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!
Thanks for this episode! I really loved, that you talked so much about older games, so I could listen more carefully because I nearly knew all the games!
But some things to mention:
Open world Elden ring: I am completely on your side Jonah: I don’t have that much time to grind 10 hours to get to next point. I want games where I knew that they will end after 10 levels or when you solved 50 puzzles or something like that. Open world games don’t have that goal for me. I totally understand that people having fun with that, but not me 🙂
Street fighter 3: I was involved in the street fighter video game scene so I knew what you tried to analyze. In my opinion on 3rd strike came up when SF4 was released. Many old players didn’t like it and tried to show their disrespect by hyping 3rd strike again.
Hard mode / easy mode / achievements:
I think it’s hard for developers to find the best way between „not to easy but hard enough to not get bored“. Sometimes I like to change the difficulty but sometimes I feel like I don’t wanna have the choice because I want to play the game how it was intended by the developers.
Achievements: sometimes I try to get them, sometimes I don’t care. It depends on the game. It’s nice because you don’t need them, they don’t change the game itself but if you really want to can play the game a different way. So I think it’s a nice thing and it’s a nice addition.
Thanks again and please stay healthy and enjoy life!
Greetings,
Ralf