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 pink slips should be issued by March 31, 2009 and we’re hoping the folks that have lost their jobs will find new jobs as soon as possible. An Electronic Arts representative said:
Wow Paul really let loose with that last episode. I agree with him that I’m tired of the whole Gamergate drama.
I am hesitant to get into the whole SJW issue since it’s a sensitive topic. Suffice to say that they generally are a oversensitive, zealous and fanatical crusaders looking for a fight where there is none or “Making a mountain out of a mole hill”.
A good example that doesn’t relate to Gamergate is the recent landing of a satellite on a comet by Dr. Matt Taylor. Not only did he mange the amazing task of getting the satellite to hit it’s target but we have amazing scientific data from that satellite. The next best thing to finding actual life forms, we found molecules, building blocks of life. We could be able to soon prove that life exists out in space, but what do we focus on? His fucking shirt. He’s wearing a shirt, with women (not naked) on it, made by his female friend as a birthday present, and he wore it to show his appreciation. Instead he was bullied into thinking that his shirt was a bigger grievous sin then his history making accomplishment.
So way to go SJW you’ve claimed another victory and shown why Alien life shouldn’t visit our planet.
@QotW; I’m not sure when the first digital purchase I made was. Probably going to go with the Wii and buying old NES games on it. Then Minecraft, PSn games, Xbox and Steam/GoG on computer. It started as a trickle and turned into a landslide of just getting Digital only. I love not having to worry about physical media getting damaged or lost.