Episode 499: A Long Delay

Yeah, we recorded this on April 2 and are just releasing this on April 12 — because during this time Jonah went to PAX East, then visited his mother in NYC, and things have calmed down about now. This week’s Gaming Flashback is the overly cute LittleBigPlanet… and to think it was a major topic of conversation in the early days of the podcast. How time has passed.

This week’s news items include:

  • You can play de_dust2 in Far Cry Arcade
  • No Man’s Sky coming to Xbox One later this year

You’d think that wouldn’t be enough news for 90 minutes, but that’s ok. We go off on tangents all the time.

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GameSpy, UGO, 1UP Say FarewellGameSpy, UGO, 1UP Say Farewell

The videogame world has been stunned by the news that GameSpy, 1UP and UGO are all being shuttered. GameSpy had been around since 1999 (back when it was a mere online match service – game-spy, geddit?) UGO was a site that I wrote for both indirectly as an editor of GamePen and directly when I wrote DVD and game reviews for UGO.

UGO’s Chris Radtke bid farewell stating:

I’ve spent many years of my life trying to turn UGO.com into something entertaining for you guys. Hopefully you stopped by recently to watch one our funny videos. Or you found yourself debating one of our nerd culture lists, read a movie review or pondered the age old question “Who would win in a fight, a minotaur armed with a trident or a centaur armed with a crossbow.” Could be you tried to win something off our homepage or you Googled “Hot Girls” and found a couple of pics you liked. I don’t really care how you got here, just as long as you were entertained when you did.

(more…)

Sony, Next Big Software Company?Sony, Next Big Software Company?

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.

floppyThis 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?