The podcast is back, with a healthier Jonah joining Jordan. No Dan or Paul however.
The news:
Question of the Week: “What are you most looking forward to in 2014?”
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?
This week’s Gaming Podcast is full of Animal Crossing, which Scott can’t get enough of. You’d think TJ would be all over Resident Evil 3, but he reveals a plot twist, and talks about another game. Meanwhile. the Gaming Flashback is the titillatingly titled Deathspank.
This week’s news items include:
Let us know what fish you’ve caught in Animal Crossing.
This week we’re talking about some gaming news, TV and media, flashing back to Marble Madness and looking at the historical development career of one Mark Cerny. Here are this weeks news links:
Not only do we hate Halloween, but we’re asking another question of the week: what game are you looking forward to for the holidays?
Hi guys, great show again. 🙂
I like the idea of turning in a CD or just even having the old DRM code to get a digital version of the game. This is what Blizzard does with their library. I was able to get digital versions of Warcraft III and StarCraft because of my old DRM codes I had been holding on to. I think more companies should do that since we did buy the game, why should we have to pay again for a digital version?
@Steambox: I thought there was only going to be one but apparently there are going to be 13 of them priced from cheap to VERY expensive. This may be a good and easy way for people to find the steambox that will be suited to their needs.
@Sony streaming old games: I agree that I want this and that they should make their entire library available. The fact that Jordan still has a functioning backwards compatible Ps3 didn’t go unnoticed. I’d love to get one myself but the issue is they stop making these consoles so it isn’t easy to get an old console to play an old game. Much easier to just get an emulator (at least for PS1 and PS2).
@QOTW: I am most looking forward to Pillars of Eternity, it promises to be a great RPG game. Among other Kickstarter games like Wasteland 2 and Shadowgate.