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?
Despite the announced shutdown of Star Wars: Galaxies and the approaching new Star Wars-based MMO Star Wars: The Old Republic, loyal subscribers don’t want Galaxies to end. They’ve begun a petition to
@Exbox One and Paystation 4
The Chinese have a very different understanding of what copyright infringement is. At university I was genuinely laughed at for having physical UMD disk games for the PSP by my Chinese course mates. Apparently in Hong Kong you can purchase an already cracked system and download the games online. As lucrative as the Chinese industry is, I don’t think Sony and Microsoft can ever crack it, regardless of the legal status of gaming in the country. Piracy will kill any profits they hope to make. The only games that can survive in China are Freemium games, which offer online transactions for additional content.
@Street Fighter 5 BETA be worth it (sorry my pun game is so weak)
I was never really a fan of the Street Fighter series. Like Jonah, I found it too technical. My biggest problem with the series was its poor storytelling. That’s why I grew up playing Mortal Kombat, with its accessible lore and buckets of ketchup. I was surprised to hear that SFV will be exclusive to PS4. Sony must be paying Capcom a lot of money to keep it that way. Ironically, while skipping Microsoft Xbox One, Capcom is bringing SFV to Microsoft PC,meaning that I can still enjoy the series as long as I overclock my system and get a diamond fiber connection.
@Pee-sports
I still can’t believe that e-sports actually exists. At least don’t call it sport. Comparing Usain Bolt to some spotty snotty teen who calls himself DeathLordOverkill745 is just laughable. Nonetheless, e-sports is difficult to ignore. Its raising the profile of gaming, and often in a negative way. Maybe some proper regulation will do it some good.
@QOTW
I can’t think of an expansion pack that I actually enjoyed. I don’t tend to buy expansion packs on their own. I get them with GOTY edition or in a bundle, so for me they become just a part of the game. The only recent ones I can think of were Dawnguard and Dragonborn for TES5, but all they did was throw extra content at my already overpowered Dark Elf.
I believe that a good expansion pack must provide you with a new gameplay mechanic, that lets you enjoy the game in a new way. Its what distinguishes an expansion pack from DLC. Throwing more of the same at you after you already completed 10 hours of a game is not worth the money. The expansion must also feel like an addition to the game; not something that was supposed to be there in the first place.