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?
@World of Warcraft: Mists of Pandaria announced
Well, they keep doing expansions, but something tells me people got tired of it.
As for raising the level cap, it is the only way you can keep the players that don’t want to grind up again.
@Deep Silver: “There is a clear technology gap“
Wow … they discovered that a 4GB system RAM, 1GB video RAM PC is better than a 256 MB system 256 MB video PS3 …
As Jordan said, the main issue is that developing 3 code bases is expensive. The advantage of the XBox is using PC-like components, and using a PC-like software platform.
@Starcraft II DOTA mod will remain free but monetized
What are the terms in the EULA? Does Starcraft II allows this?
If so, then it is the second game that I know of that does this (TF2 being the first), and I like the trend it sets.
@Minecraft dev wins interim injunction over Scrolls name
Good for them. If they kept a record of the offer to give up the trade mark, then this will weigh in quite a lot in the court: it’ll point out that Bethesda is not up to protecting the name.
@QOTW: none, unfortunately.
No Paul again. =(
Anyway,
@Minecraft dev wins interim injunction over Scrolls name:
Finally, I was sick and tired of hearing about this nonsense, and I am grateful that Bethesda hasn’t gained anything from his.
@QOTW: Just to show how much out of my time that is, my parents had an Atari 2600 back when they were still children.
ahhhh i really miss derrick and jennifer i wish they could host ,btw any news on their son???
@ minecraft dev wins interium injunction over scrolls name ,Hooray good for mojang im so sick of bethesda being so freaking sensitive
@qotw dude im 13 years old the atari is a dinosaur
Paul is gone again a mixture of sadness and happiness but mostly happines ,jk