This is the first podcast of 2021! It was also recorded a day before people decided to invade the US Capitol. How weird is that, hearing us blissfully unaware of insurrectionists who thought they could terrorize the US Senate?
Anyway, this week’s news includes:
Let us know what you think at the Facebook comment site.
The holiday season is over, the NPD sales data for January 2008 is in and we see a common theme: Nintendo rules the show. While Sony continues to try and persuade gamers that the PlayStation 3 is in a completely different gaming category, statistic gathering companies like NPD put ’em all in one big basket.
It makes sense for Sony to try to push themselves away from being classified with the Wii console because it makes them look bad. We’re all equal gamers here, there is no need to break into more sub-categories when only three consoles vying for top spot. Many folks (including us) criticize the slow adoption rate of Wii games, yet they steal top software sales spots as well.
Thankfully Sony’s PlayStation 3 product took top spot on their hardware list, so that’s not so bad. Sadly, combining all Sony’s hardware still doesn’t meet the units of the Wii.
On the software sales front, Nintendo took six of the top ten positions including position’s one, two and three. Wii Fit takes number one position with an insane 777,000 units sold. The only closest product to Wii Fit was Wii Play (still!) with 415,000 units sold. Place four was held by a 360 title, Left 4 Dead sold 243,000 units.
Although many gamers haven’t turned on their Wii in ages, there is no doubt the market is red hot for Wii. At this point, we’re all wondering how long it will last — any predictions? It’s already been a long time.
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?
The Gaming Podcast is back after three weeks of a forced hiatus as one former host has left the podcast for good. Otherwise, some of the news items are old, some are new, in this long episode.
There’s no Gaming Flashback or Gaming History, but plenty of news, including:
There’s also some Listener Feedback. The Question of the Week: “Do you think consoles will start doing early access on games?”
