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?
It is the 13th anniversary of the Command & Conquer Series, Red Alert, and Electronic Arts is giving away the original C&C: Red Alert as a
@Gaming flashback: did any of you played Mission Impossible on NES?
@“Linear is not a dirty word for an FPS”
Well, what can I say, if you wan to push for a very specific story/experience, then linear is the only way to do it.
However, you get better replay value from sandbox games. Heck, I still love playing all STALKER games.
Jonah, good point on building a climax easier on linear games. I harp back to STALKER: the first game was a sandbox game up until reaching Chernobyl. Afterwards, it turned linear, and it didn’t feel bad at all.
I feel so sorry for GSC having to shut down. I hope Vostok Games (the startup from the former GSC games) will do better.
@Pachter decries on-disc DLC as “just plain greed”:
You know, this time I agree with the dude.
@Crysis 2 returns to Steam:
Hmm, lemme guess, Origin didn’t work that great? Or is it that money has no color, so Steam customers are just as good as Origin customers?
Did Valve lower their demands in the cut from DLC?
@The Old Republic still has one of the biggest dev teams in industry:
It’s hard to sell 3 mil. of copies of anything, never mind a new IP. It’s a risky bet.
@QOTW:
What do you guys think of “Amnesia: The Dark Descent”? That is, if you played it.
i am sorry i disapeared but i do not have much time…
@qotw how long does it take to make a single episode of a podcast from early planning to final editing?
Not much interested in the news, so I’m going to comment on E3.
Plenty of games have been added to my list of games I want to play, among them are:
-Need for Speed Most Wanted
-Epic Mickey 2
-New Super Mario Bros. U
-Pikmin 3
-Rayman Legends
-Tom Clancy’s Splinter Cell: Blacklist
-Tomb Raider
-Watch Dogs
Worst E3 conference was Microsoft, best was Ubisoft. What I don’t get is how many people are “disappointed” by Nintendo’s conference, expecting huge releases such as Zelda, Metroid, F-Zero or even Smash Bros. I think that many people do not understand how long it takes to make the great games Nintendo makes, and expect them to churn them out like Call of Duty. I also think that it’s a smart move by Nintendo, releasing quite a few good titles at launch, and then pace the awesome games one by one for the future. Maybe this way the WiiU won’t run out of first-party games as soon as the Wii did.
2 questions, both for Paul:
So, did you shit your pants when Nintendo announced the WiiU will come out Holiday 2012?
Have you finished Skyward Sword yet?