Author Topic: Sony's new strategy starting in September  (Read 15959 times)

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Offline Toruresu

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Sony's new strategy starting in September
« on: June 22, 2005, 11:03:50 AM »
Hi all.

Anyone remember the article I translated from my local newspaper about Sony firing most of its employees?
Well, here is an another article from CNN. Apparentlly they'll start doing the same thing worldwide. Will this affect their game division?

http://money.cnn.com/2005/06/22/technology/sony.reut/index.htm?cnn=yes

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Offline Flames_of_chaos

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RE:Sony's new strategy starting in September
« Reply #1 on: June 22, 2005, 12:43:07 PM »
It just only shows that sony is bleeding even more financially.
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Offline stevey

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RE: Sony's new strategy starting in September
« Reply #2 on: June 22, 2005, 03:08:03 PM »
yeah!!!!!!!!!!!!!!! Sony dieing like sega was! DIE! SONY! DIE! ha ha ha ha ha ha ha ah ha ha ha ha ha ha ha ha ha ha ha ah ha ha ha ha ha ha ha ha ha ha ha! Yes! Die and go to hell and burn for the evil you have done
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Offline nickmitch

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RE: Sony's new strategy starting in September
« Reply #3 on: June 22, 2005, 04:00:45 PM »
Sony's not going to die. They're just too big to bleed to death.
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Offline stevey

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RE: Sony's new strategy starting in September
« Reply #4 on: June 22, 2005, 04:47:16 PM »
I know but if they bleed too much they will have to cut there losts end making game for the broke station 3.(same go to xbox1.5)
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Offline jasonditz

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RE: Sony's new strategy starting in September
« Reply #5 on: June 22, 2005, 07:06:00 PM »
I wouldn't expect any major immediate changes in Sony's game division. You might see less spent on R&D or maybe a little less advertising, but they're not going to pull the Ps3 or anything, especially as the assembled media mavons predict its inevitable victory (despite never seeing any actual play footage).

if anything I think the first step would be to pull back on the PSP hype machine. Clearly taking over the handheld market is not the walk in the park they and everyone else in the know were anticipating, and its seeming less and less likely the machine (with its dreadful tie-in ratios) is going to turn them any kind of real profit or open the door to any future revenue streams. I don't think they're going to pull the plug or anything (because that might damage the brand), but you might see a steady decline in Sony-funded exclusives, less and less real work done on it, and just an ever decreasing trickle of mediocre third party titles and other things that were far enough along in the process that it would be cheaper to finish them than to cancel them. In short, the slow death of a failed system by a company that doesn't want to admit its failure (think the last couple of years of Sega Saturn).

I wouldn't expect any significant changes to the console business though until after the PS3 launches. Depending on where Sony's other cost cutting measures sit by then, if the PS3's launch isn't overwhelming, or if its post launch lull is as dreadful as the PS2's was, you might see them pull the plug altogether and maybe try to sell the computer entertainment division or spin it off as a seperate entity.






Offline stevey

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RE: Sony's new strategy starting in September
« Reply #6 on: June 23, 2005, 05:27:20 AM »
The ps3 is going to bomb, once people find out that they selling broken ps3 and not let people fix or return them just like they did with psp lcd or "?" they going to dunp ps3 and buy a ceap everlasting rev .  
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Offline Stimutacs Addict

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RE: Sony's new strategy starting in September
« Reply #7 on: June 23, 2005, 05:45:50 AM »
maybe in your world stevey, but as long as morons exist, Sony will suceed
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Offline KDR_11k

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RE: Sony's new strategy starting in September
« Reply #8 on: June 23, 2005, 05:49:39 AM »
PFFFTHAHAHAAHAAAA! Yeah, like they returned their broken PS2s and bought Cubes instead. You're delusional, just because Sony makes shoddy hardware doesn't mean people will stop buying their crap and just because the Rev is durable doesn't mean anyone outside of the fanboys is going to buy one.

I wouldn't expect Sony to slash the Playstation division, that'd be like MS slashing the OS division. It's their main source of income.

Offline couchmonkey

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RE: Sony's new strategy starting in September
« Reply #9 on: June 23, 2005, 07:45:31 AM »
I don't think Sony should give up on PSP whatsoever.  I believe if the company sticks with it and pumps out some exclusive titles, it will be a success.  I think a lot of us are also getting an overly-rosey picture of DS vs. PSP because the Japanese sales are in favour of DS right now.  Anybody know how PSP is doing in North America?  No, because NPD hasn't published any numbers since April.

I think KDR is right about the games division, it's the most layoff-proof.  There might be a some very small sacrifices, but it won't change much overall.
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Offline vudu

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RE: Sony's new strategy starting in September
« Reply #10 on: June 23, 2005, 09:14:08 AM »
Quote

just because Sony makes shoddy hardware doesn't mean people will stop buying their crap
If Sony keeps selling its hardware at a loss, the more PS2/PSP/PS3 units you purchase, the more Sony loses.  
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Offline jasonditz

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RE:Sony's new strategy starting in September
« Reply #11 on: June 23, 2005, 09:34:04 AM »
Quote

Originally posted by: KDR_11k

I wouldn't expect Sony to slash the Playstation division, that'd be like MS slashing the OS division. It's their main source of income.


Actually their movie division is their main source of income. The games division is a profitable division that's seeing declining sales year over year, especially in Japan. Unless something major changes, they'll be lucky to do as well in games next generation as they did in this one. The PSP was supposed to be their big growth segment in the games division, but so far its just been a drag on profitabilitty.

