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?
What Sony may be dealing with is the fact that they’re not top dog in the latest battle for consoles. Europe has taken to the PlayStation 3 better than the United States and they’ve got plenty of fans in the region. There has been a recent upside to it all, some light at the end of the tunnel:
@Thief:
If you have Doom 3, and no patience for Thief 4:
http://www.moddb.com/mods/the-dark-mod
@Steam forums hacked
Me don’t like this. Normally you would not depend on third party software for modules in your core application. You’d want access to the source code, so that in case a vulnerability is found, you can fix it quicker than the third party.
So, assuming Valve has access to the code powering their forums, and yet somebody managed to hack it, it means that their developers need to better cover their security holes.
No puns intended.
@Xbox 360 failure rate down to 10%
Paul, I think those 10% come from any kind of combination of the following factors: old version of the console and placing it on a rug, with no space for ventilation.
I had no piece of equipment burn out. Those ventilation holes (sorry for getting back to holes) are there for a reason. If you thought of something different than ventilation, shame on you :P.
@Sony revamps< PSN sharing policy
I actually like that kind of sharing policy, and reducing it to just two devices is quite ok.
@cease-and-desist order to NeoGAF over Mass Effect 3 spoilers
Oh man … this is still free advertising. And since the game is not yet released, it can be changed so that the story of the game remains new.
@QOTW:
Yes.
You'll say this is absurd, but think of it: a game is not a novel, that once you read it you've extracted all of it.
A game is story and gameplay. Or just gameplay. The ones that are just story usually turn crap.
My 'Yes' answer is also based on a personal experiment: I watched/listened in background "lets plays" for STALKER Call of Prypiat, and I still love (not loved, love!) playing the game.
Now granted, such a big spoiler does have one effect: instead of buying the game full priced, I wait for a nice discount.
Great… First you say I’m 8 and then you say I could be a girl. Thanks a lot. =P
@Xbox 360 failure rate down to 10%: The biggest reason I didn’t buy an Xbox 360 when I was choosing a console was that it had a very large failure rate. I’m glad that it’s finally at a point where most people can enjoy it without it failing in less than a year.
@QOTW: I like to watch trailers and gameplay footage as much as I can until I see about 1 or 2 demos from gaming conventions such as E3, so that I know the game is worth buying. Otherwise, regarding story, I like to know as least as possible because gameplay is most important to me and the story is just what holds it together.
Regarding what you said about going to a library and learning a programming language: I would like to do that after I do my GCSEs which are only in next May and I need to focus on them as much as possible first. Also, I was unfortunate that my year is the last year that my country has Pascal programming in its Computer Studies syllabus instead of Java programming. Even though I excel at Pascal, I think there’s going to be a big leap for me to write in another language.