Look, we know the economy is in shambles; a perambulating corpse, gnawing its way through the hopes and dreams of the global populace ... but this is getting ridiculous. Reports of "drastic cost cuts" at Sony have us really spooked – think not only "factory closures" but also "the abolition of several major divisions," according to the Times of London. (In response to the report, Sony told Reuters, "We don't have any such plan.")
While there's no mention of specifics (will the PlayStation brand/division be affected?), the Times does quote a Credit Suisse analyst who says that, unless Sony takes aggressive steps to consolidate power in the hands of prez Howard Stringer – it will be unable to "close the gap with competitors such as Apple and Nintendo." Perhaps more evident to those of us watching the gaming industry specifically is the mention of "frustrations ... and a clear internal cultural clash between Japanese Sony and its US and European operations." We thought Kaz was going to bring some of that good, ol-fashioned American can-do attitude to Japan back in ought-six? Nevertheless, we want to talk to the investors directly:
Listen guys, we know Sony's got some problems. We know that. But you've got to just chill out and relax – chillax even – and wait until the Big S shows off whatever Team ICO's got in the oven. Not buying it? How about this: Microsoft is feeling the economic pinch also, but the grapevine seems to think the Xbox division will be spared. Nintendo isn't the only competition out there, you know?
Reader Comments (133)
Posted: Jan 5th 2009 6:12PM Mr Khan said
Verizon because they're sorta doing what Sony was trying to do with the PS3. Verizon's got V-Cast and FiOS as content distribution networks, and are trying to incorporate a stronger gaming initiative into V-Cast. Console gaming, with the console also serving as a set-top box, would be the next viable alternative
With Ubisoft, they're one of the few 3rd party publishers that possesses brands i could see as exclusive software. Rayman, Raving Rabidz, Petz, Imagine, Tom Clancy, Assassin's Creed, Prince of Persia. They could build a diverse platform to appease both casual and hardcore
Reply
With Ubisoft, they're one of the few 3rd party publishers that possesses brands i could see as exclusive software. Rayman, Raving Rabidz, Petz, Imagine, Tom Clancy, Assassin's Creed, Prince of Persia. They could build a diverse platform to appease both casual and hardcore
Posted: Jan 5th 2009 1:44PM horngreen said
LOL if this is true and if it does affect the PS3 no game in hell is going to pull it out of this tailspin. If Sony decided to dump the PS3 and leave people holding onto a $300-$500 obsolete gaming machine they would be DEAD as far as ever getting back into the console business. Just ask SEGA. I doubt they would dump the PS3 but then again, I don't really know how bad it is. They sure as hell should have left that Blu Ray player out...Oh I forgot "it holds so much more information without compression" LOL how are those BR games PACKED with extra content treating you now? I mean if they have not taken advantage of it by now do you think they will under a crushing financial crisis? I'm trying to guess what divisions they might shut down. Any one of them would probably be major. Hell I had to buy a TV this weekend and was surprised Sony was finally getting competitive on the price. I still didn't buy a Sony though. Now I'm very happy I didn't.
Posted: Jan 5th 2009 1:51PM (Unverified) said
Well MS's game division is actually doing well, so that's not a good comparison. Esp with the economy, a $400 machine is not going to gain on the 360, esp after game like MGS4 obviously haven't sprung Sony to sustained success.
Sony's been making awful, anti-consumer moves for years, so even though I feel bad for people losing their jobs, the higher-ups have really blown it.
Sony's been making awful, anti-consumer moves for years, so even though I feel bad for people losing their jobs, the higher-ups have really blown it.
Posted: Jan 5th 2009 1:52PM (Unverified) said
PS4 - Not this year.
PS3 Lite - $299 - See you in November!
PS3 Lite - $299 - See you in November!
