sagat Posted December 9, 2008 Posted December 9, 2008 They are losing money and plan to cut 8,000 jobs and remove some redundant divisions. There is a possiblilty that they might get out of the game business or just get rid of the PSP... It is too early to say at this stage http://www.guardian.co.uk/business/2008/dec/09/sony-job-cuts
Shino Posted December 9, 2008 Posted December 9, 2008 When they finally release a good console... Oh well, cross your fingers.
Jimbob Posted December 9, 2008 Posted December 9, 2008 Hmm, interesting find there. It may be too early to say much about this, as this is the first i read about this but it doesn't look too good for Sony in Asia, especially the gaming area.
Aimless Posted December 9, 2008 Posted December 9, 2008 They won't. There will no doubt be some impact on their gaming division — a cancelled project here, some 'restructuring' there — but they aren't going to throw in their PlayStation branded towel just yet.
ShadowV7 Posted December 9, 2008 Posted December 9, 2008 I'm with Aimless just now. I can't see Sony getting rid fo the PlayStation brand like that. I'll wait and see what happens before the heavy speculation.
Dan_Dare Posted December 9, 2008 Posted December 9, 2008 hahahahahahahaha come on, you surely didn't actually think that, did you?
Zechs Merquise Posted December 10, 2008 Posted December 10, 2008 Well, SCE did lose $1.25 billion last year... that's a lot of money and unless things turn around quickly, making loses like that in a recession is seriously bad news!
LazyBoy Posted December 10, 2008 Posted December 10, 2008 If they're going to cut divisions there gaming division won't be the first.
Cube Posted December 10, 2008 Posted December 10, 2008 They'll likely start outsourcing technology (like CELL) before they close down the gaming division.
sagat Posted December 10, 2008 Author Posted December 10, 2008 I think the gaming division might not go straight away. 8,000 jobs is not a lot. I would imagine ales and marketing to feel the full force.. If the PS3 and PSP continues to underperform, it is very likely that they will leave the business and focus attention on elsewhere. 2010 is when we will see what happens
Hellfire Posted December 10, 2008 Posted December 10, 2008 Of course they won't destroy SCE, they'll just cut things here and there. Let's face it every company is affected by the crisis, and since Sony is usually incredibly and ridiculously stupid when it comes to finances they have to cut costs.
Daft Posted December 10, 2008 Posted December 10, 2008 I think the gaming division might not go straight away. 8,000 jobs is not a lot. I would imagine ales and marketing to feel the full force.. If the PS3 and PSP continues to underperform, it is very likely that they will leave the business and focus attention on elsewhere. 2010 is when we will see what happens The PSP isn't under performing.
D_prOdigy Posted December 10, 2008 Posted December 10, 2008 The PSP isn't under performing. Certainly isn't if they're making a profit on the console out of the box, but I'm really not clued up on whether it's reached that point yet or not. If Sony are still relying on software sales to break even on the console, then it really hasn't been the biggest of successes on a whole.
Hellfire Posted December 10, 2008 Posted December 10, 2008 Even if they don't make profit out of the box yet, I doubt they don't make profit with HW sales alone. PSP is what kept Sony afloat.
Dante Posted December 10, 2008 Posted December 10, 2008 I think the gaming division might not go straight away. 8,000 jobs is not a lot. I would imagine ales and marketing to feel the full force.. If the PS3 and PSP continues to underperform, it is very likely that they will leave the business and focus attention on elsewhere. 2010 is when we will see what happens Sony Corp., the world’s second-biggest consumer-electronics maker, plans to eliminate 16,000 jobs in the largest reduction announced by a Japanese company since the credit crunch drove the world into recession. Sony will curb investments, outsource production and move away from unprofitable businesses by March 2010 as part of plans to save more than 100 billion yen ($1.1 billion) a year, the company said today. The job eliminations include 8,000 permanent positions, or 5 percent of the company’s electronics workforce, and 8,000 temporary workers, it said. The reductions highlight the severity of the slump in consumer spending at a time when companies typically focus on the peak Christmas shopping season. Tokyo-based Sony, led by Chief Executive Officer Howard Stringer, said a “much larger” than anticipated deterioration in the economy spurred the cuts and the company may revise its profit targets. www.bloomberg.com
Zechs Merquise Posted December 12, 2008 Posted December 12, 2008 SCEI is in the black. Just not as profitable as it could be. What planet are you living on? They posted a $1.25 billion loss last year - as in they ain't profitable, they're losing money at an incredible rate.
McPhee Posted December 12, 2008 Posted December 12, 2008 All this really means for the gaming division is a slower next generation hardware race. Manufacturers will look towards hardware that they can at least break even on rather than choosing to loose hundreds of pounds per sale. There's no way any of the big players would pull out, gaming is far too profitable these days.
LostOverThere Posted December 13, 2008 Posted December 13, 2008 Unlikely, they still make way to much money from game sales. Sure they dont turn a profit from the console sales, but games they do.
Domstercool Posted December 13, 2008 Posted December 13, 2008 When they finally release a good console... Oh well, cross your fingers. Oh please... :P
Zechs Merquise Posted December 13, 2008 Posted December 13, 2008 Unlikely, they still make way to much money from game sales. Sure they dont turn a profit from the console sales, but games they do. I don't know what part of this people don't understand - SCE made a $1.25 billion loss. YES, SCE MADE A $1.25 BILLION LOSS. SCE didn't make any profit, they made a LOSS. They may make a profit on games - but it clearly isn't offsetting any other loses they make as they are $1.25 BILLLION in the red. SONY as a whole may still be making profit, but their gaming division isn't. I can't see what is so difficult to understand about this.
Domstercool Posted December 13, 2008 Posted December 13, 2008 Atleast it wasn't like microsoft. Took them years to get a profit on the xbox brand. Yes they have money but so does other departments of sony.
Zechs Merquise Posted December 13, 2008 Posted December 13, 2008 Atleast it wasn't like microsoft. Took them years to get a profit on the xbox brand. Yes they have money but so does other departments of sony. Yes, things aren't all rosy for Microsoft either though - they lost $574 million from their gaming division, however they have deeper pockets. Another major loser was EA who made a loss of nearly $0.5 billion as games like Dead Space and Mirror's Edge have failed to perform in the sales charts.
Shino Posted December 13, 2008 Posted December 13, 2008 But how is Sony doing overall? Are they able to withstand such losses? Because Microsoft surely can.
Caris Posted December 13, 2008 Posted December 13, 2008 Yes, things aren't all rosy for Microsoft either though - they lost $574 million from their gaming division, however they have deeper pockets. Another major loser was EA who made a loss of nearly $0.5 billion as games like Dead Space and Mirror's Edge have failed to perform in the sales charts. Do you still get your kicks out of bashing anything Sony?
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