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Sony on brink of upheaval as analysts back British chief

So it looks like Sony might be in for some rough times, Analysts are predicting a complete restructuring of the entire company with many divisions being completely cut.

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business.timesonline.co.uk
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Nathan Drake3266d ago (Edited 3266d ago )

How's about you use the full original title ;) ?

Bird Dawg3266d ago

You are about to lose your job Nathan.

Israfel3266d ago (Edited 3266d ago )

I certainly feel like SCE has been making stupid decisions, especially regarding European prospects. I really hope the Restructure the gaming division. And put in people, that actually have an Eye for business.

Bird Dawg3266d ago (Edited 3266d ago )

A restructuring is a must, and it's also a big red flag. When a company is forced to abandon the things that made their legacy is never a good sign. I don't know their plan, but the fate of the current Playstation brands are likely in the hands of Microsoft and Nintendo. A few chess moves and it could be checkmate for every Playstation brand platform on the market.

TrustyBrew3266d ago (Edited 3266d ago )

get ready to avoid 3 stories from separate amateur websites claiming this a conspiracy, and or not true.

On topic, something about the ps3 will be on the chopping block. There are alot more hdtv,movie goers, and blu-ray owners than ps3 owners. Sales for the playstation brand are down across the board. I just wonder what it will be, a hardware revision, loss of exclusives and 3rd party support, or just canning the ps3 all together?

gaffyh3266d ago

Lol at the doom and gloom article. I seriously doubt things are as bad as these guys are making out.

godofthunder103266d ago

I have a 360 and i wouldn't trade it for a ps3 for anything.The fact is that sony wont drop the ps3,i'll admitt it because it's the truth.I'm not a childish fanboy.

Fact is fact.Some ps3 fanboys are saying that the ps3 sold more then the 360 did in the first year they both came out.The truth is that they are right.On the other hand the 360 sales been picking up big time and the ps3 droped off a little.

Some ps3 fanboys are saying that the ps3 is selling more software in some countries then the 360 and they might be right i don't know.The fact is that overall sells count not just 1 or 2 countries.the fact is that over all the 360 is selling a lot more software then sony and nintendo.The ps3 comes in 2nd and the wii comes in last in software sells and this is fact.

Some ps3 fanboys are saying that the ps3 is really selling more then the 360 and it's not true.The fact is that sony is loseing a lot more money then microsoft ever lost on the 360 on each sell.If it wasn't for the ps2 selling like it is they wouldn't be a ps3 today and that's a fact.Ps3 fanboys don't want to admitt it but the ps3 is doing the worse out of the 3 and that's a fact.

gw4k3266d ago

Is in serious trouble. With Sony going in the red and their games not selling well, a lot of money is being lost.

MS 360 is looking better and better!

liquidsnake3266d ago

Full of BS. People seems to not understand what the hell they are talking about. First of all, the Playstation division is making money. The PS division is also the most profitable devision of Sony so I have a hard time seeing that they will can this all together. Second, Sony does not contain only of the PS division, they are involved in movies, music, telephones, cameras, TV's you name it. Has anyone ever thought that perhaps any of these companies, like columbia pictures is getting canned? No you haven't.

BoBo333266d ago (Edited 3266d ago )

Like someone mentioned above, there are alot more hdtv owners, and movie goers than PS3 owners. I doubt they will touch those divisions. I would say their camera and playstation divisions will take the brunt of this restructuring. The PS3 would seem like a likely target, due to it's smaller install base and the fact that it isn't profitable.

Mozilla893266d ago

Whatever makes Sony more efficient and ruthless. Communication between Sony's different branches is non existent. Like Sony Pictures made movies appearing on Live and not on the PSN and crap like that. They obviously didn't handle the launch of the PS3 very well either.