Posted: Jan 5th 2009 4:01PM (Unverified) said
PS3 has shoddy parts? Wow... and i just thought it was a bitch to code and program for. The console isn't on a break-down frenzy. >.>
Reply
Posted: Jan 5th 2009 4:16PM (Unverified) said
@Alien:
Dude, seriously, you just sound stupid. Ironically the PS3 has shaped up to be a nice system (and mind you, I have not liked the way Sony has conducted themselves this gen). I'm in the retail channel and the quality of the system is fine - I've seen the occasional defective system but nowhere near the rate of the 360.
I prefer my 360 and do the majority of my gaming on it, but my PS3 is an excellent media hub and I've enjoyed many games on it. I wish the online were better and I hate the controller for shooters but if the PS3 was one's only system there is plenty to keep a gamer satisfied.
Granted, Sony had made huge, stupid mistakes this gen but if you are going to post in a public forum why don't you do it in an articulate, intelligent manner? Initiate a discussion with relevant, salient points and you won't depict yourself like an putz intelligent people laugh at.
kthxbye
Reply
Dude, seriously, you just sound stupid. Ironically the PS3 has shaped up to be a nice system (and mind you, I have not liked the way Sony has conducted themselves this gen). I'm in the retail channel and the quality of the system is fine - I've seen the occasional defective system but nowhere near the rate of the 360.
I prefer my 360 and do the majority of my gaming on it, but my PS3 is an excellent media hub and I've enjoyed many games on it. I wish the online were better and I hate the controller for shooters but if the PS3 was one's only system there is plenty to keep a gamer satisfied.
Granted, Sony had made huge, stupid mistakes this gen but if you are going to post in a public forum why don't you do it in an articulate, intelligent manner? Initiate a discussion with relevant, salient points and you won't depict yourself like an putz intelligent people laugh at.
kthxbye
Posted: Jan 5th 2009 2:16PM (Unverified) said
Utter, utter bollocks.
This is ALL about share price, nothing else. What do you think would happen to it if they pulled out of the game market?
The stock price wouldn't be worth shit.
This is all about trimming the dead wood.
Those robotic, minidisc (yes, they still make them!), walkman, indie film and dancing MP3 player departments are all FAR MORE LIKELY to get ditched.
Do any of you fanboys chuckling with glee at the PS3 demise even know just how many departments Sony has? Fucking hundreds!
This is ALL about share price, nothing else. What do you think would happen to it if they pulled out of the game market?
The stock price wouldn't be worth shit.
This is all about trimming the dead wood.
Those robotic, minidisc (yes, they still make them!), walkman, indie film and dancing MP3 player departments are all FAR MORE LIKELY to get ditched.
Do any of you fanboys chuckling with glee at the PS3 demise even know just how many departments Sony has? Fucking hundreds!
Posted: Jan 5th 2009 2:39PM (Unverified) said
Lol alien lord you are SO RIGHT.
And to all you holier than thou posters GTFO. So what he's a fanboy. That's not a crime in itself dumbass.
Lol sony is going down. LOVE IT.
I guess next gen won't start till the ps4 huh sony fanboys!
And to all you holier than thou posters GTFO. So what he's a fanboy. That's not a crime in itself dumbass.
Lol sony is going down. LOVE IT.
I guess next gen won't start till the ps4 huh sony fanboys!
Posted: Jan 5th 2009 2:45PM Duke said
I have to doubt that you love gaming too as you cannot love it as a whole if you won't play the Sony consoles of this and last generation. That's just dumb. Its not crap just because a fanboy says it is.
I love gaming and because of that I play all the consoles of this generation and many of the previous generations as well. I don't have a personal problem with anyone who makes good games to play.
I love gaming and because of that I play all the consoles of this generation and many of the previous generations as well. I don't have a personal problem with anyone who makes good games to play.
Posted: Jan 5th 2009 2:49PM (Unverified) said
And the "lite" equals no blu-ray.. Y'know, what sony should have done in the first place!!
Wait, ps3 games are on blu-ray..
*C-3PO voice*
"We're Doomed."
Wait, ps3 games are on blu-ray..
*C-3PO voice*
"We're Doomed."
