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?
The Wii Motion Plus is going to be bundled with Wii Sports Resort, a title that’s obviously playing off the biggest Wii hit Wii Sports.
Jonah,
I have to say I am a bit offended at your blanket statement about The Sims fans all being a bunch of 14 year old girl Bieber fans. I’ll have you know we are 30 something old bieber fans, j/k. There really are a wide age range of Sims fans. While the game as Paul said was made to be easier and accessible to a broader range of fans doesn’t mean the game is simple. People have made Machinama’s, Legacy families, build challenges, etc. Proof is also in some sites catering to the more Adult things you can do with the Sims, I won’t list the sites to keep this clean but Google around and I’m sure you’ll find what I mean.
I’d like to answer both this week’s question and last weeks since they both interest me:
This Weeks: I was going to first say Facebook Games but they seem to be dying nicely on their own. Instead I wouldn’t mind to see all FPS games die in a fire, I wouldn’t miss any of them. The last one I really played was Doom I. After that they all pretty much seem the same and very boring. Listening to you guys talk about Halo and MasterChef I couldn’t see what was the appeal about the game or MC as a Iconic character. When I play a game I want to be Indiana Jones or Bond, I don’t want to be me in the game.
Last Week’s: For me the golden age would be like Paul’s with the SNES and it’s plethora of RPG games. Jordan is in for a real treat playing CT for the first time, I wish I could do that as well. The SNES was a time when I felt that I belonged to the gaming community. I loved CT, FF4 and FF6 games. After release of N64 I felt like FPS was taking over and becoming the game genre to make. Adventure seemed to die after that era. I later felt solace with the PS1 and DS games for my adventure and RPG needs.
To sum up I feel like FPS has displaced me as market for games because I am too old and slow to “get” FPS games and Adventure/RPG doesn’t make enough money by comparison.
Re: Blizzard not rolling back Diablo III game data.
I like that they have chosen not to punish everyone who didn’t use the exploit. It makes me think that Blizzard actually cares about its customers.
Re: Obsidian desires to make Star Wars Rpg.
The question is will they be allowed to and can they afford the price that EA will probably charge for the rights to make it?
Hey guys,
I missed last week’s QOTW so maybe I’ll give my answer as Alphasard did.
Golden era of games: It’s so hard to choose. I’ve been playing games on and off for the most part of my life. I played a lot of Atari, C64, then (S)NES but I think I became aware of what I was really playing and I started actively looking for particular games in the late 90’s, earliy 2000’s. I already mentioned my love of adventure games and that’s when I found Broken Sword, the Monkey Island series, Jack Orlando, Syberia, etc. I also loved Heroes of Might and Magic III and I played a lot of NFS: Hot Pursuit. Somewhere around 2002 I stopped upgrading my PC and I didn’t really play any new stuff… Until I bought a PS3 3 years ago and I can play all the new releases without having to worry about hardware which is great. This is my gaming renaissance, so to speak.
Genre I’m burnt out on: I would have to say sports games. I’m an NHL fan and I played the EA Sports games since 1998. I bought NHL11 for my PS3, I played a while but I found many better games to play. I think I haven’t played a single game in over a year. I enjoyed FIFA and NBA games back in the day as well but I’m not drawn to them anymore.
Question from the reader: Do you think that the E3 this year is going to be a big event? Could it be too damn big with the new generation consoles playing a huge part in it? (Sorry Jonah, couldn’t resist 😉 )