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?
Did someone say Yoga? I have returned from my deep educational derangement, securing my graduation and unemployment. Now that I am a professional vagabond with a smexy new Xbox One, I will dedicate more time to gaming and ultimately this podcast. Don’t go Paul. Here is some love. Manly comrad-like non-platonic love.
@Non-tangible gaming
I purchased the Xbox One Titanfall bundle and had to endure a 4 hour download of the game. I fully understand why console gaming is still disk based. On the other hand, my Steam library has 170 titles which I can download at high speed at a moments notice. Until my Xbox can pull off that kind of performance at Steam like prices, I don’t think I will download that many console games. I have loads of digital PS3 titles for that very reason.
@Gaming conventions
Never been to one purely dedicated to a single game. Never really been that dedicated to just one game. Here in UK it’s rare to find a gaming convention at all. Even major events tend to skip out a year or two. I know there are some dedicated communities in London but it’s easier to buy weaponised uranium then to find one. However, if I could ever go to one, it would most likely be about Elder Scrolls or Halo.
PS: City of Heroes was made in the dark days of gaming when homophobia was supreme and untraditional sexual orientation was frowned upon. Allowing a city full of adolescent boys running around in coloured briefs would be marketing suicide. It’s quite amusing. Since then homosexuality went mainstream and even became a marketing selling point for some games. It’s only a matter of time until you can create a transgender 5th generation foxkin character in an RPG.
Another good episode guys and I’m glad you enjoyed the Princess Bride reference.
@Console Digital gaming: I’m all for this as I really do enjoy not having to worry about where disks are. I have quite a few in digital format on my PS3.
@Sims4: I agree with Jonah, it’s one thing to re-write the mechanic on how something works in a game like with Civ V’s Espionage and Religion being vastly different to how it worked in previous games. To just stripping out features that you know will be repackaged into a expansion pack not looking much different or better for it’s delay. All the things that have been left out has had us feel like we’re going back to Sims 1.
@Youtube offline: Hey if they want to give me free music who am I to complain? heh
@QotW: I almost went to a Minecon in Orlando since that’s near to where I live. However it was really hard to get tickets. They sold them in groupings of 3k and they all went in seconds. Freaking jackals.
heyaaaaa xD after 2 years lol downloading an episode here feels like a trip to memory lane haha not sure if u remember me xD