Sony Restructures, Cutting 10,000 Jobs

[Ludoc]

According to the BBC, (http://news.bbc.co.uk/2/hi/business/4270302.stm) Sony has announced it is laying off about 8% of it's workforce world wide and will close 11 of it's 65 manufacturing plants. Sony also announced that it expects to lose $90 million dollars this fiscal year.

It isn't all doom and gloom as: Despite its setbacks, Sony has had success in its film division and with the PlayStation Portable games console.

Full details in the form of various press releases on Sony's investor relations page. (http://www.sony.net/SonyInfo/IR/)

[Vandenh]

I wonder how much the new boss is willing to "sponsor" the price of the PS3?

[Ludoc]

I've actually read the whole press release now, link in the original post. Highlights that are relevent to us include:

Re: Their Game Division:
The first priority is the successful introduction of PLAYSTATION 3 next spring, an event that will strengthen the entire Sony Group and further grow the market for computer entertainment. The ratio of internally-sourced games software will be increased and links with electronics and entertainment expanded. PlayStation Portable's market position will be solidified and its functions will be enhanced.

Supporting Cell:
Broadband infrastructure is rapidly expanding and the Cell processor, with its advanced functionality and compatibility across a range of products and applications, will be the key component device. Sony will establish the Cell Development Center under the direct supervision of Sony's CEO to promote development of Cell-based technology, products and applications.

Digital Distribution, Including Distribution of Games:

We are moving into an era where music, video and games can be distributed on the network and enjoyed on mobile devices. In this environment, Sony will work to regain its position of leadership in portable audio and establish a strong position in the rapidly developing portable video market. Our goal is to develop products and services that enable consumers to enjoy entertainment content “on the go.”

Blu-Ray PS3 Stuff:
Blu-ray disc - the highest capacity next generation optical disc format, supported by many leading companies in every key industry - will also be a dynamic driver of HD business. Starting with the introduction of PLAYSTATION 3, we will launch a range of new Blu-ray disc-related products and HD content throughout fiscal year 2006.

[balamoor]

Even though it is a different division SOE is also laying off, have been steadily since June. Many of the MMO's are basically being ran by skeleton crews. I wonder how long it will be before we hear that SOE Austin is shutting down permanently?

I'm not saying that this is because Blizzard has basicaslly bent them over and dry fucked them...but it has to be a factor.

[jacktion]

So Sony is doing very bad financially. And people say they are "winning" this gaming generation. And Nintendo is making tons of money. And people say they are "losing" and "doomed". Maybe we need to reevaluate our opinions on this generation's video games and declare Nintendo is teh WinneR1!!11

And now it's time for our next gen rev fishing sims!

[Ludoc]

So Sony is doing very bad financially. And people say they are "winning" this gaming generation. And Nintendo is making tons of money. And people say they are "losing" and "doomed". Maybe we need to reevaluate our opinions on this generation's video games and declare Nintendo is teh WinneR1!!11

Sorry, perhaps I wasn't clear in what I posted inside the thread or you were in such a hurry to troll you didn't read it. It doesn't get much simpler than this: every part of Sony is hemoraging money except their game/move/music divisions. They expect the release the PS3 to make them a fuck tonne of money while simultaniously bolstering their HD TV sales and movie divisions.

To put it even simpler: Sony the company not doing we'll, Sony the game division buoying up the rest of the company with it's good preformance.

Plus the only reason they're lossing that money is due to one time restructuring costs.

I can't believe I'm defending Sony, I hate those guys.

[RMan]

Although that's an awful lot of people to lay off that quickly, Ludoc's assessment is likely on target. The PS3 will clearly help them, but I do think it's going to help them a lot less than they think, at least a lot less than they thought six months ago. MS and especially Nintendo are chipping away at them pretty darn fast.

[Dirty Harry]

Although that's an awful lot of people to lay off that quickly, Ludoc's assessment is likely on target. The PS3 will clearly help them, but I do think it's going to help them a lot less than they think, at least a lot less than they thought six months ago. MS and especially Nintendo are chipping away at them pretty darn fast.
How is MS chipping away at sony? by copying them?

