Topic: Report: Sony to cut up to 20,000 jobs

[jarob]

Makes it harder for them to reduce the price of the PS/2.  Makes Nintendo price drop look very good.  I don't see how Sony can have a  price drop now.

CBS MarketWatch

Linked now.

[mouse_clicker]

I doubt this has anything to do with the PS2- in fact, I bet a lot of those jobs aren't even on the SCE side of things.

[Yuji Miyamoto]

I feel bad about the hardworking people who are losing their jobs.  Still, this is not the only bad financial news that sony has posted this year.  

Then there are the rumors that the Psp is having serious production difficulties.  I actually think that sony cant afford the price cut and that if does go through, it will be an act of desperation.

[cml]

Quote
Originally posted by: Yuji Miyamoto
I feel bad about the hardworking people who are losing their jobs.  Still, this is not the only bad financial news that sony has posted this year.  

Then there are the rumors that the Psp is having serious production difficulties.  I actually think that sony cant afford the price cut and that if does go through, it will be an act of desperation.

It is always sad to hear about people being made redundant, but unfortunately it is a fact of life, especially at a company of the size of Sony.

There can be little doubt that the SCE arm of Sony would be able to afford a price cut to the PS2, but the fact is they simply don't need to do so. There is not a single territory in the world where the PS2 doesn't consistently outsell both Xbox and GameCube combined, despite the fact that the PS2 is generally the higher priced console of the 3.

If you want to talk about acts of 'desperation', you should point your comments in Microsoft's direction, not at Sony.


Chris.

[BigJim]

Sucks to hear. But it's still the wrong forum to post this in.

[jarob]

Why is this the wrong forum?  People have been discussing the recent GameCube price drop and wondering if Sony will do the same.  With this news, I highly doubt they will drop the price also.

[Darc Requiem]

Quote
Originally posted by: jarob
Why is this the wrong forum?  People have been discussing the recent GameCube price drop and wondering if Sony will do the same.  With this news, I highly doubt they will drop the price also.

Jarob this should go in the General Discussion or Other Systems forum. This is the Gamecube Forum.

Darc Requiem

[kennyb27]

Quote
If you want to talk about acts of 'desperation', you should point your comments in Microsoft's direction, not at Sony.

Funny thing is Microsoft isn't at all desperate.  With a bank account FULL of money--and the willingness to continuously front that money to cover their losses-- Microsoft has no need to lower the price of Xbox despite it's losing money.  

[Rob91883]

 I agree with jarob, we have been talking about the gamecube price cut, and how it will affect the PS2.  Gamecube, PS2, and Xbox are affected by eachothers actions.

[mouse_clicker]

Kenny: Do you realise how much money Microsoft has already lost on the XBox? Despite our collective hatred for Bill Gates and his hellspawn, Microsoft is NOT stupid and will NOT continue pouring money into something that doesn't return. At the very least the investors will pull their support if the XBox doesn't turn a profit soon. Microsoft can NOT afford another price cut- it quite simply won't happen without the simultaneous canning of the XBox, or if Microsoft finds some way to make XBoxes magically appear out of thin air.

[BlkPaladin]

The job cut is because there is only about 2 or 3 divisions that are make money, one of the is SCE. (I know there is at least one other and I think its the real estate business.)

I'm still reserved about whether or not Sony will do a price cut. And Microsoft isn't in the picture for a price, not for at least another year or so.

[kennyb27]

I know that Microsoft has lost alot of money on the Xbox.  However, by the looks of things, it looks as if they aren't ready to pull out just yet.

My point was that Microsoft isn't desperate, yet.  They will not go into a "we-need-to-drop-our-prices-to-sell-consoles" mode just yet.

I think we both agree Microsoft will not drop their price, albeit different reasons.

[nolimit19]

i just read that it does have to do with the ps2 as well as other things.

[jarob]

Where did you read that?  I am very interested in reading it.

[Arbok]

Although this is all very off topic for this forum, here is a link that states SCE's drop in profits for this up coming quarter:

http://www.gamespot.com/all/news/news_6077227.html

"but also blamed sluggish PlayStation 2 sales in America."

Who ever thought they would hear that...

[ClockworkTomato]

Ouch!  sony's in trouble