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 going to be hard to compete with a casual game publisher like MumboJumbo if they decide to produce more casual game titles for the Wii. Most folks associate Nintendo’s latest generation console with casual gaming in an ever growing casual market and now it’s time to bring aboard many casual game companies that know the inner working of casual gamers.
Hi guys.
Sorry for not writing a comment for such a long time 🙁 I am listening nearly to every episode, but really forget to write you a line .. sorry for that!
Regarding the topics in this episode:
Best Gamepad for me is the PS4 Gamepad. I have small Hands, so thats fine for me to handle it. The Switch Pro COntroller is nice as well, but after playing some hours, i feel some pain in my hands which i dont have playing with the ps4 Controller. The xbox Controller is a little bit too clunky to play with it for hours imho. The bigger size is not the problem, i think for me its the orientation of the buttons, especially the ones on the backside.
I am playing much WOW right now … i am not able to play Magic with real cards so WOW is a welcome time killer 🙂 In addition i am playing the new Ori Game, the new Doom and i want to start the FF7 Remake.
Regaridng Fall Out New Vegas: cant tell anything about it .. never played it .. should I ?
People are really playing more survival games during this Covid Period? Oh my god 😀 they should watch Walking dead instead .. haha 🙂
Regarding the grinding discussion: i play WOW and i played it 15 years ago so i know grinding very good 🙂 But at least if you are in Discord with some friends, talking and maybe watching som tv shows on a second screen, its not that hard and boring. But sure its sad, that you you have to grind at some points to get some good rewards 🙁
Thanks again for the nice and entertaining episode. Keep on guys and stay healthy 🙂
greetings from germany,
Ralf