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?
PlayStation 2 fans may recall a little title called Okami, it’s an action adventure game developed by Clover Studios and published by Capcom. The original Okami title received fairly high reviews by many popular game sites, although there were a few flaws, the receiption seemed well received.
First I’d like to offer sincere condolences on the passing of Andrew, that was very sad to hear, just proof that life is very short.
@LoL; I read this story as well before it was on here and I couldn’t fathom why or how any LGBT would have any kind of advantage. More over how anyone would know or why they would even care? The whole story is completely baffling.
As for any slight advantage due to genders, there was a Mythbusters episode where they tested gender biases; like “throwing like a girl”. First they had untrained kids pitch balls, they had a pattern of boys throwing harder/faster and girls being more accurate. Then when they brought in the professional players they found the differences very negligible. With training and practice any weakness or disadvantage can be overcome.
@Nintendo lower prices: Yes please, I’m all for cheaper games. Also being able to get the back log on DS that was on Wii!
@EA games too hard to learn: I agree Jonah read the manual, read forums, wiki guides, etc. There’s a ton of resources, I have several GoG and Steam games that actually do have their manuals. As for EA games I have never found them hard to learn, their games seemed to have been focusing on being as streamlined as possible.
I also find it very odd if as Jonah says that Grim Fandango isn’t that much different, aside from the sound cues, that it doesn’t work for Paul. There has got to be a way to get that game to work.
@QotW: The list is so long I’ll start with a yes there are games I get emotional with. When ever I hear the sad songs from Final Fantasy 4, 6, or 7; the music of Suikoden I and II. They bring back so many fond memories.
My condolences to family and friends of Andrew Yoon. It is a terrible misfortune to die so young. Especially following completion of a project. He sounded like a real fun guy.
@Too much kohones
I will now clean my eyes and read that again. Nope. It’s still there. What part of human logic created that idea. It’s f**king LoL, not Olympics. If they are so afraid of superior mouse clicking ability, they should also ban Michael J Fox (Parkinson’s). To be honest I was always against e-sports. We are starting to forget that video games are primarily a source of fun, not funding. But some people take it too seriously, resulting in those exiting propositions. If we could instead concentrate on banning antisocial twats from the gaming industry that would be better. Oh no wait. Then there would be no one to run the tournaments…
@Ninendo’s peasant strategy
As much as I love Nintendo games, I hate paying for them. As opposed to Xbox/PS titles which gradually fall in price, good Nintendo games stay at release price for years in UK. I am yet to find a copy of Lego City Undercover that won’t bankrupt me. However, when they re-released the Metroid Prime Trilogy for cheap, I snapped it up without a second thought. I would gladly pay for cheaper Nintendo software.
@QOTW
Mirror’s Edge Still Alive ending. Beautiful.