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Sony Reportedly To Cut Ties With Most Suppliers

Sony Corp. plans to cut ties with more than half of its parts and materials suppliers by the end of 2010, aiming to save at least 500 billion yen in procurement costs in the current fiscal year, according to a Nikkei report Wednesday.

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foxbusiness.com
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TOO PAWNED3130d ago

Can someone explain, what do they mean by "suppliers"?

Darkiewonder3130d ago

The companies that provide sony with the material to make their products.

Columbo3130d ago

Companies that supply all the components that make up the PS3, like the case, capacitors, fans, screws, etc...

I think the purpose of this article is to say that Sony is working hard to take cost out of the machine and make it cheaper. All companies do that after they launch a product.

3130d ago
Parapraxis3130d ago

socomnick, please elaborate.

also, lol.

Panthers3130d ago

Dont encourage him please. Just ignore him. Maybe he will go away.

Parapraxis3130d ago

Sorry Panthers :(
Just sometimes... I like to see how a child's mind works.

Maybe he can provide insight on how to run a multi-billion dollar company...

*falls over in a fit of laughter*

xwabbit3130d ago

Dk y every doesn't put him on ignore list

solidjun53130d ago

HAHAHA....comment of the week. bubbles up for that one.

STK0263130d ago (Edited 3130d ago )

don't be too harsh on socomnick. Afterall, it's not unusual for mentally challenged kids to make up stuff and to live in a world of their own where their little fantasies are actually a reality.

In his wicked little world, trolling is actually an olympic sport and he's pretty damn good at it. Last year, he got the silver medal.

Edit :
SONY might want to bring back some of it's production in-house, in Japan. That way, they could create some jobs, which would no doubt give them a good image for the Japanese people.

ZombieNinjaPanda3130d ago

Just debubble and ignore if you don't like him.

And this has probably got to do with the slim ps3 they are making. Does this mean they are gonna stop making regular ones then?

evrfighter3130d ago (Edited 3130d ago )

this pretty much means that future sony products will be made by the lowest bidder. In the end they're sacrificing quality for quantity.

This doesn't necessarily have anything to do with the ps3 except that newer models may be using lower quality parts. depending on the part it probably won't make a difference or may lead to a rise in reported YLODS, or have no affect at all.

IdleLeeSiuLung3130d ago

Well this doesn't even need to apply to the PS3, could be to Sony TV or other electronics.... This doesn't mean anything.

iceice1233130d ago

This is dire news for PS3 fans, it looks like Sony is going to axe their PS3 division sooner rather than later.

pain777pas3130d ago

@ Idle you see how you make sense. SONY DOES NOT JUST MAKE PS3s! People just relax if you buy a Samsung or Sony they are very simalar parts wise and some of their parts are identical. Just like a Kodak and Canon camera they are the same parts different skus and features and don't think that Samsung will make better parts for Sony than there own because they just might if the price is right. ITS BUSINESS.

Aclay3130d ago

The PS3 will only get canceled in your wet dreams Socomnick.

The PS3 is getting canceled and games like Uncharted 2, M.A.G., Rachet, Heavy Rain, and more are coming this year.... Riiight.

I don't know why little fankids on N4G have this assumption that the only thing Sony makes is PS3's. Sony is in the hardware business and makes tons of electronic products (HDTV's, Blu-ray Players, Digital Camera's, Camcorders, Headphones, etc... and the list goes on.) As far as I know, this may have nothing to do with the PS3 at all.

facepalm3130d ago

The first thing I suspected is that they'll reduce the output of the camcorders, digital cameras, PCs, and possibly TVs (although their TV sales were up from the fiscal reports).

PS3s??...::shrugs shoulders::

Didn't Sony close a TV factory in Pennsylvania last December, as well as planning closing an LCD TV plant in Mexico??

ultimolu3130d ago (Edited 3130d ago )

May I ask why the moderators haven't done anything to socomnick? He provides nothing valuable to the Gamerzone and insists on flamebait comments just to piss people off.

Like what was said above, Sony's probably working hard to drop the cost of the PS3 or it probably pertains to the rest of their electronics.

Tony P3130d ago

It is seriously too easy to jump the gun.

Why does everyone think a company wide decision affects only Sony's PS3? Or MS's 360. These are major companies with diverse interests.

AAACE53130d ago

Suppliers make products for all the products Sony make, like HDTV's, Blu-Ray players, CD and MP3 players, etc. Not just Ps3!

I would imagine alot of other companies are doing this, or are considering doing this as well. Everyone is trying to save money.

JonnyBravo3130d ago

So Socomnick and Icewake have both agreed that the PS3 is doomed

Is it time fellas to make another weak ass forum signature because of this article?

or maybe time to ms paint (photoshop to complicated for children) a new avatar that will depict your undying affection for each other?

socomnick3130d ago

My theory about the ps3 canceled soon is pretty plausible read the story, they are planning for a long term reduction in the manufacturing of products. It would make sense that they would cut back or eliminate their faltering ps3 division. :/ Its only a theory but its a theory that holds some substance thats why everyone's all bothered by my comment.