But if you think that they're gonna abandon the PS3 you're wrong. Launching a console is a huge investment and it would be a waste to just stop supporting it. Its not like the gaming division is killing them anyways. Saying that Sony won't make another console (they will just not soon) would make more sense than saying they'll stop supporting the PS3.

acedoh3265d ago

and totally misinterpret it. It's unfortunate that the poor economy will probably have a determental effect on companies like SONY. Although trying to act like they are going to let their gaming division go shows ignorance. The Playstation division is one of the most succesful divisons for SONY. If they were in a desperate situation we have already seen a price drop which is always a sign of a console failing. SONY is banking on 2009 being a great year for the Playstation brand. SONY has invested a lot into some major games. Despite high profile games like Resistance 2 and Little Big Planet not exploding with sales does not mean they are not profitable. Although game development is more expensive than it was in the past it can still me more profitable that other entertainment divsions... I think this is only the beginning for the PS3

fenix13003265d ago

how everyone and their grandmother thinks they know whats best for sony!!!! has anyone ever stopped to think and asked themselves how they know better than Multi billion dollar company which can hire enough analysts to decided whats good or bad for them?!?!?

acedoh3265d ago

http://en.wikipedia.org/wik...

The criticism of Pete Carroll became louder when Carroll's first USC team opened the 2001 season going 2–5, with some sportswriters writing off the once-dominant Trojans, who were the only Pac-10 football team to never finish in the national top 10 during the previous decade, as a dying program.[21][16] However, after the slow start, Carroll's teams proceeded to go 67–7 over the next 74 games, winning two national championships and bringing USC back to college football prominence.

So I can only think that naysayers are not always correct...

Saint Sony3265d ago

PS3 could have been great, but Sony made so many mistakes in so many levels that it's doomed now and current situation of the world economy does not help at all...

Well, there's always other choices for gamers.

+ Show (12) more repliesLast reply 3265d ago
Marty83703266d ago

Most companies restructure from time to time. Getting rid of old production lines too make way for new lines/expansion, eg VHS to DVD/Blu-ray.

GiantEnemyLobster3266d ago

Sorry droids, but the cell isn't any good when the PS3 is dead.

DragonSoul3266d ago

Why do people still think the PS3 is going somewhere?

happyface3266d ago (Edited 3266d ago )

Sony has completely fallen apart it seems

ps3 needs to start doing a lot better or else the money counters over at sony may decide enough is enough

NEWSFLASH disagrees: this article is by the LONDON FKING TIMES, this isn't a fanboy blog

xwabbit3266d ago

Y does it need to be doing a lot better, im sorry but i have to say that you are one of those people who dk about the history of hardware sales. Xbox had 13mil in 23 months while PS3 got 17 mil in 23 months so ? How can it be doing bad ? Its even selling more software than xbox is in many companies and u don't have to take my word for it. Google it and you'll see it.

ultimolu3266d ago

Maybe they should put you in charge...since Sony is on the verge of collasping. You could probably save it from teh impending doom and gloomz.

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ultimolu3266d ago (Edited 3266d ago )

First of all, know your damn facts. Sony did not lay off 15,000 people...from what I read. They laid off 8,000 workers. I wish I could use a capitalization thing here but I can't so let me point to an article.

http://www.belfasttelegraph...

They could lay off more because of the economic turndown but let's just see what happens.

Second of all, this article is reiterating what the other articles JUST MENTIONED about Sony's restructuring plans. This is not new. People know about this already and there HAS been some restructuring going on.

http://www.reuters.com/arti...

This was reported on December 9, 2008. Your article was late in delivering the news. No one knows which divisions would be cut but I HIGHLY doubt Sony would cut the gaming division, especially when it's being profitable.

360 fans want the PS3 to fail so badly and for Sony to drop out of the gaming industry that they hold on to every single negative thread tightly.

It's basic common sense to see what you people actually want to occur.

And as usual, the cowards bark the loudest as they slam the disagree buttons repeatedly.

GrandTheftZamboni3266d ago

This smells of FUD: the only named analysts talk about what Sony DID and what Sony SHOULD do:

"Koya Tabata, a Credit Suisse analyst, recently warned investors that the restructuring of Sony is perilously overdue and must be radical."
"Deutsche Bank analysts described the restructuring plans as “insufficient in scope and scale”"

Apart from that it's "Company sources" or "many analysts" that tell what Sony WILL do ("job cuts and sweeping changes", "to be announced early next month"). Can we have names?

