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?
A few months ago, Activision Blizzard CEO Bobby Kotick said investing $500 million to a billion still wouldn’t be enough to compete with an MMORPG like World of Warcraft. The MMORPG space is a costly investment and you’d need to really burn a lot of money to start competing against the mega-giant, but Mythic VP and Warhammer Online lead designer Mark Jacobs disagrees with that quote.
I’m rather puzzled by the hardware failures already at PS4/Xbone, seems like a lack of foresight to make sure their peripherals to work.
Jordan the Prince of Persia games are Platformers, not adventure.
QotW: My favorite Adventure game has to be Gabriel Knight, each game in the series was a dark thrilling mystery and the main characters were great to follow.
Speaking of which Activision is licensing out the GK IP to Jane Jensen for a remake. Thanks in part to the Kickstart project Moebius that Jane got funded. Along with other Adventure game projects inspired someone at Activision who had a passion for the GK series to convince the company to license out the series to Jane. What has me excited is seeing Adventure games get more notice as a viable product again by game companies, especially Activision.
@Xbox and PS headsets
Personally I don’t see this as a problem. As long as they provide a pack-in headset so that I can discuss my numerous relationships with my oponents mothers on Battlefield I will be fine. I can see how it is a problem for rich folk who blasted loads of cash on some shelled reptilian headset. But I am indifferent to the opinions if others. I fully support Democracy and believe that the opinions of few should be overlooked and they should all be quietly shot.
@Oh can you hear what the Rockstar is cooking?
As long as it’s not ONI 2 I will be glad to play anything Rockstar makes. To me they proved their development ability time and time again. I am curious what it will be. I am guessing it’s Bully 2 but it could be Red Dead as well. Redemption was voted as the best game of last decade so I would expect Rockstar to indulge us with as sequel.
@QOTW
Across my gaming life I played quite a few adventure games. But I don’t remember most of them. Broken Sword 3 was good. Recently I played Anna but had to quit because of lighting issues on my laptop. But my highlight was Dreamfall: The Longest Journey. I know that the prequel was better (never played it) but I quite enjoyed it. Another highlight was Beavis and Buthead game on Mega Drive. It was funny because the Beavis and Buthead IP was aimed at retarded adolescent teens but the game itself was hard as nails. It had puzzles so difficult that you would need a degree in critucal thinking to get to the end.