Posted: Jan 5th 2009 3:33PM darkprime said
Sony is killing their GPS division. Want proof? Since before Christmas and even now all their units have basically been on a firesale from some online outfits and especially from their own sonystyle.com store. When you just released new units about a month ago and already have them at 1/2 off, I think that signals you are clearing out all inventory.
Posted: Jan 5th 2009 3:49PM zsavior said
I know nobody is going to want to hear this and I will probably get voted down, but a lot of you have missed one giant thing. If Sony does close divisions it will most likely be the PS brand because compared to laptops, cell phones, tvs, Video games does not even come close to the revenue and cash those media items bring in.
I wish I could remember the site, but somebody made a point to make a comic were gamers were just bragging how much more money their systems were bringing in. Then somebody walked by with a cup of coffee and demolished them. Sony would do much better cutting the PS console line Focusing on a phone/Psp Hybrid and trying to tap into the Market IPhone and Ipod has.
Steve Jobs said it best when he first released the Iphone figures, video games is a drop in the bucket not even a blip, this is why he isn't trying to create a gaming PC. So far Music and Home console Divisions would make the most sense since CDs are dying a wonderful death. I Just don't see them cutting their other divisions to keep a 300-600 dollar console when they could release a 199 very well made cell phone if they had some resources free.
Of course this is Sony, so I am not really sure how they think, and like I said I am not a business whiz, but I know MP3 players, Cell phones, and laptops are a market much large than consoles with a much larger variety of applications to appeal to more people.
I wish I could remember the site, but somebody made a point to make a comic were gamers were just bragging how much more money their systems were bringing in. Then somebody walked by with a cup of coffee and demolished them. Sony would do much better cutting the PS console line Focusing on a phone/Psp Hybrid and trying to tap into the Market IPhone and Ipod has.
Steve Jobs said it best when he first released the Iphone figures, video games is a drop in the bucket not even a blip, this is why he isn't trying to create a gaming PC. So far Music and Home console Divisions would make the most sense since CDs are dying a wonderful death. I Just don't see them cutting their other divisions to keep a 300-600 dollar console when they could release a 199 very well made cell phone if they had some resources free.
Of course this is Sony, so I am not really sure how they think, and like I said I am not a business whiz, but I know MP3 players, Cell phones, and laptops are a market much large than consoles with a much larger variety of applications to appeal to more people.
Posted: Jan 5th 2009 3:57PM (Unverified) said
I think this might be Sony's last console. I have a PS3 so reading this news isn't really making me feel 'right' about my product. I fear that their games division will drop and the only 2 consoles on the market will be a Hardcore and a Casual. The loss on this console is far too great. Releasing a PS4 would probably hurt them more in this economic state.
Reply
Posted: Jan 5th 2009 4:00PM Mr Khan said
The thing is that the PlayStation used to be the guiding star of the whole corporation, and continued to be up until the PS3. Sony's got their fingers in a lot of soup pots, and the more marginal ones will be retracted first (like darkprime's post right above you there, about the liquidation of Sony GPS). Now, if Microsoft were ever to run into hard times, Xbox division would be sooner on the chopping block than the PS brand would be for Sony
Reply
Posted: Jan 6th 2009 1:36AM DrunkRaba said
As I recall Sony lost very little money on the PS3 it's last quarter and was moving into operating profit based on software. I really don't see the console being canned or anything like that.
i can easily see a lot of things like their mp3 players maybe even vaio's being cut though. The Sony mp3 players and computers offer nothing that their competition doesn't, and they don't have a cheaper price. I really wouldn't be suprised to see either of those go.
Blu-ray is here to stay. Sales are up 170% from last year and Blu is taking 15-25% of market share from dvd already. It will be fine.
Reply
i can easily see a lot of things like their mp3 players maybe even vaio's being cut though. The Sony mp3 players and computers offer nothing that their competition doesn't, and they don't have a cheaper price. I really wouldn't be suprised to see either of those go.
Blu-ray is here to stay. Sales are up 170% from last year and Blu is taking 15-25% of market share from dvd already. It will be fine.
