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 Castlevania series was born in Japan on September 26th back in 1986. That knowledge in hand, you can imagine the demographic of 30+ year old gamers who would kill to get an old school franchise title on a new graphic intensive console.
Hi guys.
As always: thank you very much for the episode 🙂
I am playing not that much at the moment, but some rounds of Magic the Gathering Arena and some rounds of WoW are always there 🙂 I also started playing Itorah, which is a very nice Metroidvania game.
Regarding your topics:
Walking Simulators: I really like those games. For me games like “Life is strange” , “Journey”, “Heavy Rain” or “Detroid become human” were awesome and i played all of them. Most of them have a fantastic atmosphere, good story, awesome music and i did not get bored or it feels repetitive.
Fifa:
I cant describe how less i care about that 😀
I never played any Fifa since i had one about 20 years ago for the PS1. The best soccer game of all time still is “World Cup” for NES oder GameBoy 🙂
Starfield:
It seems that i am the only person who is not hyped for that game … nearly all my friends are waiting for it since it was announced.
All the other topics:
Cant say anything useful or interesting about them… sorry 🙂
Keep healthy and keep on with the good work guys.
Greetings from germany,
Ralf
I’m hoping to see Starfield footage at the Microsoft/Bethesda show in June, even if the game is delayed.