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?
… are you guys stalking me?
I recently started watching ProtonJon’s let’s play of Superman 64. This guy played the game only to point out various bugs.
Top seller?! It means a lot of people got suckered in 🙁
@SOPA:
Sure it will come back. Immediate power to shut down any website you want? What administration wouldn’t like that?!
@R18+ bill to be voted on by Australian Parliament on 7th February:
Fingers crossed for the Australian gamers 🙂
Just as mentioned before, parenting is the job of parents, not the governments. Governments’ job is … governing :P.
Jonah, did they screen Final Destination 5 in Australia? 😉
@Vita sales continue to freefall in Japan:
Really?! What CEO in his right mind forecasts such a drop and takes no measure to prevent it?
I also call ‘bullshit’.
Thing is , Sony desperately needs a hit (in the meaning of a successful product) to compensate PS3 and the Vita.
@Starbreeze states they don’t look at games from a genre perspective anymore
😐 ok, like Paul said, the speech sound nice. As for how much it is actually worth, well, let’s just let their future work speak for itself.
“Chronicles of Riddick” was indeed a pretty nice game, in several departments: graphics, story, game mechanics.
@QOTW:
The universe needs to be recognizable. So while the stories might tackle different time intervals, the game play should be slightly familiar but with enough innovation. And while using the same universe, do use a different story.
STALKER – Call of Prypiat is a great example of a good sequel (for Shadow of Chernobyl).
@SOPA
Yes it will keep on coming in subtle forms until it succeeds, and I have the feeling that the only purpose of this was just to slowly get us ready to an eventual similar law to be approved.
@Vita sales
Not that I am an expert on this, but I never believed it would succeed. I don’t think any portable console will have the success of Gameboys, NDS or even the original PSP.
I know that hardcore gamers still prefer having a portable console than a mobile device to play games, but I don’t think hardcore gamers were ever the main market of these consoles.
@Guild Wars 2
I am unsure about this, I absolutely loved the first one, but now I am more used to sandbox open worlds with action game styled combats. I don’t think hitting tab key to auto-target will cut it for me.
Still, the original Guild Wars was one of the most fun games I played. Not a traditional MMORPG at all. It was all about competition, I love that.
Guild vs Guild fights in that game, were awesome, highly strategic and very fast paced.
Hopefully this premise continues in the second game.
@QOTW
It is easier to say what I hate in a sequel, which is the game being dumbed significantly. A big example of that was Black and White 2. Mr Mollineux was so out there talking about how much of a different experience Black and White was, and it was indeed. When the second came out it was just another RTS.. I also fear that the Elder’s Scrolls series are taking this path.
That said, I look for a sequel that fixes the problems of the first game and offer some new experiences. I heard The Witcher 2 was a good sequel? I am yet to try it.
@SOPA
unfortunatelly, some kind of law like this will pass, if not now, in a near future.
@r18 Australia
good for them! video-game industries are not only for kids and should not be treated like so.
@Vita 18k sold week 4
foreseen?? BS! BS! otherwise sony needs to fire their (dont know the word in english) foreseer (sorry)
@QOTW
i’d agree with paul, is a hard to get combination between nostalgia and innovation wich will lead veterans and newcommers to a sequel
take battlefield 2 to the 3 for example: they implemented complex open maps for different strategies to veterans like operation firestorm and made very simple and linear maps so the newcommers know where is the enemy and still give a chance to employ a flanking strategy like operation metro and grand bazaar
upgrading the engine is tough trough sequels but valve nailed the half-life 2 game and made it brilliantly
btw, agreed with herr alien, STALKER had an awesome sequel – Call of Pripyat and IMO an even better prequel – Clear sky
@Herr Alien
could i add you to my steam friends list? 🙂
i’d like to give you guys a suggestion:
after you finish the flashback on the worst games ever, if you are willing, make a flashback on crash bandicoot trilogy for the playstation original 🙂
awesome, keep it up guys!
Test comment because I’ve been trying all week to post one.
For some reason, my long comment isn’t being posted. I know you have probably already recorded the podcast, but I’m just letting you know I still listened to it.