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.
Thank you very much as always for the episode. I appreciate the work you put into every episode every week, and i am sorry,
that i can´t listenm to every episode as fast as i want to 🙁
Regarding the topics:
I played a lot of WoW (damn drug), amd since last week a loooot of MTG Arena, because the new set is out and its awesome 🙂
In addition i played some Ori and The Will of the Wisp and a lot of Last of Us 2. And of course some rounds of Jackbox Party, which was really fun!
Space Invaders:
I grew up with this, it was my first game on Atari 2600 back in the 80s 🙂
But paying so much money for a colored version … naaaarrr .. dont think so 🙂
Maybe if it will come to steam and there will be a sale 🙂
Gaming Flashback:
I never even heard of the name of the game … mhmm .. strange. But Regarding Doom: i was not able to play it back in the 90s, because the sound made me sick, i mean really sick. These bass-like sound for a longer time, made me feel like i had to puke 🙁
Shroud & Ninja & Mixer:
These guys have enough money for the rest of their lives … so .. i dont care where they will go, they will have their fans anywhere 🙂
I don´t like Mixer at all, can´t say why, but the “look and feel” is not mine. I can´t say how it was for the streamer, i am only telling my opinion as a viewer.
The only time i go on mixer, is playing JackBox party with Jonah.
SF5:
I loved to watch Street Fighter Tournaments, expecially the EVO or Capcom Cup … i don´t think that the same feelings come over with a online stream. Sadly it´s the best thing they can do right now during this situation.
And yes, SF4 was way more better than SF5 in my opinion!
Thanks again, its always fun, listening to you gus, having fun and hearing your opinion on all these topics 🙂
Stay healthy and i hope to hear from you next week.
Greetings,
Ralf