[Phades]

How is MS chipping away at sony? by copying them?

Who cares if they're copying them or not. They are still slowly pulling business away from Sony.

I'm not a big Sony fan, but I hope the PS3 is a big success. After all, I'll have one.

[RMan]

How is MS chipping away at sony? by copying them?
This time around nobody's really copying anyone, if you as me, but yea, MS is chipping away from them primarily by getting out far earlier, regardless of how similar the systems are.

[Ludoc]

Someone's chipping away, Sony's share price has dropped almost $2.00 since the market opened

[triptogn]

Because this is a gaming site, of course the focus is on Sony the video game maker, but what you are forgetting is the big tv/dvd/stereo/computer aspect of the company, which has been suffering. The entertainment side of Sony has been doing pretty good.

[Mrbunchypants]

Wow i'm suprise you guys didn't see this comeing.
They posted this like a week ago. (http://www.evilavatar.com/forums/showthread.php?t=5320)

it's only like 8% of there current employ's. thats a very small number.

[disc]

8% is quite a lot to tell the truth.

[EGO]

How is MS chipping away at sony? by copying them?

OMG, that's gotta be the STUPIDEST comment I've read in like... 5 minutes (it is the internet after all :p )

Microsoft is COPYING Sony... yeah, Sony, the INVENTOR of videogames! :rolleyes:

Sony is notorious for taking someone else's product, remixing it and spitting it back better.

Sony Walkman, anyone? Or are you kiddies too young to remember that General Electric invented the damn'd things and Sony stole it and made it better? :rolleyes:

[Magnanimous Gnome]

Sony Walkman, anyone? Or are you kiddies too young to remember that General Electric invented the damn'd things and Sony stole it and made it better? :rolleyes:


Sorry grandpa, not all of us were around in the "good ol' days". :p

[Zeal]

So Sony is doing very bad financially. And people say they are "winning" this gaming generation. And Nintendo is making tons of money. And people say they are "losing" and "doomed". Maybe we need to reevaluate our opinions on this generation's video games and declare Nintendo is teh WinneR1!!11

And now it's time for our next gen rev fishing sims!

I seriously hate fucking posts like this. Absolute fanboy ignorance. I am glad to hear that they're expanding their internal development division, though. Maybe we can expect more AAA titles like God of War, Twisted Metal and the Warhawk series.

As for Microsoft 'chipping' away at Sony, yes they are, and will continue to do so. This is good and should encourage a healthy, next-gen competition between the two. For the good of the industry, Sony and Microsoft need to fight a very close battle this time around. The closer PS3 and 360 are in sales, the more quality titles you can expect from both.

As for Nintendo, I don't think Sony or Microsoft actually acknowledges them as a serious competitor this generation, as they're too concerned with one another's strategy. I expect Nintendo to maintain its niche, third-place status next-gen.

[TrackZero]

Sorry grandpa, not all of us were around in the "good ol' days". :p

LOL. I'm not sure if that was sarcasm or not. But I remember it. ;)

[ElectricMonk]

wouldn't it be weird if sony scaled down to a media-publishing company only?

[Zeal]

I think it's pretty funny than all of SOE got owned by a single game, World of Warcraft.

[Mrbunchypants]

As for Nintendo, I don't think Sony or Microsoft actually acknowledges them as a serious competitor this generation, as they're too concerned with one another's strategy. I expect Nintendo to maintain its niche, third-place status next-gen.


Your kinda right. Sony and Microsoft go for more adult gamers. I'm not saying that they don't have kiddy games... they just have more adult games like halo1 and 2, GTA, Ect.....

Nintendo goes for more ages 5 and up to early teens. Don't get me wrong they have great games they just don't have the gore games. And really I think Nintendo is happy being number three. As stated befor they make money off there consoles.

[mister_slim]

I seriously hate fucking posts like this. Absolute fanboy ignorance. I am glad to hear that they're expanding their internal development division, though. Maybe we can expect more AAA titles like God of War, Twisted Metal and the Warhawk series.
Sony publishes far more high quality titles than MS. Nobody buys them though.