Persistantthug3130d ago (Edited 3130d ago )

Scaling back on some parts and supplies for ANY number of products,

And totally canceling your PS3 line are 2 TOTALLY different things, dude.

Tony P3130d ago

"Its only a theory but its a theory that holds some substance thats why everyone's all bothered by my comment."

Everyone's bothered because your conclusion is baseless. Take your own advice, read the article, and tell me where it mentions the PS3 or any specific division of Sony whatsoever.

GoldenBoy3130d ago

I am glad to see that most of you are seeing what this really means. To use buzzwords Sony is simply "rationalizing their supply chain". Almost all major companies have done forms of this and some have completely overhauled their supply chain to drive out wasted costs. This could include things such as strategic outsourcing, e-procurement and strategic sourcing, which is probably what they are talking about here (I didn't read the article).

The thought goes like this - why have 5 approved vendors for a capacitor when you only really need two. By reducing this you save resources from not having to manage multiple supplier relationships and you can develop much closer relationships with key suppliers which can further reduce procurement costs. The automotive industry is a prime example of this at work. Another example is office supplies. How many of you have a single supplier for your office supplies. Cheaper administration and unit prices result and quality doesn't take a hit. In fact, empirical evidence shows it can significantly increase due to the closer relationships.

So in closing....nothing to see here....in fact, Sony should have done this years ago...better late than never.

J8M7G3129d ago

PS3 is doomed, ms are going to buy sony out, paint all the PS3s white and whack a fan heater in them and add them to their sales figures.

PS3 is here to stay, Sony plan the long term future of all their consoles and have they got it wrong yet?

Also as some of the brighter people in here have said Sony has a huge catalouge of products, for all you know it could be they are just buying the screws for every product from diferent places.

gaffyh3129d ago

It's a cost cutting measure that will save jobs at Sony. If they don't do this, more workers will probably get laid off. Then when the recession is over, they will come out of it as a much stronger company, with higher profit margins because they aren't outsourcing as much components. It also means that a PS3 price cut (as well as other Sony hardware) will be even more possible, because they will be spending a lot less money on components.

Some of the retards on N4G don't even know basic business tactics lol. The "PS3 is doomed" is the most ridiculous thing I've ever heard, Sony will be supporting the PS3 for a very long time unlike MS with the Xbox 1, they already have a FANTASTIC lineup going well into late 2010, and there's still so much more games they could make. You can't say the same about MS (Halo and Gears, oh yeah and Halo, and Gears) or Nintendo (Mario and Mario, oh yeah also Mario and some more Mario, Zelda).

In other news I just got a Wii, it is better than I expected, but still PS3 and 360 are way better imo.

N4g_null3129d ago

This is interesting. Kaz pretty much turns the company into a software power house and now suppliers are being turned away. I understand what they are doing and I have seen the new slim PS3 which looks quite sexy I must say and 120gigs would be sweet also.

This could be because of consolidation of parts. Lots of people think the PS3 came to market way too quickly. It's possible the slim is the PS3 that they wanted to make the whole time.

I don't want to get into the IT's Doomed talk but could this really be a 10 year console for sony? I know the gamers believe this but I don't think the developer community believes this. Just one look at what is coming and you have to wonder how the hell is SONY going to deal with better consoles coming out around the price of the Wii? I know it sounds impossible to most gamers but you can buy 8 gigs of ram for your PC for around $100 now.

I haven't heard any thing about a cell 2 happening either, almost no R&D break thurs with SONY at all. Seriously don't take what I said wrong but you guys have to buy more PS3 games because that is how they will make their money. It's nie to see the price of components go down though. They don't talk about which parts are effected either.

I don't like the sound of this though. Yet it's more understandable in this day and time. If this happened during a booned then I would be worried more. I think KAZ will get sony back on track though. He is more than likely going to turn SONY into a console company than any one I believe.

I will say it would suck to see them marginalized though. I'm not a big fan of MS.

GameForFame3129d ago

This is being done in preparation for the Slim, it's already being manufactured but not on a full scale level at this point. Soon this is what will happen.

+ Show (25) more repliesLast reply 3129d ago
TheColbertinator3130d ago

Hopefully they cut down on the Sony Ericsson phones.I never liked them

Menchi3130d ago

People should realize that this applies to Sony as a whole, and not just the gaming division.

This is simply a way to cut costs over all their departments.

ultimolu3130d ago

Bless you child. Finally, someone with a functional brain. Bubbles for you.

SmittyJ313130d ago

Wow, someone else that sees this as a smart business move!

Kurisu3130d ago

PS3 isn't getting cancelled, it's getting slimmer! Needs less parts ;p

Parapraxis3130d ago (Edited 3130d ago )

I think there should be a PS3 super-fat.
Imagine that sh!t.
So big you could put your TV on it, so warm it could heat a bungalow.

Bigger is better baby! YEAH!

/ I kid, I kid.

As stated already, this has to do with Sony as a whole. Most likely production of their TVs are of major concern as they are hemorrhaging money on them quite a bit right now.

deshon093130d ago

dude you are truly a tard