Sony announced with a press release that the company is going to discontinue all operations at the Sony Semiconductor Oita Technology Center (A.K.A. Oita TEC), based in Kunisaki, in the Oita Prefecture.
This is a factory where they worked on PS3 chips. With the decline in demand for ps3s there is no need for this factory.
Indeed Sonys selling off all there old stuff left right and centre right now and finally looking like they can become a profitable company in a couple of years which only means great things to come for PS4 owners! I mean with them losing billions we got great games like last of use, uncharted and GT.. Imagine what it would be like with a balance in the black and more spent on exclusive titles??
Well said! Kaz Hirai is one hell of a CEO. Respect for the dude. He is trimming the company so that Sony can become the Playstation Company! :)
You sony guys are really delusional They are doing this cause there investors decline Sony's request to delay their investor's call So now they are selling things left and right to make their balance sheet look ok Even one of the investor himself said this is a good first step but sony has a lot more work to do and more harder decisions to make in the not so distant future
Wow! If a healthy company sheds assets, I think it is a testament to their stability and willingness to get rid of non-profitable businesses. On the other hand, a failing business selling and closing things left and right, from game studios (SOE) to closing this plant, I don't see a bright future. By the time Sony is finish, all that is left are music, movies, cameras and playstation, because their mobile division is under performing as well and is soon on the chopping block.
@JoeFrost You do realize Sony told investors that company's now main focus is PS4 and they will invest ton on PS4. and sell off other departments. Then their shares went up. Over year shares went from 16 to 25 dollars. Meaning whopping 56% increase over a year. So please. You are the one being delusional. @donthate yup 56% stock increase. lol. Its called core competency btw. Lean companies always do best. Sony said to investors that they will invest on PS4 heavy. Sorry if that made some fanboys jealous.
@joefrost00 You don't know what you're talking about. It doesn't matter what they do now, whenever they do finally file their financial report it will still only cover last quarter, anything that happens now will be reflected in the next quarterly report.
Sony fans are in denial as usual. Sonys literally failed in just about every division you can think of: TVs, Cellphones, DVD Players, Cam corders, MP3 Players, Computers. They have lost about every division you can think of. If people really believe an elephant like Sony can stand on playstation alone they are delusional. I would stay far far away from investing in a Playstation console or its games as Sonys future remains uncertain.
Was reading an article on USATODAY yesterday about Sony expecting to lose around 1.4 billion dollars this fiscal year my guess is they figured out this number by looking at past sales of PS3's comparing them to PS4's and adjusting the numbers based on what they are selling right now...so when you say a couple of years you are wrong my friend you can't make up a loss of 1.4 billion per year in 2 years......Did I miss the next big thing Sony was coming out with? Because as far as I'm concerned the PS4 is the only thing making Sony money right now. Sony TV < Samsung TV Sony Laptop< any laptop Sony music players< Apple products sony failed to innovate...now they are paying the price
It's a little more involved than a decline in demand for PS3's. Oita TEC was Sony's development and production site for their high density semiconductors. The original plan was for more applications than game consoles. Most of these plans were scrapped when their modified Risc based Cell failed to take off. Cell productions was ceased by Sony and they started buying Cell processors years ago. With the PS4 Sony is buying off the shelf so the need to develop these chips internally is gone. The plant is being shut down as Sony moves away from custom game console creation and the focus on imaging devices increases. A look at Sony's past financials shows that imaging solutions are much more profitable for Sony than gaming so this is not much of a surprise. PS3 components will still be available since manufacturing will be moved to other plants. This closure has no impact on existing gaming, but it has become quite clear Sony has no interest in creating custom chips for future consoles. This is a move they should have done prior to the PS3's release and will help make the company more profitable in the future.
im gonna waste a bubble and say well-said
¨whats about those bubbles? I dont even see them (I doo see them) :D but I dont!.. what do they do? if you vote up or down you lose your bubbles? I dont get it :D whats the point? :)
This is rare. I'm agreeing with Death.
http://www.itproportal.com/... http://www.ibtimes.com/sony... http://www.sony.net/SonyInf... (page 12)
Okay, we will all have to get a back up 500GB PS3 then.
You too, well said! Just don't come knocking on my door, sir!
lol to the disagrees. you're literally quoting the article. some people..
I highly disagree. PS4 isn't compatible with PS3, so ceasing production so soon into the PS4s lifecycle, and with the PS3, particularly older models, proving more than a little unreliable and prone to overheating, this will lead to huge decline in the availability of replacement consoles, not to mention make it more difficult than ever to ensure you're still able to play games. They really should release a special SKU of the PS4 with the PS3 chipset inside for backwards-compatibility. Emulation just won't cut it, as the notoriously tricky architecture of the cell processor means it will be pretty difficult to emulate games, meaning we'll probably end up with even more remasters on current systems.
