Sony's axe hits PlayStation group, losses expected |
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Sony has finally revealed more of its plans for restructuring. Although the PlayStation Group didn't get the brunt of the axe's swing,
it didn't come away undamaged either.The company announced that it has reduced its projected target sales of 16 million PSPs this year to just 15 million. The PlayStation 3 is still expected to sell 10 million units.
They also decreased projected sales of the PS2 from 9 million to 8 million. They expect to sell 250 million games for the financial year. What all these numbers mean is that overall sales of games and hardware are both expected to decline. Sony expects to post an extra US$ 336 million loss for the PlayStation group alone.
The company as a whole expects to post a US$ 2.9 billion loss, way worse than analysts predicted. They attribute the loss to the weak economy, and the strengthening Yen.
The axe hasn't stopped swinging yet, as Sony announced that they will be doing a "headcount reduction" in its businesses, including the games divisions. They also plan to reduce "marketing, logistics, and other general expenses" to staunch the bleeding of the green without further restructuring.
Via Gamezine
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Comments [refresh]
ya that sux for sont, but i already have a ps3 and a psp and ive no need to buy a new system. now to the off topic news, Microsoft to cut 5,000 jobs, 1400 today. so with all the doom and gloom you guys have been reporting on sony, im sure that ill be reading about these M$ job cuts here soon right?
I'm writing it right now actually. It'll be up in a few minutes.
lol i just wanted to make sure you were'nt reporting on just sony
eww M$ down 8% on there stocks today... shi**y
both are in really bad shape, but the scary thing is that Sony is walking on the plank of bankruptcy, not just losing money like microsoft. Sony is planning to cut over 16,000 workers, I guess thats around 15-20% of their workforce? Microsoft is cutting around 3-4% (though really bad too, especially when companies try to be very precise on their investments for maximizing their profits. Sony really does have many problems, mostly not in the videogame depatment (though they arent doing good there either). Their mp3 players are failures, their overpriced laptops are many times more expensive than BETTER laptops from their competitors, their cameras are doing good but not as good as a few years ago (they're losing ground) and their overpriced plasmas and lcds barely compete with the competitors.
Hopefully, what might Sony need is just some restructuring to get it back to its good times, but their future right now looks very dim...
to say it in just a few words: Sony produces quality hardware. Quality hardware is of course expensive. Now with the economic crisis nobody has the money to buy quality products. People tend to buy cheaper products. That's why Sony is in the worst condition.
sony produces quality hardware? no. take apart any sony computer and you'll see the familiar names of toshiba, panasonic, hitachi, etc... as for their televisions, they are nice, but mitsubishi + others produce higher quality at lower prices.
sony has been overpriced for years because people believe it's been a "better" brand than others. finally the majority of consumers are starting to realize that sony gives you less for the money.
'take apart any sony computer and you'll see the familiar names of toshiba, panasonic, hitachi, etc... '
and these companies arn't good quality?
is apparently the kinda guy that would smile as he tells you your parents died
the fact that you see a name on any major component in there other than "sony" should tell you something.
That is a very wrong statement. Sony products aren't of better quality. I wish I could explain this better but here it goes. The idea that many have that japanese companies make higher quality products (Sony, Toyota, Fuji, ect.) is false. This can date back to the 60's when the japanese started taking over the automobile market in the US. They started selling cars cheaply exported because of the few restrictions (basically the same as US companies) that the japanese had (after WWII) for selling their products on the US (and still have, which has brought many to debate the Free Trade Act). This brought the US car companies to tremble because japanese cars were very cheap (workers were payed lower wages) and as efficient as the American cars.
This created an enviroment where the japanese cars became very popular and sold more than the American ones. This helped commence the japanese industrial boom in the 70-80's and because at the time the japanese owned most of the US car market they were able to restructure there selling plan even though now workers in Japan were becoming even higher than the US ones.
Then in the 80's the Japanese economic buble started collapsing. An economy that became the strongest finacial center in the world, the Japan Nikkei stocks at over 35,000 in value, and a luxurius society where the average Japanese spent over double in luxuries than the American society, all in a matter of few years became prone to one of the bigest economic deenflations in history.
This caused the Japanese economy to enter a very deep recession, one which they we're just getting out of (yet entered it again with the new world financial crisis).
At this time the Japanese car industries devised a strategy that I consider myself an attack to the US. They initiated a process of propaganda where they started convincing not only the people in Japan, but in the US, UK, and other parts of the world that Japanese cars were of greater quality than cars manufactured in other countries. This is false, and its is proven by car experts that the quality is pretty equivalent in US, Japan, and European countries.
Yet this idea developed and Japanese car industries were able to mantain their hold on the car market.
Now what does this has to do with other japanese industries, like Sony? The truth is that the propaganda that was used to save the Japanese car industries diffused to a diferent idea, that japanese products are of superior quality. This is why people this day believe Sony products (and other japanese products) are of higher quality, and nothing is further from the truth.
People try to justify their belief with the high price. What they don't know is the taxes that are added to japanese products, such as PS3, Bravia TVs, ect. since they're exported overseas, and they're not made in the states, and this adds a lot to the price of the product (and yeah this is fair, they do this on most countries to protect the goods made in that country from foreign competition). Aside from this, production and developing costs in Japan (especially the area of Western Tokyo where most of this products are developed) are higher than in the US.
Many japanese products in the US tend to cost more and be less efficient than the US made ones because of this (and vice-versa in Japan). Yet this false mentality of japanese quality has made a scar on the US way of buying, and yes I call it a scar because this actually contributes to the US economic crisis, and to the laying of jobs of Americans.
And yeah US jobs are created by japanese companies, but more jobs are destroyed (for example, in the car market the japanese car industries have crated around 90k jobs, yet their tactics have cost over 450k US jobs being destroyed to due to failing US car industries and auto parts makers).
I hope some of you find this interesting information +)