In this episode, the guys discuss Riot Games reportedly canceled an unannounced platform fighter, Fallout getting nominated for 16 Emmy Awards, and a player coming back after a 11 year, 5 month ban to continue the same argument from 2013.
The news includes:
Let us know what you think.
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?
This week follows the stunning announcement over the closure of Telltale Games and the repercussions of the shuttering of one of the most influential companies in the industry. There’s also Scott continuing to gush about Dragon Quest XI and Jonah enjoying the 2008 version of Prince of Persia again. That, and Fallout 3 headlines the Gaming Flashback.
News of the week include:
Let us know what Telltale Games you were hoping to see in the future.
XBLA offers great opportunities for the indy developer but everything comes at a price. Over the last three years Braid‘s developer Jonathan Blow spent a reported $180,000 to create the popular Braid title on Xbox Live. He’s going to need a lot more sales before he can celebrate the highly valued, highly reviewed title.
The Independent Games Festival was kind to him, giving him the “Innovation in Game Design” back in 2006, since then he’s put his money where is mouth is; his own money. There are good times and bad times when you’re discovering your dreams. The reviews surely made him feel great about the work he has done over the last three years but a review won’t pay the bills.
It may be a hard road ahead for Jonathan, hopefully at least breaking even on the project. Although he may not look back at the game as a financial success we can only imagine he’ll have a lot easier time getting funding or publishing for his next title, if that’s the path he chooses.
(Thanks, Kotaku)
