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?
There has been many debates on the graphic level of Diablo 3 and how it should be different. Finally a developer comes out and says “um, no.” Their reasoning is fairly simple, it’s one thing to photoshop up a screenshot with some filters but it’s another to get the texture and lighting to run at that detail on a standard computer.
@Nintendo announces XL version of Nintendo 3DS: No surprises there. It’s kind of a given that they make new versions of their handhelds after it has been proven very profitable for them.
@New users must now pass “review process” to unlock full Diablo III: All this makes me wonder is, how much higher would the number of sales be if there hadn’t been all this stupid DRM on the game? Don’t know why they feel the need to punish their customers. It seems that only Valve knows that the way to being a loved company is by being loyal to its customers.
@Valve and Cartoon Network collaboration hints at Team Fortress 2 show: After I’ve seen what can be done with the “Meet” shorts, I can say that I’m interested to see what they come up with.
@QOTW: Nope, not really. Apart from making sure I have proper lighting and heating/cooling, I don’t do anything special.
Jonah, no rush on Mission Impossible. I can come up with other weird NES games 🙂
@Nintendo announces XL version of Nintendo 3DS
I’m curious if this has to do with the pixel size as well. When the console was announced (display size and resolution) I crunched some numbers to find out the view distance to fully use that resolution. It came up as about 8 inches. That’s too close.
A bigger screen would also mean a bigger view distance.
@Dev claims Microsoft killed XBLA version of Stranger’s Wrath
This is so odd. What’s it to MSFT if the game gets distributed or not on XBLA? Normally a publisher would not care that much as long as some quality standards are met.
I mean it’s not like they’re worried about shelf space, we’re talking about a digital distribution channel.
@New users must now pass “review process” to unlock full Diablo III
*clears throat* Ahem!
Bwa ha ha ha ha 😀 😀 😀
And I thought that online DRM was the worst thing that could happen to a single player game. Boy, was I wrong!
And if this doesn’t ramp up piracy, then I don’t know what will.
@Valve and Cartoon Network collaboration hints at Team Fortress 2 show
Dunno … they’ll have to move outside of the game in order to make it happen.
We’ll see.
@steel battalion poor reviews:
well to be fair the problem doesn’t seem to be its complexity its that as per usual with kinect it just doesn’t interpret your commands correctly 75% of the time.
and hey ubisoft press conference had more than watchdogs ….rayman legends looks amazing. =p
What is this place? Why am I writing this? Who are you people? Must…save…Skyrim. VAMPIRES ARE EVERYWHERE!!! THE DAWNGUA OK I am back in the real world now.
@3DS XL
Enjoy not having any games to play in greater resolution. Good point made by Paul: it’s not the size that matter’s. It’s the way you use it.I bought a DSi because it was a massive improvement over the original DS in terms of hardware and software. 3DS XL is just a bigger brick with bigger screens. A premium brick is still a brick.
@Oddworld: Strangers Wraith
I loved the game. It was a very interesting twist on a first person shooter. An adventure FPS with an interesting story and fun gameplay. As far as I remember, EA killed it by not advertising it. When it came out there was not a single mention of the game in media. And you had FIFA 2006 adverts posted on every bus, wall and toilet roll in London. Thanks a lot, EA.
@Diablo 3:
Que Blizzard: “No you can’t play the game offline. No, you can’t play it online either. Just give us your money, sit down and shutup. We made the game. We decide who deserves to play it and you clearly don’t unless we perform a full criminal record check and ensure that your credit card is American Express Mega Gold Platinum X”
To follow up a point made last week, just out of quriosity, if you have an opportunity to customize your game(i.e. create a character or change his name) do you personalize them and give them your name (or nickname) and your likeness? Or do you leave default settings? I tend to try and represent myself as much as I can in an MMO or Skyrim, but usually leave default settings in games where they are definitive of the series. All of my Zelda characters are called Link and my main Mass Effect character is the front cover Shepherd as he is on every media advert on the planet.