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?
Going for the sex sells eh? Not that anyone would know the difference either way.
“Companies spend money like fish” Doesn’t sound like any company I’ve been at. I have at two work places that had several computers still on XP, they take a long time to upgrade anything. I’ve seen old plotters still be used from decades ago. I think companies tend to the if it ain’t broke don’t fix it.
Paul if you have a spare Windows 7 computer why don’t you see if Grim Fandango works on it? Or have you already tried?
@Windows 10: Yeah it feels like a real desperate attempt at good will for the Windows OS in general. I think giving it away free for a year they feel will garner some slack. Though if you upgrade I don’t know if you can go back to Windows 7 or 8.
@Kojima: I think Metal Gear is becoming one of those games that need to be retired now.
@Tempest Debacle: Looking at the screen shots I feel like I have seen this game mechanic before in other games. Having never played these two I can see it’s a ship that spins around a “pit” shooting at things in the center. I feel that that was a very old Atari game at some point. However he’ll probably have to pay a settlement for this as it does look like he is trying to remake the game that belongs to Atari now. There’s making a game that uses certain mechanics and then there’s just making what looks to be a clone of what they did previously. If I made a game where you jump up and down a large block pyramid with a little orange dude named Q’bort I’m sure Atari would see through that as well.
@Xbox for sale: If it’s for sale maybe a former console company could buy it to bring its self back like Sega or Atari. Though I don’t know if anyone would want to buy it. With the way they’ve been talking about integrating Xbox and Windows gaming I don’t think they would sell that then.
@Nintendo’s NX Gen: I’m intrigued what they will do, if nothing else we’ll have a new name to have fun with the NX Gen.
Since there was no QotW, I thought I’d ask something: “What do you think is the future of Old Games?” To give more context anyone who wants to read an old book, see an old movie or listen to an old song can easily do so. However with Games that will become difficult, especially in cases of games that are Online only and once servers are gone so too is the game. Later generations of people may have a hard time playing games that are no longer workable on current gen consoles or even computers. I wanted to know what your guys thoughts are on this.