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?
βSonyβs not in a position to halt all domestic production but it has to do something that drastic,β said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. βIf it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive.β (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?
Yeah, they did it as a Fathom event in Portland and I went… good stuff. Nice seeing what Fable and Avowed might look like when they come out.
The Internet is already talking about “No Man’s Skyrim”. I’m cautiously optimistic. It seems VERY ambitious. Between ship building, habitat building, space travel, trading, combat, a room full of sandwiches, it’s a lot…
Hi guys.
Thanks for this huge episode! Sadly i know nearly none of the games π
I heared about SF6, but you skipped it π
You mentioned one Metroidvania game coming, which should look very good, but i did not get the name. It was very early in the episode … could you please tell me the name? I love Metroidvania games π
I am playing the hell out of Diablo 4 … and the words i choose were not intended to describe it π
And as always some Magic the Gathering. Nesides thsi the ummer is coming and so are the concerts and festivals i enjoy in staed of sitting at my pc or console … i need people around me at the moment -.-
Thanks for your effort and i promise i try to listen to the podcast more often and comment it … as i did the last years <3
Greetings from germany
Ralf