similar like that ^^). Did you watch the latest series? Discovery? It think it was quite nice so far, even if it was strange to see the Klingons like that 🙂
To the question of the week: my choice of the Parker Boardgame would be Monopoly, because i played so often as a little kid (ok i did not have any other boardgame …).
Keep on the good work guys and thanks again for your Podacst!
Greetings from germany,
Ralf
sorry forget something: the new title song is way better then the one before 🙂 but not as good as the one you had very man epidsodes ago. I already told it Jonah, but i dont know which episode it was (not the Robocop or Mass effect one).