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PlayStation division under review as part of corporate changes

Sony Computer Entertainment has confirmed that the PlayStation division is currently involved in the review affecting the wider Sony business.

Sony announced this morning that it will axe 8000 jobs and reduce investment in manufacturing, although SCE would not detail whether those cuts will have a direct affect on the PlayStation group.

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gamesindustry.biz
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Citizen Cook3294d ago

Its all over DROIDS!

Your previous Grill/movie player is dead!

2009 - the year the PS3rd dies!!!!

R.I.P PS3rd!

HA HA HA HA!

Mary Christmas!

Antan3294d ago

Your happy that 8000 jobs have just been axed? Dear oh dear.

TOO PAWNED3294d ago

@gaycook

You are probably some kid that still lives on back of his parents thatp provide everything for you. Hardest thing you ever did in your life was to take trash all the way to the trash can. This is why you have no respect what so ever. 8k ppl loose job, 8k ppl that have families, kids, bils to pay. IDIOT!

BTW- this has nothing to do with PS division

Shane Kim3294d ago

I hope it's your dad who loses his job.

ultimolu3294d ago

...Okay. You continue to be self absorbed in the console war while people are losing their jobs. That shows how much of a heartless prick you are.

GROW UP!

Pennywise3294d ago

He said "Mary Christmas"

lokiroo4203294d ago

A wonderful popping sound brings smiles back to everyones faces as he slowly is quited to death. bye bye citizen!

karlostomy3294d ago

might have reacted the same had MS posted record losses and jobcuts?

Pennywise3294d ago

Unlike cook and the 7 people so far to actually agree with me - I am sad to hear anyone lose jobs - especially around Christmas time.

+ Show (5) more repliesLast reply 3294d ago
creeping judas3294d ago

Hence why you won't see a price cut coming from Sony anytime soon for the PS3.

TOO PAWNED3294d ago

I have to agree, i dont think it is going to happen in March either. I think they will try to push sales with great games, this is why they have so many exclusives just in first half of the year. Will it work? Dont know, hope for them that it will.

Back to article, i dont think Playstation division will suffer much. It has been most profitable division for Sony for many year, last year they even made small profit of 30 million usd. This year it will be probably much better. Small changes YES, something radical NO

WANNA GET HIGH3294d ago

This gen has changed.Sony are not making as much money u would expect them to make.I know they still turned a profit this year but the fact is they have lost "TOO MUCH"money so before the make all the profit back it will take a long time.

With that said i dont know why any one should care if u did not invest in the company,we as gamers do not profit a single £ or $ from what the sell so just dont know why most people make a big deal out of this, as long as the ps3 is supported and great games comes out we should be happy,u do not need to worry about what sony or ms sells or elese u invested in the company.

ultimolu3294d ago

I don't think they'll be one. Hopefully the crisis doesn't get any worse than this.

Monchichi0253294d ago

I don't expect any major changes cuz of this, but I do expect some small changes that will affect us gamers. I expect some of there inhouse studios to be closed, laying off the workers and canceling some of those first party games we were expecting. I mean, nothing MAJOR like God of war or something like that, but something like those unkown RPG's there talking about.

This Bad economy SUCKS!!!

AAACE53294d ago (Edited 3294d ago )

I hope Sony can keep it together through this rough time! The economic situarion is hurting everything it seems.

Next year should give Sony a major rebound from these unfortunate times.

The bad thing is, Sony has high priced cutting edge tech out right now in an effort to push the electronics industry foward, but people don't have the money to buy those high priced toys (HDTV's, BD players, Ps3's, etc.) in the large quanities as needed.

Bnet3433294d ago

I can't imagine how much of a hit they are taking selling the PS3. It's a machine ahead of it's time. The things inside it are not even close to standard coming into 2009. I kind of feel bad for the people losing their jobs. Damn times are tough ... :(

ConanOBrien3294d ago (Edited 3294d ago )

Good NEWS indeed. Fun reading.

ps. that old guy in the picture bites a bullet. Happy ending, hooray.

