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?
In before Herr_Alien. 🙂
Come on Paul! How many podcasts are you going to miss?
@GOG says customers hate DRM: Of course they do! Just like you said, DRM only hurts the customers and not the pirates. And yes, please bring back games filled with physical content, I would love to have stuff like that.
@QOTW: Sorry, don’t know of any DRM that I could tolerate. I know that pirates shouldn’t be accepted, but unfortunately there’s nothing that can be done about them.
@DynamicJul
😀 Actually it is a nice change. The time zone difference usually works in my favor (Eastern Europe), but it’s not completely impossible for somebody from US to get in first.
@EA forum bans cause game bans:
So apparently they didn’t fix the issue yet … they’re still using one database to handle the authentication for both systems.
If you think of it, you don’t even need two databases with the same user/password data, you only need separate databases to store forum bans from whole-account bans.
Correcting the bug should not be that difficult and it will make a huge impact for the better.
@piracy’s up 20% in past 5 years:
Games for free? Who would think this would ever be a lucrative business? 😛
I for one would pirate the shit out of Assassin’s Creed 2, just to point out that intrusive DRM is not ok. I’m not that much into that kind of game though, so …
@GOG sez customers hate DRM
And for good reason. As long as the code reaches the client, any DRM measures in it will be bypassed. Not might be bypassed, not could be bypassed, WILL be bypassed.
As for physical content, well, you still have those Deluxe editions.
@Steam user database cracked:
Not the best of the possible news. I don’t like to have the credit card info stored on servers, and in my envision of an online store, the credit card info is never stored. Yes, with every purchase you would need to type in the number again, but unless you check out very often (instead of putting more items in the basket then checking out) it should be quite ok.
@QOTW:
Steam, and the regular CD-key.
Jonah, regarding DynamicJul’s comment, I think you mean pseudo-code. And it’s not really about pseudo-code; as long as you know (1) what you want the program to do and (2) how to do it in one language, it will be easy to get the same thing from another language. The main hurdle in all software companies is not about learning a new language, is more about figuring out what the software you’re making is supposed to do.
Actually my time zone is GMT +1 so it’s the same. Also, I forgot to mention that my country doesn’t have things such as ‘Microsoft offices’ or ‘video game shops’ so I have to buy everything off the internet and it isn’t possible to fix an Xbox 360 over the internet.
Wait… taking fallout 3 apart and putting it back together again? This time it’s a brand new engine, so even if they learnt some stuff from the previous games, it’s not like they could reuse that much this time as they have done between previous games.