Do you actually read the things you write before you hit "Add reply"? Or are you just contented with pulling "facts" and info out of your a-hole?
They're killing ps3 so u gotta subscribe to ps now. Bunch of thieves.
1: demand is still relatively high for the PS3. 2: according to Sony, PS Now uses "serverized" PS3 hardware (essentialy 10 of these models form one server machine) so I dont really see them slowing down the manufacturing too much.
With the move to PS4 and the introduction of PSNow, I really saw this coming. Software will keep coming and I'm sure we will even see Fifa 2020 on PS3, but the hardware production is winding down.
"With the decline in demand for ps3s there is no need for this factory" Hardly. That makes no sense whatsoever. Factories are updated with new capital assets to produce new products. You don't close down factories every time you launch a new product. If that's what Sony's production plan is, no wonder they are bleeding billions. They closed down this factory because they need money. Same reason why they just sold SOE in the same week. To read the comments that this is a good sign for Sony is pure delusional fanboyism. Sure it's the right move to make, but it's also one made out of desperation.
People better get a PS3 while they can, because this is is the starting point of PS3's discontinuation
i'm not sure why you got a disagree ps3 is getting close to the 10 year mark.
You can very easily still get PS2 and PS1 on ebay, no problem at all.
Perjoss speaks the truth. I just bought a PS1 1001 model on eBay 10 minutes ago.
@perjoss That's true yes but those are consoles that have already been made. Those no need for a factory to make those systems anymore. Not to mention there will be a mark up initially
Why? PS4 is way better. Best we bury the third one and forget about it.
It's not a matter of why. My comment is strictly for the people that have intentions of getting a PS3 for games that can't be played anywhere else.
Seriously? PS3 had tons of amazing exclusives. Uncharted, Demons' Souls, the slightly-less-than-amazing Heavy Rain and Beyond Two Souls, the Tales of games, LBP 1 and 2, Wipeout, Motorstorm... You might find it easy to relegate those to the dustbin of history, but I won't - nor do I think we should. Games deserve to be preserved and remembered, not left in the pages of the history books.
Its a shame that it still hasnt reached 199$ price point
It'll likely stay that way, Nvidia is the reason why it's not sub $200.
Not really exactly the same but I see PS3 super slims for 199€ in pretty much every market around here, sometimes in sale going as low as 169€ Many times (in gaming world) 1$ = 1€ so I though it would be relevant to the discussion.
It will never reach $200 (until it's discontinued, and on closeout), for the same reason Sony wants to shy away from custom hardware.
As it should be. Time move on with PS4.
This closure has no impact on PS3 production. Production for the chips used in the PS3 will be done at other existing plants. Tooling and employees will be transferred to other plants, but some of these employees will be moved to imaging production. This is the closure of a specific property to reduce expenses, not the elimination of PS3 production.
Got an original 60GB PS3 that still works!
Yeah but the games themselves will continue on thanks to the power of the cloud!
Yeah, probably only have a short 4-5 years before they stop selling them new. making them. Sony said this themselves last year when they said that some of the chips in the system would no longer be available. In the mean time, one factory closing doesn't mean that production couldn't be done elsewhere. The PS2 chips ceased production years before they finally discontinued the product officially.
What's weird to me is the switch in strategies between MS and Sony. Sony supported the PS2 for years after the PS3 was released, but now are backing off PS3 for the PS4. MS stopped supporting the Xbox for the 360, but are continuing to support the 360 while supporting X1.
Sony boosting CMOS sensor production is a no brainer, they already hold about 50% of the market and there's the rumored joint-venture with Canon to produce 50 megapixel Fullframe sensors. I wouldn't be surprised if Sony ends up with 60% of the CMOS market in 5 years time.
Yeppers and also Sony is the leader in 3D stacked TSV CMOS sensors like the ones Apple and Samsung use..and yeah the cannon co op deal is also on the table. Sony is the go to company for other's company's needs for 3D stacked TSV camera cmos sensors
I just got the Sony HX300 bridge DSLR with the 20.4mp CMOS censor for use in astrophotography, wow, the picture quality is stunning, infact the camera is stunning.
I think the demand for the PS3 is still there... especially if there is a price cut looming. Its a great Media player with bluray and has some great games. There are also several exclusives still to come out for the system. I see a price cut this year, with maybe a much bigger decline in production at the end of 2015. That will be the 10 year lifecycle for the PS3. I will miss this console. But hey the PS4 is so much better and has a long way to go.
