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?
@Domains for Mad Max videogames registered by Warner Bros.
Dunno. What’s the difference between those possible future games and Rage? I expect the gameplay to be the same, ok, story a tad different.
So, the future games receive a ‘meh’ from me. For now.
@Report: Xbox 720 not always online
This makes sense. Sure, Microsoft is greedy, but they made good decisions in the past regarding the availability of software for their platforms.
Jordan, I also unwrap my games. Still, Serious Sam 3 is still on hold, Amnesia is on hold, Penumbra games – just made it to the mine thinggie. Plenty of stuff to play.
QOTW:
Favourite? Gosh … Here’s the thing: QUake 3 – FPS. Doom 3 – FPS. STALKER, Fallout 3?! – FPS RPG? C&C Renegade, Red Alert: A Path Beyond?! – FPS RTS?!
So, I’ll split it in two: perspective – first person. Game mechanics – RPG took first place. That doesn’t mean I’m going to pass on a good classic RTS.
I hope I’m not late this week…
@xbox720
There was no doubt in my mind that those rumors would turn out false. There are too many people who use the current gen consoles that do not have access to broadband or do not want to be connected all the time. Microsoft would have to change their general marketing and development approach if they chose to have an always-on device.
@Zeschuk
I don’t think I agree with the statement about nothing new happening in the game industry. Some developers are working on new IPs and, although most of the mechanics remain the same, I think gamers are still waiting for new releases with excitement. There are plenty of choices right now. Some games are free-to-play, there are subscription-based games and single player only IPs. To me it seems that gamers are not yet jaded and everyone can find something just right for them. I don’t understand what kind of revolution Mr Zeschuk would like to see. Admittedly, he knows more about the inside workings of the industry than me, but I side with Paul in that it’s rather the global economy state that forces people to buy less rather than the state of the gaming industry itself.
Most casual gamers would rather spend the $60 on a new CoD than a new IP. They know what to expect, they know they will have fun, so why risk the hard-earned money on something unknown? This situation will change when people will have more disposable income, if that ever happens again 😉
@Death of handhelds
I wonder if the cultural differences play a role in how we see the situation. Granted, most of the people in Poland own an Android or iOS smartphone but the tablet market is not as full as it is in western Europe and the States. To be fair, I haven’t seen many Vitas, PSPs or 3DS’ either. To me, it’s not a matter of competition between my phone and the Vita. My Samsung won’t run Little Big Planet or Wipeout. If I need a quick game, I play some Zen Pinball, which also won’t run on my phone.
Another thing. I’m not sure how many TVs a statistical American household has. There’s one TV in my wife’s and mine apartment and if she wants to watch something I can’t use my PS3 so I play my Vita. That’s another situation where handhelds are a good solution although they still need to compete with other devices, as per your argument.
With the recent PSVita firmware upgrade I sorted my games into folders. It’s easy for me to count that I now have more than 15 games installed there. This includes some PSN games, some old Final Fantasies and one demo but there’s still plenty for me to play and there are no other portable devices that compete for my time. Well, unless you count Words with Friends on my phone…
Oh, QOTW…
I looove old-timey point-and-click adventure games. I still think the Broken Sword series is one of the best series ever made. Then there’s Syberia 1 and 2, Leisure Suit Larry, Monkey Island. Where did all those games go? Deep Silver has been publishing some adventure games recently but that’s it. The hand-drawn 2D graphics, witty humor, nice puzzles, some of which are incredibly frustrating but once you get over them you feel a sense of accomplishment. Yeah, that’s the stuff. I’d put Quantic Dreams games in the category as well, sort of… It’s a more cinematic experience but you still get an extremely interesting story and they require some brain usage.
@Batman Beyond help
As far as I remember, there was a Batman Beyond game on Xbox. It was an utter turd. In fact, up until Batman: Arkham Asylum all of the contemporary Batman games released were absolute garbage. Except for Batman Begins, which was a cross between Splinter Cell and Burnout. It’s good to see him returning to quality he deserves.
@Incredible Mad Max: The Second Revenge of Mad Max and his Amazing Friends (copyright of Warner Brothers which is a trademark of Warner Bros which is a Warner company)
Never watched any of the films. So to me it’s like Max Payne. Probably gonna tank too. Especially since it’s a movie tie in. “Hey Max, jump onto the platforms to collect yellow bolts to build a Maxmobile. Que a racing mini-game chasing trucks which are throwing barrels and occasional power up. Turn your car blue by buying Mad Points using your dads hard earned currency”
@Xbox 720 is coming out eventually so shut up
I am absolutely indifferent to the rumors about next Xbox. I am patiently waiting for E3 when it is properly announced.
@Xbox 360 launch titles
Kameo was an Xbox game that was held back and released on Xbox 360 launch. Didn’t do so well.
@Death of the Handheld market
Difficult to dispute. At the beginning I thought an iPhone was just a crappy overpriced piece of junk that would bring hipsters together over a cup of Starbucks via Instagram. And it is. However, if it can run GTA: Vice City, it is a formidable gaming-capable machine on par with Xbox and PS2. It is far superior to a DS or PSP, which just specialise in games. And as far as I know, iPhone games are designed to be short and n00b friendly. Biggest problem is that smartphones are big in Asia. Chinese, Japanese and Koreans adore iPhones. And as we all know, nowadays if something is big in Asia it will be targeted by developers (i.e. Chinese only MMOs). And that is possibly the biggest problem for handhelds. The 3rd party support they enjoyed in the past has moved on to a simpler and cheaper development industry.
@QOTW
Free-roaming action RPGs. Elder Scrolls. Deus Ex. Borderlands. I love the freedom of exploration coupled together with a character that you can develop and personalize. And a fighting mechanic where I can actively dodge and attack using my personal skill.