The Times: Sony to abolish 'several major divisions'.
Time to consider the unthinkable?
Sony sources have told respected UK newspaper The Times that the company is bracing itself for a series of "sacred cow-slaying" measures that will abolish or fundamentally alter many of its long-established business practices.
According to the report, the restructuring is likely to be announced early next month, with changes predominantly impacting Sony's domestic Japanese operations in the form of factory closures and the abolition of several major divisions.
The report has led to increased speculation that Sony might be prepared to do the unthinkable and pull out of the games console business, aping the fate of SEGA following the commercial failure of the Dreamcast.
While Sony has repeatedly claimed that the Sony PlayStation 3 is meeting sales targets, it currently lags behind the Nintendo Wii and Xbox 360.
According to official figures, as of September 30 2008 the PS3 had sold 16.84 million units worldwide following its release in November 2006.
In December, SCEE president David Reeves claimed that the PlayStation 3 was approximately 300,000 units ahead of the Xbox 360 in PAL territories, and denied his division would see any cuts.
He said: "We're relying on the fact that the industry will keep growing and while we might have a comparatively smaller share of the market we will have higher sales. PS3 is tracking where PS2 was at the same point in its life. The value added strategy will continue for some years to come.
"We will look at the economic forecasts. We will plan prudently. As long as we plan prudently then I think we will be fine. We have a good business model. People will continue to buy the hardware, continue to buy the software. I'm convinced of it."
Sony's video game business has recently come under attack, with some industry commentators labelling the PlayStation 3 a "sinking ship". November hardware sales in the US put the PS3 in third place, with the console selling fewer units in November 2008 than in the same period in 2007.
What do you think? Could Sony dramatically pull the plug on PlayStation? Let us know in the comments section below.
User Comments
Karlius
Wido
You have some good games coming out on the PS3, and in favour of Sony they can also drop the price tag down to £220 for a 80GB one. And they shall fly of the shelves....
For me SOCOM, Killzone 2 and God Of War 3 are three huge Sony exclusives which will do well. Wouldn't hit massive sales like Gears 2 but good enough to keep the PS3 in the gaming market and making clear that the PS3 is still there and not going.
Sony just have to drop the price tag and everything would look more rosy for them, even if Microsoft say there own piece of mind about it. At times like these I think companies should be helping each other out, then watching them go bust and then just laugh your face off at them.
pblive@ Ricky Bobby
Yep, you're trying to say the Wii is the winner, but the xbox is for different things so it's the winner, but the PS3 is for different things so it's the winner.
The Wii is like a SMART Car, nippy and good value for money, the Xbox is like a Ferrari, can be used on roads but full potential is unleashed on the track and the PS3 is like an F1 car, not so road-friendly but perfect on the track.
Marky-Jean-Luc
Ricky Bobby
pblive
*This is not intended for serious comment, please assume sarcasm.
dav2612@ Ricky Bobby
PB, if this is true then we should stop giving silver medals to athletes aswell :)
Karlius
Ricky Bobby
pblive
This whole thing of predicting failure based on not selling quite as much as the competition is tiring. Yes, the PS3 isn't doing as well as Sony hoped or expected, but there will be price cuts (only the Wii is actually making a profit, consoles more often than not run at a loss to the company) and maybe it'll push Sony a bit more.
The one problem Sony has had this generation has been with pushing the brand and getting the titles out there, this might be the push they need. As Karlius says, Ray Maguire doesn't exactly help in this department, even if he thinks he does.
I can't see the PS3 production being stopped, even in these harsh times. Maybe the PSP, but even so it's Sony we're talking about, a major company with so many divisions other than gaming and entertainment.
bencrosaby
What a shocker! PS is going under, who didn't see that coming?! I think the PSP will go first. The PS3 has a lot more potential still. It's not just over yet...
On a better note, if Sony do leave the market, who will replace them? EA? ;)
Wido
Maybe this is a attention seeking time but overall Sony should be fine in the gaming market, as of the christmas sales seem to be a good shift of units.
But I won't be bobbing myself over it, as the developers would of said something about this.
Marky-Jean-Luc
Rogue_Soul@ El-Dev
The article also gave me some horrid flashbacks to January 31, 2001. #Sobs#
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RandyChimp