If Sony cut the price on PS3, those things would fly. I'll love to get two more, one for collectors and one for a backup to my current. It needs to be at least $150 - $175 already.
Dont really understand the disagrees, but whatever... I have 2 at the moment. A launch 60 gb and a slim 250gb. I have 2 PS4s as well. May trade one in for a slimmer version in the future. I think there should be a price cut, which will boost sales even more.
When is Sony going to release their latest financial report? That will give more insight on what is going on with the company.
Sony's fiscal year ends in March. That's when you see a financial report.
Expect a lot of red ink. Playstation is doing well but the company as a whole is still in deep financial do-do.
They have a report tomorrow covering Oct, Nov, Dec i think. Year end report will be april sometime.
@ContinuePlay Isn't that why Sony have already downsized their mobile divison, spun off their tv into a separate company & sold off its PC division? Kaz is finally heading the right way, his putting most of Sony's resources into profitable areas like (insurance/movies & tv shows/imaging/PS4). Although they'll take a hit now due to needing to pay their employees redundancy packages, isn't this heading in the right path for Sony? Because lets face it, their mobiles & tvs were high quality but they just didn't sell as well due to their prices.
@Death "they have until the fiscal year ends on March 31st to release it." My statement: "Sony's fiscal year ends in March. That's when you see a financial report." Do you know that seven people disagreed with me even though Sony will be releasing a COMPLETE financial report in March? This site is funny as hell. BTW, I don't agree with some of things you post, but in this case, you are absolutely RIGHT. BTW, the report released today are "EARNINGS PROJECTIONS." Expect to see a financial report in M A R C H.
Sony filed for a third quarter report extension on January 23 and received approval for it on January 27th. Instead of releasing third quarter results which ended December 31st on February 16th, they have until the fiscal year ends on March 31st to release it. Here's a copy of the letter http://www.sony.net/SonyInf...
Still got my 80gig PS3 and put in a 250gig HDD. I wanted the latest one, but it won't run PS2 games. And yes, I still have some PS2 games in my library, lol!!
Same here for the PS2 games. I have a launch PS3 and a slim. the launch is backwards compatible. Not to mention some Xbox and gamecube games, as well some old school NES etc. I need more storage :(
Heh this is the same factory sony sold and rebought from Toshiba and now selling again
what is happening to SONY? Should we be worried?
No and yes? It all comes down to who would possibly buy Sony should they crash and burn once and for all. Microsoft would need competition, because they are truly eager for a monopoly. What would come afterwards would be worse than what they showed before the XBO 180s.
Nope. Just internal restructuring and repurposing a factory's workers to increase output of a separate product that has high demand.
I know everybody wants to make this story their fanboy ammo but Nobody lost their jobs, that's the best part!
This is the end for PS3. So glad my 80GB phat model still working since 2007!! Quality ;)
When Nintendo did the same thing it meant they were going out of business. When Sony does it the decision is hailed as great business strategy. Hmm, what happened to "10 year life cycle?" They're chopping off assets in a desperate bid to survive. You're dellusional if you think otherwise. This is another move towards a future where Sony is only a digital content provider. Movies, music, and games. Digital only future is starting now. And now here comes the NUH UH replies from fanboys and obvious shills. Come on now gang, if you follow this company closely you already know that I'm right. "For them (Sony), salvation is an exit from electronics,” Goyal said in an interview last week with Bloomberg Television. “If there’s any buyer whatsoever in the electronics business -- and there might still be some today for TV and others -- get out now.” http://www.bloomberg.com/ne...
hmm cutting that fat huh sony.
Sony needs to focus only on PS4 now. So this is good news, We don't need anymore PS3's made.
that explain why Nintendo is on edge of not knowing what SONY really up to..this is happing again since PS1 introduce..so they done this before when company make major changes with first radios and old tube tv's, and cassette players into disc players and portable walkmans, and bigger color tv's..same concept in 2015..so they not layoff anybody yet but shuffle the same employees to work on next new stuff we haven't see yet..
I wonder how many billions Sony lost on the Cell chip?
Glad I'm keeping my PS3, then, if this is showing a move away from any chance of an sku with native bc. Paywalled multiplayer is a dealbreaker for me, and the price is still too high, so i won't be investing in a PS4 for quite a while yet... If it had native bc then I might have gotten a PS4 sooner, funds permitting.
That Cell chip, SonyTV and the Interview movie doooh. Let's face it the Sony fan boys are hurting for a squirting. That's why Microsoft is net worth is 380 billion dollars while Sony is only net worth at 8 billion dollars. Microsoft is just a better company.