Posted: Jan 5th 2009 3:50PM (Unverified) said
"MGS4 will be hitting the Xbox 360 in Q3 '09" "FFvXIII will be availible for Xbox 360"...*Sells his PS3*
Posted: Jan 5th 2009 4:00PM (Unverified) said
Sony fanboys always call you a fanboy and an idiot for not liking Sony but it's not about brand loyalty. I don't have a ps2 because after having a ps1 for a while there being nothing worth getting on ps2 I never got one but with ps3 they added blu-ray and the cell so I boycott them, that and they don't have any good exclusives. Wii has better exclusives then ps3, the ones from Nintendo at least.
Posted: Jan 5th 2009 4:07PM Brett from Atlanta said
You just negated any credibility you might have by saying that Wii has better exclusives than PS3. Could you show me them please? My Wii hasn't been turned on in about 8 months. Please give me a reason bust out my dust buster and play it.
Posted: Jan 5th 2009 4:11PM Starcade said
I can envision Sony shuttering some under performing divisions should the economy not turn around. More than likely any division not shutdown will have less money to expend on projects, this would probably include the film, music, and even entertainment (PS3) divisions.
It's not like it's only Sony being affected right now. Everyone is being affected. Companies everywhere are downsizing or reducing costs.
It's not like it's only Sony being affected right now. Everyone is being affected. Companies everywhere are downsizing or reducing costs.
Posted: Jan 5th 2009 4:20PM (Unverified) said
Nothing worth getting on PS2, boycott Sony because of a disc format and processor /and/ no good exclusives?
This is the most concentrated fail I've ever witnessed. You really managed to be absolutely wrong on every count.
This is the most concentrated fail I've ever witnessed. You really managed to be absolutely wrong on every count.
Posted: Jan 5th 2009 4:21PM sk8monroe81 said
is this where the fanboys explain how joystiq is a MS conspiracy site... lol.
this is serious guys.
sony is in major trouble.
and there is no american bailout for them...
if sony continues to lose money, they will run out of money, they wont be able to secure new loans.
this usually leads to bankruptcy protection in the US if not fixed.
nothing shows sony making money anytime soon.
all sony games have underperformed this year.
now do the sony fanboys see why the WSJ posts negative articles about the ps3?
because they are true and sony is in trouble.
there wouldnt be a new article every day about it if it wasnt true.
MS doesnt control the media.
nor the truth.
gran turismo will not be the system seller, nor save sony ps3... lol.
did gt5prologue do anything??
fanboys would have eaten up that game just because there were not many other games to play like it. and the $ 40 price tag..??
this is serious guys.
sony is in major trouble.
and there is no american bailout for them...
if sony continues to lose money, they will run out of money, they wont be able to secure new loans.
this usually leads to bankruptcy protection in the US if not fixed.
nothing shows sony making money anytime soon.
all sony games have underperformed this year.
now do the sony fanboys see why the WSJ posts negative articles about the ps3?
because they are true and sony is in trouble.
there wouldnt be a new article every day about it if it wasnt true.
MS doesnt control the media.
nor the truth.
gran turismo will not be the system seller, nor save sony ps3... lol.
did gt5prologue do anything??
fanboys would have eaten up that game just because there were not many other games to play like it. and the $ 40 price tag..??
Posted: Jan 6th 2009 1:36AM DrunkRaba said
2.65 million Blu-ray copies sold so far, no numbers reported for the downloads. The game itself sold at least 3 million.
So I would say that yes, it did "do something" It's STILL in the top 20 for sales each week in Japan and in the UK. I think GT5 will sell quite nicely when it's $40 demo sells this well.
Reply
So I would say that yes, it did "do something" It's STILL in the top 20 for sales each week in Japan and in the UK. I think GT5 will sell quite nicely when it's $40 demo sells this well.
Posted: Jan 5th 2009 4:37PM sk8monroe81 said
betamax almost bankrupted sony in the late 80's to early 90's, along with the US recession in 1991, however sony had many other profiting divisions then.
this new recession i dont know if sony has any profiting divisions now.
blu ray? was it the sony ps3 killer?
crazy how the best tech for gamers and HD movie lovers may have been the root of ps3 problems.
for many reasons.
