Sony freezes staff wages, lowers bonuses [Update]

actually most companies i have worked for (in America at least), unless you perform horribly, you get what is called an annual review, and I've worked from a lowly fry cook at McDonalds, to an accounting group where i work now, and all of them have been the same, every year you are reviewed on your progress the past year, and unless you are close to being fired, you always get what is a raise, this is in sync with the larger economy which assumes that if business is good and the economy is stable, cost of living increases are going to be coupled with pay increases as well.

at my current employment, I have received raises even when our company was doing bad, but the overall economy was still quite good. that just shows you what type of hole we're in right now.

granted this is from an American perspective, not sure if this is different in other countries, but I can't think of a single person i know in America who doesn't work for a company that doesn't have an annual performance review tied to a raise process. of course it's different depending on the industry you work in, especially sales, but that's my experience. Sony being a corporate structure, I assume they operate in a similar way to what I'm familiar with

Well, it's a cycle. Nonetheless, people who lose their jobs will be spending far less than those who take a pay hit. I don't believe corporations are ever motivated by humanitarian impulses, but this is certainly preferable to certain other alternatives.

you REALLY need to learn to use the reply button. I just so happen to come to the second page by chance.

at any rate, of COURSE I dont have any proof of this. All I know is what Sony has said numerous times about the PS3 being profitable around the begining of their fiscal '09 start. Sure its possible thats no longer true but thats all I have to go on. and assuming that profit is substantial enough knocking $50 out of it in terms of saling more in a perido of time will generate more profit than holding onto the same units and selling less. Thats how Wal-mart works. They can sale more of something @ $5 than Target can sell @ $10 enough to the point where they make MORE money doing so.

Chris

First of all, it's not my fault this blog doesn't work right. You've been around long enough that you should know replies sometimes get put at the bottom of the list rather than in the right order. I see others complaining about it every day. Surely you have too.



Now, let's talk about the logic you use to make claims out of thin air, believe your made up claims, and then proclaim them to be fact when you talk to others.

Let's look at what you said yourself. Sony said that "early in their next fiscal year" the PS3 will start earning a profit. Since Sony's fiscal year begins on April 1, "early" could be anytime in the first half, which means it could be as late as September 31.

That's a long way away from your claim of profit by next month.

Second, you don't have any idea how much profit they would be earning. Obviously if they make less than $50 in profit per system, they would lose money doing a $50 price drop, no matter when they started making a profit. So they could be earning $10 in profit per system, do a $50 price drop, and end up losing about $60-80 Million per quarter.


And finally, last time I checked, Walmart doesn't sell anything at a loss. That's how Walmart works. If you think Sony works the same way you should check their $4+ Billion in game division losses since the PS3 was announced and try to explain that.

Loss leaders do not comprise the majority of the store. Retail does make money on most of their inventory. The Loss Leaders are priced as such to get people in the store, see other stuff they need to buy that are not loss leaders. They end up buying more in the process meaning no losses for company X.

A retail store I worked at had an interesting statistic. Consumers who used coupons spent on average $5 more than someone who did not use coupons.