Gamezine: "Today brought the Reuters report that Sony were cutting 8,000 jobs in their electronics sector and scaling back unprofitable businesses to free over $1 billion in costs. However, the cuts are higher than was first thought."
Damn, this recession couldnt of come at a worst time for Sony
You must mean couldn't HAVE come. And yeah, it couldn't...360 is poised for huge sales at the moment. People juts don't have those sort of bucks for a console that doesn't have the best library of games.
You know you're going to get flamed for that.. '...doesn't have the best library of games. '
As some of you may be implying. SONY is obviously a very large company. The 16k is obviously a lot of people but it may actually be a relatively small percentage of the companies work force. Hopefully this won't effect their gaming division too much since that's their bread and butter.
"Damn, this recession couldnt of come at a worst time for Sony" Did it come at a good time for anyone ?...
during this finance market crash. Someone out there is making a killing, and I'm losing my patriotism. The word makes me sick.
The gaming division wasn't affected, however the electronic side (TV, computers etc.) was affected, the recession hits hard and it wasn't the only company affected. @1.3 you clearly can't remember the N64 nor the gamecube, they weren't so successful but they did good, just like the PS3. It's sad to see a kid being happy for the loss of the jobs of others, I hope your parents never lose their jobs.
Um...newsflash. This isn't just affecting Sony.
I read in 1up.com just now that 16,000 employees represent only 5% of Sony workforce. So relax with the doom and gloom predictions. that said. I would be more concerned with the Playstation 3 price tag. We could argue till we die if the price tag is justified. the real issue here is that with this economy most consumers (not gamers like us) might find it hard to justify the expense. thus the Playstation 3 could have a tuff time in 09 regardless of all the great upcoming exclusive. also, I think that people with DVD players will find it hard to justify buying a blue-ray player. It just is not that much of an improvement to justify the upgrade in this economy. so this is a two prong problem for Sony. The recession could not have come at a worst time for the company. Things are finally picking up in the game and online departments but with little money in peoples hands they might just stay with the cheaper options provided by MS and Nintendo. notwithstanding, I do not think that Sony will suffer that much. the games will keep coming..
In another topic, a misguided reader became upset when there was discussion of Sony possibly scaling back its gaming division. You have to understand, any company has to focus on profits, not losses. So if Sony is looking at ways to save money it really is a good thing. If the go ahead and cancel something that wasn't really taking shape I think that is better than releasing a half-assed product. You will continue to see cuts on all fronts, Sony, Nintendo, Microsoft. Now, I have to say that I love N4G, what a killer site. What I dislike is that the Sony Fanboys are here in force. I have a PS3 and I want it to be the best system out there....but come on people, the library of games has just started and the hits are limited! The 360 has been out longer and has a bigger selection and really, they have more killer hits. Not only that but they are taking Sony's gems as well. Not to mention that the online service for the 360 is better. Home may change that and with updates Sony may get caught up. I have been playing Home for weeks now and it is boring. I see the possibility and it is great. So with that in mind, don't disagree with others because someone says something about your favorite company, disagree if it is false.
...in-bred moron to think that any company is recession proof. I absolutely hate the title of this article and think it's ridiculous. Finally to imply that this job cut is all because of the PS3 is just plain dumb. SONY is much more than the PS3 much like Microsoft is much more than the 360. I'm frustrated by this article...
Exactly. Why in the world would Sony be recession Proof? I couldn't agree with himdeel more.
Even though I'll be loyal to my PS3 console till I see the games I'm promised, and the promises are just being yield out.
One question. Does anyone not recall that Sony has been wanting to scale back on unprofitable businesses for a year or two now? Even last year they were talking about bailing out of some of their less favorable areas of the market. Pertaining more to electronics divisions than SCE...
if you think this is bad, check out General Motor.
just pay them with hentai they be very happy
The job cuts are in the less profitable depts. and growth limited. Sony recently closed two VHS plants in asia. Also a note from the article "To clarify, the 8,000 job cuts are in reference to contract workers in the electronics division." This leads me to believe that the job cuts are coming from the consumer electronics division. All in all not good but SCE will remain intact.
A disagree? Huh? Not that it matters but I am quoting the article and it states that contract workers in the electronics division is getting the axe. Generally speaking contract workers are not full time Sony employees but ones contracted to in a particular division based on forecasted growth. No matter how you look at it a job cut is a job cut but these are not internal permanent Sony employees or so the article states. So like I said the Playstation division as well as SCE as a whole will stay intact as it is Sony's most profitable groups.
maybe the disagreer wanted VHS to prevail over Blu-Ray.
