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?
Hi guys.
As usual: thanks a lot for your effort and work to bring us this and every other episode 🙂
I am not able to say so much to this episode because I don’t know all the games you talked about ?
I played a lot of Magic Arena as usual, some WoW and since it is released some days ago: Itorah, a hand drawn Meteoidvania Indie Game.
But some things I can say sth about:
Dorfromantik: I own this game and it is really relaxing and I can play it over and over again. You can’t loose in some way so it’s not frustrating 🙂 I really recommend it 🙂
PS5: I am happy i gut a PS5 some months ago, but sadly I did not play so much with it. I only played some hours God of War with the 4K HDR Upgrade.
Gizmondo: I owned this console and yes it had a SIM card in it 🙂 I never played with it, it was only a nice upgrade for my retro gaming collection. I sold
It for way to much money in my opinion, but because of the fact that it is rare and I owned the packaging box, manual and all that stuff it was a nice catch when I bought it 🙂
Super Mario Guide: why is this a topic? Such an old game and now it is a topic? ? but I think some collectors or hardcore fans are really interested in this thing. The game is still played a lot by speedrunners, afaik?
Switch Topic: I really love my switch. It doesn’t need any upgrade, because the games for this console should not be such graphical monster games in 4K HDR… I like it for the simplicity. You can play the games even if you don’t have that much time, they are easy to understand, easy to solve or finish and you can can get back to them after weeks and are in to it after some minutes. No need for an epic storyline which is hard to follow. But for sure that’s my opinion and I understand every person who wants complex storys, hardcore mode and complicated as hell 🙂
Sorry for late commenting, but I wanted to drop the lines to make you know, that I am still a listener and follower even if I don’t comment every episode 🙂
Guys, that’s all from my side. Please keep on the good work, stay healthy and enjoy whatever you do 🙂
Greetings from Germany,
Ralf