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?
Just in case people were actually thinking the Xbox 360 was going to hold out against a viral console, Nintendo is now the best selling console in the United States. Anyone really surprised?
@ Black Friday 2012
I was pretty disappointed in how “Black Friday” was handled in Romania. Plenty of retailers increased the price a week before, so that they could do a 40% slash to get the price back to the old value.
@Nintendo Power’s last issue released
It also depends how many people want it. Here’s an example: our major cable provider decided to not renew the contract it had with Discovery Channel. Why? Because just 0.9% of the people watched it.
How many people read “Nintendo Power”?
@Blizzard acquired ‘Project Blackstone‘ domain
It could be a preventive buy, I guess. Still, not really hyped about it, Blizzard lost me since always-online DRM; last game I played from them was Warcraft III and Frozen Throne.
@Dead Island: Riptide banned in Germany
Funny though, there are plenty of games (not just Gears of War) where players blow other human-like character to bits, and those are still available in Germany.
But hey, what do I know, perhaps the baddies in those games bleed green goo …
@QOTW: No.
Not interested to comment on any of the news articles, I just came to ask: “Guess who has two thumbs and got the Wii U before Paul did?”. I did.
@QOTW: Never
Just found out about this podcast and was amused that there was a topic discussed, I just held a speech on in school. Censoring, banning etc. in Germany.
The USK is all right, they just rate the games like any other institue that rates games. The problem is the BPjM (the young protection thing you translated). They decide what gets banned and lands on the index etc. They’re not only after games, but after media in general. They just recently banned Steel Panther’s 1 year old album “Balls Out” for no reason given. Wrote them a mail (respectful, of course) and got no answer whatsoever. So did the German Metal Hammer-magazine. Same answer.
They ban whatever they want to. Sometimes there’s no system behind it. Dishonored came out here completely uncensored, this means I, as Corvo, can decapitate enemies and throw their heads around. Kinda humiliating to the corpse, isn’t it?
If anyone is interested in how cuts on games look like, I recommend http://www.schnittberichte.com
especially the Bulletstorm one.
QOTW: Never.
@QOTW:
Yeah… Nintendo World yes, Nintendo Power NO.
Nintendo World had the “Approved By Nintendo” seal, so, i bought them for a couple of years…