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?
If you’ve ever been through an acquisition or merger you’d have expected this news to come, but for those new to the concept it’s simple: you can’t keep everyone. After a complete merger you end up with two sales departments, two IT departments, etc.
Hi Guys.
As usual: thanks for your effort in this episode, i highly aprecciate this!
Regarding the topics:
I did not play that much atm, its too hot 😀
I played a little bit God of War on the PS5, a little bit Magic Arena and a little bit Life is strange: true colors.
Turtles: I will buy the game as well, games like these are so much fun with friends and the price is totally fair imho.
Starfield: i watched the short clips, which have been shown during the Microsoft Bethesda showcase event some days ago. But i am not very interested in that game, because its too huge. I sadly dont have the time to play such big games where you have to spent so many time 🙁
Silksong: cant wait to be released!
Hot Wheels: Yes i am excited as well. Looks funny and interesting, even if am not so much into racing games 🙂
Regarding all the other games, i dont know them, so cant say anything about it 🙁
Thanks again and please stay healthy!
Greetings from germany,
Ralf
Dragon’s Dogma 2 might be great if they expand choices with the collaboration features. Maybe have tactical party settings like Dragon Age 2 had, so you can direct collaborative battles without tediously micro-managing.
Great show!