Thank god. Not only Sony saved PS division at that time but also they saved themselves for future (current time). Not to mention console gaming platform. Yeah. Sony saved console gaming from doom at June 10, 2013.

Update:

Update: Shuhei Yoshida clarified on Twitter that his original statements were “a bit misinterpreted,” and not all the studios would have been closed:

it was a bit misinterpreted, no one would have shut down all studios, but thanks

thanks for the article, but my comment was about the organizational set up, not about not needing 1st party or like that

The original story has been updated to reflect Yoshida-san’s clarification.

Source: http://www.dualshockers.com/2014/04/13/sony-could-have-closed-its-first-party-studios-in-2008-but-shuhei-yoshida-saved-them/

Original:

Sony Very Nearly Disbanded Its Entire First-Party Development Division

Posted Sun 13th Apr 2014 08:15 by Sammy Barker

How to save a brand

Sucker punched

Sony’s internal development efforts have always been good, but it wasn’t until the latter half of the previous generation that it really started to transform its first-party products into major selling points. Titles such as Uncharted 2: Among Thieves and God of War III were not just great games, they were genre defining – and they helped to transform the struggling PlayStation 3 into a must-own machine.

However, things could have been different. Speaking as part of a fascinating question and answer session with PlayStation 4 lead architect Mark Cerny, Worldwide Studios president Shuhei Yoshida revealed that the company actually considered scrapping its internal development operations shortly after the departure of former boss Phil Harrison in 2008. Apparently, internal conversations at the company were questioning the need for the division.

Yoshida didn’t agree, and so he consulted then-chairman Akira Sato, before pitching group gaffer Kaz Hirai on a scenario in which he would lead the firm’s roster of wholly owned development outfits. Whatever he said, the meeting clearly went well, because Sony's first-party division has blossomed over the past five or so years. It’s also expanded under the affable executive’s watchful eye, with teams such as Sucker Punch and Media Molecule being added to the portfolio.

Most interestingly of all, it was around this time that the platform holder started to poll its internal teams on what they would like to see in the manufacturer’s hypothetical next-gen console. Seeing as that collaboration between developers and engineers has been cited as one of the fundamental reasons behind the PlayStation 4’s success, we reckon that Yoshida and his team are owed a big bonus. As Engadget puts it, from the edge of extinction to the backbone of PlayStation is Hollywood plot material.

Source: http://www.pushsquare.com/news/2014/04/sony_very_nearly_disbanded_its_entire_first_party_development_division

We didn't really need any more proof that Shu is God, but there it is.

That would have been an interesting what if. It would have crippled the PS3, that's for sure, but also would have forced them to make the PS4 yet more focused on what 3rd parties want.

I still find it hard to believe, though, since Sony tends to run in a loss-leader direction, and first party software is a good way to recoup costs there.

Weird.

Thank god they didnt or else I would have had to pay for online in the 7th gen

What?! We almost lived in a world with no Naughty Dog and the Last of Us never made?! That is horrible! Sony saved themselves. Those studios are why I bought a PS4. Well, that and the price :)

I wish all console makers would consult devs at the initial stages of console design. Smart move.

well, that would have been an incredibly stupid move. beyond stupid actually.

Exactly my thoughts. Before reading, I liked the guy. Now he's just the greatest.

Internal teams, yeah. Nintendo is criticized for listening too much to their own internal teams in designing hardware, because of the contrary nature of Nintendo software design to, especially, major Western software design.

This must be why Nintendo banned Shu from Miiverse.

Thank god they didn't... That would have literally left it on third party devs to make exclusives, and we all know how often those happen... A console built solely on multi plats, especially a console that had severe difficulty running multi plats better than the competition, would have spelled an extremely quick death. SWS saved the PS3, and they've been doing a fantastic job on PS4 thus far. They'll be half of the key to the PS4's ever going success down the road.