1) higher R & D cost before manufacturing.
2) higher manufacturing costs.
3) smaller market with high end products.
sony took a big gamble at a bad time.
this would have worked much better 3 years ago, when people were making 10% gains on just living in their homes.
this new recession i dont know if sony has any profiting divisions now.
blu ray? was it the sony ps3 killer?
crazy how the best tech for gamers and HD movie lovers may have been the root of ps3 problems.
for many reasons.
1) higher R & D cost before manufacturing.
2) higher manufacturing costs.
3) smaller market with high end products.
sony took a big gamble at a bad time.
this would have worked much better 3 years ago, when people were making 10% gains on just living in their homes.
Posted: Jan 5th 2009 4:41PM sk8monroe81 said
and what new sony tech has ever done well?
betamax failed.
memory stick pro duo has failed.. lol..
gotta love the cost of 4gb sony memory, while its 75% cheaper for SD or other memory cards.
blu ray has been failing.
nobody wants a $ 30 movie now... lol.
nobody wanted a $ 500 - $ 1000 blu ray player.
sony psp- failing.
sony mp3 player- failed.
only the ORIGINAL walkman, ps1 & ps2 have been sony's # 1 products.
sony tv's and cameras dont sell better than other brands and are not better than other brands, thats just fanboy loyalty.
Reply
betamax failed.
memory stick pro duo has failed.. lol..
gotta love the cost of 4gb sony memory, while its 75% cheaper for SD or other memory cards.
blu ray has been failing.
nobody wants a $ 30 movie now... lol.
nobody wanted a $ 500 - $ 1000 blu ray player.
sony psp- failing.
sony mp3 player- failed.
only the ORIGINAL walkman, ps1 & ps2 have been sony's # 1 products.
sony tv's and cameras dont sell better than other brands and are not better than other brands, thats just fanboy loyalty.
Posted: Jan 5th 2009 4:38PM (Unverified) said
Sony better get its sh&* together soon. The last thing us gamers want in a one console solution, especially if it's run my MS. If that happens we will be playing 360 for 10 years or more. Need to have competition. And no the Wii is not competition, that's not a system for hard core gamers.
Posted: Jan 5th 2009 4:53PM Larz said
"The fact is that they need more exclusive games. I buy a game or two a month, yet I own only one for my PS3. Gimme something I want to play, and I'll buy it."
That's a weak excuse that I hear all the time. Most games aren't exclusive. The PS3 and 360 are about equal on exclusives (actually I think PS3 has more, and arguably better ones), and the Wii's exclusives (while plentiful) generally suck balls unless you're 8 years old.
That's a weak excuse that I hear all the time. Most games aren't exclusive. The PS3 and 360 are about equal on exclusives (actually I think PS3 has more, and arguably better ones), and the Wii's exclusives (while plentiful) generally suck balls unless you're 8 years old.
Posted: Jan 5th 2009 6:15PM Duke said
First off, calling me a Sony fanboy is just funny. What's the basis? My playing a PS3 and a 360 and a Wii? Brainiac, we have a huge library of games covering a lot of consoles - because we love gaming. My wife and I don't see a PS3 game and refuse to see it is fun because of the console it's on.
Now, "Good for you Duke that you buy sony's hyped up piece of shit with it's propriety hardware and bullshit games with their weird as hell commercials."
The word is proprietary and if you thought for a second you would realize that all the consoles are using proprietary parts - right? My 360 can't have parts swapped out and neither can my Wii. Was that a fit over the use of a cell processor? So what!? How does that part cause an issue to a gamer because its only in the PS3? It doesn't. My PS3 works fine every day as does my other consoles. So why would the cell stop me from enjoying it.
BS games - thats your opinion, obviously not the same as those of us that play and buy those games. I didn't know that Uncharted, Motorstorm, Folklore, God of War 3, LBP or Resistance were BS, but heck, I'm not you so oops.