Japan economy was hit hard by the recession. No shock here. A lot of people stop buying electronics and that led to a recession for Japan. That's what CNN reported.
This always kills Japan. When the U.S. dollar looses it value (like it has been over the last year or so) the Yen gets stronger. Now, Japan exports a ton of products to the U.S. So, as the Yen gets stronger it cost more to produce products, then you export them to a weaker dollar so you make less profit. See how that works everyone.
Microsoft had to cut about the same amount AND go on a spending freeze AND close down their game studios because of their fledgling OS business and their entertainment division still trying to recoup loses on the XBOX 1 and RROD. What was it...? 9 billion dollars in the black? I would worry about the future of Rare if I was MS. None of their "mediocre" games released this year have even cracked 400k...I guess 360 gamers don't buy games... Little Big Planet is at 1 million after a month. So, I guess PS3 owners don't buy games... Resistance 2 is at 600k after 3 weeks in NA and 1 week in EU. So, I guess PS3 owners don't buy games...
Wow, that is a ton of profit. Now that would have sucked if that was 9 Billion in the red.
Didn't MS have to put like 3 billion dollars away for RROD, alone? lmao
it was 1 billion, but hey who's counting. LMAO! You see Microsoft already had their 1 Bil issue, now it's sony's turn. Microsoft came out of it alright, maybe sony will also.
I think he ment to say "in the red" and sorry bro but the RROD coverage cost Microsoft 3 billion not 1.
This is portrayed in the Danish news. They said that the division that the 8K was cut from where the ones making Playstation 3 consoles and Bravia TV's. It is also a total of 5% of all employees working at sony!
...Wow, just wow. Here comes the doom and gloom articles. And we have no one but the president of this country to thank for this.
This is really bad.. thank you Mr. Bush you cunt
Yeah, it's a damn shame. His own father ruined the country as well. Like father, like son.
Clearly there are no other reasons as to why this is happening... it's all the Bush's fault. Japan, Europe, the U.K.... all of them can blame Bush for their economic crashes. Clearly they all are powerless to do anything. /sarcasm
He's part of the reason why this is happening in the first place. Where was the government when AIG and those other businesses were wasting money with their corporate jets and luxury vacations? Sitting on their hands? This will not just hit Sony but many other companies as well. It depends on who can last out the longest.
I will not argue that some of Bush's decisions have factored into the U.S. recession...but for a global recession to take place means there are many, many more people, governments and institutions to throw out blame at as well. This is not just a U.S. recession...it's global. Sony's problems don't just stem from the U.S. economic crisis. They stem from within first and foremost. They have made many curious decisions along the way to come to this point. Their sales are hurting globally not just in the U.S. Nintendo and Microsoft both appear better suited to endure this down turn than Sony is. That again has to be something you blame on Sony's management.
They're not doomed...-__- They did make some risky decisions but they're not doomed.
I never said they were doomed. I don't think Sony is doomed by any stretch at this point. They are however in a bit of a financial crunch. Hopefully the steps they are taking now will help to curb the issue at hand.
to blame the president...which I think is a little ridiculous......don't forget to blame those who voted him into office. Shall I continue?....
actually all these economic woes stem from the Glass-Steagall Act being repelled in Congress in 1999. The Glass-Steagall act was put in place in 1933 to prevent lending and mortgage companies from merging. This was done by a Republican congress and president Bill Clinton. His dream was for all americans to own a home. To acheive this he instructed lending firms to give out home loans to high risk citizens (people who dont pay their bills or cant pay their bills.) Everything was working to plan and George Bush and Congress continued Clinton's dream. Then when people started defaulting on their mortgage (big surprise) the new mortgage/loan companies(like AIG) that Glass-Steagall used to prevent tanked. When you lose your financial sector, everything is just dominoes. The stock market is controlled on outlook. When everyone's attitude turned down, so does the stock market. Anytime something happens in the USA, the world is effected. Our stock market turned down which pulled all the other markets down. And voila. World-wide economic crisis. The important part to remember is in America the president is not solely responsible. Think of it as Congress is the boat and the president is the rudder. Our rudder wasnt just messed up, the boat has holes too. Republicans and Democrates are both responsible for this mess. edit: let me clarify. polititians are responsible for making stupid decisions. corporations are responsible for lobbying for stupid decisions. Voters are responsible for letting these people in be in office to make stupid decisions.
What should I do with my PS3? J/K :) With all the droids Sony gathered through out the years, they will be alright
so does that mean Sir_Ken_Kutaragi was fired cuz that would be great.
