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?
Most folks in the game industry are already writing off E3 as an actual event to be attending. Even Wedbush Morgan analyst Michael Pachter is calling it “virtually useless” for both retail and investors. The writing is on the wall and the reasons are obvious.
Hi guys.
As always: thanks for the episode, it was fun to listen to it 🙂
Regarding your topics in this episode:
I am very hyped for the new Atari console, but i can´t describe why. Maybe because the Atari 2600 was my first console as a kid, and i am a little bit nostalgic? The new one looks good, but as Jonah mentioned: the console will rise or fall with the games and they did not show anything right now (or i did not see anything).
I never played Ys as a kid, because as far as i know, the are not available in german, and as a kid, i was not able to understand english 🙂 The bumping mechanic seems a little bit awkward, but on the other hand it´s something different to everything else 🙂 I saw some videos about the newer versions of Ys (PS4 releases). Did one of you play them/one of them and can tell me, if one of them is worth playing?
I play Fortnite on PC sometimes with my friends. I did not bought the game, so i only can play the battle royal part and this is fun to me, if i play it with friends. I also played it on my mobile … for 2 minutes … its unplayable in my opinion … as expected 🙂 But if you want to play a round on PC with Discord or TeamSpeak to coordinate, let me know. My ingame Name is the same as here : Jackosis.
I have one question to all 3 of you: are you thinking about streaming some gaming of you or do YouTube Videos? Some kind of Let´s Plays or sth like that? I think it´s more work, so i don´t know if you would have the time for that 🙂
And for the OffTopic: right now i am into the a very old series: SpinCity with Michael J Fox (in germany its called Chaos City … don´t ask me why) and i started watching The Walking Dead.
I wish you a great week and a happy easter weekend and hope to get a new episode very soon 🙂
greetings from germany,
Ralf