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 obvious answer is no, Sony don’t NEED theese 2 games to drop in the 2009 calendar year.
If you take a look at the games that are CONFIRMED to hit before 2010:
Killzone 2
White Knight Chronicles (US and EU release)
Uncharted 2: Among Thieves
Yakuza 3 (Japan)
Infamous
Final Fantasy XIII (Japan)
Heavy Rain
New Ratchet & Clank
Gran Turismo 5 (Possibly)
That’s more than enough to offset anything that Microsoft/Nintendo can conjure up. Even if Microsoft were to shock everyone by releasing Halo 4 and Gears Of War 3 (Har har) Sony would still outshine them without the two games you mentioned.
Personally, i probably won’t even be picking up MAG and God Of War 3 is an afterthought for me. The game i’m most looking forward to is Uncharted 2: Among Thieves.
The obvious answer is no, Sony don’t NEED theese 2 games to drop in the 2009 calendar year.
If you take a look at the games that are CONFIRMED to hit before 2010:
Killzone 2
White Knight Chronicles (US and EU release)
Uncharted 2: Among Thieves
Yakuza 3 (Japan)
Infamous
Final Fantasy XIII (Japan)
Heavy Rain
New Ratchet & Clank
Gran Turismo 5 (Possibly)
That’s more than enough to offset anything that Microsoft/Nintendo can conjure up. Even if Microsoft were to shock everyone by releasing Halo 4 and Gears Of War 3 (Har har) Sony would still outshine them without the two games you mentioned.
Personally, i probably won’t even be picking up MAG and God Of War 3 is an afterthought for me. The game i’m most looking forward to is Uncharted 2: Among Thieves.
With the inevitable price cut supposedly sometime this year, i think sony can hold off GOW 3 and MAG at least till next year.
The PS3 seem to be coming alive and starting to gain some real momentum and i think a $100 price drop might just seal the deal and save them from utter failure and embarrassment.
Microsoft has already got their install base sewn up hence only need to worry about selling software. Sony on the other hand have the harder task of marketing what seems like a luxury brand (to most people) in a recession. Many people simple can’t justify spending that much on what is primary a game console. (blue-ray simply doesn’t cut it Sony)
At the end of the day it comes down to Two words, PRICE CUT, and they better do it quick.
With the inevitable price cut supposedly sometime this year, i think sony can hold off GOW 3 and MAG at least till next year.
The PS3 seem to be coming alive and starting to gain some real momentum and i think a $100 price drop might just seal the deal and save them from utter failure and embarrassment.
Microsoft has already got their install base sewn up hence only need to worry about selling software. Sony on the other hand have the harder task of marketing what seems like a luxury brand (to most people) in a recession. Many people simple can’t justify spending that much on what is primary a game console. (blue-ray simply doesn’t cut it Sony)
At the end of the day it comes down to Two words, PRICE CUT, and they better do it quick.
The price cut would have been announced today had there been one. Sony’s losing too much per unit still.
The price cut would have been announced today had there been one. Sony’s losing too much per unit still.
The “Rumoured” PS3 price cut isn’t supposed to take effect until April………so why would they have announced it in March??? LOL………….
The “Rumoured” PS3 price cut isn’t supposed to take effect until April………so why would they have announced it in March??? LOL………….
The rumored price drop was March.
http://www.gamestooge.com/2008/11/25/playstation-3-march-2009-price-drop-rumor/
The rumored price drop was March.
http://www.gamestooge.com/2008/11/25/playstation-3-march-2009-price-drop-rumor/
Another rumor:
http://www.gamestooge.com/2009/03/07/more-ps3-price-drop-predictions-by-analysts/
This one was shot down by Sony as well.
Another rumor:
http://www.gamestooge.com/2009/03/07/more-ps3-price-drop-predictions-by-analysts/
This one was shot down by Sony as well.
LOL…..as the link you just provided proves, the price cut isn’t expected to take place until April at the EARLIEST.
Better learn how Sony’s FISCAL year works……..it runs from April through to March of the following year. It makes far more sense for Sony to cut the price at the start of a new fiscal year rather than at the very end of one.
LOL…..as the link you just provided proves, the price cut isn’t expected to take place until April at the EARLIEST.
Better learn how Sony’s FISCAL year works……..it runs from April through to March of the following year. It makes far more sense for Sony to cut the price at the start of a new fiscal year rather than at the very end of one.