Sell it at EBAY because you won't get your money's worth ps3 is Sony's Worst Nightmare i won't be surprised if theirs no PS4.I feel sad for all those who brought a ps3. It's a sad day for all the droids in the WORLD i can feel their tears running down their PATHETIC faces.
u sure have a lot of time in your hands... prob cause ur 360 is getting repaired! have fun buying another 360 b/c that 3 year warranty is FINITO! now i know why 360 is selling more than ps3! b/c ppl are buying their 2nd 360 now! IT ALL MAKES SENSE!!!!
@ elite ghost sure it does in your delusional mind .hahah funny droids
If Team Ico dies I stick with Microsoft.
TOO BAD ISN'T IT A PITTY! Im sure the ps3 has to do with it. The only reason they are supposedly making a profit ion they're games division is because of the ps2 and psp. Ps2 is still selling well and cost almost nothing to produce. The Ps3 really lost alot of money for sony.
Money spent on r&d for a product that has a reasonable chance of making that cash back or money spent on competitive pricing to increase market share is money invested. Like the 1.2 billion dollar loss the 360 took it's first year. Money lost is when you have to take a hit to extend a warranty because your product is faulty and no one would touch it with a 10 foot pole if you didn't. Like the 1.8 billion dollar hit the 360 took the next year. Now that MS's games division is bringing in 400 million a year, you can see that it was possible that the 360 might have made money before the console was due to be retired when it was just 1.2 billion in R&D that was invested but because of the rrod fiasco it now looks like there will be no return on the money invested in the 360 before it's replaced. That's a loss. Do you comprehend the difference now?
No company is recession proof this time around.
Not sure who disagreed with you, but any company that make their earning from selling products to consumers is susceptible to recession. Sales generally decrease and what profit you maybe making is possibly reduced by the falling value of the currency.
I do hope Sony recovers because we are talking about peoples lively-hoods. I don't know what kind of impact this will have on the Playstation 3 but it can't be good regardless of how exactly they make their cuts.
The job loss is horrible especially during this time of year. I hope those that find themselves unemployed can gain employment quickly for the sakes of their families and those that depend on them. As for how it will effect the PS3 I would venture to say very little to not at all. Sony is seeing excellent YoY growth in the gaming division from all the Playstation product lines and will continue to especially with reduced manufacturing costs on all models particularly the PS3. The recession has hit everyone hard and Sony like all other companies is not immune to its' effects. Microsoft has already stated that they are going to cut spending on the gaming division. Hell the big three auto manufacturers are getting bailed out to the tune of $15 BILLION USD. It will take a while for this economy to recover and inevitably it will.
The cuts aren't taking effect until 2010. JP Morgan was concerned that that would already be too late given the economy should be in recovery by mid 2009 and the cuts should be coming now, not later. They still suck, but at least that gives people some time to deal with this issue. I 100% agree that this won't be affecting Sony Computer Entertainment at all. The PS3 has been selling remarkably well, all things considered. 2 years in and the 360 had only sold 13 million consoles, 2 years in and the PS3 has moved 17 million. I don't recall at the 2 year mark for the 360 articles complaining about slow sales, or how the 360 was doomed.
Well, good luck to the folks who were laid off. Also, can we drop this "recession-proof" garbage once and for all? The fact of the matter is, if people are getting laid off (whether at a game company or anywhere else), they're not going to go out and buy a stack of games.
That means the PS3 won't be seeing another price cut for a long time.
how do we know that this is not a move that was made so that a price cut could happen.......I mean especially if some many people were saying that Microsoft was closing down studios so that it could balance out the price cuts.
HAHAH more cuts hey what a retarded company .they should have planned ahead its the ps3 faults that system has lost sony millions and millions the worst thing is that . 1. games dont sell on th eps3 ( meaning sony is not making any cash from software ) 2.ps3 devices dont sell at all etc headsets ( sony looses cash from this 3. the ps3 sells cheaper than it cost to make( sony losees money) 4. psn is free ( sony makes 0 from its online service ) i can keep going on you will here people say ooo its the econmy haha but wait microsfot and nintendo have not cut any jobs hahah play behind
A lot of companies have cut jobs and are scaling back operations to save money in this tough economy. If there was an article about Toshiba cutting jobs then hardly anyone on this site would care, but because Sony is cutting jobs and they have the Playstation business, 360 fanboys want to start the whole "PS3 is doomed" crap. Many companies going through the exact same situation and the PS3 isn't going anywhere. Sony did say about a month ago that the demand for some of their products (laptops, digital cameras, etc...) was experiencing lower demand and it seems like the job cuts is a result of it. And while typing this I'm watching my 12:00 news right now, and it was reported that Sony's job cuts are JUST 5% of their workforce. The job cuts may seem to be a lot, but they are just cutting a small percentage of their workforce in order to cut back on costs... Heck, even EA has been cutting jobs, this is affecting a lot of companies.
they started charging for PSN !!!
