Sony cutting down on number of parts suppliers |
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After 14 years of profits, Sony posted its first annual net loss for the fiscal year ended March. As part of its plans to turn things around, the company has announced that it will cut the number of its parts suppliers by half in order to slash costs.
The Associated Press reports that Sony plans to reduce number of its parts makers from about 2,500 now to about 1,200 next year. Additionally, the company will be centralizing its purchasing to better negotiate for cheaper prices. In the past, each Sony division worked out contracts with suppliers individually.
Centralized purchasing will likely affect Sony's games division, which traditionally has been given more leeway to buy parts. Hardware cost reductions have already cut the games division's operating costs by more than half, and if the plan goes well, it should give Sony even more incentive to institute a price cut for its game consoles in order to remain competitive.
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Comments [refresh]
I just hope doing this won't hurt Sony product quality. Maybe a slim PS3 is in the works using less parts. I like bc 60GB model myself, with the swapped to 500GB hard drive. ;D
I don't see how this could hurt as long as they maintain product quality, which shouldn't be that difficult. This plan makes sense, and might actually be a good first step towards a PSP phone if different divisions need to start using compatible parts.
Ha I knew this would happen and no the quality will not be hurt at all. I can see them doing a Slim still with the option to upgrade the HD or just use Esata.
Sony must realise that it's consoles are over engineered and over priced compared to the competition, there is rumours of a cheaper Ps3, i don't know how the quality will be affected but i'm sure they'll try to make them more basic to save costs, i know Nokia's newest phones are having this done and durability is questionable.