I guess I need to assess games by not playing them and just calling them crap for no reason, that makes far more sense. I have been mistakenly playing games all this time rather than just being a tool about games I haven't touched. You sir are a real inspiration.
As far as the commercials mattering - thats just dumb. Once more, that has no effect on the games or the console.
You are just being a pissy fanboy.
Now, "Good for you Duke that you buy sony's hyped up piece of shit with it's propriety hardware and bullshit games with their weird as hell commercials."
The word is proprietary and if you thought for a second you would realize that all the consoles are using proprietary parts - right? My 360 can't have parts swapped out and neither can my Wii. Was that a fit over the use of a cell processor? So what!? How does that part cause an issue to a gamer because its only in the PS3? It doesn't. My PS3 works fine every day as does my other consoles. So why would the cell stop me from enjoying it.
BS games - thats your opinion, obviously not the same as those of us that play and buy those games. I didn't know that Uncharted, Motorstorm, Folklore, God of War 3, LBP or Resistance were BS, but heck, I'm not you so oops.
I guess I need to assess games by not playing them and just calling them crap for no reason, that makes far more sense. I have been mistakenly playing games all this time rather than just being a tool about games I haven't touched. You sir are a real inspiration.
As far as the commercials mattering - thats just dumb. Once more, that has no effect on the games or the console.
You are just being a pissy fanboy.
Posted: Jan 5th 2009 6:56PM (Unverified) said
As tempting as it is to make a sly comment, I will say that it would be extremely bad if Sony were to fold their game division. Competition as aforementioned could only be good for the consumer. Thanks to them we see price drops on the 360 and will continue to see microsoft price drop it even further. I'm sure if sony wasn't in dire financial straits right now we'd be seeing a 300 ps3 at retail.
Posted: Jan 5th 2009 7:58PM ripvanwinkle said
I'm glad I'm rocking the Wii60. Although I do have a blu-ray player... I hope production keeps up with those. Shame for it to be a waste.
Posted: Jan 6th 2009 12:43AM RyanLN said
Duke, what are you doing? Aside from making perfect sense, you are trying to use logic to enlighten the thick headed and use reason with the unreasonable. Even the least skilled polemicist could actually come up with sound, rational reasons as to why a particular console was worthwhile or not, especially stuff that's better than "[there was] nothing worth getting on the PS2" or "Those of you who actually think [the PS3] has value deserve nothing but the worst." A pox on our firstborn, and he will see us burn in hell!! All "Alienlord" and "Gundam" have done is to reveal themselves for what they are- not fanboys but just plain ignorant. While I have in my time bought some crap products from Sony (e.g. the VCR that lasted all of two weeks) unless they kill my family or can be linked to genocide in Rwanda, I and all rational people cannot see the point in "hating" a company. I'll bet you next months mortgage that "Alienlord" wrote his entries during his recess break, right before he got his ass beat in tetherball by the retarded kid with the corrective shoes. We should save our breath for discourse with multi-celled organisms.
Posted: Jan 6th 2009 2:21AM (Unverified) said
I think it just goes to show that brand loyalty isnt as big deal as Sony had banked it to be, and with Blu ray not the stampeding success as was anticipated and the current situation with the world economy Sony has unfortunately got itself in a bad situation.
Its a perfect example of a company failing to learn the lessons of the past. Remember Nintendo 64? the console you trounced with the first ps1? A console that with Nintendos Blind arrogance thought that brand name alone meant it was assured of Console dominance? No company should assume that their brand, no matter how strong or how dominant it was, guarantees continued success. A lesson to all companies, The consumer is king.
Its a perfect example of a company failing to learn the lessons of the past. Remember Nintendo 64? the console you trounced with the first ps1? A console that with Nintendos Blind arrogance thought that brand name alone meant it was assured of Console dominance? No company should assume that their brand, no matter how strong or how dominant it was, guarantees continued success. A lesson to all companies, The consumer is king.
Posted: Jan 7th 2009 2:07PM (Unverified) said
And to think that GTA IV's exclusive 360 DLC was the deciding factor for me...