Sony's stock has taken a beating primarily because of declining revenues, and as such it is trying to position itself for growth. In light of that fact, its not inconceivable that upper management could become disillusioned with the game division, seeing it as a saturated market where increasingly tough competition is threatening its already thin margins. So long as its profitable they're not going to just close up shop, but it wouldn't shock me to see them look to sell out of it while the value is still comparatively high.


Offline Guitar Smasher

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RE: Sony's new strategy starting in September
« Reply #12 on: June 23, 2005, 10:07:02 AM »
If anything, they might just drop their other divisions and focus on Playstation.  As KDR said, it's their main source of revenue.  Everywhere else they're failing.

Offline nickmitch

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RE: Sony's new strategy starting in September
« Reply #13 on: June 23, 2005, 10:11:15 AM »
But let's be real here. Microsoft is far more likely to pull out of the market than Sony is. Sony probably expects this to happen. Even if PSP's and PS2/3's break there will still be people who will just say, "Well I guess I'll have to buy another one." Also there'll be some who can get another one for their birthdays and their holiday celebrations. Then Sony will just say, "Hey profits are down but sales are UP!" as they do now.
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Offline stevey

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RE: Sony's new strategy starting in September
« Reply #14 on: June 23, 2005, 11:21:47 AM »
"just because Sony makes shoddy hardware doesn't mean people will stop buying their crap and just because the Rev is durable doesn't mean anyone outside of the fanboys is going to buy one."

"shoddy" No defective Yes sony plan to sell ps3 with a broken cell cpu.

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Offline KDR_11k

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RE: Sony's new strategy starting in September
« Reply #15 on: June 23, 2005, 11:11:09 PM »
Wearing your tinfoil hat again, eh? Sony will NOT sell the PS3 with broken hardware. I don't know what gives you that idea (probably fanboyism that's strong enough you'd steer a plane into Sony's HQ to bring down the "infidels") but if you took a look at how reality works (that's the world that isn't just in your head) you'd see that you cannot sell defective hardware, that'as fraud and Sony would be dead if they did that. Besides, there is no single f#cking reason they would do that.
Or do you mean "broken" as in "the inactive SPE is defective"? Well, might want to take a look at how the computer hardware market works. Perfect chips are rare, most have imperfections that would kill an entire part of the chip. Most manufacturers just disable a number of subsystems on the chip and sell it at a lower price (e.g. NVidia Geforce *600, Ati Radeon *600, Intel Celeron, AMD Duron). The problem is called the "yield rate" and it's lower for a new chip. They can get about twice as many Cells if they use only 7 of the 8 SPEs and can use ones that have one defective SPE. This is absolutely common practice and you probably have quite a few devices with damages in unused areas.

Offline BlackNMild2k1

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RE:Sony's new strategy starting in September
« Reply #16 on: June 24, 2005, 12:51:22 AM »
I'm never 100% sure what stevey is saying(no offense), but I'm gonna take a crack at it this time
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I think he is talking about the famous Sony 'make it work until the warranty runs out' manufacturing policy that they seem to have, I know quite a few people that have had thier PS1 &/or PS2 die on them.  I suggested that they get it fixed through the warranty and after they checked, the warranty had expired anywhere from 1 to 4 months before .

How else could they have 60+ million systems sold?  it isn't all individual owners or multi system owner, alot of it is replacement buyers.  

Offline Dasmos

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RE:Sony's new strategy starting in September
« Reply #17 on: June 24, 2005, 01:06:05 AM »
Well at least you could make sense of that idiocy.......
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Offline stevey

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RE: Sony's new strategy starting in September
« Reply #18 on: June 24, 2005, 04:53:49 AM »
KDR do you have to point out every bit of idiocy in every one of my post? do you? and your wroge my fanboyism is only strong enough that I steer a semi of gasoline into Sony's HQ to kill the evil infidels and I jump out before it crashs.
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Offline KDR_11k

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RE: Sony's new strategy starting in September
« Reply #19 on: June 24, 2005, 04:56:49 AM »
KDR do you have to point out every bit of idiocy in every one of my post? do you?

Yes because I get my paycheck for that.

Offline Toruresu

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RE:Sony's new strategy starting in September
« Reply #20 on: June 24, 2005, 06:33:31 AM »
Come on guys, back on topic...

Do any of you have similar local reports (like I did a month ago)? It would be interesting to track their movements in a larger scale, see how many people and from what divisions get cut off.

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Offline Djunknown

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RE:Sony's new strategy starting in September
« Reply #21 on: June 24, 2005, 11:50:46 AM »
Quote

KDR do you have to point out every bit of idiocy in every one of my post? do you?


That whole line is my new sig

Seriously, it might be a long slow decline for Sony. They've bumbled with the PSX, the PSP isn't pwning, the recent reshuffling, Kutaragi's talking like he's not from this earth, they're too many signs.

I'll say it again: The next gen is Sony's to lose. They can still ride out with brand recognition, but they'll have to make some smart moves once again before these missteps add up.
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Offline stevey

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RE: Sony's new strategy starting in September
« Reply #22 on: June 24, 2005, 12:14:40 PM »
"Yes because I get my paycheck for that."

What kind of job is that? I mean who and why would one pay you for that?  
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Offline nickmitch

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RE: Sony's new strategy starting in September
« Reply #23 on: June 24, 2005, 08:07:48 PM »
If Sony does start to die then it'll really depend on the length of the next gen.
But more importantly if Sony and start producing a profit then MS are the ones that are f***ed.
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Offline Zach

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RE: Sony's new strategy starting in September
« Reply #24 on: June 25, 2005, 07:00:02 PM »
Sony will start out strong just because they are sony.  I think before too long though, they are going to have to lose their arrogance, or it will destroy them (like hurt Nintendo back during the N64).  If (big if) that happens, then we will start to see more cutbacks in the games division.
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