Hmm at last you said something that makes sense. I hope not though.
nothing on this fu^king planet is recession proof,everything that involves making or losing money is in a recession..EVERYTHING now with that being said,16,000 people who are now jobless is a major concern even for a company like sony that employs hundreds?? of thousands of people all over the world,granted the number might seem small on a global scale but if all 16,000 people were from the same region or worse yet the same country now thats something to be concerned about. peace and game on p.s and dont forget to check out arandomgamer.com
JOB CUTS AT SONY Japanese electronics maker Sony Corp <6758.T> said it will cut 16,000 jobs, curb investment and pull out of businesses to save $1.1 billion a year. [See Story] "The number sounds big, but this staff reduction won't be enough, said Katsuhiko Mori, fund manager at Daiwa SB. Despite the bad news, Japanese shares <.N225> eked out a gain of 0.8 percent, building on Monday's 5.2 percent increase. ----------------------------- ------------------------------- ----- So it's not that bad, par for the course for the times. A lot of companies cutting now for a couple of reasons, the first reason is that the company maybe in bad shape, the second is that they are anticipating the slow down, just trying to costs so their margins remain the same. That's what sony is doing,just preparing for a slow down.
microsoft can afford to have those kind of losses. its still a problem but those kind of losses would shut sony corp. The whole company. Microsoft 17 billion usd profit as a company. Sony 1.08 billion usd. So those losses are huge to sony. Can you comprehend the difference. 1 billion usd to sony and microsoft is a big difference.
If the ps3 dies in 1-2 years than I will buy a Xbox 360.But a new one with this Jasper function.
Sony need only sell half the number of PS3's to make the same profit. 2 x XBOX Arcade - $400 1 x PS3 - - $400 So if Sony sells only half the amount of consoles there still making the same profit.
You have no idea how wrong that statement really is. Have you ever taken a basic economy class? Do you know what production costs are?
Myth from your logic, Xbox would have 2 potential buyers vs. PS 1 potential buyer. Looking at another perspective, if an AAA multiplatform game is being release MS might have potential 2 software sales vs. 1 software sale. This means alot for game companies to decide which console they might want to allocate their resources to.
your logic there is deeply flawed do you really think that the PS3 costs the same to manufacture as the 360? The ps3 uses propietry expensive technology, which costs more to manufacture than its 360 counterparts (bluray v dvd, Cell vs xenon) and also contains things like wifi and bluetooth which adds to the cost of manufacture. I cant imagine sony making much of a profit on every ps3 sold, same as i cant imagine the 360 making much either. All i can say is that nintendo must have a vault somewhere in fort knox to store all the cash they're raking in from the wii and ds
Sony has managed to cut production costs of the PS3 from $800 to just over $400. @Krazy Ken You are correct sir as far as game sells. Only time will tell if PS3 catches 360 in sales, might have to wait until Sony drops the price, but they need to continue to drop production cost first. And why would gaming companies allocate to either, its more profitable to them to release on both. They go exclusive based on how much money they get from Microsoft or Sony. With your logic Sony would never have any exclusives because they have less systems out there.
Again, go take an economy class. This is an OLD link: http://www.xbox-scene.com/x... Your statement's irrelevant because it ignores the production costs of the 360. It assumes that it's the exact same as the costs for the PS3. If that were true, you'd be right. I'll simplify this so you don't come back with some silly reply. Read the link. It shows the production cost for the Elite at $320ish. Logic would guarantee the Arcade's cheaper than that to make. One would also assume that since the Jasper chip came manufacturing costs as MS have gone down even more. I'm just trying to illustrate the idea clearly to you that the costs of manufacturing are not the same. Simply, Sony breaks EVEN on each PS3 sold. Meaning if they sell one million PS3s tomorrow, they have made not profit. Even if MS only makes $1 per 360, and they only sell five consoles, they win. Of course, that's speaking strictly from a hardware perspective and not including software into this. Please do a little more research and take a basic economy class. Thanks for the disagree, by the way. I get so many of those from people who've no clue what they're talking about.
If your going to submit some figures submit recent ones. That is not what production cost for PS3 anymore. What a hypocrite, you need to do some research. And your right they do break even on the $399 model. The others they do make a profit BECAUSE it only takes around $400 for production cost now. The higher models just have a bigger hard drive. So you figure $400 plus what ever the bigger hard drive cost, which are $50 for an 80 gig and when when buying in bulk im sure sony gets the hard drives for much cheaper.