Dread3294d ago

Lets see what happens, this is could be nothing mayor, but i do think it will decrease the chances of a price cut and or the announcement of a new Playstation 3 model (my fingers are still crossed lol)

I do respect the fact that Sony put so much new tech on the Playstation 3, but with the price tag it has, in this economy ... i am sure a fue excecutives at Sony are very worried right now.

If the economy keeps getting hit then Sony could stand to loose a lot of ground. Their products are things people will stop buying before they stop paying medical bills, rent and/or mortgage, car, and school debt. So it is a delicate situation.

As long as the video game division stays strong i'll be happy, though.

Also this does not mean that MS is safe. Their only advantage as i see it, is that their hardware is much cheaper. With a bad economy people might pick it up before a Playstation (and by the way save your Playstation is much cheaper in the long run if u consider all the features, no RROD and free internet etc.. i am talking about price tag.. and that is what a consumer worrid about the economy will look at.)

The Lazy One3294d ago

not the most... highly profitable, but not the most.

pumpkinpunker3294d ago

but you people are forgetting this includes the PSP and the PS2 which were both very successful.

The PS3 is a loss leader and is dragging their gaming division down. Expect the PS3 to take the hardest hit from this downsize. If you're still hanging on for a price cut on the PS3 any time in the future then I hear the cows will be coming home soon. I would not be completely surprised if the stop supporting the PS3 altogether in 2009.

jaysquared3293d ago (Edited 3293d ago )

I dont see Sony getting out of the game software business but I do see them getting out of the hardware business for now.. The PS3 has costed them quite a bit of money from R&D and still now with the manufacturing. Add on its dismal sales compared to its competition Sony is on track on becoming the next Sega. If it wasn't for the PS2 and PSP still selling Sony's gaming division would've been cut out by now. Its a good thing for Sony that people are still buying PS2 but a bad thing as well because that's a potential PS3 sale lost.

The outlook on Sony's gaming division isn't so great right now. They don't have the money to advertise their games thus their own games aren't selling. Free PSN is cutting away from their profits, Home is taking a lot of money to develop. As of right now the only company advertising in Home is RedBull and I bet you Sony cut them a deal to advertise there so that other companies will jump in as well. Its great for gamers tha PSN and Home will be free but it cost Sony money to operate and pay the servers, engineers, software programmers, bandwidth etc etc etc.

So right now I wouldn't be suprise just getting out of the HARDWARE gaming business and just start developing games just like Sega did. Then in a few years when and if its in better condition I can see them releasing the PS4. Its hard times right now and hopefully Sony can pull out of it.

+ Show (8) more repliesLast reply 3293d ago
tako20003294d ago

The economic is really bad......

Though it's under review, I doubt Sony will make any drastic change.
The worst to happen maybe to cancel new IP games under development in their own studio, or cut back studio staff.

Very unlikely they will pull out on PS3. Especially with their install base still growing and several big-hit titles coming next year.

3294d ago Replies(3)
hfaze3294d ago

Honestly, the gaming division has been doing pretty damn good considering the PS3 launch fiasco...

Going from heavily ridiculed and low launch sales to 17+ million consoles sold and gaining momentum in a little over two years... All while being the most expensive console on the market...

I agree with Too Pawned, there may be small changes in SCE, but nothing major.

Bnet3433294d ago

It's not that the PS3 is doing bad, it's the fact that they lose money on selling each PS3. That adds up and they don't profit.

jaysquared3293d ago

Its bittersweet for Sony when a PS3 is sold because its still losing money from it. Yes usually gaming consoles are sold in a loss and companies make their money back from software/peripherals and such but Sony's games aren't selling either. So its a good thing however that the PS2 and PSP are still selling for Sony.

Billabong3293d ago

Interesting jaysquared, I had no idea Sony only sell Playstation brand products... And also, where's your proof Sony aren't making profits on the PS3 at the moment? For all I know, their gaming division has made excellent profits so far this year so whats to say the PS3 isn't contributing to that?