Anyway the article gives some time frame:

"The restructuring is expected to be unveiled after this month's Consumer Electronics Show in Las Vegas."

Let's wait and see.

LeonSKennedy4Life3266d ago

His new avatar is Hancock.

Do we really have to acknowledge that he still exists? Hancock was, quite possibly, Will Smith's worst movie. It took old premises', unmemorable music, and "meh" special effects...blended them up...and it came out looking like Hancock.

I don't think you should be able to talk anymore.

GrandTheftZamboni3266d ago

Where did you get that Sony lost 15 billion in one quarter? I just checked Wikipedia they say Sony's profit for 2008 is 3.694 Billion.

Bird Dawg3266d ago

The Playstation brand is about to go under. I just wonder if it will immediately be cut, or if it will linger on for a couple more years. I guess it will be up to Nintendo and Microsoft whether or not they want to strike the fatal blow.

JD_Shadow3266d ago

Why would you WANT something like that to happen?

Bird Dawg3266d ago

I didn't say I wanted that to happen. But I'm not a fanboy in denial either. Sony is in trouble. And in their weakened state, Nintendo or Microsoft could end Sony's run in the console war if they chose to do so. It's not want or wish, it's truth.

+ Show (10) more repliesLast reply 3266d ago
ultimolu3266d ago (Edited 3266d ago )

...PS3 is doomed! :o

This is a combination of mismanagement and the economy itself taking a toll on Sony. I'm pretty sure they're not the ONLY ones going through this.

They just need to get their priorities straight.

Dannagar3266d ago (Edited 3266d ago )

Japanese Pride... It helped bring Sega Down. They need to let Sir Howard do what's best for the company. Don't worry, It's not their gaming division that's bringing them down, it's every other division. Though Sony looses money off each PS3, sales of PSP's and PS2's make up that money. So they break in even there. For those that want to support Sony, just buy their games. Those numbers count.

There is always the danger that 1st party games that are in development could get the axe due to poor sales of some of their heavy hitters this past Christmas. I'd imagine that's the only thing to worry about.

ultimolu3266d ago

Yeah, the 1st party could be a major concern. Hopefully it doesn't come down to that.

Reorganization would be the step in the right direction so their company could survive this rollercoaster.

But one should never hope for Sony's demise in the gaming industry.

Death3266d ago

It's not in danger though since losses have been reduced to the point they should start to atleast break even and start profitting soon. I'm a little confused by his call to focus on software though. WHile it's nice to have a robust first party, doing so also alienates third party support to a degree. Sony has always produced great products but they lost their way awhile back. The Walkman was the portable to have. Once cassettes died out they never recaptured their market with CD or MP3 players. They don't even have a line of MP3 players as good as the Zune and that's not exactly saying alot when you compare it to ipod sales.

-Death

cherrypie3266d ago

"here we go again"

Yes. Another top-flight, world-class news outlet tells you that Sony is in deep trouble.

Next thing you know, Wall Street Journal will tell you the PS3 has failed at market.

Sheesh, wow. Now, lets see if we can find some bottom-basement wordpress, blorge or kombo article to tart-up some BS about MS... boy, who wants news from the UK Times when we can publish some 12-year-old's semi-literate rant about how much "MS suxors1!1one!" eh?

I suppose your going to tell us that the UK Times is a part of the vast anti-Sony consipracy with Gametrailers.com, joystiq.com, 1up.com, gamasutra.com and the rest who've told you the same thing?

PS3 has failed at market. Sony is spiralling down the toilet as better competitors over-take it in every market. It's reality. Accept it.

When the December world-wide numbers arrive, this place is going to need therapy.

Terabo3266d ago

The whimpering from N4G's members homemade websites has already started. It will be a full blown day care center here when Dec numbers are released.