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?
Apparently the war is in full force and Microsoft’s Don Mattrick is ready to poke the flag in the ground and call it a sure fire victory (in so many words). He said he’s “willing to declare here today that Xbox 360 will sell more consoles worldwide this generation than PS3” (
@Culture Diversity in games: I don’t know which is sadder: That you both didn’t think of Quest for Glory or the Witcher 3 when asking how many games have Baba Yaga. Quest For Glory series explored not just European culture but Arabian (QFG2) and African(QFG3) as well. You get to deal with Baba Yaga as a villain three times once in QFG1 and once again in QFG IV (Slavic) (which you also faced Domovoi and Rasulka, along with Vampires and Werewolves) and finally in QFG 5 (Greco-Roman). I do have to thank Sierra games for showing me such diversity of cultural backgrounds in their games, they also had a series called the Incans.
Now Witcher has these Hags which seem like the kind of creature that Baba Yaga is, if you’ve seen some of them:
http://www.gameranx.com/updates/id/13158/article/the-witcher-3-concept-art-depicts-baba-yaga-and-other-mythical-creatures/
They should have had one of these “ladies” at the end of Blair Witch, that would have been great nightmare fuel.
I do agree we need more game diversity of cultural backgrounds and Sierra had a lot of that. Speaking of which Ken Williams gave an interview about the new King’s Quest game being made by the Odd Gentleman
http://www.gameinformer.com/b/features/archive/2015/01/02/ken-williams-interview-kings-quest-sierra-game-informer.aspx
One point of the interview Ken says how he doesn’t like to categorize a game like “point and click” that they should be more an experience and not get stuck on trying to be next big thing. It made me think about how they tried to keep up with the changing game market back in the 90’s, struggles with FMV and then 3D games. Both this King’s Quest game and the GK1 remake are Corporation backed while the Kickstarted Hero-U and Space Venture are not and seem to be having trouble getting done at all.
@ “Selling out”: I like the saying if you can do something well, get paid for it. I think it makes sense, everyone deserves to eat even brilliant artists.
@ Hacker Punks: I cannot wait for these punks to be arrested; they committed a crime so YES they will be investigated. I had to laugh at the phrase “all the good hackers have done” yeah like what? Also apparently Sony was “asking for it” by not having better security, now I wish Sony had worked harder on being more secure it still doesn’t give the right for them to break in.
@Playing Online: I agree I don’t like trying to play with random strangers and having a group of friends is great. So speaking of Polycast we’re always open to you dropping by on Saturday Jonah. We’ve been playing Civ 5 and Beyond Earth lately.
@Christmas loot: I got a bag of holding from Thinkgeek, lightsaber chopsticks, a Star Trek communicator badge, a Professor Layton game and a doctor who Pocket watch. So I got some good geeky loot this Christmas!
@Help me mom, they hacked my Xbox!!!
I wasn’t affected this time around because I was with my family for New Year and mostly played offline. I will have to agree thou. Microsoft and Sony get hacked so often now that it’s not even news anymore. I find it ironic how a snot can spit down on a huge company whenever he pleases. Something has to change.
@STALKER: Shadow of >>>CENSORED<<<
Maybe the Ukrainian government did not want a tourist influx into their danger zone. The STALKER series did raise Chernobyl’s profile considerably. Last thing they wanted was amateur treasure hunters crawling around the Sarcophagus looking for artefacts. On the folklore cultures, there are quite a few different mystical entities that would make good game characters. In fact, there are many Russian games based on the Russian folklore. But they never make it out beyond the Iron Curtain. Not enough demand. The reason why Greek and Roman gods are so popular is because everyone knows them. On the contrary, most westerners can’t even pronounce Vodyanoy or Kikimore (mystical creatures).
@QOTW
Not as much as I would like too. I only play online with my friends, and currently we have a mismatch of gaming platforms (I have lots of consoles but no PC). I used to play a lot on Xbox Live. Have my fondest memories playing Bad Company 2, Borderlands and Left 4 Dead 2 till the latest hours of the night. But university fixed that. Had no time to play anything at all. Now I can’t get back into any online gaming. I have a huge of backlog of singleplayer games and no worthy multiplayer games to keep me interested. It has been a long time since something fresh came out. Maybe Evolve and Halo will fix that.